2021-10-14-IRENA-Renewable_Energy_Roadmap_for_the_Republic_of_Cyprus_16页_2mb

Summary of Renewable Energy Roadmap for the Republic of Cyprus

Cape of Cyprus faces high electricity costs due to reliance on liquid fuels for power generation. The country is transitioning to renewable energy to reduce costs, import dependency, and environmental impacts, aided by natural gas discoveries and falling renewable costs. The roadmap analyzes six scenarios based on energy sector developments, including natural gas availability and interconnectors, to assess optimal renewable deployment by 2030.

Key findings show that renewable energy can provide 25% to 40% of Cyprus' electricity in 2030, with solar PV being the dominant source (15–27% share), followed by wind (5–9%). This could lower generation costs from around €130/MWh in 2013 to €83–92/MWh by 2030, potentially creating 11,000–22,000 jobs by 2030. Renewables deployment in synergy with natural gas can reduce costs.

The roadmap recommends maintaining or modifying policies to encourage renewable integration. For example, switching from net-metering to net-billing schemes can promote self-consumption and grid participation. Minimizing technical barriers, improving forecasting, and supporting flexible thermal generation are crucial for reducing integration costs. Industry-specific energy efficiency policies in tourism could further boost renewable penetration.

Eight scenarios highlight that delaying natural gas deployment or imposing current technical constraints limits renewable growth. Policy changes in electricity market design and ancillary services could enhance competitiveness. Countries like Cyprus, dependent on imports, could save significantly by accelerating renewable adoption, displacing diesel and heavy fuel oil costs.

To position Cyprus for future energy policy, long-term modeling capacity should be developed to evaluate policy impacts quantitatively. Continued cooperation and clear market rules are essential to achieve renewable targets and lower costs sustainably.