///

Cyprus renewables: bright skies, fading opportunities

2538 views
4 mins read

A Promising Start With a Disappointing Reality

By Andreas Procopiou

Six years ago, Cyprus embarked on an ambitious path towards renewable energy, aiming to harness its abundant Mediterranean sun and wind power.

By 2024, the proportion of renewable energy sources (RES) in the island’s energy mix increased from 9% in 2018 to 23% (Figure 1). Installed capacity almost tripled, from 280 MW to 967 MW (Figure 1), mainly thanks to photovoltaics, followed by wind and biomass.

Although this growth gives the impression of success, the reality is more complex.

Despite the significant increase in capacity, Cyprus is struggling to fully utilise the energy produced by its RES infrastructure. The constraints of its inflexible conventional generation plants and outdated grid are undermining the island’s progress, leaving much of its green potential untapped.

Figure 1 RES Installed Capacities and Rate of Change per Year (www.cyprusgrid.com)

The Fading Impact of Renewables

Despite this exciting expansion in RES installed capacity, the actual contribution of each installed megawatt to the island’s electricity demand has declined over the years.

In 2018, each megawatt of RES contributed significantly more to the island’s total demand than today. By 2024, this contribution (per megawatt) had fallen by 22%, a sobering reminder that growth on paper does not always translate into real progress (Figure 2).

This growing inefficiency highlights a fundamental incompatibility: the electricity system has not evolved to keep pace with the rapid expansion of renewables. Instead of powering homes and businesses with clean, renewable energy, a significant portion of the energy generated from RES goes to waste.

Figure 2 Contribution of RES to Total Demand (www.cyprusgrid.com)

Conventional Plants Holding Renewables Back

At the heart of Cyprus’ energy challenges are the conventional electricity generation plants, which operate under rigid constraints [1].

These fossil fuel generating plants, known as “must run” units, are required to produce electricity at a minimum stable generation to ensure grid stability. Unfortunately, this arrangement leaves limited scope for RES, even when solar and wind generation is high.

For example, if the electricity demand is 600 MW and conventional plants must generate at least 350 MW, only 250 MW of renewables can be absorbed, regardless of whether PV or wind turbines could provide more. This inflexibility is a major obstacle, preventing the full exploitation of Cyprus’ renewable energy potential.

Wasted Energy, Wasted Potential

The implications of these restrictions are staggering.

In 2022, nearly 10,000 MWh (3.3% of total) of RES energy was wasted (literally), equivalent to the energy needs of around 1,600 households for an entire year. By 2023, this figure had increased sixfold, exceeding 59,000 MWh (13.4%), equivalent to the annual consumption of 10,000 households.

In 2024, the problem worsened dramatically, with more than 166,000 MWh (29% of total) of renewable energy unused. This energy that was simply thrown away, was equivalent to the yearly energy needs of around 28,000 households.

In just two years, RES curtailments (Figure 3) have multiplied 16-fold, highlighting the growing gap between Cyprus’s renewable energy ambitions and the capacity of its infrastructure to support them.

Figure 3 Average Daily RES Curtailment Per Year

The Cost of Wasted Energy

The consequences of wasted energy from RES are not only environmental, but also financial.

In 2024, the cutback of 166,000 MWh of green energy resulted in an additional 100,000 tonnes of CO₂ emissions, as conventional plants filled the gap.

Because of filling the gap with conventional fossil fuelled generation plants, this led to around €7 mln in CO₂ emission rights, a cost that was passed on customers’ electricity bills.

To put it in perspective, this €7 mln could cover the annual electricity bills of 39,000 households, assuming an average consumption of 6,000 kWh per year at a cost of €0.30/kWh.

This is not an isolated issue. In the last four years, Cyprus has spent a staggering €1 bln on CO₂ emission rights (Figure 4).

These funds could have been better utilised to upgrade inflexible conventional generation plants, modernise the grid, invest in energy storage, or implement innovative solutions to prevent such losses. Instead, consumers and the environment were left to bear the cost, all while the status quo was maintained.

Figure 4 Yearly CO₂ Emissions and Cost (€)

 

Falling Behind As Others Forge Ahead

Cyprus is not alone in facing challenges with renewable energy integration, but its performance stands in stark contrast to other countries.

Ireland, for example, generates 33% of its electricity from wind power and has kept curtailment levels below 10% by investing in grid flexibility and storage.

Similarly, Spain, which boasts one of the highest RES shares, achieved nearly 40% of its electricity from wind and solar PV in 2023, with renewables accounting for over 50% of total generation last year.

Despite this impressive renewables penetration, Spain has maintained curtailment levels below 5%.

Germany, where nearly 40% of electricity comes from renewables, also keeps curtailment levels between 1% and 5% through advanced grid management and demand response systems. [2]

A Way Forward

The path to fully exploiting Cyprus’ renewable energy potential is clear, but it requires bold actions.

Modernisation of the grid is necessary to be able to manage the variability of RES generation. Investments in energy storage solutions, such as large batteries, are critical to harvesting excess energy.

Smart grid technologies and demand management systems can also help align electricity consumption with the availability of renewables, ensuring that green energy is used when it is plentiful.

A Future Worth Fighting For

The story of renewable energy in Cyprus is both a story of progress and missed opportunities.

Within six years, the island tripled its RES installed capacity and increased their share to the total demand from 9% to 23%. However, this progress is undermined by an inflexible and outdated system that wastes almost a third of the energy produced from renewables.

Without immediate investment in grid flexibility and energy storage, Cyprus risks losing its renewable potential. The path to a cleaner, greener future is far from over.

To truly embrace the power of RES, Cyprus must ensure that every kilowatt-hour of green energy is fully utilised, ensuring a sustainable future for generations to come.

 

Dr Andreas Procopiou is a former Senior Research Fellow in Smart Grids at the University of Melbourne and Researcher Engineer at the Électricité de France R&D.

www.andreasprocopiou.com