Cyprus – high time for an energy mix

We here in Israel were sorry to hear about Wednesday’s malfunction at the Dhekelia power station. Providing reliable electricity is a basic function of governments worldwide. The presence or absence of reliable power can drive or break economies and governments. Clearly, in light of last July’s explosion and Wednesday’s event there is a state of emergency in Cyprus when it comes to reliable power and a greater energy mix is needed for energy security. For all the concern on the price of electricity, reliable power is priceless when looked at through the lens of national interests and the downgrading of Cyprus’s credit rating to junk by Moody’s last month.
Emergency situations call for emergency actions and bold leadership. The solution could be close at hand. We here in Israel in the last two years have installed about 150 MW of solar power and project that in the next year alone an additional 300 MW is expected to be grid connected. This is only after a modest effort by government working with the private sector.
An additional 200 MW of solar power could be built in Cyprus within the next 12 months if an open license-based system is instituted with the tariff being today’s consumer price of about 18 euro cents, which would be among the lowest solar tariffs in the EU. Tenders could take years to complete their processes, review and decisions, failing to meet the present needs of the people or the economy.
Guidelines on licenses usually include meeting basic financial criteria, site design and project experience. In Cyprus, to expedite the regulatory processes, a commitment by the Ministries involved to fast track approvals would be needed. The speed at which approvals can be granted is usually the domain of city clerks. The Minister of Interior can, in an emergency situation, expedite zoning issues, and should consider doing so on the first 200 MW of solar license applications that come with land. Natura 2000 zones must also still be protected.
What will happen in the next few weeks is the diesel companies will once again swoop down on Cyprus and prey on the current situation which will increase the cost of electricity whereas PV could have already been implemented since last July’s electricity crisis.
While the introduction of natural gas in 2016 or later will provide a greater energy mix, Cyprus clearly needs more reliable energy now and PV can provide that relatively quickly. Perhaps the government could financially leverage the future gas production and profits now to underwrite an emergency solar program.

Yosef Abramowitz is the President of the Arava Power Ccompany, Israel’s leading solar developer.