As part of its commitment to combating climate change, Cyprus is focused on reducing its carbon intensity and increasing the share of Renewable Energy Sources (RES) in electricity generation. By 2030, the goal is to achieve a RES share of 31% in the electricity sector. This target aligns with broader European Union goals and the Paris Agreement, marking a critical step towards a sustainable future.
Cyprus is uniquely positioned to take advantage of its natural resources, particularly solar energy, thanks to the island's high solar irradiance. This provides significant potential for the expansion of solar photovoltaic (PV) systems. Additionally, onshore wind energy projects are already underway, with potential for offshore wind developments as well.
Energy storage is a critical component of this strategy. Integrating battery storage systems will not only stabilize the grid but also enable a higher penetration of renewable energy by addressing the intermittency of solar and wind power. By storing excess energy during low-demand periods, these systems can release it during peak demand, reducing reliance on fossil fuels and minimizing curtailment.
For more details on Cyprus's national renewable energy targets, visit the National Targets for Renewable Energy Sources page.
Figure 1: RES Contribution to Electricity Sector
Beyond environmental considerations, carbon emissions in Cyprus carry significant economic costs. The annual expenses tied to carbon emissions reflect the direct impact on the economy and emphasize the importance of transitioning to renewable energy sources.
The chart below illustrates the yearly carbon emissions and their associated costs over recent years. By reducing emissions through increased RES adoption, Cyprus can not only meet its climate goals but also alleviate economic burdens linked to carbon pricing.
Figure 2: Annual Carbon Emissions and Associated Costs
With the updated RES targets and the introduction of natural gas into the energy mix, Cyprus aims to significantly reduce the carbon intensity of its electricity generation. By 2030, the projected carbon intensity is expected to drop to approximately 430.9 gCO₂eq/kWh, down from 700 gCO₂eq/kWh in 2019.
For more details, refer to the official 8th National Communication Report submitted by Cyprus to the UNFCCC.
Figure 3: Expected reduction in carbon intensity from 2019 to 2030
Beyond RES expansion, improving energy efficiency will be critical in reducing overall electricity consumption. Initiatives like building insulation improvements and the deployment of smart grids will enhance distribution, reduce losses, and optimize electricity consumption. These measures will support grid modernization, making it capable of handling the integration of more renewable energy sources.
Technological advancements in power generation, such as combined cycle gas turbines (CCGT), offer higher efficiency than traditional power plants. Additionally, emerging technologies, including green hydrogen, provide opportunities for large-scale energy storage and grid balancing.
A key opportunity for Cyprus lies in the modernization of its energy grid. Grid upgrades are essential to accommodate higher levels of renewable energy and reduce curtailment. Additionally, interconnectors with neighboring countries provide the potential to import electricity from cleaner sources during periods of high demand and export surplus renewable energy during peak generation periods. This will enhance energy security and make Cyprus a regional leader in clean energy.
Despite the promising outlook, Cyprus faces several challenges in achieving its 2030 targets. Curtailment remains a significant issue, with large amounts of renewable energy generation wasted due to grid limitations. This underscores the need for energy storage systems and grid modernization. Grid modernization involves upgrading the electrical infrastructure to better handle the variable nature of renewable energy sources. This includes enhancing transmission capacity, implementing smart grid technologies, and improving grid flexibility to efficiently integrate renewable energy into the system.
Figure 4: Curtailment of RES generation in Cyprus.
As Cyprus continues its journey towards reducing carbon intensity by 2030, it must address both the opportunities and challenges. Achieving the RES target of 31% will reduce carbon intensity to approximately 430 gCO₂eq/kWh, marking a significant step towards sustainability. The combination of grid modernization, energy storage, and interconnectors will be key to Cyprus's future success in its energy transition.
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This project is sourced with publicly available data published by the DSO and TSO of Cyprus. The data and analysis provided are for informational purposes only and are not intended for any commercial use. While every effort is made to ensure the accuracy of the data, no warranties or guarantees are provided.
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