The European region have, over the years, employed diversification of energy resources in trying to resolve the overarching challenge of rising dependence of energy imports and increasing greenhouse gas emissions. Some key issues highlighted by the European Commission relating to energy sector in the region include (Van Wees, Uyterlinde, & Maly, 2002)
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a clear structure for matching local energy in a nation with energy policies
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the internal energy market (gas and electricity directives) including improvement of Trans-3 European Energy Networks
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emergency arrangements, notably establishing 90 days of mandatory oil stocks
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social and regional consequences of restructuring the solid fuel sector
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structuring of nuclear energy safety standards
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Improving energy efficiency and increasing the production of the use of renewable energy.
As a result, the European Commission has launched a series of long-term low-carbon policy objectives and has looked into pathways to reduce GHG emissions in important sectors including power and transportation. Regarding promoting the use of renewable energy, there is a common target in the European Union of increasing the share of RE in final energy consumption (Ćosić, Krajačić, & Duić, 2012). The “White Paper for a Community Strategy and Action Plan, Energy for the Future: Renewable Sources of Energy” was adopted by the European Commission in December 1997 (1996a, 1997) (Harmelink, Voogt, & Cremer, 2006). By 2010, the goal was to expand the usage of renewable energy sources (RES) to 12% of total inland energy consumption in the European Union (EU) (del Río, 2017). The target for 2020 included a 20% cut in greenhouse gas emissions (from 1990 levels), adoption of 20% RES, and 20% improvement in energy efficiency. In driving RE production and increasing energy conservation in the European Union, several efficient policies have been proposed. This has led to increase in RE share in electricity generation, growing from 14.8–25.4% between 2005 and 2013 (Eurostat, 2015), largely tied to rise in investment in solar and wind energy. The Renewable energy sources for electricity (RES-E) Directive for 2010 and for 2020, arguably, have aided in the broadening and acceleration of an already existing trend in numerous countries by leveraging strong growth in renewable energy production (OECD/ILO, 2019; Spencer, Colombier, & Ribera, 2013). However, due to the disparity in renewable energy consumption in the European region, the Renewable energy directive (2009/28/EC) was revised. The new directive (2018/2001), which took effect from December 2018, employs the European Union to increase RE production to 30% by 2030, as compared to the 1990 levels. Among the European Union members, the highest share of RE is in Finland, with 41%. Latvia, Denmark, and Austria follow with high RE integration of 39%, 36%, and 33% respectively (EC, n.d.). Luxembourg (6%), the Netherlands and Malta (7%), Belgium (9%), Cyprus and the United Kingdom (10%), on the other hand, had the lowest percentage of renewables (EC, n.d.). Some of the reasons for the disparity in the transition to renewable energy in the European states is that not all countries commenced the transition from similar position, and also they have differing levels of facilities (technological status). Furthermore, the location of energy generation: local or imported, constitute a crucial basis in the pathway towards RE energy transition. It is worth noting that in the EU, about 45% of the energy generated is sourced locally, while 55% is imported. Most of the countries with slower transitioning to high scale RE generation, is usually tied to extensive use of energy imports. More action is required, particularly in countries that rely heavily on energy imports. High-energy-importing countries like Cyprus should face less capacity restrictions in pursuing a more aggressive transition to renewables, and they should be more motivated as a result of rising energy price volatility (Kahia, Aïssa, & Lanouar, 2017).
In European states, all sectors, with the exception of transportation, have already cut their emissions in comparison to 1990 levels. On a worldwide (IEA, 2012b) and European (Eurostat, 2013) scale, the transportation industry, which accounts for around 20% of total emissions (IEA (International Energy Agency), 2012), is still expanding its greenhouse gas emissions (GHG). Therefore, the transport sector also constitute an essential component to achieving GHG emission reductions, as currently a quarter of Europe`s GHG emissions is produced from this sector. The road transport having a share of 70% in the total transport GHG emissions, point to the need for green road transport means in low carbon mobility (Xu, Yilmaz, Wang, Poganietz, & Jochem, 2020). The EU has set a target of reducing the GHG emissions from transport by 54% in 2050 (Otter, 2018). One of the approaches to achieve this target is the use of electric vehicles (EV), which include battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) (Plötz, Schneider, Globisch, & Dütschke, 2014). It is worth stating that the incorporation of EVs in the transport sector have the potential of significantly cutting down emissions, as they will unsettle the dominance of fossil fueled cars (Khaligh & Li, 2010). Even though their indirect emissions may be significant, European regulation nevertheless considers BEVs to be zero-emission vehicles (Jochem, Babrowski, & Fichtner, 2015). Several researchers have studied the integration of grid system in Europe. Hartmann and Özdemir (Hartmann & Özdemir, 2011) in their study considered three different scenarios for charging electric vehicles in German grid in 2030.. Their study concluded that there will be an estimated 89% availability of passenger cars in Germany that can be plugged into the grid system. Also, it was measured that maximum daily revenue of V2G activities (vehicle to grid) activities was 0.68EUR2009. A study by Fernandez (Fernández, 2021) considered the feasibility of uncontrolled electric vehicle charging from the grid at a specific time in Spain. Their analysis reported a spike in the daily demand of electric power and peak consumption, which would be unmanageable. Their study suggested that to efficiently implement electro-mobility in Spain, vehicle charging should be done during working hours.
Considering the promotion of renewable energy is gaining priority in the EU for its contribution to security and diversification of supply, for environmental protection (including climate change abatement), and for reasons of social and economic cohesion, the mobilization of low carbon pathways (through renewable electricity, and V2G would support the carbon footprint reduction of EU nations). The potential transition to 100% local energy production by 2050 in Latvia was discussed in a study by Porubova (Porubova & Bazbauers, 2010). The 100% renewable energy integration into the Latvian grid system was estimated to be feasible in the condition that there is 20% increase in primary energy demand by 2050, relative to 2008 demand. The utilization of Biomass resources which has over 30 TWh annual resource capacity was stated to play a significant role for electricity and heat production. An important conclusion mentioned in their study was that for 100% self-sufficient energy production, the Latvian energy system cannot only depend on renewable energy systems which are economically feasible in the short term (like Biomass), but rather must those systems which are economically less attractive in the short run(like wind power, and solar photovoltaics (PV)). In a similar vein, different strategies of future renewable energy integration into the Portuguese grid was analyzed by Liliana et al. (Fernandes & Ferreira, 2014). Their study constructed three (3) reference scenarios: scenario 1 being based on year 2020, with inclusion of wind, hydro, and PV power plants, scenario 2 being based on forecast of year 2022, which rely heavily on higher electricity consumption, and scenario 3 being based on a 100% RE target electricity production. In the 100% RE, their study considered PV system, wind power, wave energy, and hydropower. Their result showed that the share of RES in the total electricity was 55%, 68%, 82% and 100% for the reference scenario, scenario 1, scenario 2, and scenario 3 respectively. Their study conclusively stated that a 100% RES was theoretically achievable, however, it would lead to a significant increase in the total capacity of the system, to ensure no shortfall during the periods of low RES availability. Steps towards 100% RE integration for electricity, heat and transport sector in Ireland was modelled by Connolly et al. (Connolly, et al. 2011). Their study simulated four 100% renewable energy scenarios: scenario 1 was a biomass energy system (BES), scenario 2 was hydrogen energy system (HES), scenario 3 was electricity from RE (EES), and scenario 4 was a combination of BES, HES, and EES scenarios.
Cyprus continues to be one of the European Union's most energy import-dependent countries. It is of worthy note that Cyprus is also the only EU member state whose electricity grid is not connected to the European power network, as it uses an independent network that relies on local production (Demetriou, Mallouppas, & Hadjistassou, 2021). The source of electricity production in the country is 91% from diesel and heavy fuel oil. Furthermore, the emission from electricity and transportation sector in Cyprus accounts for 47% and 30% (67% from vehicles) of the total emission respectively. In cooperation with the EU vision to reduce GHG emissions, Cyprus has set reduction target of 42% GHG targets by 2030 (Cyprus Department of Environment Seventh national communication & third biennial report, 2018). Meanwhile, Cyprus has a lot of solar energy potential, as well as some wind and biomass energy (Mesimeris, Kythreotou, Partasides, & Piripitsi, 2019). Solar water heating systems are used by 92% of residences and 53% of hotels. According to a survey conducted by the European Union, Cyprus is a pioneer in the field of solar thermal applications, having built around 1 m2 of collector area per capita (Alexopoulos & Hoffschmidt, 2010).
Several studies exist in literature regarding renewable integration in grid system, as a veritable resource in the discourse of the EU resolution to meet the GHG reduction targets. However, there is a lack of research attention in countries with high importation of energy, like Cyprus, as this factor affects the transition to 100% RES. This study presents 8 scenarios for renewable energy future of Cyprus based on RES integration in electricity and transportation.
The current state of the energy system in Cyprus is carried out using the Energy PLAN program. This study intends to focus on renewable energy integration in electricity and transportation, as this would serve as a sustainable pathway to reduce the high GHG emissions in the power and transportation sectors. To the best knowledge of the authors, no previous study have investigated different scenarios of combinations of renewable energy sources, and 100% renewable energy. Furthermore, this study aims to discuss the technical and economic feasibility of renewable energy in Cyprus, and also policies that can ensure penetration of RE in the grid system. Despite the fact that the article concentrates on Cyprus, many of the conclusions are applicable to other Central and Eastern European candidate nations, especially those with high energy imports as the impediments to optimum renewable energy integration, as well as the requirements for EU membership, are largely the same.
Energy Situation in Cyprus and Need for Renewable Energy Integration
The location of Cyprus is set in the north-eastern segment of the Mediterranean Sea, at 33oE, and 35oN of the equator. Covering an estimated area of 9251 km2, with 1733 km2 covered with forests, Cyprus is the third biggest Mediterranean island, behind Sicily and Sardinia. The energy situation in Cyprus is one that demands crucial analysis especially upon the context of renewable energy development. The Island, is heavily dependent on fossil fuels imported from neighboring countries. The Fig. 1 shows the total energy supply for Cyprus in 2019 (IEA, 2021b). It is seen that 89% of its energy is sourced from Oil, and coal accounts for approximately 1% of its energy supply. Solar energy (5%) is the only renewable energy source harvested in Cyprus for meeting electricity demands. According to a study by (Koroneos, Fokaidis, & Moussiopoulos, 2005), it was stated that Cyprus utilizes 62% of its export earnings for covering the oil importation cost. Table 1 reveals that the import of primary energy (oil) increased from 98068 TJ in 2013 to 112590 TJ in 2018, which represents a 14.8% increment. This is tied to the increase in the energy demand on the Island. It is worth noting that the electricity consumption in Cyprus was 16793 TJ in 2019, which represented the highest energy consumption by source, aside oil (IEA).
Electricity situation in Cyprus
Considering that Cyprus lacks primary energy sources, the Electricity Authority of Cyprus (EAC) relies only on imported fuel, primarily heavy fuel oil, to generate electricity. The EAC currently owns and operates three power plants (Table 2) with a combined installed capacity of 1478 MW ((EAC), 2021). The thermal efficiency of all power plants, particularly those with 60 MW fuel oil powered steam boiler units, are low. The efficiency of these units may be as low as 31%, having a direct impact on the total power system's economic operation.
Table 1
Primary energy trade in Cyprus (2013 and 2018) (E. Profile, 2008)
| 2013 | 2018 | % Increase |
Imports (TJ) | 98068 | 112590 | 14.8% |
Exports (TJ) | 0 | 0 | 0 |
Net trade (TJ) | − 98068 | − 112590 | -14.8% |
Imports (% Supply) | 125 | 123 | |
Exports (% Production) | 0 | 0 | 0 |
Net trade (USD million) | -1529 | -1023 | 33.09% |
Net trade (% of GDP) | -6.4 | -4.0 | 37.5% |
Table 2
Cyprus Power station capacity ((EAC), 2021)
Power stations | Generating Units | Capacity |
Vasilikos | 3 × 130 MW Steam Units | 390 MW |
1 × 38 MW Open Cycle Gas Turbine | 38 MW |
2 × 220 MW Combined Cycle Gas Turbine Units | 440 MW |
Dhekelia Power Station | 6 × 60 MW Steam Units | 360 MW |
2 × 50 MW Internal Combustion Units | 100 MW |
Moni Power Station | 4 × 37.5 MW Open Cycle Gas Turbines | 150 MW |
| Total Installed Capacity | 1478 MW |
Cyprus' electrical grid has similar issues to that of other large Mediterranean islands such as Crete and Malta. Excessive load growth associated with the commercial sector during the tourist season, low annual load factor with corresponding high peak demand, environmental restrictions associated with the development of new fossil-fired thermal power plants, and high-voltage transmission lines, which are limited if non-indigenous energy sources are used and isolated from large interconnected power grids. Figure 2 reveals that between 1990 and 2020, the electricity consumption have remarkably increased by 152% (IEA, 2021a). This increase is attributed largely to the exponential growth in the influx of tourists in the Island, and also the improvement in the standard of living of the populace.
Argument for Renewable energy production in Cyprus
Apart from the European Union target for renewable energy production for European states (as discussed in the introduction section), which places a responsibility on the government for renewable energy production, several uniquely prevailing issues in the Cyprus energy scenarios creates a huge demand for renewable energy. The trend of increasing electricity demand is bound to continue: as the EAC has estimated an average of 6% annual electricity demand. This will mean that the cost of importation will also increase, and could have negative impact on the economic state of the Island. The need for energy independency and energy security is crucial for the state of the Island. Furthermore, the meteorological service of Cyprus have reported increased temperature on the Island over the years. There has been a cumulative increase of 0.5°C in temperature on the island during the last century, as well as a 12% decrease in rainfall across the entire island, causing severe water shortage situations (Serghides, Dimitriou, & Katafygiotou, 2016). Therefore, based on the report of international energy bodies that electricity production has the most influence on carbon dioxide emissions, it is safe to conclude that increasing the share of renewable energy sources in Cyprus will play a significant role in CO2 reduction and tackling the prevalent water shortage issue. Conclusively, in the case of the RE production, there is also a political point of view to consider. The negotiations for Cyprus and ten other Central and Eastern European countries began on March 31, 1998, when the interested parties signed an agreement for the EU's entry terms. Cyprus joined the EU as a full member in 2003. The comparison of European standards to Cyprus regulations in the energy sector was one of the most crucial steps in the negotiations. The goal will be to identify the differences that need to be addressed so that Cyprus' legislation on this subject is in line with European Union norms. Promoting renewable energy production and increasing energy efficiency is one of the European Union's top priorities in terms of energy policy. The EU has prepared a 'White Paper (Energy for the future: renewable sources of energy. White paper for a community strategy and action plan;COM (97) 599., n.d.)' for the specific topic of RES, which outlines the commission's RES strategy. The fundamental target of the 'White Paper' was for renewable energy to account for 12 percent of total energy production by 2010. To achieve this goal, member states must take steps to facilitate RES access to the energy market and accelerate the implementation of new or current RES technologies.
Renewable Energy Situation In Cyprus
Given the electricity isolation in Cyprus, the country has been making concerted efforts in creating more energy efficient future, in terms of development of renewable energy sources. Currently (2021), the renewable energy production in Cyprus stands at 157.5 MW of wind energy, 125MW from solar energy, and 12.8 MW from Biomass. Cyprus, surpassed the 13% renewable energy production target under the EU-mandated project, as by 2018, Cyprus had installation of 13.8% RES. The country had set a target of installing an additional 360 MW by 2023, and increase RES penetration in the electricity sector to 750MW (utilizing majorly solar energy) (International Trade Association, n.d.). This target is achievable and can be surpassed considering the vast renewable energy resource in the country. It is of worthy note that Cyprus has the highest potential for solar power among all the European Union countries, and it already has the highest solar water heater utilizations (per capita) for domestic use. It is estimated that 90% and 50% of residential and hotels respectively are equipped with solar water heaters (C. Profile, n.d.). An assessment of all available renewable energy sources discussed in the next section would provide a picture of the percentage of energy needs that could be met. Solar energy and wind energy are the two renewable energy sources that have the potential to be used economically and on large scale in Cyprus (Agathokleous, R. A., & Kalogirou, 2020).
Solar energy
Cyprus experiences 340 days sunshine in a year, as every parts of the country enjoys a mild climate with lots of sunny days. In the six-month hot season, Cyprus has about 12 hours of bright sunshine daily, and about 6 hours of sunshine hours per day during the cold season (Fig. 3). The cloudiest periods on the high mountains during the winter season still experience, on average, about 4 hours of bright sunshine daily, which shows the abundance of solar energy resource in the country. The average daily global solar radiation varies from 2.3 kWh/m2 in the cloudiest months of the year (December and January), to 7.2 kWh/m2 in July (Michaelides, J. M., & Votsis, 1991). The value for the annual global horizontal solar irradiation is between 1716 and 2008 KWh/m2, as shown in the Fig. 4.
Solar energy, despite its abundance in Cyprus, is widely and exclusively used in domestic hot water system application. There is presently no commercial application of solar energy sources. Furthermore, despite substantial cost reductions, with a 25% cost reduction in the last five years, solar electricity is hardly fulfilled on the island in terms of photovoltaics. This study views this situation as limitation in the country`s effort in creating a more independent energy scenario. A model will be developed in this study that would simulate a scenario of 100% solar energy technologies (using photovoltaics, and concentrated solar power), to assess the technical and economic output of such practical design in future energy development in Cyprus.
Wind energy
Western or south western surface winds dominate in winter and northwestern or northern surface winds dominate in summer (Pashardes & Christofides, 1995). They are usually light to moderate in strength, rarely reaching gale force. Winds are quite diverse in direction over Cyprus, with orography and local heating effects having a key role in determining local wind direction and strength. Sea and land temperature differences, which accumulate everyday throughout summer's major clear sky periods, create strong sea and land breezes. The wind regime of Cyprus is impacted by three key factors: (a) eastward moving cyclones, (b) huge temperature differences between the sea and the land, and (c) the mountain ranges, where local wind systems occur. However, despite the fact that high wind potential is not common in Cyprus, numerous sites have been found as having annual mean wind speeds more than 5 meters per second at 10 meters height. These areas include the island's southern coast as well as a few mountainous regions that are particularly exposed. These locations appear to be excellent candidates for the installation of wind turbines (Pashardes & Christofides, 1995). The mean average speed is roughly 4 m/s, as illustrated (where). Recently, the EAC issued a large-scale tender for the establishment of Cyprus's first wind farm. An important part of the project is the construction of four 1.5–2 MW Wind Turbine Parks near the Kouris Dam in Limassol District. This Tender also involves the provision and installation of one 1.5–2 MW Wind Turbine at Vasilkos Power Station (Koroneos et al., 2005).