Social Costs and Benefits of Renewable Electricity Generation in Cyprus

This book presents an economic cost-benefit assessment of the penetration of renewable power generation in Cyprus up to 2030. Unlike a purely financial appraisal, we employ a social cost-benefit analysis that is mainly relevant for policy makers, taking into account – apart from direct financial costs – external costs and benefits from the diffusion of renewable electricity. The book presents a comprehensive yet straightforward case study, probably the first one conducted for Cyprus.

Electricity produced by renewable sources increased worldwide
at its fastest rate to date in 2014. Driven by policies to mitigate climate
change, enhance energy security and reduce air pollution, and by declining costs
of major technologies, renewables account for almost all net new power
generating capacity in the developed world. In this context, Cyprus is
increasingly adopting renewable power generation as well. In addition to its
energy and environmental commitments as a member of the EuropeanUnion, the
country wishes to diversify its energy supply in order to drive down
electricity costs and reduce energy supply risks. A significant deployment of
renewable electricity is foreseen in the coming decades. Is it economically
justified for a small country with an isolated electric system like Cyprus.