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 worldwideat its fastest rate to date in 2014. Driven by policies to mitigate climatechange, enhance energy security and reduce air pollution, and by declining costsof major technologies, renewables account for almost all net new powergenerating capacity in the developed world. In this context, Cyprus isincreasingly adopting renewable power generation as well. In addition to itsenergy and environmental commitments as a member of the EuropeanUnion, thecountry wishes to diversify its energy supply in order to drive downelectricity costs and reduce energy supply risks. A significant deployment ofrenewable electricity is foreseen in the coming decades. Is it economicallyjustified for a small country with an isolated electric system like Cyprus.