Saturday, April 15, 2023

PROBLEM OF VIABILITY OF ELECTRICITY GENERATION PROJECTS

 Filenews 15 April 2023 - by  Christakis Chatzilaou*



As the world continues to shift towards cleaner and more sustainable energy sources, countries face the challenge of transitioning from traditional methods of electricity generation to renewable alternatives. Cyprus, a small island in the eastern Mediterranean, could not be an exception.

The country's electricity system, due to its small size, faces challenges in relation to the sustainability of planned generation projects, prompting calls for reflection on the need to introduce central planning elements in the context of the development of production projects.

Problem of viability of production projects

The Republic of Cyprus, in the context of its commitments to the European Union and recognizing the need to modernize the electricity sector, has set ambitious targets for the integration of renewable energy sources into the electricity system. However, despite these targets, the country still and will continue to rely heavily on fossil fuels, mainly due to the failure to achieve balanced development of conventional generation projects, combined with renewable energy projects.

It is noted that by 2030 the implementation of a number of important conventional production projects, the arrival of natural gas, increased RES penetration, as well as the operation of the "EuroAsia" interconnection are expected. In case all these projects are mainly developed to meet the demand of the small electricity system of Cyprus, some of them may face a sustainability problem, with a possible impact on the price of electricity.   

It is therefore necessary to address the concerns and concerns raised about the future sluggish exploitation and exploitation of conventional production and gas projects. The pressing question is whether all these competing generation projects are excessive and not absolutely necessary, at least in the form they are being developed, without central planning elements, for Cyprus' small electricity system. These concerns lead to the assessment that the small and isolated electricity system of Cyprus probably does not have a Development Production Plan and everything has been left to market forces to decide.

Introduction of central production planning elements

To address this problem, an approach is proposed with the introduction of central production planning elements as a possible solution. This would entail a more coordinated and strategic effort to plan and develop production, both conventional and renewable, in Cyprus' electricity system. An approach that includes central planning elements in the context of the development of generation projects would allow for a more efficient allocation of resources, enabling the country to prioritize the projects with the greatest potential for sustainable electricity generation.

As part of a central planning system, the integration of energy storage solutions or other emerging technologies, which are crucial to effectively address renewable generation cuts and enhance the safe operation of Cyprus' small electricity system, could also be facilitated.

Challenges in introducing central planning elements

However, there are also challenges in implementing an approach with the introduction of central planning elements. Critics argue that this could lead to bureaucracy and inefficiency. There is concern that the introduction of central planning elements could stifle innovation and hinder the development of initiatives in relation to the development of renewable energy penetration. To address these concerns, the Republic of Cyprus could, inter alia, appoint a special authority, with primary responsibility for overseeing central planning processes, ensuring effective decision-making and coordination among stakeholders.

Despite these concerns, the benefits of introducing central production planning elements in Cyprus could outweigh the potential challenges. By taking a more strategic approach to electrification planning, the country could take significant steps in the transition to a cleaner, more sustainable electricity system. This would not only benefit the environment but would also contribute to Cyprus' long-term economic growth and stability.

An integrated energy plan is needed

In conclusion, the sustainability problems that electricity generation projects in Cyprus will face cannot be ignored. The adoption of an approach that includes elements of central production planning for the small electricity system of Cyprus, offers a sustainable solution to the country's energy challenges, paving the way for balanced development of electricity production. The authorities responsible for electricity in Cyprus should act now and work together to attempt the development and implementation of a comprehensive plan that will ensure the energy future of the island for generations to come.

* Electrical Engineer, with many years of experience in the operation of the electrical system