Project Title 

Overall Objective 

Output

Location

Background Information

In line with the Green Deal, EU member states need to increase the share of renewables and reduce greenhouse gas emissions. The EU’s average share of renewables in final electricity consumption was 37.5% in 2020, but only 12% in the Greek Cypriot community, and 8-9% in the Turkish Cypriot community. Both communities produce electricity from fuel, which is carbon-intensive, polluting and expensive. Moreover, the fuel-based electricity generators are old and in-efficient. The two electricity grids are already connected, and both communities provide electricity to each other when needed, in line with an electricity sharing agreement from 2015.

This particular intervention is the first step of a pilot project that could open the possibility for more investments in bi-communal renewable energy projects helping both communities to reach their energy needs while bringing both communities closer to meet the targets of the Green Deal.

This pre-feasibility is a prerequisite to better understand what the technical characteristics for a viable bi-communal renewable energy project should be, as well as the conditions that will need to be put in place to support such investments. It will be the basis for further discussions between the two communities in the implementation of such a project.

Type of investment

Description of investment

The main specific objective of the assignment was to develop a comprehensive pre-feasibility study for the implementation of a bi-communal solar power plant project of 30-50 MW capacity in Cyprus, including the identification of a couple of viable locations, including one in the UN Buffer Zone, and the most-promising technical option(s). The pre-feasibility study was to look at the technical, regulatory, environmental, economic and financial aspects of the project.  

The objectives of the Pre-Feasibility Study included the following:

• To conduct a detailed analysis of the project environment and definition of the project scope
• To identify at least two suitable locations for the bi-communal solar power plant
• To identify and analyse of potential technical solutions
• To assess the potential economic benefits and robustness of the investment
• To identify and analyse the risks associated with the project.

It was conducted through a set of seven assignment outputs:

• Assignment Output 1 – Detailed Background and Scope
• Assignment Output 2 – Key Technology, Financial Figures, Project Size and Siting
• Assignment Output 3 – Environmental and Social Aspects
• Assignment Output 4 – Risks and SWOT Analyses
• Assignment Output 5 – Solution Prioritisation
• Assignment Output 6 – Application for Construction and Operation License
• Assignment Output 7 – Final Report

Actions taken by UNDP

1. Preparation of Terms of Reference
   Completed in January 2023
2. Preparation of Terms of Reference for the four Energy Experts
   Completed in May 2023
3. Procurement of professional services (Company - RfP)
   Completed in June 2023
4. Contracting of Energy Experts
   Completed in September 2023
5. Implementation of the Services
   All outputs completed in January 2024 

Conclusion of Study

During the implementation of the professional services, the parameters of the analysis were set following intensive discussion with all relevant parties. 

The parameters are:  

• The power plant should be powered by renewable energy only.  
• The power plant must have the capacity to store energy between 2 and 4 hours.  
• It should be located in the Buffer Zone, preferably only on public land.  
• Both communities should benefit from the electricity generated.  
• The overall investment should be in the order of EUR 50 million.  

Based on the above, the solution proposed is to establish a power plant equipped with photovoltaic panels (PV) able to generate 36 MWp of energy and a battery energy storage system (BESS) with 3 hours capacity. For the same level of investment, an increase of energy storage capacity would result in a decrease of power generation and land requirement, and vice-versa.