Cyprus’ energy challenge arises from its expanding economy and rising standard of living. Its prosperity and way of life are sustained by energy use. Cyprus has to rely almost exclusively on imported fuels to satisfy its energy needs. The contribution of RES was 4.5% of the final energy consumption, in 2008. Thus, more than 94% of total energy consumption is supplied by imported fuels.

The new Support Scheme covers the period 2009-2013, provides more generous incentives than the previous one and sets more ambitious targets for increased utilization/contribution of the country’s main renewable energy sources, to the total electricity consumption and, overall, to the total energy balance. Additionally, it includes a financial mechanism to encourage electricity production from large scale RES investments and proposes strategies to eliminate administrative obstacles.

Today, about 3MW of photovoltaic systems and 4.4MW of biomass utilization units have been installed. In addition to this, the subsidy agreement between the Special Fund and the owners of the first wind park of the island of a total capacity of 82MW has already been signed and the park will be in operation by the end of 2010. This wind park is estimated to contribute around 2 to 3% to the island’s electricity production from RES.