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The energy subsidisation policies of Cyprus and their effect on renewable energy systems economics


  • Kalogirou, Soteris A.


In this paper, the energy subsidisation policies that are in effect in Cyprus are investigated with respect to their effect on renewable energy systems economics. Two subsidisation policies are investigated, those of renewable energy and fuels. These are contradictory, as one is in favour and the other is against the exploitation of renewable energies on the island, which is the declared Government policy. First, the policy measures are described and their effect on the economic viability of a solar system is investigated by means of an example. This concerns a solar industrial process heat system for which four types of collectors are considered. From the results presented it is clear that renewable energy subsidies create a positive impulse on renewable energies whereas the economic factors improve considerably when the subsidy for fuel is removed, as the expenditure made for the erection of a solar system replaces a more expensive fuel.

Suggested Citation

  • Kalogirou, Soteris A., 2003. "The energy subsidisation policies of Cyprus and their effect on renewable energy systems economics," Renewable Energy, Elsevier, vol. 28(11), pages 1711-1728.
  • Handle: RePEc:eee:renene:v:28:y:2003:i:11:p:1711-1728
    DOI: 10.1016/S0960-1481(03)00062-4

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    References listed on IDEAS

    1. Kalogirou, Soteris, 1996. "Economic analysis of solar energy systems using spreadsheets," Renewable Energy, Elsevier, vol. 9(1), pages 1303-1307.
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    Cited by:

    1. E. Kathy Stuart, 2006. "Energizing the island community: a review of policy standpoints for energy in small island states and territories," Sustainable Development, John Wiley & Sons, Ltd., vol. 14(2), pages 139-147.
    2. Giglio, Thalita & Lamberts, Roberto & Barbosa, Miriam & Urbano, Mariana, 2014. "A procedure for analysing energy savings in multiple small solar water heaters installed in low-income housing in Brazil," Energy Policy, Elsevier, vol. 72(C), pages 43-55.
    3. Chang, Keh-Chin & Lin, Wei-Min & Lee, Tsong-Sheng & Chung, Kung-Ming, 2011. "Subsidy programs on diffusion of solar water heaters: Taiwan's experience," Energy Policy, Elsevier, vol. 39(2), pages 563-567, February.
    4. Yurtsev, Arif & Jenkins, Glenn P., 2016. "Cost-effectiveness analysis of alternative water heater systems operating with unreliable water supplies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 174-183.
    5. Koroneos, C. & Fokaidis, P. & Moussiopoulos, N., 2005. "Cyprus energy system and the use of renewable energy sources," Energy, Elsevier, vol. 30(10), pages 1889-1901.
    6. Patlitzianas, Konstantinos D. & Kagiannas, Argyris G. & Askounis, Dimitris Th. & Psarras, John, 2005. "The policy perspective for RES development in the new member states of the EU," Renewable Energy, Elsevier, vol. 30(4), pages 477-492.
    7. Maxoulis, Christos N. & Charalampous, Harris P. & Kalogirou, Soteris A., 2007. "Cyprus solar water heating cluster: A missed opportunity?," Energy Policy, Elsevier, vol. 35(6), pages 3302-3315, June.
    8. Wei-Min Lin & Keh-Chin Chang & Kung-Ming Chung, 2019. "The Impact of Subsidy Programs for Solar Thermal Applications: A Case Study for a Remote Island," Energies, MDPI, Open Access Journal, vol. 12(20), pages 1-11, October.


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