Cyprus is facing the severe consequences of climate change; robust model predictions forecast a worsening situation in terms of water precipitation and extreme weather conditions. Precipitation has dropped noticeably in the past few years and continues to decrease at a rate of 1mm of rain per year on average. Temperatures which have been increasing at a rate of 0.01°C on average during the last part of the 20th century, will increase demand and make less efficient the storage of water. A number of projects have been carried out to maximize storage capacity, nevertheless the overall long-term situation is deteriorating in the face of increasing demand for water. It is generally accepted that the only viable, long-term, solution for covering Cyprus’ needs for water, in addition to improved management of its storage and use,  lies with desalination of sea water which however requires a lot of energy and poses environmental risks.

Cyprus is dependent on oil (mostly heavy oil), for energy production at a rate of 98%. Natural gas which is anticipated to arrive to Cyprus in the next five years is also an imported commodity and its price subjected to outside factors. Isolated from continental power grids, all energy production is taking place on the island. Electricity demand has continued to at a steady rate and although steps have been taken to ensure meeting Cyprus’ needs, they also depend on fossil fuel (oil), which will exacerbate the environmental stress.

Cyprus is required to meet the EU environmental standards which demand that by 2020, 13% of Cyprus’ energy consumption must come from renewable sources and greenhouse gases emissions (CO2 especially) must be reduced by 20%.

The above reasons have formed the basis for the Cyprus Institute’s proposal to the Cyprus Government for the innovative solution of co-generation to tackle both problems of electricity production from renewable energy sources and desalination simultaneously.