The feasibility of the introduction of natural gas into the electricity production system in the island of Crete (Greece)

•The introduction of NG in Crete's electricity system is economically feasible.•The CO2 annual emissions (electricity) are reduced by 61% compared to the 2013 ones.•The dependence of the electricity system on imported energy sources remains.

This article examines the technical and economic feasibility for the introduction of natural gas for electricity generation in non-interconnected insular systems. In such systems, the introduction of natural gas constitutes a fundamental perspective towards the substitution of oil or coal, commonly used for electricity production. On the contrary, the expensive transportation of natural gas for long overseas distances, the required technical infrastructures and the expected limited consumption of natural gas in islands with low populations, constitute issues that can negatively affect the feasibility of the project.The aforementioned tasks are examined in the present article for the island of Crete (Greece) chosen as a case study. The size of the island and its consequent electricity consumption create the fundamental prerequisites for the introduction of natural gas. The annual operation of the existing system and the new one, as it would be modified after the natural gas introduction, is simulated using all the required parameters and data as provided by the utility company. The annual production specific cost is calculated for both systems and the economic benefit from the substitution of oil with natural gas is evaluated. The CO2 annual emissions are also calculated for both systems.The annual electricity production cost in Crete with the introduction of natural gas is reduced 38%, while the CO2 annual emissions are reduced 54%, compared to existing levels in 2013. The required investments exhibit a payback period above 3.5 years. On the other hand, the energy dependence of the island on imported energy sources remains.