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3 National Energy Efficiency Action Plan of Cyprus

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3 National Energy Efficiency Action Plan of Cyprus 3RD NATIONAL ENERGY EFFICIENCY ACTION PLAN OF CYPRUS DIRECTIVE 2012/27/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EC, and repealing Directives 2004/8/EC and 2006/32/EC Nicosia April 2014 Abbreviations NEEAP = National Energy Efficiency Action Plan EED = Energy Efficiency Directive (Directive 2012/27/EU) EPBD = Energy Performance of Buildings Directive (Directive 2010/31/EU) GNP= Gross National Product TOE = Tons of oil equivalent RES = Renewable Energy Sources EU = European Union ES = Energy Savings SEAP = Sustainable Energy Action Plans GPP = Green Public Procurement MECIT = Ministry of Energy, Commerce, Industry and Tourism ESD = Energy Services Directive (Directive 2006/32/EC) EPC = Energy Performance Contracting CERA = Cyprus Energy Regulatory Authority toe= tons of oil equivalent SME = Small and Medium-sized Enterprise TSO = Transmission System Operator RAA = Regulatory Administrative Acts NEEP = National Energy Efficiency Programme GPP = Green Public Procurement ESP - Energy Service Providers Head of the working party1 MECIT: Aikaterini Piripitsi Cyprus Institute of Energy: Evangelos Stougiannis, Thomas Giannis, Marios Kakouris We also want to express our special thanks to Dr Theodoros Zachariadis, assistant professor at the Cyprus University of Technology, for his invaluable cooperation. 1 Issues pertaining to the EPBD were handled by the officer of the MECIT, Mr Nikos Chatzinikolaou, and the officer of the Cyprus Institute of Energy, Ms Gianna Zimara. The Strategy for encouraging investments in building renovation (Annex F) was prepared by Mr Nikos Chatzinikolaou. The National Plan for Nearly Zero Energy Buildings was prepared by the officer of the Institute, Ms Stefania Tsangaridou, in cooperation with the officer of the MECIT, Ms Anna Simeou. Issues pertaining to cogeneration were handled by the officer of the MECIT, Mr Christodoulos Ellinopoulos, whereas transport issues were handled by the Technician of the Institute of Energy, Mr Nikolas Pavlou, and issues on energy savings from the energy labelling of products were handled by the officer of the MECIT, Mr Savvas Ioannou. Finally, the calculations on energy savings from RES and ES Grant Schemes were performed by the officers of the Institute of Energy, Kyriakos Kyrizis, Marios Manoli, Alexandros Stylianidis, Nikolas Kountouris and Technicians Giorgos Chatzigeorgiou and Matthias Valanidou. Page 2 of 282 Introduction: Given that this is the third consecutive National Energy Efficiency Action Plan (NEEAP) for Cyprus, as a follow-up to the two plans submitted in 2007 and 2011 under Directive 2006/32/EC on energy end use efficiency and energy services, it will hereafter be referred to as the 3rd NEEAP. The NEEAPs are submitted to the European Commission every 3 years, in compliance with Article 24(2) of the Energy Efficiency Directive (EED) 2012/27/EU of the European Parliament. Cyprus has made every effort to include all details required under the EED both in this NEEAP and in the guidance document for the preparation of the plan. Because of its national peculiarities, which make it a small and isolated system (an island country) without any interconnections to European or other energy networks (electricity, petroleum, natural gas) at present, Cyprus attaches great importance to energy efficiency aiming, inter alia, to improve energy supply security, increase competitiveness and ensure sustainable development/environmental protection. There is significant potential for end use energy efficiency, as also referred to in the two previous NEEAPs, especially in buildings and in the transport sector, as confirmed by the results of the energy-saving effort made in 2012 and those expected to be achieved by 2016 and 2020. Note, as also mentioned in the 2nd NEEAP, that Cyprus has met the interim end use energy savings target for 2010. The measures taken so far, combined with the measures expected to be taken in implementation of the EED and the EPBD, will allow Cyprus to largely exceed the end use target set for 2016, while laying the ground for achieving the 2020 primary Energy Saving target. Raising consumer awareness in combination with the measures promoted by Cyprus under the EU Directives for improving energy efficiency have contributed decisively to the reduction in the growth rate of energy consumed and have brought positive results for the economy and employment sector. The 3rd NEEAP took account of comments submitted during the public consultation exercise held in the period 15 April 2014-25 April 2014. Furthermore, note that an open public hearing was held on 17 April 2014. Page 3 of 282 TABLE OF CONTENTS 1. Introduction ................................................................................................... 9 2. Overview of national targets on energy and the energy savings achieved ... 18 2.1. Overview of national energy efficiency targets for 2020 ......................................... 19 2.2. Additional energy efficiency targets ......................................................................... 25 2.3. Primary energy savings overview ............................................................................. 25 2.4. Final energy savings overview .................................................................................. 27 3. Policy measures in implementation of the Energy Efficiency Directive (EED) ............................................................................................................ 31 3.1. Horizontal measures................................................................................................. 31 3.1.1. Energy efficiency obligation schemes and alternative policy measures (Article 7)................................................................................................................... 31 3.1.2. Energy audits and energy management systems (Article 8) ................................ 32 3.1.3. Metering and billing (Articles 9-11) ........................................................................ 35 3.1.4. Consumer information and training programmes (Articles 12 and 17) .............. 36 3.1.5. Qualification, accreditation and certification schemes (Article 16) ..................... 38 3.1.6. Energy Services (Article 18) .................................................................................... 41 3.1.7. Other horizontal measures to promote energy efficiency (Articles 19 and 20) .. 44 3.1.8. Energy savings from horizontal measures ............................................................. 46 3.1.9. Financing of horizontal measures ........................................................................... 47 3.2. Energy efficiency measures for buildings ................................................................. 47 3.2.1. Review of the requirements under the EPBD recast (2010/31/EU) ................... 47 3.2.2. Building renovation strategy (Article 4) ................................................................. 47 3.2.3. Complementary measures to address the issue of the energy efficiency of buildings and appliances .......................................................................................... 48 3.2.4. Energy savings from measures addressing the issue of the energy efficiency of buildings ................................................................................................................ 48 3.2.5. Financing measures for the energy efficiency of buildings ................................... 48 3.3. Energy efficiency of buildings used by public bodies (Articles 5 and 6) .................. 49 3.3.1. Buildings of the central public administration (Article 5) .................................... 49 3.3.2. Buildings of other public bodies (Article 5) ........................................................... 49 3.3.3. Purchase by public bodies (Article 6) ..................................................................... 49 3.3.4. Savings from measures in central public administration and other public bodies ......................................................................................................................... 51 3.3.5. Financing of energy efficiency measures in public sector buildings .................... 51 Page 4 of 282 3.4. Energy efficiency measures in the industry .............................................................. 52 3.4.1. Key policy measures addressing the issue of energy efficiency in the industry . 52 3.4.2. Savings from measures in the industry................................................................... 54 3.4.3. Financing of energy efficiency measures in the industry ...................................... 55 3.5. Energy efficiency measures in the transport sector ................................................. 55 3.5.1. Key policy measures addressing the issue of energy efficiency in the transport sector ........................................................................................................ 55 3.5.2. Savings from measures in the transport sector ..................................................... 57 3.5.3. Financing energy efficiency improvement measures in the transport sector ..... 61 3.6. Promotion of efficiency in heating and cooling (Article 14) .................................... 61 3.6.1. Comprehensive assessment ..................................................................................... 61 3.6.2. Individual installations: cost-benefit analysis and results
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