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Cyprus' Integrated National Energy and Climate Plan

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Cyprus' Integrated National Energy and Climate Plan Cyprus’ Integrated National Energy and Climate Plan under the Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action Nicosia January 2020 version 1.1 Title of report Cyprus’ Integrated national energy and climate plan for the period 2021-2030 Contact names Theodoulos Mesimeris George Partasides Organisation Republic of Cyprus Coordination/ Theodoulos Mesimeris, Department of Environment / Formatting Nicoletta Kythreotou, Department of Environment Authors Theodoulos Mesimeris, Department of Environment Nicoletta Kythreotou, Department of Environment Melina Menelaou, Department of Environment Charalambos Rousos, Energy Service Christina Karapitta-Zachariadou, Energy Service George Partasides, Energy Service Theodora Antoniou, Energy Service Nikolas Hadjinikolaou, Energy Service Katerina Piripitsi, Energy Service Anastasia Kalaika, Energy Service Anna Christophidou, Energy Service Marios Chandriotis, Energy Service George Papageorgiou, Energy Service Michalis Chrysaphis, Energy Service Christodoulos Ellinopoulos, Energy Service Evangelos Stougiannis, Energy Service Achilleas Sotirelis, Hydrocarbons Service Michalis Lambrinos, Ministry of Transport, Communications & Works Demetris Psyllides, Ministry of Transport, Communications & Works Areti Christodoulou, Department of Forests Andreas Karaolis, Ministry of Finance Athos Kleanthous, Cyprus Hydrocarbons Company Ltd. Contact details Tel. (+357) 22 408 900 Fax. (+357) 22 774 945 [email protected] [email protected] Date of submission 21 January 2020 Version 1.1 2 Preface This document is the Integrated National Energy and Climate Plan (INECP) submitted to the European Commission in accordance to Article 9(1) of Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council, which has been prepared in accordance with Article 3(1) and Annex I of the same Regulation. 3 Contents Tables 7 Figures 12 Part 1 15 SECTION A: NATIONAL PLAN ............................................................................................... 16 1. OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN ...................................... 16 1.1. Executive summary ............................................................................................ 16 1.2. Overview of current policy situation .................................................................. 24 1.3. Consultations and involvement of national and Union entities and their outcome ............................................................................................................. 40 1.4. Regional cooperation in preparing the plan....................................................... 44 2. NATIONAL OBJECTIVES AND TARGETS ................................................................... 47 2.1. Dimension decarbonisation ............................................................................... 48 2.2. Dimension energy efficiency .............................................................................. 65 2.3. Dimension energy security ................................................................................. 83 2.4. Dimension internal energy market .................................................................... 84 2.5. Dimension research, innovation and competitiveness ...................................... 95 3. POLICIES AND MEASURES .................................................................................... 105 3.1. Dimension decarbonisation ............................................................................. 105 3.2. Dimension energy efficiency ............................................................................ 125 3.3. Dimension energy security ............................................................................... 142 3.4. Dimension internal energy market .................................................................. 144 3.5. Dimension research, innovation and competitiveness .................................... 151 SECTION B: ANALYTICAL BASIS .......................................................................................... 158 4. CURRENT SITUATION AND PROJECTIONS WITH EXISTING POLICIES AND MEASURES ............................................................................................................ 158 4.1. Projected evolution of main exogenous factors influencing energy system and GHG emission developments ........................................................................... 158 4.2. Dimension Decarbonisation ............................................................................. 158 4.3. Dimension Energy efficiency ............................................................................ 172 4.4. Dimension energy security ............................................................................... 179 4.5. Dimension internal energy market .................................................................. 180 4.6. Dimension research, innovation and competitiveness .................................... 182 5. IMPACT ASSESSMENT OF PLANNED POLICIES AND MEASURES .......................... 189 4 5.1. Impacts of planned policies and measures described in section 3 on energy system and GHG emissions and removals, including comparison to projections with existing policies and measures (as described in section 4). ..................... 189 5.2. Macroeconomic and, to the extent feasible, the health, environmental, employment and education, skills and social impacts, including just transition aspects (in terms of costs and benefits as well as cost-effectiveness) of the planned policies and measures described in section 3 at least until the last year of the period covered by the plan, including comparison to projections with existing policies and measures ......................................................................... 212 5.3. Overview of investment needs ........................................................................ 230 5.4. Impacts of planned policies and measures described in section 3 on other Member States and regional cooperation at least until the last year of the period covered by the plan, including comparison to projections with existing policies and measures ...................................................................................... 235 5.5. Discussion of Policy Options ............................................................................. 238 5.6. Conclusions of the Impact Assessment ............................................................ 246 Part 2 251 1. General parameters and variables ....................................................................... 252 1.1. (1) Population [million]..................................................................................... 252 1.2. (2) GDP [euro million] ....................................................................................... 252 1.3. (3) Sectoral gross value added (including main industrial, construction, services, and agriculture sectors) [euro million] ............................................................. 252 1.4. (4) Number of households [thousands] ........................................................... 252 1.5. (5) Household size [inhabitants/households] .................................................. 252 1.6. (6) Disposable income of households [euro] ................................................... 252 1.7. (7) Number of passenger-kilometres: all modes, i.e. split between road (cars and buses separated if possible), rail, aviation and domestic navigation (when relevant) [million pkm] ..................................................................................... 252 1.8. (8) Freight transport tonnes-kilometres: all modes excluding international maritime, i.e. split between road, rail, aviation, domestic navigation (inland waterways and national maritime) [million tkm] ............................................. 252 1.9. (9) International oil, gas and coal fuel import prices [EUR/GJ or euro/toe] based on the Commission's recommendations .......................................................... 253 1.10. (10) EU-ETS carbon price [EUR/EUA] based on the Commission's recommendations ............................................................................................ 258 1.11. (11) Exchange rates to EUR and to USD (where applicable) assumptions [euro/currency and USD/currency] .................................................................. 258 1.12. (12) Number of Heating Degree Days (HDD) .................................................... 258 5 1.13. (13) Number of Cooling Degree Days (CDD) .................................................... 259 1.14. (14) Technology cost assumptions used in modelling for main relevant technologies ..................................................................................................... 259 2. Energy balances and indicators ............................................................................ 260 3. GHG emissions and removals related
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