4TH 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/EU and repealing Directives 2004/8/EC and 2006/32/EC Nicosia September 2017 Abbreviations CERA = Cyprus Energy Regulatory Authority EED = Energy Efficiency Directive (Directive 2012/27/EU) EPBD = Energy Performance of Buildings Directive (Directive 2010/31/EU) EPC = Energy Performance Certificate EPC = Energy Performance Contracting ES = Energy Savings ESD = Energy Services Directive (Directive 2006/32/EC) EU = European Union GDP = Gross National Product GPP = Green Public Procurement MECIT = Ministry of Energy, Commerce, Industry and Tourism NEEAP = National Energy Efficiency Action Plan NEEP = National Energy Efficiency Programme RAA = Regulatory Administrative Acts RES = Renewable Energy Sources SEAP = Sustainable Energy Action Plans SME = Small and Medium-sized Enterprise TOE = Tons of Oil Equivalent toe= tons of oil equivalent TSO = Transmission System Operator Head of working group MECIT: Aikaterini Piripitsi, Evangelos Stougiannis, Nikos Chatzinikolaou, Giannis Thoma, Christodoulos Ellinopoulos, Marios Kakouris, Savvas Ioannou, Kyriakos Kyrizis. We also want to express our special thanks to Dr Theodoros Zachariadis, assistant professor at the Cyprus University of Technology, for his invaluable cooperation. Page 2 of 334 Introduction: The present 4th National Energy Efficiency Action Plan was prepared in compliance with Article 24(2) of Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency (EED). Please note that the previous three NEEAPs were submitted in 2007, 2011 and 2014, respectively. Special efforts were made in preparing the 4th NEEAP to include as much data and information as possible on energy efficiency matters that are in progress in Cyprus. 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 has attached great importance to energy efficiency improvement aiming, inter alia, to strengthen 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 three previous NEEAPs, especially in buildings, as confirmed by the energy savings results achieved by 2016 and those to be achieved by 2020. The measures taken so far, combined with those expected to be taken in implementation of the EED and the EPBD, have allowed Cyprus to attain its end use energy savings target set for 2016 and indicate that it is also possible to attain the indicative primary energy savings target for 2020. Raising consumer awareness in conjunction with the measures promoted by Cyprus, since 2006 in particular, has contributed decisively to a reduction in the growth rate of energy consumed and has brought about positive results in terms of the economy and employment. In preparing the 4th NEEAP, account was taken of the comments submitted during the public consultation held from .................. to .................. Page 3 of 334 TABLE OF CONTENTS 1. INTRODUCTION ......................................................................................................................... 8 2. OVERVIEW OF NATIONAL TARGETS ON ENERGY AND OF THE ENERGY SAVINGS ACHIEVED .................................................................................................................................................................. 19 2.1 Overview of national energy efficiency targets for 2020 ............................................... 20 2.2 Additional energy efficiency targets ................................................................................. 27 2.3 Primary energy savings overview ..................................................................................... 27 2.4 Final energy savings overview ................................................................................... 29 3. POLICY MEASURES IN IMPLEMENTATION OF THE ENERGY EFFICIENCY DIRECTIVE (EED)....... 32 3.1 Horizontal measures ................................................................................................... 32 3.1.1 Energy efficiency obligation schemes and alternative policy measures (Article 7) ................................................................................................................... 32 3.1.2 Energy audits and management systems (Article 8) .................................................. 35 3.1.3 Metering and billing (Articles 9-11) .......................................................................... 39 3.1.4 Consumer information programmes and training (EED Articles 12 and 17) ............ 40 3.1.5 Availability of qualification, accreditation and certification schemes (Article 16) ................................................................................................................. 45 3.1.6 Energy Services (Article 18) ...................................................................................... 50 3.1.7 Other horizontal measures to promote energy efficiency (Articles 19 and 20) ......... 54 3.1.8 Energy savings from horizontal measures ................................................................. 57 3.1.9 Financing of horizontal measures .............................................................................. 57 3.2 Energy efficiency measures for buildings .................................................................. 57 3.2.1 Review of the requirements under the EPBD recast (2010/31/EU) ........................... 57 3.2.2 Building renovation strategy (Article 4) .................................................................... 58 3.2.3 Complementary measures to address the issue of the energy efficiency of buildings and appliances ............................................................................................ 58 3.2.4 Energy savings from measures addressing the issue of the energy efficiency of buildings ..................................................................................................................... 58 3.2.5 Financing measures for the energy efficiency of buildings ....................................... 58 3.3 Energy efficiency of public bodies’ buildings (Articles 5 and 6) .............................. 59 3.3.1 Central government buildings (Article 5) .................................................................. 59 3.3.2 Other public bodies’ buildings (Article 5) ................................................................. 59 3.3.3 Purchasing by public bodies (Article 6) ..................................................................... 60 3.3.4 Savings from measures in central government and other public bodies ................... 62 3.3.5 Financing of energy efficiency measures for public bodies’ buildings ..................... 63 3.4 Energy efficiency measures in industry ..................................................................... 63 3.4.1 Key policy measures addressing the issue of energy efficiency in industry .............. 63 Page 4 of 334 3.4.2 Savings from measures in industry ............................................................................ 68 3.4.3 Financing energy efficiency measures in industry ..................................................... 68 3.5 Energy efficiency measures in the transport sector ................................................... 68 3.5.1 Key policy measures addressing the issue of energy efficiency in the transport sector .......................................................................................................................... 68 3.5.2 Savings from measures in the transport sector ........................................................... 71 3.5.3 Financing energy efficiency measures in the transport sector ................................... 75 3.6 Promotion of efficient heating and cooling (Article 14) ............................................ 76 3.6.1 Concise assessment .................................................................................................... 76 3.6.2 Individual installations: cost-benefit analysis and results .......................................... 80 3.6.3 Individual installations: exemptions and decisions introducing exemptions ............. 80 3.7 Energy transformation, transmission, distribution, and demand response (Article 15) ................................................................................................................. 80 3.7.1 Savings resulting from all energy supply measures ................................................... 82 3.7.2 Financing of energy supply measures ........................................................................ 82 ANNEX A: ANNUAL REPORT UNDER THE ENERGY EFFICIENCY DIRECTIVE ........................................................................................................................ 83 ANNEX B: ROADMAPS ON THE RENOVATION OF BUILDINGS ............................ 104 ANNEX C: 2ND NATIONAL PLAN FOR INCREASING THE NUMBER OF NEARLY ZERO-ENERGY BUILDINGS (NZEBS) ............................................. 105 ANNEX D: DESCRIPTION OF MEASURES AND TABLES ON CALCULATIONS .......................................................................................................... 135 ANNEX E: METHODOLOGIES