Cyprus Energy efficiency report

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1 Cyprus Energy efficiency report Objectives: o 85 ktoe of end-use energy savings in 06 o % renewable energy in final consumption in 00 Overview - (%/year) Primary intensity (EU=00)¹ % - CO intensity (EU=00) - -.7% - CO emissions per capita (in tco/cap) % - Power generation - (%/year) Efficiency of thermal power plants (in %) 8 +.5% ++ Rate of electricity T&D losses (in %) % ++ CO emissions per kwh generated (in gco/kwh) % + Industry - (%/year) Energy intensity (EU=00) % ++ Share of industrial CHP in industrial consumption (in %) % ++ *- CHP in industrial consumption ++ Among the best performing countries + Above the EU average - Below the EU average --Among the worst performing countries Latest update: April 0 The European Union, as the best performing region, is used as the benchmark.

2 . Overview.. Policies: 85 ktoe of end-use energy savings in 06 Under its National Energy Efficiency Action Plan, Cyprus has adopted an energy savings target of 85 ktoe in 06 (.5 TWh). That amount corresponds to 0 percent of the average reference energy consumption over - and is higher than the 9 percent target requested by the Energy Service Directive of the European Commission. Around 85 percent of this target is expected to be achieved in the residential sector. In, Cyprus had already achieved 65.7 ktoe savings, ie.5 percent savings, which is in line with its intermediate target. In April a law was adopted to promote investments in energy efficiency and renewables, and a fund, financed by a tax on electricity (0. euros/kwh, ie 0. US dollars/kwh), was set up to subsidize those investments... Energy consumption trends: oil meets the increasing energy consumption Cyprus s primary energy consumption per capita is 7 percent lower than the EU average, at.7 toe in. Total energy consumption increased at the rapid rate of.4 percent/year between and and has decreased by.8 percent/year since then, mainly due to industry. Oil covers 94 percent of the country s needs, with a stable market share. As a result, Cyprus is very dependent on imported fuels. Solar energy is well developed for water heating uses but its role in energy consumption is marginal (around percent). About 9 percent of households and 5 percent of hotels are equipped with solar water heaters. The market share of biomass has increased in recent years and in accounted for percent of the country s total energy consumption (0.5 percent in ), while the use of coal continues to decline, at around 0.5 percent in (.5 percent in ). Figure : Energy consumption trends by sector Other Industry Power generation Mtoe 0 In electricity consumption per capita (5,400 kwh/year) was 6 percent below the EU average. Electricity represents an increasing share of final energy consumption: 4 percent in compared with 8 percent in. Electricity consumption increased at the rapid pace of 5.4 percent/year between and, before dropping by almost 4 percent in. The share of industry started on a slow, downward trend in, bringing it to about percent of total electricity consumption in, compared with 5 percent in. Cyprus Country reports

3 Figure : Electricity consumption trends by sector 6 5 Industry Others 4 TWh 0.. Energy efficiency trends: industry driving energy efficiency since In total energy consumption per unit of GDP (primary energy intensity), measured at purchasing power parity, was close to the EU average. Between and the increase in energy consumption was slower than the economic growth, leading the energy intensity to decrease by.6 percent/year, which is similar to the EU trend. Industry is responsible for most of that reduction. Conversely, the building and transport sectors have slowed down the energy intensity decrease. Figure : Energy intensity trends 0.5% %/year -0.5% % -. Total Power generation Industry Other sectors : buildings, transport and agriculture Cyprus Country reports

4 . Power generation: large increase in the efficiency of power generation Following the construction of new plants, the efficiency of thermal power generation increased from percent in to more than 8 percent in. The new 0 MW CCGT plant commissioned in has contributed to the recent rise in the efficiency of thermal power generation, while the growing penetration of renewable facilities since is increasing the overall power generation efficiency. Figure 4: Efficiency of power generation and thermal power plants Figure 5: Thermal electricity capacity, by technology % Total power generation Thermal power plants GW.6.4 Steam Gas turbines Combined cycles The rate of T&D losses has decreased sharply since, from 6 percent to 4. percent in, which is 5 percent lower than the EU average. Figure 6: Electric T&D losses % 4 0 Cyprus Country reports 4

5 . Industry.. Policies: financial support for energy efficiency projects and CHP Cyprus s NEEAP has set an energy savings target for industry of 0. ktoe in 06, ie around 5.5 percent of the total savings. Half of the target for industry is expected to be achieved through a grant scheme for energy saving in industry, and 40 percent through another grant scheme for cogeneration. The Government provides financial incentives (grants, subsidies) for investments in energy efficiency technologies in industry. Financial support schemes have been implemented for cogeneration facilities, including capital grants and a feed-in tariff, as well as a priority access system. Finally, the EU emissions trading scheme covers around 65 percent of industrial energy consumption and is another important driver for energy efficiency improvements in the sector... Energy consumption trends: limited development of electricity and biomass uses Industrial energy consumption was stable at around 0.4 Mtoe/year until. Since then, it has decreased at the dramatic rate of almost percent/year. Figure 7: Trends in industrial energy consumption Mtoe Oil is by far the main energy source in industrial energy consumption, with a market share of 60 percent in. It has been declining since when it represented over 84 percent of consumption. The use of coal in industry has been stable at around 7 percent since. The share of electricity grew rapidly over the last decade, rising from 9 percent in to 6 percent in. The share of biomass in industrial consumption also increased over the period, reaching 8 percent in ( percent in and almost zero in ). The non-metallic minerals sector (primarily cement) is by far the main industrial consumer in Cyprus, accounting for 7 percent of overall industrial energy consumption in. Cyprus Country reports 5

6 Figure 8: Energy consumption of industry, by source Figure 9: Energy consumption of industry, by branch Biomass 8 7 Heat 6 Electricity 5 Gas 4 Oil Coal/Lignite Other Paper Non metallic minerals Chemical Steel.. Energy intensity trends: significant savings in cement production Energy intensity in Cyprus is mainly led by the cement industry, which represents more than 70 percent of industrial consumption. Total industrial energy intensity fell by 4.5 percent/year between and. Energy consumption per ton of cement fell at the rate of.5 percent/year over the s decade. Figure 0: Trends in the energy consumption of the cement industry - - -% %/year -% -% -4% -5% -6% Total *Incl uding construction and mining Cement Source: Odyssee Combined heat and power (CHP) generation accounted for 6 percent of industrial electricity consumption in. That share has been growing strongly since as a result of a government support scheme (grants and feed-in tariffs). Cyprus Country reports 6

7 Figure : Share of industrial CHP in industrial consumption % 8% 6% 4% % Over the period - the energy intensity of the manufacturing industry decreased at the rapid pace of 4.5 percent/year; 80 percent of this drop comes from intrinsic energy efficiency improvements, mainly in cement, as shown by the.7 percent/year reduction in intensity at constant structure. Figure : Trends in the energy intensity of manufacturing and structural effect %/year % % % % % Real variation Change at constant structure Structural effect, Odyssee Cyprus Country reports 7

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