Cyprus Energy efficiency report
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- Giles Summers
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1 Cyprus Energy efficiency report Objectives: 2.2 TWh of end-user energy savings by % renewable energy in final consumption by 2020 Overview - (% / year) Primary intensity (EU=100) % -- CO 2 intensity (EU=100) CO 2 emissions per capita (in tco 2 / cap) % - Power generation - (% / year) Efficiency of thermal power plants (in %) % + Rate of electricity T&D losses (in %) % ++ CO 2 emissions per kwh generated (in gco 2 / kwh) % - Industry - (% / year) Share of industrial CHP in industry consumption (in %) % Among best countries + Better than the EU average - Below the EU average -- Among countries with lowest performances Latest update: January The European Union, as the best-performing region, is used as the benchmark. 1 Cyprus Country reports
2 1. Overview 1.1. Policies: 1 of end-user energy savings by 2016 Under its National Energy Efficiency Action Plan, Cyprus has adopted an energy savings target of 185 ktoe (2.15 TWh) by 2016, as requested by the Energy Service Directive of the European Commission. That amount corresponds to 10 percent of the reference energy consumption. The transport sector is the dominant end-use sector, accounting for 39 percent of final consumption in, followed by the households and services sector with 37 percent. Industry accounted for just 24 percent of final consumption (including non-energy uses). Figure 2: Distribution of final energy consumption by sector In April, a law was adopted to promote investments in energy efficiency and renewables, and a fund, financed by a tax on electricity ( 0.22/kWh, ie, $0.3/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 12 percent lower than the EU average, at 2.9 toe in Households -Services -Agriculture Transport Industry (including non energy use) Total energy consumption increased rapidly between and, by more than 3 percent/year. However, in it fell by 1 percent as a result of the global economic downturn. In that same year, final consumption decreased by 3 percent, driven by an 8 percent drop in industrial consumption. Oil covers 95 percent of the country s needs, with a constant market share over time. As a result, Cyprus is very dependent on imported fuels. The market share of coal has declined since and in fell below 1 percent (4 percent in ). Biomass has increased rapidly in recent years and in accounted for 2 percent of the country s total energy consumption (0.5 percent in ). Solar energy is well developed for water heating uses but its role in energy consumption is marginal (2 percent in ). About 92 percent of households and 52 percent of hotels are equipped with solar water heaters. Figure 1: Total and final energy consumption trends In electricity consumption per capita was close to the EU average. Electricity represents an increasing share of final energy consumption. In, it accounted for 24 percent of overall consumption, compared with 16 percent in. Electricity has been increasing at the rapid pace of 5.5 percent/ year since. The economic slowdown had a moderate impact on the country s electricity consumption given that it still increased in, although it did slow down (3 percent). The share of industry has been decreasing since : in, industry represented less than 15 percent of overall electricity consumption, compared with 20 percent in. Figure 3: Electricity consumption trends by sector Industry Others Mtoe 1.5 TWh Primary consumption Final consumption Country reports Cyprus 2
3 Cyprus Energy efficiency report 1.3. Energy efficiency and CO 2 trends: moderate decrease in energy intensity 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 slightly slower than the economic growth, leading the primary energy intensity to decrease moderately, by 0.6 percent/year, which is much slower than in other EU countries (average reduction of 1.7 percent/year in the EU). However, in recent years the decrease in total energy intensity gained momentum (-0.9 percent/year, on average, between and ). and feed-in tariffs have been implemented. Electricity produced from renewables is given priority in terms of grid access and the national company, Electricity Authority of Cyprus (EAC), is obliged to buy the electricity fed into the grid Power generation trends by source: oil-dominated power mix The power mix is largely dominated by heavy fuel oil. Biomass and solar energy have developed since, but remain insignificant in the overall power generation. Figure 5: Power generation by source 6 CO 2 emissions per unit of GDP (CO 2 intensity) have decreased slightly more rapidly than total energy intensity since, due to the increasing role of biomass. TWh Other* Oil Figure 4: Energy and CO 2 intensity trends %/year -0.2% -0.4% -0.6% *Including biomass, geothermal and solar -0.8% % Primary energy intensity Final energy intensity CO 2 intensity 2. Power generation 2.1. Policies: 13% renewable energy in final consumption by Efficiency of the power sector: large increase in the efficiency of electricity generation Following the construction of new plants, the efficiency of thermal power generation increased from 33 percent in to 36 percent in ; however, it has remained stable since then. Figure 6: Efficiency of power generation and thermal power plants Under the new action plan for the years -2013, installed renewable energy capacities are expected to reach 211 MW in 2013 (around 20 MW in ), including 165 MW of wind energy. % According to the EU Directive on the promotion of the use of energy from renewable sources, the national target is to increase the share of renewables in final energy consumption to 13 percent by Total power generation The Government provides financial support from a special fund for investments in renewables and cogeneration. Capital grants 3 Cyprus Country reports
4 Figure 7: Thermal electricity capacity, by technology Figure 9: CO 2 emission factor for power generation Steam Gas turbines 850 GW gco ₂/kWh The rate of T&D losses has decreased sharply since, from 6 percent to around 3 percent in, ie, 50 percent below the EU average. Figure 8: Electric T&D losses % The average CO 2 emission factor for power generation was stable at around 850 gco 2 /kwh until, but then dropped sharply, reaching 750 gco 2 /kwh in. The amount of CO 2 emitted per kwh produced has remained roughly stable since then. On average, a 10 percent reduction was achieved in the CO 2 emission factor over the period Industry 3.1. Policies: financial support for energy efficiency projects and CHP 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 Energy consumption in industry increased by 3 percent/year until, before dropping sharply in. It increased at a more rapid pace between and (5.5 percent/year), although it did not recover its level. In it fell by 8 percent as a result of the slowdown in global economic activity. Country reports Cyprus 4
5 Cyprus Energy efficiency report Figure 10: Industrial energy consumption Figure 12: Energy consumption of industry, by branch Mtoe Other Non metallic minerals Oil is by far the main energy source in industrial energy consumption, with a stable 75 percent market share. The use of coal in industry has been scaled down from 15 percent in to less than 5 percent in. Electricity represents a growing share of the sector s energy consumption: 15 percent in, compared with 8 percent in. The share of biomass in industrial consumption also increased over the period, reaching 4 percent in. The non-metallic minerals sector (primarily cement) is by far the main industrial consumer in Cyprus, accounting for almost 60 percent of overall industrial energy consumption. Figure 11: Energy consumption of industry, by source 3.3. Energy intensity trends: large reduction in the nonmetallic minerals industry Energy consumption per ton produced in the cement sector has fallen at the rapid rate of 6 percent/year since. Figure 13: Trends in the energy intensity of industrial branches %/year -1% -2% -3% -4% -5% Cement** Biomass Electricity -6% -7% - - ** Non metallic minerals Oil Coal/Lignite Combined heat and power (CHP) generation accounts for 8 percent of industrial electricity consumption. That share has been growing strongly since, as a result of a support scheme (grants and feed-in tariffs) implemented by the Government. 5 Cyprus Country reports
6 Figure 14: Share of industrial CHP in industrial consumption 14% 12% 1 8% 6% 4% 2% In energy intensity in manufacturing (ie, excluding mining and construction) was almost at the same level as in. That situation was the result of two opposite trends: on the one hand, significant energy efficiency improvements, reaching 4 percent/year as shown by the reduction in intensity at constant structure; and, on the other hand, changes in the structure of the value added towards more intensive branches, which offset all those energy efficiency improvements. Figure 15: Trend in energy intensity of manufacturing and structural effect 5% - 4% 3% 2% 1% %/year -1% -2% -3% -4% -5% Real variation Change at constant structure Structural effect All information or data provided by Enerdata, in any form, is the property of Enerdata and is protected in each country by national laws governing intellectual property. All information or data provided by Enerdata is copyright protected, inclusive of material appearing in a hard copy format or electronically. Data provided by Enerdata are based on compilation and analysis of the best sources in the industry. Enerdata has agreements with those providers to use and publish this data. All pictures Copyright ABB Country reports Cyprus 6
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