Energy Efficiency Policies in Europe Country Report

Transcription

1 Energy Efficiency Policies in Europe Analysis of National Energy Efficiency Action Plans and Policies in EU Member States 2014 Country Report Cyprus

2 Key Points and Recommendations This report is one of 28 Country Reports published in 2015 by the Energy Efficiency Watch (EEW) project. It addresses 1) the changes in policies implemented since 2011 by EU Member States (MS) and their plans, based on the National Energy Efficiency Action Plans (NEEAPs) published in 2014 and other official, as well as 2) the feedback that was received from the quantitative survey and expert interviews on how effective policy implementation actually is (see more at efficiency- watch.org). Based on these results, it also offers recommendations on how Cyprus sectoral and overall energy efficiency policies could be further improved. Overview of Findings Based on the NEEAP screening and the opinion of Cypriot experts, Cyprus has made good progress since the second NEEAP. Relatively, it has seen the strongest increase in progress of energy efficiency policies across EU Member States compared to the three preceding years: its country progress indicator went from 22 nd out of 27 in 2012 to 5 th out of 28 in the 2015 survey (for more information, please see the section on Policy Developments according to the Expert Survey ). Cyprus has a national target to cut overall energy consumption by 10% by 2016 (based on 2005 levels). In 2010, the interim target of a 3.3% reduction was exceeded (3.5) and it is expected that the 2016 target will be reached on the basis of measures implemented from The Ministry of Energy, Industry, Commerce and Tourism is responsible for energy efficiency. In response to the economic crisis, an EU support group has been established, which deals with EU support and national adjustment programmes. Energy is also part of their agenda. The work of the support group in this field is rated as very good by Cypriot experts. The awareness on energy efficiency and its benefits to the local community has been increasing in Cyprus. Several local authorities (municipalities and communities) are developing long- term visions and strategies. Specifically, 23 local authorities have signed the Covenant of Mayors and delivered Sustainable Energy Action Plans with the technical support of the Cyprus Energy Agency. These action plans means reductions of carbon dioxide (CO2) emissions by tonnes by 2020 from their implementation. Yet, a national long term strategy is missing. The driving force of energy efficiency policy in Cyprus are EU directives. Cyprus has adopted a regulation for Energy Service Companies (ESCOs) in 2014, and in October 2015, twenty ESCOs were registered. It is expected that this number will increase further. Sectoral Progress The sectoral progress of policies is as follows: The governance framework is provided by the regulation on energy service providers, the legislation on energy audits (incl. training and licensing of auditors) and on energy performance contracting for public buildings. A National Energy Efficiency Programme is to be developed to achieve the energy saving target of Article 7 of the Energy Efficiency Directive (EED) through alternative measures. The Cyprus Institute of Energy, which coordinated energy efficiency programmes and was responsible for dissemination activities, stopped operations in March Grant schemes under the Special Fund for Energy Efficiency and Renewables were mostly stopped in 2013, yet income from emission allowances (ca. EUR 2 million in 2015) will partly be used for the Fund in future. Progress in the public sector is mixed. While grant schemes for a public sector strategy expired in 2013, nearly- zero energy buildings performance requirements for public buildings are implemented and will be enforced in 2019, in line with the Energy Performance of Buildings Directive (EPBD). At the moment, no funding programme is available for public buildings. The 1

3 main support will come from the EU Structural Funds. The Cyprus Energy Agency has launched a tender for energy efficient street lighting in 20 local authorities in Cyprus in August Green public procurement guidelines have been introduced. In the residential buildings sector, a new support scheme I renovate I save was introduced for the energy renovation of households and commercial buildings. The programme have a budget of around 33 million euros for the period and is financed by the EU Structural Funds. This programme introduces the energy renovation as a package of energy efficiency measures and provides grants of 50% or 75% of the eligible costs depending of the vulnerability of the applicant and the achieved improvements. For vulnerable families and for improvements to zero energy buildings standards, the grant reaches 75%. Furthermore, training and licensing of energy auditors started in 2013 and several pilot projects for nearly zero energy buildings are planned. EU Directives (Ecodesign Directive and Energy Labelling Directive) have been transposed, but no new measures are being implemented in the appliance sector. For the industrial and tertiary sector, Cyprus transposed energy audits under the Art. 8 EED for large enterprises, yet clear targets for companies or financial support schemes for energy efficiency measures are lacking. In the transport sector, an overarching energy efficiency is absent, even though the sector consumes most energy in Cyprus. Yet, some improvements in the policies were made. These are an annual vehicle tax based on CO 2 emissions, which is mandatory since 2013 to incentivise more efficient cars, an increase in fuel taxation in 2013 and 2014 as well as investment in infrastructure providing new busses and better schedules. Feasibility studies are in progress for the introduction of a tramway line in the wider area of Nicosia. Recommendations Further improvements to the could be the following: Given the current policy and institutional framework, experts consider the implementation of the EED as very challenging. With regard to the governance framework, the government should develop a national long term vision and a consistent strategy for energy efficiency, which could be supported by an energy efficiency fund or an energy efficiency obligation scheme. It could also enhance the role of local authorities on Sustainable Energy Action Planning and step up support. The public sector suffered from the financial crisis. New funding programmes need to be developed to improve energy efficiency in this sector and realise the 3% renovation target of public buildings. The energy performance of existing buildings in the residential sector remains poor. Financial incentive schemes for energy audits and funding opportunities for key investments, as well as information campaigns, should be scaled up. Furthermore, education and training for professionals could be expanded. Additionally, further information campaigns for energy- efficient appliances are needed. In general, Further emphasis on information, education and awareness should be given and supported by the government. There is a significant potential for electricity savings in the industry and tertiary sector. So far the ambition to realise these savings has been low. A change of the energy culture is therefore needed. Voluntary commitments and energy efficiency networks could help to increase awareness and further motivate companies to improve energy efficiency. The hotel sector is very important in Cyprus and could become a role model for energy efficiency. Strategic and visionary programmes are needed to reduce electricity consumption and increase awareness. Also, the in the transport sector should be expanded. A good starting point is to further encourage modal shift. 2

4 Policy Developments according to Official Documents The next tables present 1) the policies that were implemented in 2011 in Cyprus and 2) the policy changes after The policies are listed as the result of a document screening. Primarily, the screening takes into account the second and third NEEAP as well as Article 4, 5 and 7 communications of the Energy Efficiency Directive to achieve meaningful results. The Odyssee Mure database has also been a valuable source of information. Depending on the quality of information given in the official it has been analysed whether policies have been ongoing, abandoned/weakened or improved. It was not possible to assess how well these policies are implemented and which results they achieve. The changes in the policy design are illustrated with the following symbols: - means that the measure is ongoing without significant changes, - shows that the policy is new, - illustrates a policy that was abandoned, - ý shows a policy that is ongoing but that was weakened significantly, - þ presents a policy that is ongoing but that was improved significantly. Overarching Energy Efficiency Governance Framework Long- term EE target(s) and strategy Involvement of non- governmental and market actors, and sub- national authorities Energy agencies and climate protection agencies EE funds for overall coordination and funding of policies and measures EE obligation scheme for overall coordination and funding of policies and measures Favourable framework conditions for energy services A primary energy savings target for 2020 has been set Some municipalities and communities have set targets for 2020 Action Plans of Municipalities and Communities have been set Several dissemination activities in place Cyprus Institute of Energy (CIE) has been established (coordination of programmes, dissemination activities) Special fund for energy efficiency and renewables set up (Grant Schemes in all sector operated by the fund; revenues derive from fee that is imposed on electricity consumption) No information found in the screened Cyprus has set requirements on the qualification and training of energy auditors and has determined the norms and principles governing their work National Energy Efficiency Programme (NEEP) has been prepared in December 2013 (revised in 2014) indicating the measures that will be applied for achieving the target of Article 7 of the EED þ Progress in the implemention of Action Plans has been made (e.g. pilot project of street lighting in 20 local authorities, energy certification of municipal buildings) Dissemination activities have continued e.g. in schools, public information days (e.g. for entrepreneurs, credit institutes) CIE operations stopped in March 2015 ý Most grant schemes have stopped in 2013 Income from emission allowances to be partly used for the Special Fund in the future (EUR 2 Million in 2015) Article 7 of the EED to be fulfilled with the help of alternative strategic measures Regulation on energy service providers has been adopted in 2014 Legislations on energy audits adopted in 2012 (training and licensing of auditors, procedures, requirements, guidelines, monitoring) Energy upgrading of two public buildings through energy performance contracting is currently planned 3

5 Energy taxation higher than EU minimum requirements R&D support Public Sector Public sector strategy Public procurement Public buildings A specific Strategy for the Public Sector is missing Action Plans of municipalities and communities also cover public buildings Funding for measures in the public sector is available by the Special Fund Awareness raising campaigns implemented A national action plan for Green Public Procurement (GPP) has been adopted (e.g. criteria for public tender procedures set) New and existing buildings covered by the Action Plan for Green Public Procurement Energy saving officers have been appointed in publc buildings and schools Energy saving events are regularly organized R&D support In 2015 the Ministry of Energy, Commerce, Industry and Tourism submitted a Strategy for the Public Sector in accordance with paragraph 6 of Article 5 of the EED. EUR 20 million have been secured (Structural and European Funds) Implementation of Action Plans by local authorities has improved (e.g. energy certification of municipal buildings, thermal insulation and new installations of heating / air conditioning systems in local authorities buildings) Relevant grant schemes have expired in 2013 Awareness raising campaigns ongoing Alternative financing options are currently explored, e.g. energy upgrading of two public buildings through energy performance contracting Action plan on GPP covers same products (office equipment and supplies, electrical appliances and products) þ In the revised Action Plan for GPP ( ) targets for new and renovated buildings have been set Four buildings have been upgraded within the programme for the energy efficiency of government buildings (co- financed by EU funds) Enforcement of nzeb performance requirements for new public buildings by 2018 Article 5 of EED (3% renovation rate) expected to be translated into national legislation by October

6 Residential Sector Buildings Minimum Energy Performance Standards (MEPS) Other regulation Grants, tax incentives Financing instruments Energy performance certificates (EPCs) MEPS have been set in compliance with the Energy Performance of Buidlings Directive (EPBD) Regluation concerning the maintenance and inspection of boilers, heating installations and AC systems Grant schemes for energy saving measures in existing dwellings and for RES heating and cooling in exisitng and new builings in place Energy Performance Certificates have been established; to get a building permit all new dwellings in Cyprus have first to issue a EPC A central register of qualified experts and a control system has been set up þ Gradual advancement of requirements; last revisions in 2013/2014 for dwellings, technical systems (including heating, cooling, hot water and large AC systems); further revision planned before 2020 According to Nearly Zero Energy Buildings (nzeb) Action Plan enforcement of nzeb performances for all new buildings by 2020 Mandatory periodic inspection for heating and AC systems continued; review of inspection guide is scheduled Regulation concerning installation and maintenance of technical systems (AC, heating, hot water, ventilation) draft document has been prepared. Planned to be voted into law in 2016 Regulations concerning inspection of Air Conditioning systems and boilers are in parliament for voting (resolve issues like qualification of inspectors, registry of inspectors) Grant schemes addressing the residential sector have expired in 2013 EUR 33 million for energy efficiency and renewable energy investments in existing buildings (residential, commercial) planned ( period, co- funded by the EU Cohesion Fund). Grants of 50% or 75% of eligible costs. 1 st Notice of Grant Scheme addresses dwellings with EUR 8 million Covered are e.g. issuing of EPC, replacements, smart meters. Requirement for funding: measures lead to energy savings of 40% in total energy consumption or the EPC should be < class B after implementation A programme for the installation of small scale PV systems using the net metering has been launched Financial incentive plan ( ) proposed under the nzeb Action Plan. Certification of nzeb and compliance monitoring is planned as a medium- term measure in nzeb Action Plan Until August 2015: EPCs for new buildings and EPCs for existing buildings issued. Number of audits (on desk): and number of audits (on site):

7 Energy advice and audits Information tools for investors and users Framework conditions for energy audits have been established; Ministry of Industry administers register of qualified experts An energy saving award addresses companies and households Information days conducted on a regular basis Demonstration projects Education and training for building professionals Chamber of professional engineers, the Chamber of Industry and Trade organize training programs that, among others, also deal with buildings R&D support No information found in the screened þ Training and licensing of energy auditors began in the second half of energy auditors have licensed and registered (June 2015) 20 Energy Service Companies (ESCOs) have licensed and registered (October 2015) No information on developments regarding the two programmes Implementation of a telemetering and communication technologies pilot project at first stage Residential and non- residential pilot applications of nzeb are planned Training seminars in place A professional qualification scheme for building envelope installers to be adopted by the end of 2015 (after issuing of a decree regarding the creation of a registry) No information found in the screened Residential Sector Appliances Minimum Energy Performance Standards (MEPS) Economic incentives Energy labels Information tools Education and training for retail staff and other supply chain actors MEPS were implemented due to EU Ecodesign Directive Free distribution of compact fluorescent lamps to residential electricity consumers The EU Energy Labelling Directive has been implemented Information on ecodesign is disseminated Trainings on energy efficiency are offered R&D support ongoing CFL campaign expired in 2012 Light bulbs covered by new Grant scheme addressing the residential sector Information on labels disseminated; no further development indicated Information disseminated; no further development indicated Trainings ongoing Industry, Tertiary Sector, and Agriculture 6

8 MEPS and other standards for equipment, production process, products Energy savings and action targets for individual companies Energy management systems and other obligations Economic incentives for investment Financial support for energy advice and audits MEPS were implemented due to EU Ecodesign Directive Grant schemes for energy saving measures in industrial companies and the tertiary sector in place Energy labelling The EU Energy Labelling Directive has been implemented R&D support ongoing Periodic energy audits to become mandatory for large enterprises, first energy audit by December 2015 Grant schemes addressing the tertiary, industry and agricultural sector have expired in New Grant Scheme in place (for more details see also residential buildings). 1 st Notice of Grant Scheme addresses SME with EUR 6 million Energy audits for SMEs financed under new Grant Scheme for buildings (see above) Information on labels disseminated; no further development indicated Transport Sector Planning instruments Regulatory instruments Energy Action Plans of Municipalities and Communities, : upgrading of PT, free parking for EV, HEV, EV charging stations, personnel training, purchasing eco- vehicles, setting up bicycle rental systems Action plan to strengthen public transport for larger cities, : purchase of new busses, establishing new scheduled bus services between larger cities + airport Revised action plan for public procurement for transportation equipment concerning passenger vehicles, public transport vehicles and services, garbage trucks and services Voluntary agreements with transporters and distributers Economic incentives Information and advice R&D support Transport Action Plan: purchase of new buses, creation of bus lanes, establishement of school bus system Energy Action Plans of Municipalities and Communities Introduction of an inter- municipal bicycle rental system Improvements in cycling infrastructure: new bicycle lanes Installation of LGP- systems in vehicles (expected to start in 2014) Annual vehicle tax is based on CO 2 emissions (since 2013/2014) Vehicle taxation includes CO 2 criteria (since 2014) 7

9 Policy Developments according to the Expert Survey In order to provide a fuller picture on energy efficiency progress made, this chapter makes use of information gained through quantitative surveys and qualitative interviews. For each country assessed in the EEW project, three experts were interviewed orally, while 15 national energy efficiency experts participated in the quantitative survey for Cyprus. The experts work with the business sector, universities/research organisations, public sector or energy agencies. All findings below are solely based on the assessments made by these experts. This also includes the country progress indicators, which helps to compare the progress across countries and policy fields. It was calculated from five relevant questions of the quantitative survey (see annex for the questionnaire), namely question 1 (ambition of energy efficiency policies), question 2 (progress in the last 3 years), question 4 (annual savings target), question 7 (NZEB target) and question 8 (improvements in key energy policy areas). The answers were weighted (the most positive answer by 100, the least positive one by 0 According to the Cypriot experts, Cyprus is among the Member States that have progressed relatively well since the second NEEAPs (country progress indicator: 5 out of 28). Relatively, it has seen the strongest increase in progress across EU Member States compared to the three preceding years (2012 survey: country progress indicator: 22 out of 27). Although two thirds of the experts consider the overall ambition of the energy efficiency as relatively low in most sectors, almost half (46 %) think that at least a range of additional policies were implemented in the past years. Experts see increasing the efficiency of the existing inefficient building stock as well as the transport sector as main challenges. They report the authorities' increased awareness and activities on energy efficiency as a positive development. Experts agree that EU legislation and financial support are the driving forces in energy efficiency issues for the Cyprus energy efficiency policies. The EU support group set up to support the Cypriot authorities in overcoming the economic crisis was perceived to make positive contributions in this field. Cyprus: overall ambizon of the energy efficiency policies Cyprus: progress of the energy efficiency policies in the last 3 years 20% 13% 2 33% 4 46% generally, rather low ambimous in a few sectors, less so in most others ambimous in a range of sectors, less so in a few others generally, rather high no or very linle progress a few addimonal policies a range of addimonal policies many addimonal policies Almost half of the experts think that the EED savings target (new savings of 1.5 % of the annual energy sales to final consumers) is likely to be achieved. 8

10 Similarly, half believe that Cyprus is on track to meet its obligation under the EPBD that all new buildings be "nearly zero- energy buildings" by Cyprus: achievement of nazonal 1.5 % energy savings target (EED) Cyprus: on track towards the "nzeb" obligazon 31% 46% 50% 50% 23% not aware of this target target is likely not to be achieved target is likely to be achieved I don't know No, we are lagging much behind Yes, the implementamon is well underway In the public sector, experts report that local authorities becoming more active in energy efficiency issues. For the residential sector, the efficiency level of existing buildings remains a key challenge. However, experts report that energy efficiency standards in line with the EPBD requirements are being applied for new buildings. At the time of the survey, experts were expecting new funding programmes (funded by Structural Funds) to be announced in the near future to support energy efficiency investments in the public and residential sectors. Experts notice high unused efficiency potentials in the service and industry sectors which still need to be addressed. In the transport sector, some investments in new infrastructure as well as a change in fuel taxation are reported. However, the dependency on cars as main means of transport continues to be the key challenge. 9

11 Cyprus: improvement in actual implementazon Energy efficiency in industry 40% 4 13% Decreasing fuel poverty 33% 60% Energy efficiency in transport Exemplary role of public buildings Funcmoning of the energy service market 20% 20% 20% 80% 6 60% 13% 20% no progress some progress good progress Consideramon of energy efficiency in public purchasing 66% 2 Building renovamon 86% 14% 0% 20% 40% 60% 80% 100% The Cypriot energy experts see progress in a range of specific energy efficiency policy intruments (over 90 % rate several instruments as partly or very effective in the Cypriot context), in several cases among the highest in the EU. This is presumably due to the fact that few such programmes existed in the past. The highest rating for "not effective at all" was given to energy audits for companies (36 %). Cyprus: effeczveness of different policy instruments Energy labelling of products EE requirements for new buildings Energy cermficamon of buildings Financial incenmves for private households Financial incenmves for SMEs Programmes for local energy planning EE requirements for renovated buildings Namonal Energy Efficiency Funds Energy taxamon Smart metering Targeted advice for households Inspecmon heamng/air- condimoning systems Energy audits for companies 5 50% 72% 72% 8% 7 14% 36% 14% 65% 14% 65% 14% 14% 23% 15% 14% 29% 29% 14% 36% 36% 43% 21% 21% 15% 50% 14% 14% 72% 54% 8% 43% 14% 43% 14% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% not implemented not effecmve at all partly effecmve very effecmve Good Practices A good practice example from Cyprus is the Energy Efficiency in Low Income Housing in the Mediterranean (ELIH MED) project. The objective of the programme is to identify and test, through 10

12 large scale pilot actions, the feasibility of cost efficient technical solutions and innovative financial mechanisms backed with the European Regional Development Fund (ELIH MED 2015). 1 The main actions of the programme are to develop integrated policies to promote energy efficiency in low income housing by testing technical and financial solutions in 420 low income dwellings and to promote intelligent energy management systems in 135 low income dwellings. In Cyprus, 25 low income households will be retrofitted under this programme. Energy efficiency solutions include among others: external thermal insulation, double glazing, and solar thermal water heaters. Thereby, total energy consumption will be reduced by 40%, the energy classification of the buildings will be improved by two grades and circa 50,000 kilowatt hour/year will be saved. 1 ELIH MED (2015): Goals and working approach. med.eu/layout/elih- med/?page=/upload/moduli/pagine/public/goals.html&target=&tit=project 11

13 Disclaimer The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EASME nor the European Commission are responsible for any use that may be made of the information contained therein. The analysis performed here is based almost exclusively on the information provided in the NEEAPs. Consequently, a low score for any of the criteria analysed could also be the result of a NEEAP lacking detailed information. Furthermore for some countries, national experts were consulted to review the reports. However, experts were not available for every country report and a full analysis of the policies and measures was only possible for a limited number of reports. The purpose of this assessment is not an absolute policy overview among Member States but is focusing on each Member State s individual conditions. The Project The Energy Efficiency Watch Project aims to facilitate the implementation of the Energy Efficiency Directive but also related policies like the Energy Performance in Buildings Directive (EPBD) and the Ecodesign (ErP) Directive on the national, but also on the regional and local level. This country report shows the progress made in implementation of national energy efficiency policies via a screening of NEEAPs and an extensive EU wide expert survey. efficiency- watch.org The Authors Stefan Thomas, Felix Suerkemper, Thomas Adisorn, Dorothea Hauptstock, Carolin Schäfer- Sparenberg, Lena Tholen, Florin Vondung (Wuppertal Institute) Daniel Becker, Lucie Tesniere, Charles Bourgault, Sonja Förster (Ecofys) Christiane Egger (OÖ Energiesparverband) with contributions by Reinhold Priewasser (University of Linz), Nils Borg (eceee), Dominique Bourges (Fedarene), Peter Schilken (Energy Cities) List of Abbreviations CIE Cyprus Institute of Energy, EE Energy Efficiency, EED Energy Efficiency Directive, EPC Energy Performance Certificates, EPBD Energy Performance of Buildings Directive, ESCO Energy Service Company, EU European Union, EEW Energy Efficiency Watch, MEPS Minimum Energy Performance Standards, MURE Mesures d Utilisation Rationelle de l Energie, NEEAP National Energy Efficiency Action Plan, nzeb nearly Zero Energy Buildings, R&D Research and Development 1