Overview

Despite the temporary effects of the economic recession of years 2012-2015, energy consumption in Cyprus was higher in 2017 than in 2000. Increases in energy demand of both transport and buildings (residential and services) have been responsible for this development, while the share of industry in energy consumption has dropped both because of the smaller share of industry in total economic activity in 2017, and thanks to energy efficiency improvements in major industrial plants.

Figure 1: Final energy consumption by sector (normal climate)

Source: ODYSSEE

Overall technical energy efficiency has improved by around 25% in Cyprus between 2000 and 2017. This has been driven by energy efficiency improvements in all sectors - buildings, industry and transport. Industry has shown the fastest increase in energy efficiency, mainly because the largest industrial energy consumer is by far the cement industry, which has undergone a major reconstruction and refurbishment of its plants. Transport has demonstrated the slowest energy efficiency improvement in 2000-2015; both road transport and air transport have been responsible for the lack of progress in energy efficiency. Over the last years (2015-2017) progress in the service sector has remained stagnant too.

Figure 2: Technical Energy Efficiency Index

Source: ODYSSEE

Table 1: Sample of cross-cutting measures

MeasuresNEEAP measuresDescriptionExpected savings, impact evaluationMore information available
yes
Source: MURE

Buildings

Energy efficiency in the buildings sector of Cyprus has improved steadily since the adoption of energy performance standards for new buildings in the mid-2000s, and as a result of the implementation of all relevant EU legislation. Still, energy consumption of buildings continues to grow as a result of the increasing number and size of dwellings, which outweighs energy efficiency improvements.

Figure 4: Energy consumption per dwelling by end-use (except space heating)

Source: ODYSSEE

Residential energy consumption per dwelling has fallen somewhat between 2000 and 2017, reflecting the improved energy performance of new buildings as well as the effect of a limited number of energy renovations in existing buildings. The share of main end uses in energy consumption does not seem to have changed significantly. Electrical appliances are responsible for the highest part of final energy consumption, followed by water heating - which however is predominantly satisfied through solar water heaters.

Figure 5: Main drivers of the energy consumption variation in households

Source: ODYSSEE

The increase in the number and size of dwellings has been primarily responsible for the rise in total residential energy consumption between 2000 and 2017. It has been only partly counterbalanced by energy efficiency improvements.

Figure 6: Energy and electricity consumption per employee (normal climate)

Source: ODYSSEE

Energy consumption per employee in the service sector of Cyprus has remained essentially constant over the period 2000-2017; it has dropped during the economic downturn of 2012-2015 but started rebounding from 2016 onwards. The sector depends on electricity by more than 80% to cover its energy needs.

Table 2: Sample of policies and measures implemented in the building sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Source: MURE

Transport

Transport accounts for half of final energy consumption in Cyprus. This is due to the facts that a) the country is an island, so that all international passenger transport is conducted by energy-intensive aviation; and b) use of public transport remains very low, despite recent investments in public buses which have not been adequate to induce a significant modal shift in passenger transport - which is still dominated by cars.

Figure 7: Split of the transport energy consumption by mode

Source: ODYSSEE

The share of private transport (cars and trucks) has been rising continuously.

Figure 8: Share of transport modes in passenger traffic

Source: ODYSSEE

Attempts to strengthen the public transport system, which consists of urban and interurban buses, have not been effective up to now. Therefore, the share of cars in total passenger traffic has remained very high in Cyprus; in fact it seems to have risen further between 2000 and 2017.

Figure 9: Share of modes in freight traffic

Source: ODYSSEE

Inland freight transport is conducted only with trucks.

Figure 10: Main drivers of the energy consumption variation in transport (2000-2014)

Source: ODYSSEE

Despite some energy efficiency improvements because of the gradual renewal of the stock of motor vehicles, increases in total passenger kilometres and tonne kilometres travelled have been stronger; therefore total energy consumption of transport has risen by more than 25% between 2000 and 2017.

Table 3: Policies and measures into force in the transport sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Source: MURE

Industry

Industrial activity in Cyprus has been steadily declining. This has led to a drop in final energy consumption of the industrial sector. The fall in energy use has been accelerated by substantial energy efficiency improvements across the sector and mainly in cement industry.

Figure 11: Final energy consumption by branch

Source: ODYSSEE, steel including blast furnaces

Final energy consumption of the industrial sector in Cyprus has dropped substantially over the last two decades because of a strong decline in industrial economic activity. The non-metallic minerals sector, dominated by the cement industry, is currently the only energy-intensive industrial activity in Cyprus and is responsible for more than half of industrial energy use.

Figure 12: Unit consumption of energyÔÇÉintensive products (toe/t)

Source: ODYSSEE

Unit consumption of the cement industry - the only energy-intensive industry of Cyprus - has declined since 2000. The increase after 2012 is an artefact of the decreasing denominator of this index (tonnes of cement production) because production of cement has dropped substantially in 2013-2015 because of the decline of the Cypriot construction industry due to the economic downturn. However, production of clinker (which was exported for cement production abroad) continued and hence energy consumption of the cement plant continued as well.

Figure 13: Main drivers of the energy consumption variation in industry

Source: ODYSSEE

Energy savings, mainly effected in the cement industry, as well as structural changes (i.e. a shift towards less energy intensive industrial activities) have been the major contributors of the decline in industrial energy consumption.

Table 4: Policies and measures into force in industry

MeasuresDescriptionExpected savings, impact evaluationMore information available
Source: MURE