Republic of Cyprus Second Voluntary National Report - Sustainable development goals

68 NARRATIVE Cyprus is among the Member States with the highest greenhouse gas emissions per person, with the majority of the emissions coming from the energy production sector, which is heavily relying on fossil fuel and highly exposed on oil prices. A comprehensive approach towards cleaner and more affordable energy, renewable energy penetration and climate neutrality is delineated in the National Energy and Climate Plan (NECP), which was prepared in January 2020. The NECP includes costed measures, which contribute to Cyprus’ transition to climate neutrality, through the achievement of the national targets in energy efficiency and renewable energy for 2030. Specifically, major investments have been planned and scheduled in renewable energy, in the transformation of the network and the introduction of smart meters in power distribution, in power transmission networks, in importing and using natural gas for increasing energy efficiency in power generation, in the energy efficiency in households, businesses, public sector and water sector, in transport infrastructures and sustainable mobility as well as in technological research. It also targets the alleviation of energy poverty through reduced energy bills and to address Cyprus’ energy isolation and thus its vulnerability to energy supply and price shocks. ANALYSIS Based on 2019 data, Cyprus ranks somewhere in the middle among EU countries, being 14 th in the final energy consumption and 15 th in the primary energy. More specifically, in 2019, the primary energy consumption was 2.88 tonnes of oil equivalent (TOE) per capita (while the EU average was 3.02 TOE per capita), and the final energy consumption was 2.14 TOE per capita (compared to 2.20 TOE per capita in the EU). For both indicators a U-shape trend is observed between 2010 and 2019. However, based on preliminary data, for the year 2020, the national indicative and obligatory targets deriving from the EU legislation will be achieved. It is recalled that the EU Directive 2002/2018 amending Directive 2012/27/EU on energy efficiency, recognising the national circumstances and limited capabilities of Cyprus, have set, by way of derogation, lower obligation to Cyprus for achieving end use energy savings for the period 2021-2030 (0.24% of final energy consumption instead of 0.8%). One of the most widely used indicators for clean energy is the share of renewable energy in gross final energy consumption. In 2019, the share in Cyprus was 13.8%, placing Cyprus in the 20th position among EU countries (with the EU average share being 19.7%). The data shows a significant upward trend, from 6.2% to 13.8% between 2010 and 2019. Moreover, the share of renewable energy varies by sector. Cyprus underperforms in the use of renewable energy in transportation and electricity (3.3% and 9.8%, respectively), while it performs relatively well in heating and cooling (35.1%). The upward trend observed in the total index, also characterises the aforementioned sectors. It is recalled that the EU Renewable Energy Directive sets the national targets for each individual member state, taking into account the different starting points and potentials. 85 90 95 100 105 110 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 index 2005 = 100 Primary Energy Consumption Final Energy Consumption 108.1 106.9 101.0 87.9 87.8 91.9 98.0 102.4 102.9 102.7 105.2 104.9 96.6 88.3 88.4 91.0 96.4 101.7 101.4 103.0 Figure 19.: Energy Consumption 0 2 4 6 8 10 12 14 16 % 6.2 6.3 7.1 8.5 9.2 9.9 9.9 10.5 13.9 13.8 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Figure 20.: Share of Renewable Energy in Gross Final Energy Consumption