The Effect of Energy Efficiency Policies on the Medium-Term Energy Outlook of Cyprus

Abstract

This paper presents an energy outlook for Cyprus up to the year 2020, quantifying the energy savings that can be attained depending on the degree of implementation of energy efficiency policies and the use of natural gas in power generation. It turns out that the recent economic crisis does not seem to hinder progress towards a more energy efficient economy, thanks to the increasingly stringent energy efficiency regulations for buildings foreseen in EU legislation. Proactive implementation of all energy efficiency measures promoted by EU policies, and a stronger commitment towards improving the energy performance of the transport sector, can lead to a substantial improvement in national energy productivity. In view of the future EU-wide commitments to reduce greenhouse gas emissions, a decisive adoption of energy efficiency policies will bring about a significant structural shift in the country’s energy outlook, which will probably pass the cost-effectiveness test as well.