An economic analysis of Cyprus’ residential buildings’ energy retrofits potential

Abstract

Cyprus’ building stock energy saving potential is considerably high due to the absence of legislation and regulations governing the energy performance of buildings, prior to the country's accession to the European Union. In this study, a methodology is proposed and applied to a typical residential building to assess the financial attractiveness of alternative retrofit scenarios. An advanced simulation software tool is utilised to measure the energy performance of a typical residential building in terms of envelope characteristics, construction materials and Heating, Ventilation and Air Conditioning system. The thermal model is used to assess the impact of alternative retrofitting scenarios. Then, an economic model is developed to evaluate the financial impact over the investment horizon. Finally, a risk analysis is conducted to investigate the stochastic behaviour of key input variables.