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Energy and Buildings 38 (2006) 196–206 /locate/enbuild A new methodology for renewable and rational use of energy policy in building sector: Case study for the island of Crete E. Tsioliaridou *, G.C. Bakos Democritus University of Thrace, Department of Electrical and Computer Engineering, Energy Economics Laboratory, 12 Vas. Sofias Str, 67100 Xanthi, Greece Received 29 March 2005; received in revised form 19 April 2005; accepted 5 June 2005 Abstract This paper discusses the future development of efficient energy policies with respect to building sector, using a new simulation computer model called INVERT. The building sector incorporates supply side systems (heating, domestic hot water (DHW) and cooling systems) and Demand Side Management (DSM) measures. Simulation runs have been carried out up to 2020 for the Greek island of Crete based on sensitivity analyses for different building types, heating/cooling technologies and DHW systems. Promotion schemes for renewable energy sources (RES) and rational use of energy (RUE) are also implemented in the simulation model, since they have a strong impact on long-term financial investment strategies. Transfer costs and CO2 emissions of various hypothesis scenarios about new or additional promotion schemes for energy conservation in residential buildings have been compared with a reference scenario for the island of Crete. The outcome of this case study is presented and discussed in this paper. # 2005 Elsevier B.V. All rights reserved. Keywords: Reference scenario; Renewable energy sourc