Barriers and enabling tools for renewable heating and cooling

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Presentation transcript:

Barriers and enabling tools for renewable heating and cooling Pedro Dias ESTIF Secretary General FROnT project coordinator How do we enable local authorities and consumers?

Building Blocks for European Leadership in Renewables: The importance of the local level

FROnT Objectives Background Need to understand RHC sector: Costs Potential Market Need to understand H&C consumers: Needs & expectations Key decision factors Need to identify best practices for RHC support policies: Evaluate existing schemes Identify key success factors Integrated approach to RHC sector To support a better insight of the value of the energy supplied by RHC systems, promoting transparency and clarity towards end-users and other stakeholders To improve the understanding of the end-users decision making process with regard to heating and cooling systems in order to develop tailored approaches and facilitate adequate measures enhancing the uptake of RHC To facilitate the setting-up of improved and sustainable RHC integrated support schemes To promote the implementation at national and European level of strategic policy priorities that can contribute to efficiently and cost-effectively implement the NREAPs

Understanding heating & cooling First challenge is to understand the complexity of the heating and cooling sector. But also to descomplexify it. So we need to understand that there are different dimentions and we need to be sure we are talking about the same thing.

Understanding heating & cooling GWh 872 TWh 5738 TWh 3175 TWh Annual fluctuation of gas/electricity demand, The Netherlands, 2013. Source: GasNaturally. The relevance and complexity of the heating sector has not been fully understood. H&C is half of EU energy demand, variability is huge across different seasons. (Graph shows annual fluctuation of demand for electricity and gas in NL. In EU, 80% of gas goes into H&C. Gas fluctuation is therefore significantly similar to H&C demand fluctuation. ) In absolute terms, RES-HC is bigger than RES-E. © ESTIF 2016 Source; Eurostat data for 2014 (SHARES) 204 TWh 1017 TWh 3432 TWh

Strategic Policy Priorities Addressing Barriers Financing Lack of awareness Market conditions Stable framework Financing: RES H&C technologies’ investment cost is often higher than traditional fossil fuel equipment. Even if the total economic savings throughout the lifetime of the RES equipment is greater than the fossil equipment, this higher initial cost is a true barrier and represents the main rejection reason for RES technologies, at least in the residential sector. Lack of awareness: the survey shows that awareness of all RES technologies, notably emerging technologies, is very low in all sectors: residential, non-residential and industrial sectors. This represents an important barrier to the deployment of RES H&C technologies. The lack of political awareness can also be an important barrier as RES H&C technologies are not identified by policy-makers and therefore not properly incentivized. Market conditions: Comparing the cost of fossil and RES installations under current market conditions leads to misguiding results; fossil fuel remains heavily promoted, including in the framework of energy efficiency legislation and through public investments in large and local infrastructure. Additionally, their negative externalities are very often not internalised and therefore create a burden for the society. It is therefore a real challenge for RES technologies to become competitive in such an unfair market. Lack of strategic priorities and governance: In order for policy to be effective and coherent, a wider and long-term strategy, with clear and achievable objectives, should be designed. Then, a strong and coherent set of instruments should be developed to reach these objectives.

Local answers to consumers needs Financing schemes Demand aggregation Guidance Neutral expert advice One-stop Shop Web-based solutions / tools Planned replacement Time to consider alternatives

Policy Paper – Strategic Policy Recommendations for RHC in Europe Good practices for RHC support schemes Policy makers , energy agencies Online Tool to estimate RHC energy costs End-users, residential sector Market Facilitators End users, EA, PA, TA, Industry Strategic Policy Priorities Key deliverables: Manual of good practice for Design, Implementation, Operation of support schemes provides recommendations for the design and implementation of successful financial support schemes for RES-HC technologies. It covers technical, economical, financial, legal and marketing aspects. Target group: Policy makers Development of online tool: Allows consumers to calculate the lifetime cost of renewable heat and cooling technologies and to assess the competitiveness of renewable energy technologies (biomass, solar thermal, air-source heat pump and ground-source heat pump) against traditional fossil fuels. Target group: End-users, residential sector Objective: What motivates people to install RHC technologies? What are the barriers? National surveys on end-user key decision making factors on RHC systems Tools to support end-user decisions on RHC systems Recommendations on promoting transparency in RHC energy costs Target group: End users, Energy Agencies, Trade Associations, Public Authorities. Presented next in more detail: Policy Paper – Strategic Policy Recommendations for RHC in Europe Identification of barriers to RHC deployment Policy recommendations Target groups: Policy makers at EU, National and local level Policy makers: EU, Nat’l & local

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