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74 flexibility introduced into the policy amendment allowed more choice in the type of biomass. The lesson that can be drawn is that a degree of flexibility should be incorporated in regulations to prevent unpredictable price hikes and supply chain complications. In order to ensure quality of hardware, installation, and design planning when implementing obligations for renewable heat, a monitoring system, including periodic examinations of installations and/or minimum quality standards is advisable. The costs are often substantially better if REHC technologies are integrated from the early stages of planning, thereby justifying the early support inherent in building regulations. However, as regulatory schemes tend to require the installation of only one type of renewable heating technology, complementary technologies may lack any support. Guidance The importance of including a guidance-based scheme with the implementation of carrot incentives to educate the public and simultaneously promote the concepts was demonstrated in Italy’s Bando Nazionale per Enti Locali e Aziende Distributrici Gas (BNELADG) policy (Annex B6). It offered subsidies to local authorities and municipally owned gas-distribution companies for 30% of the installation costs for solar thermal. There has been very low response to this €6 M programme begun in 2002 with only €1.5 M allocated. The successful German Market Incentive Program offered subsidies for only an average of 15% of installation costs. It can therefore be assumed that the relatively poor success of Italy’s BNELADG policy was not due to the level of support offered. Rather, the lack of any accompanying awareness- raising campaign, nor support programme to train personnel how to install solar thermal systems, may have been a serious impediment to success. It is therefore recommended to include a framework for information distribution in accordance with other policies which promote REHC. Instruments such as information campaigns, training, and demonstration projects ensure that a lack of awareness does not impede the success of a policy. In summary, policy makers should be cognizant of the technologies they are trying to promote. Policies geared towards REHC technologies that are cost efficient on the small scale (such as solar thermal and geothermal heat pumps) should be targeted to the end consumer while those geared towards technologies that are more cost efficient at the larger scale, (such as biomass and geothermal), may be better targeted towards large entities or companies. Policies that support an increase in the number of small, replicable heating systems (solar hot water, wood stoves and heat pumps) should supplement systematic policies that support large scale heating infrastructure changes to encourage district heating and thermal power plant waste heat utilization. It is recommended to base policy targets on the actual generation of heat rather than on total capacity or number of installations. This ensures that the specific goal of the policy is to promote renewable heat. Basing incentives in terms of plant capacity alone may risk the installation of REHC technologies that are not actually utilized. The implementation of support schemes based on quota systems or feed-in tariff systems (as used for electricity generation) may become important instruments to promote renewable heating. Although such policies have been proposed by several nations (in particular UK and Germany) their implementation is complicated due to the many adjustments necessary to tailor such policies to the distributed nature of the heat supply and demand. Effectiveness indicators An analysis on the effectiveness of a given policy or package of policies is an important component of policy review. In this section, the REHC policies from the 12 OECD nations are presented in aPDF Image | RENEWABLES FOR HEATING AND COOLING
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