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RENEWABLES FOR HEATING AND COOLING

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RENEWABLES FOR HEATING AND COOLING ( renewables-for-heating-and-cooling )

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format which provides a preliminary basis on which to judge their effectiveness. An explanation of the methodology used and its limitations is first provided, leading into a discussion of the results of the effectiveness analysis. Methodology It is desirable to design a REHC policy that achieves the maximum amount of deployment for a given amount of public expenditure. This was the basic assumption for this analysis of the costs and effectiveness for REHC deployment. Emphasis was once again placed on heat, there being few policies relating to cooling. Around two thirds of the policies surveyed offered direct financial incentives for investment in renewable heating technologies, mostly as subsidies or grants up to a limited total amount. The success of deployment often depends on the package of incentives offered. However, in large part due to the non- availability of published budget information, only individual carrot-based subsidy/grant incentives were examined. Information needed to enable full analysis of policies includes the annual government budget for each policy and the amount of REHC deployment resulting from this finance. This study however, was limited to using only readily available information from individual nations. It was therefore not possible to link individual policies to the resulting quantities of renewable heat generated. Policies also over-lapped in time making direct comparison even more difficult. Therefore, the package of carrot- based subsidy/grant schemes offered by any country was examined as a whole and simply compared against the total renewable heat generated in that country. For a true international comparison, it is necessary to present information such that any discrepancies between nations are minimized to the best extent possible. For this reason, budgetary information is here presented as the average annual €/capita over the period 2000-2005, the 6 year period being chosen to give an accurate overview of recent political activity and consequent deployment of renewable heating. The annual renewable heat generated in terms of TJ per 1 000 capita was chosen as the indicator assuming that a successful policy would stimulate an increase of heat generation. If a decrease occurred, a policy could be presumed to be less successful. For example, if in country X, 150 PJ of renewable heat was generated in 2004, 160 PJ in 2005, and 165 PJ in 2006, then the total amount of renewable heat demand over the 3 years increased by around 10%. However, there was a greater increase in renewable heat generated between 2004 and 2005 (10 PJ) than was witnessed between 2005 and 2006 (5 PJ). Therefore, the change in renewable heat deployment is most clearly evident when the data is presented as TJ per 1 000 capita per year which also minimizes the inherent differences in size and natural resource availability across countries. Limitations This analysis made it possible to obtain a generalized perception of the effectiveness of the levels of carrot-based incentive across the 12 nations. However, a lack of readily available information on both government investment and renewable heat generated as a result of individual policies limited the accuracy. Hence, the information presented here is not exhaustive, but was felt to be sufficient to draw at least preliminary conclusions. A comparison of policies across nations is complicated by the inherent differences in the availability of natural resources (e.g. the forest biomass resource in Sweden or the solar resource in Spain). These dampen the opportunity to make country comparisons on the amount of renewable heat generated alone. For example, if a given budget €X was invested in subsidies to encourage the installation of a similar number of solar water heaters in Spain or in the United Kingdom, the amount of heat that would be generated as a result would be much higher in Spain, simply because of the higher solar radiation 75

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