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90 In summary Spain is a pioneering nation in requiring the implementation of solar thermal technologies in all new and refurbished buildings. The 2006 national Technical Building Code obligation applicable only to new and renovated buildings will have an impact on the solar thermal market in the future. However, based on the successes of regional policies in promoting solar thermal heating, in addition to the strong subsidy support available through PER, it is expected that renewable solar thermal heating in Spain will increase significantly. Biomass: Danish regulations In June of 1993 the Danish government established the Biomass Agreement with the aim of expanding the use of biomass in centralized electricity and heat production. Utilities were obliged by this government decree to replace 6% of their coal consumption with straw and wood and hence CHP facilities had to purchase and utilize biomass as an energy source. Denmark does not have a major forest industry so straw was selected as the main biomass resource although it is less ideal for combustion. Specific requirements were stipulated for the purchase and combustion of at least 1.2 Mt of straw and 0.2 Mt of wood chips per year by 2000 to provide 19.5 PJ of heat energy (DEA, 2005). Following the implementation of this Biomass Agreement, price hikes due to a limited biomass market complicated compliance with the policy. The agreement was therefore amended in July 1997 to provide greater flexibility in the ratio of straw to wood-chips in an attempt to mitigate pricing problems. This amendment allowed more flexibility of choice by utilities, while the total annual biomass to be supplied remained at 19.5 PJ by 2000. New stipulations were defined as: 1 Mt straw, 0.2 Mt wood chips, and the choice of a further 0.2 Mt from either straw, wood chips, or chips from Salix (willow) crops (DEA, 2005). The successful implementation of the Biomass Agreement took longer than intended. When the policy was first implemented in 1993, CHP biomass-fired technology had not been developed for large scale implementation, and when legislation was passed to liberalize the electricity market in 1999, the Biomass Agreement was destabilized. Lower electricity prices resulted so biomass required additional support to remain cost-competitive (Bertelsen, 2007). This was provided through the 2000 amendment to the Biomass Agreement although the time taken for this support to come into place postponed the effectiveness of the agreement itself. Further amendments to the Biomass Agreement were made in March, 2000 postponing the target date for biomass conversions to 2004. In addition, 2 or 3 new, large, biomass-compatible CHP plants were targeted for completion by the end of 2005. Finally, in response to liberalization of the electricity market, feed-in tariffs of €0.04/kWh21 for the electricity generated from biomass in CHP facilities were set for a 10 year production period. A guaranteed minimum price for green certificates of €0.0122 was established (IEA, 2005). These amendments, together with the introduction of the feed-in tariff for biomass, saw renewed growth of biomass heat generation (Figure 44). Market growth The production of biomass heat in Denmark has doubled since the implementation of the Biomass Agreement in 1993. Several centralized biomass CHP facilities have been constructed and a new plant is in the planning stages (as of May 2007). In addition, the already extensive use of biomass in independent heat generating installations has also been increasing, especially small wood-pellet boilers. In 2007, the Danish Energy Agency (DEA) estimated that 500 000 wood-burning stoves, 70 000 wood-burning boilers, 30 000 wood pellet furnaces, and 9 000 straw-burning furnaces were producing heat. 21. DKK 0.33/kWh (DKK 1 = ~ € 0.1) 22. DKK 0.10PDF Image | RENEWABLES FOR HEATING AND COOLING
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