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96 Nearly 50% of REDI ́s funding was allocated to financial incentives under the market stimulation pillar. In the first two cycles €4.03 M of REDI contributions leveraged €22.4 M29 of investment (NRCan, 2005). The number of applications for REDI funding has increased steadily since. In the first REDI cycle, most supported systems were for biomass, the size and average support cost of €133 900 per project supported being much larger than for solar thermal. Market growth With millions of hectares of managed forests, Canada supports a significant natural resource potential for biomass heat. Unsurprisingly, solid biomass constitutes a majority of Canada’s renewable heating supply. Wood product and pulp and paper industries accounted for the majority of solid biomass use in Canada, primarily in the forms of wood waste and black liquor (IEA, 2004). In addition to the use of wood for residential space heating30, biomass waste collection facilities have been established and are used for industrial process heat and CHP systems. Partly due to the large and significant biomass resource available from forests, Canada generates comparatively high levels of heat from this renewable resource (Figure 48). Figure 48 Heat generation from biomass sources between 1990 and 2004 in Canada Heat generated (PJ) 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Most of REDI funding has been allocated to support public awareness of biomass heating. However it is difficult to discern how much capacity or heat generation has actually been supported as a result of this investment although an indicator may be taken from the capacity installed, based on the portion of funding in support of market stimulation. After completion of the first and second cycles in 2003, REDI had supported the installation of 66.17 MWth of biomass capacity investing €0.78 M for 35 individual projects. By March 2006, capacity had risen almost 4-fold to 246 MWth and the programme had supported 128 biomass heating projects. In summary REDI played an important role in developing the market for high-efficiency/low-emission biomass combustion systems (IEA, 2004). Although the total budget for REDI has not been as high compared with 29. In the first two cycles CAD 6.2 million of REDI funding had leveraged CAD34.5 million 30. Wood is used for primary or secondary residential space heating in roughly 3 million households in Canada. This equals roughly 90-100 PJ of annual energy production.PDF Image | RENEWABLES FOR HEATING AND COOLING
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