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other incentive programmes (e.g. the German MAP), the emphasis on education and public awareness of renewable heating technologies has been important for their growth, supported with financial incentives accompanied by strong advertising campaigns. Since the number of applications has increased annually, as has the number of installations supported, it appears that REDI has been successful in promoting renewable heat and increasing consumer confidence. The large distribution of publications in response to requests verifies a sizable audience. The subsequent April 2007 programme, ecoENERGY for renewable heat, extends many of the principles of REDI with an increased budget of €23.4 M for the first four years31. It is expected that it will build on the success and awareness initiated by REDI to achieve a strong growth in renewable heating. Geothermal: Swedish geothermal heat pump procurement programme The Swedish Agency for Economic and Regional Growth (NUTEK) began a Technology Procurement programme for small, brine-water heat pumps in 1993. Although the Swedish market for heat pumps first began to grow in the 1980s, low quality, poorly performing heat pumps led to a negative public view of the technology’s reliability. Consequently, the market declined in the late 1980s and early 1990s. In response, NUTEK sponsored the procurement programme with the aim of developing reliable, improved heat pumps for detached houses. This programme successfully stimulated the sales of geothermal heat pumps (GHPs) until it finished in 1996. The technology support programmes were first introduced in the late 1980s designed to support energy efficient technologies. NUTEK managed all technology procurements until 1998 when their energy responsibilities were handed to the Swedish National Energy Administration. In addition to heat pumps, other technologies have been supported including energy efficient washing machines, lighting and other household appliances. Procurement programmes act as a starting engine for market transformation (Suvilehto and Öfverholm, 1998). As the first step, a contest was announced indicating a future market for manufacturers (Olerup, 2001) and a list of performance parameters and other requirements compiled from purchasers and energy experts. Examples of requirements for heat pump technology procurement included a minimum energy savings of 28.8 GJ /yr (8 MWh/yr), chlorine-free refrigerants, and price restrictions. Manufacturers then submitted model prototypes which were tested free of charge according to the specified requirements. The two models of GHPs that won the competition were 30% more efficient at 30% less capital cost than previous models. Winning heat-pump models were then supported by a package of incentives, both carrot- and guidance- based. NUTEK provided information folders for consumers, developed a labelling system identifying products that met specified requirements, offered telephone consumer advice (a consumer hot-line), education, trade exhibitions and campaigning on national, regional and local levels. Informational campaigns took place in Sweden, Denmark, Norway, and Finland. In addition the sale of 2 000 units of the winning, most efficient, technology was guaranteed, and supported with €0.1 M in subsidies which were provided for the first trial batch (Suvilehto and Öfverholm, 1998; Olerup, 2001). Financing The Swedish budget allocated to technology procurement programmes (of which the heat pump programme was only one) has varied over time. In 1988, €16.5 M32 was allocated which increased to €82.5 M /yr from 1991 to 1998. Then, from 1998-2002 the levels were drastically decreased to €11 M (Olerup, 2001). 31. This is an equivalent to €5.85 M per annum or €0.18 per capita per year. 32. In 1988 the budget was SEK 150 million. This was increased to SEK 750 million per year from 1991-1998. From 1998-2002 it was decreased to SEK 100 Million. 97PDF Image | RENEWABLES FOR HEATING AND COOLING
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