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At the domestic scale, the novel design and development of more fuel efficient, enclosed wood-burning stoves in the 1970s (following successful government R&D investment) led to several stove manufacturers starting up. Several of these still exist and the export market for stoves is growing. Careful operation of the stove and the use of dry firewood can minimise emissions and several education campaigns to this effect have been conducted. As part of its Climate Change Policy, the government of New Zealand has recently announced its intentions to employ a tax on CO emissions from fossil fuels of around €13 /tCO 39, beginning in the 22 period 2008-2012. Biomass fuels will be exempted from this tax. As a result, this tax is expected to increase the cost competitiveness of biomass heat and provide an important means of political support. This may increase the future demand for woody biomass. In summary Overall it appears that even where a good natural energy resource creates a market-led demand, some government intervention can help aid further development and nurture its greater use in an efficient and sustainable manner. New Zealand wood processing plants often use their extensive, locally produced biomass resource on-site as a cheaper option than disposing of it in other ways such as by transporting it to landfills. Thus no government policy has been necessary to encourage the biomass heat market to date. Meeting domestic heat demand using locally available, free or cheap firewood has also been popular for decades without any policy measures needed. Similarly the domestic heat market quickly adopted the efficient stove technology after its development in the 1970s because these designs use perhaps a quarter of the firewood compared with an open fire to produce a similar amount of heat. Even without any subsidies or regulations, wide deployment has occurred. Regulations do exist in relation to stove installation, chimney heights, and in some cities, regarding related air pollution levels. So overall the uptake of woody biomass by both the domestic and industrial sectors has largely been market led, procuring the resource and investing in the necessary conversion plants being a cheaper overall option than burning coal or gas in conventional heaters or boiler designs. Geothermal in Iceland Iceland lies on the Mid-Atlantic ridge, one of the Earth’s major fault lines. The country therefore has a strong indigenous geothermal resource with high-temperature areas including volcanoes and hot springs having an average base temperature over 200°C. Numerous low-temperature zones also exist with an average base temperature below 150°C. The continuous tectonic activity in the area not only provides a continuous heat source, but also provides channels through which naturally heated water flows. Due to this abundant resource, geothermal energy accounts for over half of Iceland’s primary energy needs including nearly 90% of its space heating needs. Early in the 20th century, geothermal had already been utilized for greenhouses, swimming pools, and to a lesser extent, building space heating. Utilization of geothermal energy for space heating on a commercial scale began in 1930 with the laying of 3 km of hot water piping from the hot springs of Laugardalur to an area of 60 households, 2 schools, and a hospital near Reykjavík. The formal operation of district heating began in 1943 when 18 km of hot water piping was laid to heat 2 850 homes (Orkustofnun, 2006b). The Icelandic government assisted in the development of the extensive geothermal heating system in the nation beginning in the 1940s by supporting the exploration of geothermal resources and research to identify the options for their exploitation. This R&D investment has continued through to the present, although the administrative authority has been transferred over its lifetime, initially in 1967 being the responsibility of the State Electricity Authority, then transferring to the National Energy Authority, and 39. Currency exchange rates of NZ$1=€0.54 were used based on 2007 values. 103PDF Image | RENEWABLES FOR HEATING AND COOLING
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