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108 water heater manufacturing capability. Currently modern biomass combustion (excluding traditional domestic biomass as used in many developing countries) contributes most of the renewable heating, particularly in the building and industry sectors. Deep geothermal heat is used mainly by industry and district heating schemes in regions where resources are available, whereas shallow geothermal heat is used more extensively, mainly for small-scale domestic applications. Projections out to 2030 show a significant increase in all of these commercially available technologies. For early-market technologies and those still under development, in countries where good resources exist, one primary policy aim should be to move appropriate REHC technologies closer to the mass- market stage. Strong policy support at the early market stage has played a key role in successful deployment in all leading countries. However specific heating and cooling costs vary widely with resource availability and location as well as the stage of development of the technology, so careful assessment is recommended prior to policy implementation. For example in countries where shallow geothermal heat pumps are in their infancy or at the early-market stage, incentive guidance policies could possibly be used to stimulate learning experience, educate potential customers and train installers. However in countries where they are already close to mass-market, as their reliability increases and costs further decline, regulatory policies may become more applicable. Providing cooling services from renewable energy sources remains at the early development stage for many technologies (with perhaps the exception being passive solar building designs used extensively throughout some hot regions and naturally cold water distributed through existing district heating networks in summer). Even the most promising technologies remain largely at the research and demonstration stage with further government and private-funded R&D support required. Policies to support renewable heating systems have been developed in several OECD countries with varying degrees of success. Of the twelve selected countries studied in detail, the majority of policies were based on incentives (carrots) rather than regulations (sticks). The more successful policies can be defined as those having the greatest effect for the lowest government investment. Measuring their effectiveness using various indicators is difficult since good databases showing annual heat demand do not usually exist because, unlike electricity or transport fuels, heat is rarely sold off-site; hence there is no need for costly metering. Comparing average annual public investment in REHC per capita with the subsequent change in average annual REHC demand per capita over time for a country where such data is available is a fairly coarse measure, but it can be a useful indicator. Where a good natural solar, biomass or geothermal resource exists, government investment is less essential in order to bring the technology to the market. Where the resource is relatively poor, then more stringent and costly policies may be required. Regardless of the resource availability, and whether stick or carrot policies are chosen, the most effective often proved to be those where parallel investments were made in guidance and educational programmes in order for the stakeholders (including the general public) to better understand the benefits that REHC has to offer. This is particularly the case for investment in domestic heating and cooling systems such as solar water heating, wood stoves and geothermal heat pumps where personal investment decisions are made by the owner of the dwelling. Good policies for market development have proved successful for each of solar, bioenergy and geothermal technologies, even in locations where the resource is not particularly abundant. Under these conditions energy costs can be relatively high compared with using oil-, coal- or natural gas-fired heating appliances so more stringent policies are needed. Overall the type of policy to best stimulate the market has to be developed for each energy resource, conversion technology and location. The resulting market uptake also depends on the competing prices for fossil fuels in the region. There is therefore no single solution. Therefore evaluating policies used elsewhere with varying degrees of success, but adapting them if necessary to suit the local conditions, is the approach recommended.PDF Image | RENEWABLES FOR HEATING AND COOLING
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