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Annex B2. Denmark Instruments Renewable heat policy Energy taxes Energy 2000 - National heat supply act Combined heat and power fund Development and demonstration programme Biomass agreement Ban on electric heating Energy 21 - Development programme renewable energy - Act on utilization of RE Executive order solar heating obligations Biomass CHP incentives Stick. Prior to its first Heat Supply Law in 1979 that was part of the Danish Energy Policy, most Danish consumers had oil furnaces for heating. This law required local authorities to report on their heat requirements, methods, and energy consumed. Plans were then drafted with an emphasis on public planning of heat supply (DEA, 2005). The vast use of district heating was thereby promoted by giving local governments the authority to mandate connection of new and existing buildings to district heating 144 networks. Since its enforcement in 1982, this law has remained in place with minor amendments in 2000 (laws 581 and 582; see below). The second major energy policy in Denmark, Energy Plan 81, was drafted in 1981 offering further support for the environmental considerations of heat and energy generation. Carrot and Guidance. From 1979 to 2002 Denmark provided subsidies for up to 30% of installation costs of solar water heating systems for households in areas not served with district heating (SHC, 2006). Between €2.6 - 3.25 M (DKK 20-25 M49) were invested from 1998-2000 with an additional €260 000 invested per year on information campaigns. On average approximately €1.2 M was provided annually giving a total contribution of roughly €30 M. After 25 years the programme was ended on the basis that after such a long period of support, the technology should have been mature enough for commercial competition. Carrot. Energy taxes have been imposed in Denmark since 1986. In 1992 a CO2 tax extended the taxation on fossil fuels to include the private sector. In 1995 green taxes were applied which increased the CO2 and energy taxes and created a SO2 tax. Biomass heat is exempted from all these aforementioned taxes except the SO2 tax of €2.47/t. The average tax on fuel oil is €308/t and on coal €199/t. Solar thermal plants are also exempted from both energy and CO2 taxes (EC, 2006b). These energy taxes have created a more level playing field for renewable heating, making it more cost competitive with conventional heating fuels. Stick. In April 1990, Denmark’s third energy action plan, Energy 2000, created a building code with a target of reducing 25% of the net heat demand and requiring low temperature heating systems such as district heating systems, condensing boilers, solar energy, and heat pumps. This code entered into force in 1996 for large buildings and 1998 for small buildings. 49. 1 Danish krone (DKK) = €0.13 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006PDF Image | RENEWABLES FOR HEATING AND COOLING
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