RENEWABLES FOR HEATING AND COOLING

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RENEWABLES FOR HEATING AND COOLING ( renewables-for-heating-and-cooling )

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174 This project aims to promote the accelerated introduction of the “New Energy Facility Introduction Project” as well as the “New Energy Introduction Promotion/Dissemination Project,” both of which will be implemented by local governments. Subsidies are available under the jurisdiction of local governments for up to 50% of the costs of installation, deployment, promotion of public awareness and related activities of renewable energy facility costs up to €120 000. The public sector, private companies, and non-governmental organizations are eligible to receive subsidies (Hirofumi, 2007; IEA, 2006e). In 2002 amendments were introduced to the PLINE program. An annual budget of €99.6 M was allocated in 2002, only part of which supported renewable heating technologies. (IEA, 2004) The PLINE scheme is ongoing and in 2006 the budget was €27.6 M. By 2005, PLINE had supported 65 solar thermal plants, 4 biomass thermal plants, 9 biomass projects for snow/ice melting, and 7 waste thermal stations in addition to 624 projects for renewable electricity production (Hirofumi, 2007). Carrot. Under the New Energy umbrella the Japanese government allocated €4.5 M in 2000 under the Subsidies for Environmentally-Friendly Community Energy Projects programme. These funds are allocated for regional heat supply systems and waste power generation plants. It was the aim of this policy to make the best possible use of waste heat or surplus electricity production (IEA, 2004) but was terminated in 2002. Carrot. Also under the New Energy Law, in December 2002 the Biomass Nippon Strategy (BNS) was implemented in Japan through 2010. In 2005 the BNS budget had been allocated €12.2 M for RD&D, and €143.3 M for biomass conversion facilities. The BNS targets the utilization of 80% of waste (including paper waste, livestock waste, construction derived wood wastes, black liquors and sewage sludge) and 25% utilization of energy crops and other specified biomass energy sources. As part of the BNS a Biomass Information Headquarters agency was established to act as a central base of information on biomass in Japan. The government allocated approximately €600 000 in 2006 in support of biomass under this strategy to include demonstration projects and subsidies for biomass projects conducted by municipal governments and other private organizations (Kobayashi, 2004). The second pillar of the New Energy Law offering preferential tax treatment for new energies offers a 7% tax deduction of the standard purchase price of new energy facilities under the law titled Tax to Promote and Invest in Reforms in the Energy Supply-Demand Structure. Under this system, installation owners may chose a 7% tax deduction or a special accelerated depreciation wherein an amount equivalent to 30% of the base acquisition value may be included as a non-taxable expense. Under the law titled Local Energy Taxation System, the standard taxable value for property tax may be abated by one-sixth for any individual or business entity that has installed a new facility for the duration of 3 years after installation. Special tax measures are available to individuals or business entities which have installed biomass facilities. For such systems, owners are allowed to choose between a 7% tax deduction and an accelerated depreciation schedule, similar to above. In addition, with regards to the Local Energy Taxation System, the standard taxable value for property tax may be abated by one-half for a period of three years following installations and a further abatement of the standard taxable value for the business office tax by one-half on both the asset-based and employment-based assessment is offered. Under the third pillar of the New Energy Law, the Development Bank of Japan and the Japan Finance Corporation for Small and Medium Enterprises offer loans for investment in renewable energy facilities up to 40% of project costs to large companies and up to €4.3 million to SMEs. Guidance. Awards have been provided by the MOE each year since 1998 to each renewable energy sector. These awards target public awareness of renewables and introducing new technologies. Stick. In May of 2002 the Law on Special Measures for the Utilization of New Energy established an RPS for renewable energy. This law set targets for 760PJ (19.1 billion litres of oil equivalent) or roughly 3% of the total primary energy supply to be sourced from new energy forms by 2010 with an obligation

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