RENEWABLES FOR HEATING AND COOLING

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

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also been subsidized (SenterNovem, 2006). Based on 2005 project values, roughly €31 M was allocated in support of renewable heat generation. Only a small percentage of the total EIA allocation was allocated for renewable heat projects between 1997 and 2006 in the order of €211 M (SenterNovem, 2005). Carrot and Guidance. In 2001 Energy Premium (EPR) and Energy Performance Advice (EPA) schemes were established. The EPR provides a subsidy of 50% for renewable energy projects including heat pumps and solar boilers in households and social housing corporations. EPA is a consultation service to provide possible measures that may be taken to improve the energy performance of a dwelling or office building. If and when the suggested measures are carried out, the EPR will subsidize part of the project. Both the EPR and the EPA were financed by means of an energy tax (REB). As the growth of renewable energy systems did not achieve intended targets, the government ended EPR funding in 2002 (IEA, 2004). Funding for EPA energy consultations continued, but in 2004 the budget was cut to €20M (IEA, 2004). Carrot. July 2003 saw the passing of the Environmental Quality of Electricity Production Act (MEP), subsidizing the production of renewable energy, especially from biomass. This replaced the former producer compensation Regulating Energy Tax. The reduction in fiscal advantage was theoretically replaced with an equal rise in feed-in subsidies from the MEP financed through a levy placed upon all electricity consumers of €52 in 2005. Biomass heat production is indirectly supported through the feed- in subsidies offered for CHP energy production. Subsidies for biomass energy production have ranged from €0.41 to €0.70 per kWh. Stick. Energy Performance Requirements, employed in 2006 for new buildings, require the calculated total energy consumption to be below a specified level. The 20% reduction of energy allowance announced is expected to lead to a higher use of solar collectors and heat pumps. There is not yet a requirement for existing buildings due to administrative costs (SHC, 2006). 178 Guidance. Demonstration projects have been undertaken to encourage the development of deep geothermal energy projects (EGEC, 2006). Evaluation The Netherlands consumed 125.9 PJ of heat in 2004, 48% in the industrial sector, 7% in the residential sector, 24% in commercial and public services, and 6% in agriculture and forestry (Figure B19) (IEA, 2007a). Figure B19 Heat consumption in the Netherlands by sector in 2004 Agriculture 6% Residential 7% Service 24% Biomass accounted for the majority of renewable heat in the Netherlands, solar thermal and geothermal heating markets have also shown growth (Figure B20). Industry 48%

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