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Table B6 Funds allocated for renewable heat generation under the Enova SF Energy Fund in Norway TJ Granted € M Granted €/capita Paid out € M Paid out €/capita 2002 597.6 6.12 1.32 5.16 1.11 2003 2005 Total 943.2 4.92 1 065.6 13.92 7 182 78.24 1.06 3.01 2.64 0.57 1.8 0.39 14.52 2004 943.2 11.16 2.42 3.96 0.85 2006 2 451.6 42.12 9.13 0.96 0.20 182 The level of funding available for renewable heating projects has fluctuated. Initial investment subsidies of 20-25% for projects based on bioenergy, waste heat, solar and heat pumps were reduced to 10% in 2003. Currently Enova contributes up to 15% of the project costs for heat distribution and heat generation based on renewable energy. Stipulations exist for the financial eligibility of this funding. For example, subsidies for heat production based on wood chips are available only to installations which produce at least 216 TJ /yr; for sawmill waste at least 36 TJ /yr; and for GHPs over 7.2 TJ/\yr (IEA, 2005). Carrot. In 2002 the Norwegian State Housing Bank began to offer Incentives for Non-electric Heating Technologies in the form of loans available for builders to incorporate solar thermal systems, biomass boilers and GHPs in new constructions82. Other incentives are offered for water-based central heating distribution systems and heat pumps which may be combined with solar heating systems, and bioenergy. Levels of available support depend on individual cases. Development and pilot projects with high environmental ambitions may receive grants and loans up to 80 – 90 % of project costs. The bank has stated a goal of a 50% reduced energy demand in half of all new houses built in 2010 (SHC, 2006). Carrot. From January 1 2007, the Basic Fund for Renewable Energy and Energy Efficiency, managed by Enova, was established to provide subsidies for renewable energy in terms of actual energy generated (€ /kWh). This fund, supporting all renewable resources, was allocated €1.2 billion in 2007. It is estimated that the annual contribution to the Basic Fund will be around €105 M. Evaluation Heat production in Norway in 2004 totalled 11.4 PJ which 15% was used by industry, 17% in the residential sector, 67% in the commercial and public services sector, and less than 1% in agriculture and forestry (Figure B22). Due to the abundant hydro resource, electricity prices are comparatively low in Norway, which has led to popular use of electric heat. With the deregulation of the electricity market in the early 1990s electricity prices dropped further, hence electricity remains the most common source of heat. Beginning in 2000, renewable heat, primarily biomass, began to increase noticeably (Figure B23). Geothermal heat, especially from heat pumps increased in this timeframe, coinciding with the beginning of the Enova SF Energy Fund. Solar thermal grew slowly in comparison with other RETs for heat. Prior to the implementation of the Enova SF Energy Fund, the comparatively low price for electrically-based heat generated from hydro possibly inhibited the growth of renewable heat. According to the Norwegian Water Resources and Energy Directorate, district heating systems produced 3.3 PJ of heat in 1990, 5.7 PJ in 2000, and 9.1 PJ in 2004. In 2005, solid biomass accounted for 15% of the district heat supply and heat pumps 6% with most of the energy coming from refuse incineration 82. See www.husbanken.no. Source: Enova SF Annual Report, 2007PDF Image | RENEWABLES FOR HEATING AND COOLING
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