36 RENEWABLE ENERGY POLICIES IN A TIME OF TRANSITION HEATING AND COOLING 02

36 renewable energy policies in a time of transition

This preview shows page 36 - 38 out of 112 pages.

36
Background image
RENEWABLE ENERGY POLICIES IN A TIME OF TRANSITIONHEATING AND COOLING 02Policy instrumentStrengthsLimitationsTargets (generic or technology- or fuelspecific)Provides clear direction of travel; sends signals to consumers and industry.Not effective on their own; need policy measures for implementation.Financial incentives (e.g.grants, tax credits and investment subsidies)Improves the competitiveness of renewable heat compared with fossil fuels, can help address barrier of higher capital costs.Support levels subject to frequent changes due to shifting political priorities.Heat generation-based incentives (similar to feed-in tariffs)Provides support over a long period of time.Can entail high cumulative costs; does not deal with issue of high upfront costs.Carbon or energy taxes(with exemptions for renewables)Serves as important price signal; deals with externalities; can be ratcheted up over time.Politically difficult to implement; exemptions often given to certain industries, making them less effective.Renewable portfolio standards (quota for renewable heat)Provides certainty over deployment levels.Generally much less ambitious for heat than for electricity.Mandates, often technology-specific (e.g.requiring installation of solar water heaters)Mandatory; provides greater certainty of increased deployment.Mostly for new-build only, thus covering limited share of heat demand.Building codes(setting energy performance requirements, including for renewables)Provides an opportunity to align energy efficiency with renewable heat requirements.Mostly for new-build only, thus covering limited share of heat demand; rarely applied to existing buildings.Ban on fossil fuel heating optionsMandatory; provides greater certainty of success.Suitable alternatives must be availableInformation(e.g.awareness campaigns and labelling)Essential for creating awareness about options, costs and benefits.Most effective when done as part of personalised energy advice which is expensive to deliver.Standards and certificationImportant for supply chains and increasing consumer confidence.Unlikely to result in much deployment without financial incentives.Capacity building (e.g.installer training)Important for supply chains.Unlikely to result in much deployment on their own.Demonstration (pilot) projectsImportant for testing local suitability.Unlikely to result in much deployment on their own.Table 2.3.Strengths and limitations of policy instruments used to promote the use of renewables to produce heat2.7.CONCLUSIONSRenewables for heating and cooling have received much less policy attention than for electricity. There has been a steady, if slow, growth in the global share of renewables used to meet the demand for heat in recent years, reaching 9% in 2015, but the pace is much slower than the growth in renewable electricity (IEA, 2017a).
Background image
Image of page 38

You've reached the end of your free preview.

Want to read all 112 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture