WP2: Development of the Policy BackgroundDr. Peter Connor

21st October, 2008

WP2 aims to:

Amass national policy data

Provide overviews of chosen

national situations re RES-H/C policy

and regulation

Detail and assess policy options

Case Study of Swedish DH

success

Amass National Policy Data

Current application of RES-H/C policy

instruments

Where possible, current assessment of

RES-H/C potential and current installed

capacity

Likely future changes in policy

Current Application of RES-H/C Policy Instruments Number of Recent Sources

IEA Renewables for Heating and

Cooling: Untapped Potential (2007)

MVV consulting: Heating and Cooling

from RE (DG TREN, 2007)

K4RES-H

There may be national equivalents

Current Capacity and Potential

Number of Recent Sources

K4RES-H and associated reports

breakdown by technology

IEA Renewables for Heating and

Cooling: Untapped Potential (2007)

There may be national equivalents

Likely Changes in Policy

What is currently on the horizon?

This seems likely to be a challenge for

the project. Potential for rapid change in

short time in multiple Member States.

To what extent do we need to address

this?

Overviews of national RES-H/C Policy and Regulation

How has policy applied in practice?

What is the nature of the

heat/cooling market and how does

RES-H/C relate to this?

How is current regulation likely to

impact on RES-H/C deployment?

How has Policy Applied in Practice?

I.e. Assessment of appropriateness

of applied policies in the experience

of stakeholders.

Problems?

Lessons learned?

Nature of the Current Market

To what extent does this need to be

considered, if any?

Relate policy instrument use to

different heat/cooling/fuel delivery?

The Regulatory Regime How will policy instruments fit with different

national regulatory regimes?

Key lesson of RES-E Policy: the need to

consider the wider picture.

How can the project account for this? Do we

need to assess regulatory architecture

regarding heat/cooling provision?

Detail and Assess Policy Options

Range of policy options

Appropriateness of instruments to

different RES-H/C technologies, taking into

account;

Maturity

Potential Scale

Regulatory and Institutional framework

Others?

Must be grounded in innovation theory

Range of Policy Options Mature Technologies

Quota

Tariff/Bonus

Use Obligation

Soft Loans

Building Regulations

Taxation

Auction?

Range of Policy Options Less Mature Technologies

Grants

Use Obligation

Building Regulations

Taxation

Auction?

Quota/Tariff/Bonus?

Policy Options: Methodology

Draw on Experience with RES-E

Account for differences in nature of

RES-H/C

Where possible, assess RES-H/C

experience with instruments

Seek out stakeholder opinion

General Discussion amongst partners

Experience with RES-E

Large amount of literature: Haas et

al; IEA; Lipp; Mallon, plus many

national studies, some of which are

likely to be vital.

Large volume of assessment of

relative merits, not just financial.

Differing natures of RES-H/C and RES-E

Absence of network and impact on:

Delivery

Complexity

Trading

Application of Policy

Policy Instrument Design

Previous experience with RES-H/C

Limited beyond grants, Some Use

Obligations (Spain, Germany, UK)

Some, mostly theoretical literature;

Bürger et al, various national documents

Discussion

Stakeholder interaction

Amongst and between partners

Case Study of Swedish DH Success

To be presented by the University

of Lund

Potential Problems

Potential for rapid change in policy in some

countries over the course of the project.

Nature of heat/cooling markets may not be

readily apparent.

Understanding of regulation much less

developed than in regard of electricity markets.

Considerable differences between Member

States.

Others?

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Deadlines

Country Reports: February 2009

Policy Options: March 2009

Swedish DH Case Study: March 2009

Country Reports: Schedule Guideline to Contents Document

(UNEXE): Nov. 3rd 2008

First Drafts: Dec. 23th 2008

Feedback to partners: Jan 16th 2009

Final Reports submitted: 13th Feb 2009

Policy Options: Schedule Issue of Structure Document (UNEXE):

Nov 17th 2008

Feedback from WP2 partners: Dec 5th

2008

Draft: Jan 26th 2009

Partner feedback: By Feb 27th 2009

Final Report submitted: 30th March 2009

Case Study: Swedish DH Experience

Initial Draft?

Feedback required?

Final Submission: March 2009