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WP2: Development of the Policy Background. Dr. Peter Connor 21 st 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.

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WP2: Development of the Policy Background

Dr. Peter Connor

21st October, 2008

slide2

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

slide3

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

slide4

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
slide5

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
slide6

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?

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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?

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How has Policy Applied in Practice?

I.e. Assessment of appropriateness of applied policies in the experience of stakeholders.

Problems?

Lessons learned?

slide9

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?

slide10

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?

slide11

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
slide12

Range of Policy Options

  • Mature Technologies
    • Quota
    • Tariff/Bonus
    • Use Obligation
    • Soft Loans
    • Building Regulations
    • Taxation
    • Auction?
slide13

Range of Policy Options

  • Less Mature Technologies
    • Grants
    • Use Obligation
    • Building Regulations
    • Taxation
    • Auction?
    • Quota/Tariff/Bonus?
slide14

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

slide15

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.

slide16

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

  • Absence of network and impact on:
    • Delivery
    • Complexity
    • Trading
    • Application of Policy
    • Policy Instrument Design
slide17

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

slide18

Discussion

Stakeholder interaction

Amongst and between partners

slide19

Case Study of Swedish DH Success

To be presented by the University of Lund

slide20

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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slide23

Deadlines

Country Reports: February 2009

Policy Options: March 2009

Swedish DH Case Study: March 2009

slide24

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

slide25

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

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Case Study: Swedish DH Experience

Initial Draft?

Feedback required?

Final Submission: March 2009