Renewable Heat Policies

Renewable Heat Policies: Delivering Clean Heat Solutions for the Energy Transition

Key Data and Insights

1. Heat in Global Energy Consumption

• Heat in Global Total Final Consumption (2015): Heat accounts for approximately 22% of total final energy consumption globally.
• Total Global Energy Consumption for Heat (2015): Heat represents about 25% of total energy consumption.

2. Future Projections

• World Energy Outlook Scenarios (2040): Projections indicate a significant increase in the share of renewable heat, with a potential rise from 10% in 2015 to around 20% in 2040.

3. Renewable Heat Sources

• Total Final Consumption of Renewable Heat by Source (2015 and 2022): The share of renewable heat is expected to increase significantly, with biomass, geothermal, and waste heat contributing the most.

4. Decarbonization and Renewables

• Wind and Solar PV in Power Generation: By 2022, the share of wind and solar PV in power generation is projected to reach 25% in several countries, indicating a strong shift towards renewable energy.

5. Barriers and Policy Solutions

• Economic Barriers: High upfront costs and lack of financial incentives can hinder the adoption of renewable heat technologies.
• Non-Economic Barriers: Regulatory frameworks, public awareness, and infrastructure limitations pose additional challenges.
• Policy Instruments: Various policy tools such as feed-in tariffs, tax credits, and subsidies can help overcome these barriers.

6. Country Case Studies

• Denmark, Finland, and Sweden: District heating systems have been successful in increasing the share of renewable heat, with Denmark leading in solar district heating.
• Germany and France: Both countries emphasize the importance of heat in the energy transition, with France focusing on district heating and Germany on improving energy efficiency.
• United Kingdom and the Netherlands: These countries are competing with natural gas to reduce reliance on fossil fuels, with the Netherlands investing heavily in renewable heating technologies.
• China and the United States: As the top consumers of heat, both countries are exploring various renewable heating solutions, with China focusing on large-scale projects and the US on decentralized heating systems.

7. Policy Assessment and Recommendations

• Best Practices: Countries with successful renewable heat policies often implement a combination of financial incentives, regulatory support, and public education campaigns.
• Policy Recommendations: Governments should focus on creating supportive regulatory environments, providing financial incentives, and promoting public awareness to accelerate the adoption of renewable heat technologies.

Summary

This report highlights the critical role of renewable heat in achieving a clean energy transition. It emphasizes the need for policy interventions to overcome economic and non-economic barriers. Key findings include the growing importance of renewable heat sources like biomass, geothermal, and waste heat, and the success of district heating systems in countries like Denmark, Finland, and Sweden. The report concludes with recommendations for governments to create supportive policies and incentives to promote the widespread adoption of renewable heat technologies.