Fraunhofer-Institut für System- und Innovationsforschung ISI

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  • Publication
    Analysis of harmonisation options for renewable heating support policies in the European Union
    ( 2013)
    Steinbach, Jan
    ;
    Ragwitz, Mario
    ;
    Bürger, Veit
    ;
    Becker, Liv
    ;
    Kranzl, Lukas
    ;
    Hummel, Marcus
    ;
    Müller, Andreas
    Best practice policy design and harmonisation of support schemes for electricity from renewable energy sources (RES-E) within the European Union have been discussed controversially for years. In contrast, policies for improving renewable heating (RES-H) penetration in the European Member States and options for best practice instruments are still being developed. The objective of this paper is to analyse different levels of policy harmonisation for target compliance and the economics of renewable heating and cooling. After presenting the degree of RES-H policy harmonisation resulting from Directive 2009/28/EC, a quantitative assessment is performed of the costs and benefits of different harmonisation scenarios. This selects the obligation to use renewable heating in buildings as the common policy instrument against which the effects of harmonisation are analysed. The paper shows that economic benefits can result from implementing best practice design options for use obligations in EU Member States.
  • Publication
    State budget independent, market-based instruments to finance renewable heat strategies
    ( 2013)
    Steinbach, Jan
    ;
    Seefeldt, Friedrich
    ;
    Brandt, Edmund
    ;
    Bürger, Veit
    ;
    Jacobshagen, Ulf
    ;
    Kachel, Markus
    ;
    Nast, Michael
    ;
    Ragwitz, Mario
    At present, expanding the use of renewable energy sources for heating (RES-H) relies predominantly on publicly funded support instruments. As these are subject to subsidy cuts and suspensions, these instruments do not provide long-term security for investors and technology suppliers. Although feed-in tariffs and quota-based systems are the major support schemes for renewable energy sources in the electricity sector, similar policy designs have not been applied to RES-H. This paper presents and evaluates three different policy instruments which have the potential to finance RES-H without using public funds: a physical quota system for biomass, a technology-based quota system (Portfolio Model) and a remunerationbased system (Premium model). The assessment suggests that while the Portfolio Model and the Premium Model are both promising policies to enhance RES-H deployment, there is greater acceptance among stakeholders for the Premium Model.