Dutch policy on heat Marion Bakker Netherlands Enterprise Agency - - PowerPoint PPT Presentation

Dutch policy on heat

Marion Bakker Netherlands Enterprise Agency marion.bakker@rvo.nl 2016-2-10

‘Rethink your World’

Introduction/backgrounds Developing new policy

• SER Energy Agreement
• Vision on Heat Policy

Implementation Agenda

• Nearly Zero Energy buildings
• Small renewable heat subsidy

Discussion A policy on heat

The era of renewables is inevitable

• Abundance of available renewables
• Ecological necessity – ‘the race to the cliff’
• Economic logic
• Technology developments and breakthroughs
• Societal shifts in favor of de-centralized clean energy solutions
• Policies – agreements and policy targets, incentives, regulations and

market design Backgrounds

The road to renewables is complex and challenging

• Availability of capital – high upfront costs for many renewable options.
• Policy stability – renewables still dependent on market design and/or

incentives, particularly in the mature OECD markets.

• Technological and societal challenges – including reliability, system and

network stability, cost, size, benefit distribution, ‘nimby’

• New scarcities – competing claims, e.g. for biomass, rare earths,

manufacturing capacity, human capital

• Incumbent resistance and system inertia – vast amounts of capital, power,

hardware, physical infrastructure linked to the current energy system.

• Spectacular ability of the current energy system to meet societies’ thirst for

energy, comfort and growth.

Backgrounds

Developing new Dutch policy

• SER Energy Agreement
• Vision on Heat Policy
• Implementation agenda

Status for the Netherlands: Although technologies are widely available the implemention is too slow:

• 4% status 2013 (5,5% status 2014) renewable of the primary energy

consumption, and the target of 14% in 2020

• This gap has to be bridged

More than 40 organisations, large companies, provinces and NGO’s have signed in 2013 the ‘SER Energy Agreement’ on:

• Final energy savings of 1,5% per year
• Final energy savings of 100PJ in 2020 compared with 2012
• 14% renewable energy in 2020, 16% in 2023;
• 15.000 full time job creation in the energy savings sector

Developing new policy

Developing New Policy under the SER Agreement:

• Major role for wind, solar pv and bio mass summing up to appr. 45%
• f the goal of 16% in 2023 for renewable energy
• Rest, being 186 PJ, by other renewable options focusing on

Renewable Heating and Cooling Additional to the SER Energy Agreement the ministry of Economic Affairs has developed its Heat-Vision, road mapping for a longer term

• energy conservation,
• district heating
• renewable heating and cooling

New policy instruments are proposed ranging from subsidies to legislation and programmatic support.

Developing new policy

SER Energy Agreement has set ambitious goals for buildings:

• in line with EED, the recast of EPBD and the Directive on the ECO-

Design;

• 300.000 existing buildings have to be renovated yearly by two label

steps.

• Nearly Zero Energy Buildings (NZEB) is the standard for new

buildings from 2020 onwards and in 2018 for governmental buildings;

• Rented existing domestic houses in 2020 have to be at an average of

label B for housing corporations in the social renting sector and label C in 80% of the private renting sector. New policy on reducing the energy use for heating and increasing the share of renewable heating by the Ministry of Economic Affairs is under discussion in the Heat-vision.

SER Energy Agreement

SER Energy agreement advice on buildings:

• Minimum requirements for the share of renewable energy for new construction

and major renovation.

• A requirement for A + label devices for heating and hot water supply per 1-1-

2018 (based on the eco-labels)

• Develop demand by raising awareness, building trust, certification etc.
• The elimination of inequalities in the tax on gas and electricity, to promote

applications of renewable heat.

• Creating a financial investment support for small-scale renewable heat options

that a level playing field with other options such as PV.

• The generic lowering the VAT rate for decentralized renewable options, as in

some other EU countries.

• Use of tax instruments around property tax rates, transfer tax, etc based on

level of use of renewable energy or energy performance of the building.

• New positioning for hybrid heating networks; lower temperature systems,

adaptation

SER Energy Agreement

Heat Vision in Letter to Parliament Starting points: To achieve the transition to a fully sustainable energy system in 2050 it is crucial to reduce the heat demand and increase renewable heating. This is all the more urgent in view of the reduction of gas production and the decrease in gas supplies in the Netherlands, where also the government wants to minimize the import dependency from politically unstable regions. The potential for renewable heat is considerable and we also currently have a lot of heat inefficiently generated with fossil fuels. There has to be a change in trends where concrete measures have to be taken to reduce the heat demand and increase the amount of renewable heat.

Heat-Vision

Heat Vision in Letter to Parliament In future heat supply will become more diverse:

• In areas with a high demand collective heat supply is expected to

play a greater role. Expected to be >30% in 2030

• In less densely populated areas and well insulated houses heat

pumps will cover the heat demand in all electric areas. It is the ambition to fill in the heat demand as much as possible with renewable energy, where electricity is expected to be important in the heat supply. Since a growing share of electricity is intermittent and therefore less predictable, storing energy is needed in times of limited energy needs.

Heat-Vision

Heat-Vision

Centralised fuel production, power and storage Renewable energy resources EV Co-generation Smart energy system control Distributed energy resources Surplus heat H vehicle

2

Heat Vision in Letter to Parliament About Heat Pumps It is my ambition that the supply of renewable heat will grow

• substantially. This is necessary to reduce our dependency on gas and to

achieve the targets for renewable energy by 2020 and 2023. I see great potential for the use of thermal energy storage (TES), geothermal, solar thermal, biomass and heat pumps. Hybrid heat pumps are expected to be supply a significant part of heating in existing homes. In areas with many well-insulated new houses the heat demand can be provided with heat pumps. Gas networks and heat networks are expected to be superfluous in such "all-electric areas'.

Heat-Vision

Heat-Vision

A large potential lies in the use of waste heat from industrial areas.

Implementation Agenda

• Buildings
• In 2020 new buildings NZEB
• Develop 'Zero on meter' concepts for existing buildings
• Support and develop measures on district level such as collective renewable heat and

waste heat utilization

• Industry
• Approach through MYA with focus on low temperature heat and waste haet
• Innovation
• Support for Topconsortia for Knowledge and Innovation (TKIs). In the period 2013

about 28 mil € spent on heat projects (Examples of such projects include 'power to heat‘)

• Heat Distribution
• Costs for small renewable heat
• New subsidy introduced in 2016 for 20-40% of upfront costs
• Energy Tax gas +5cnt; electricity -2cnt

nZEB Definition

• very low amount of energy required
• significant part covered by renewable sources
• high energy performance (acc. Annex I)

nZEB definition Netherlands

• leave EPC --> kWh/m2.y
• energy need, renewable energy ratio

nZEB Principles

• realistic
• impuls to innovation
• technology independant
• avoid lock-in regarding

zero-energy in 2050

• no negative impact on

health

• simple
• flexible (regarding

building functions)

• Tap water supply ->

Chance for heat pumps!

Small renewable heat subsidy (2016)

Heat pumps 500-2.500 euro Thermal solar 500 euro Bio mass 80 euro/kw Total Budget 70 million euro

Energievoorziening op basis van hernieuwbare energie

12th IEA Heat Pump Conference May 2017 Rotterdam, The Netherlands

• The massive capacity growth takes place in the Non-OECD part of the world
• Note the huge role of solar – expectations also strongly revised upward in the

recent IEA Solar PV Roadmap (October 2014)

2012

64% 6% 2% 5% 22% 1%

5,579GW

50 100 150 200 250 300 350 400 2013 2015 2020 2025 2030 Fossil fuels Nuclear Solar Wind Other renewables Flexible capacity

44% 5% 18% 12% 19% 2%

10,569GW

2030 Backgrounds

• Heat is the ‘Elephant in the Room’ – so big that it’s often overlooked.
• Heat is, at 171 EJ, over 50% of global final energy demand
• Three quarters of this demand is met by fossil fuels, another 15% by traditional biomass

(mainly for cooking)

• Cooling demand grows everywhere.
• Slow growth of non-traditional renewables in this market – about 3% / annum up to

2020.

Backgrounds

Discovering the Elephant in the room

Bron: Technisch Weekblad 2015

Heat Vision in Letter to Parliament Trends:

• Reduction of heat demand for low-temperature heat in buildings
• high-temperature heat for industrial processes will slightly reduce

In 2013:

• 3.6% is renewable heat
• 5% is waste heat (district heating)

Heat-Vision

Conclusions on renewable heating systems:

• Ground source heat pumps and ATES systems
• In 2013

> 3.2PJ renewable heat

• In 2023

> 21 PJ renewable heat

• Air source heat pumps
• In 2013

> 3 PJ renewable heat

• In 2023

> 14 PJ renewable heat, mainly hybrid systems

• Solar Thermal
• In 2013

> 1 PJ renewable heat

• In 2023

> 6 PJ renewable heat,

Heat-Vision