Strategic Research and Innovation Agenda for Renewable Heating Cooling

Strategic Research and Innovation Agenda for Renewable Heating Cooling
Common Implementation
Roadmap for Renewable
Heating and Cooling
Technologies
European Technology Platform on Renewable
Heating and Cooling
Co-funded by
the European Union
Common Implementation
Roadmap for Renewable
Heating and Cooling
Technologies
European Technology Platform on Renewable
Heating and Cooling
Javier F. Urchueguía - GEOPLAT / Universidad Poliltécnica de Valéncia, ES (Lead Author)
Eija Alakangas - VTT, FI
Inga Berre - Christian Michelsen Research, NO
Luisa F. Cabeza - Universitat de Lleida, ES
Panagiotis Grammelis - CERTH, GR
Walter Haslinger - Bioenergy 2020+, AT
Roland Hellmer - Vattenfall Europe Wärme AG, DE
Daniel Mugnier - TECSOL, FR
Philippe Papillon - CEA-INES, FR
Gerhard Stryi-Hipp - Fraunhofer ISE, DE
Wim van Helden - Renewable Heat, NL
Christian Engel - Thermaflex, NL
Rainer Janssen and Dominik Rutz - WIP Renewable Energies, DE
Thomas Nowak – European Heat Pump Association, EU
Burkhard Sanner – EGEC, EU
Wolfram Sparber – EURAC Research, IT
Claes Tullin - SP Technical Research Institute of Sweden, SE
Werner Weiss - AEE INTEC, AT
Secretariat of the European Technology Platform on Renewable Heating and Cooling
Alessandro Provaggi - EUREC, EU
Alexandra Latham – EGEC, EU
Niall Goodwin – AEBIOM, EU
Pedro Dias – ESTIF, EU
www.rhc-platform.org
[email protected]
Manuscript completed in June 2014.
Brussels, © RHC-Platform, 2014.
This document is available on the Internet at: www.rhc-platform.org
The European Technology Platform on Renewable Heating and Cooling (RHCPlatform) is officially endorsed by the European Commission and its activities
are supported by the 7th Framework Programme for Research and Technological
Development (GA n. 268205).
AEBIOM; P.Avavian / CEA-INES; BSW-Solar; EGEC; HELMA Eigenheimbau AG; Industrial Solar GmbH;
Thomas Nowak / EHPA; Ritter XL Solar GmbH.
The opinions expressed in this document are the sole responsibility of the European Technology Platform on
Renewable Heating and Cooling and do not necessarily represent the official position of the European Commission. Reproduction and translation for non-commercial purposes are authorised, provided the source is
acknowledged and the Editor is given prior notice and sent a copy.
ii
Table of Contents • RHC-Platform
EDITORIAL .............................................................................................................................................................................................................v
EXECUTIVE SUMMARY ................................................................................................................................................................................vi
1.
INTRODUCTION: FROM VISION TO IMPLEMENTATION ............................................................................................... 1
1.1 The Renewable Heating and Cooling Platform (RHC-Platform) ............................................................................. 2
1.2 The four RHC Technology Roadmaps: the pillars of
the RHC Common Implementation Roadmap ............................................................................................................... 3
1.3 The previous achievements ....................................................................................................................................................... 3
2.
A COMMON TECHNOLOGICAL ROADMAP TO 2020: CLUSTERING OF THE 4
TECHNOLOGY ROADMAPS ............................................................................................................................................................. 5
2.1 Solar Thermal Technologies ..................................................................................................................................................... 6
2.1.1 Solar Compact Hybrid System (SCOHYS) ............................................................................................................. 6
2.1.2 Solar-Active-House (SAH) ............................................................................................................................................... 7
2.1.3 Solar Heat for Industrial Processes (SHIP) ............................................................................................................ 9
2.2 Biomass Technologies .................................................................................................................................................................. 9
2.2.1 Advanced fuels ...................................................................................................................................................................10
2.2.2 Micro and small scale CHP .......................................................................................................................................... 11
2.2.3 High efficient large scale or industrial CHP ........................................................................................................ 11
2.2.4 Polygeneration ....................................................................................................................................................................12
2.3 Geothermal Technologies ........................................................................................................................................................ 14
2.3.1 Shallow Geothermal Technologies .......................................................................................................................... 14
2.3.2 Deep Geothermal Technologies ................................................................................................................................ 15
2.4 Cross-Cutting Technologies .................................................................................................................................................... 17
2.4.1 District Heating and Cooling ....................................................................................................................................... 17
2.4.2 Thermal Energy Storage ................................................................................................................................................18
2.4.3 Electric compression and thermally driven Heat Pumps ............................................................................19
2.4.4 Hybrid systems and Priorities with generic impact on
RHC applications in the residential sector .........................................................................................................21
3.
INTERCONNECTION BETWEEN THE DIFFERENT RHC TECHNOLOGIES
AND LINKS TO DIFFERENT DEMAND PROFILES ..............................................................................................................23
3.1 Interconnection between Cross-Cutting Technologies and source oriented
Technologies ....................................................................................................................................................................................24
3.1.1 How Solar thermal is linked to Cross-Cutting Technologies ....................................................................24
3.1.2 How Biomass is linked to Cross-Cutting Technologies ................................................................................24
3.1.3 How Geothermal is linked to Cross-Cutting Technologies ........................................................................25
3.2 Contribution to application-oriented solutions ...........................................................................................................26
3.2.1 RHC Research and Innovation in the Residential Sector ............................................................................26
iii
Table of Contents • RHC-Platform
3.2.2 RHC Research and Innovation in the Non-Residential Sector .................................................................29
3.2.3 RHC Research and Innovation for Industrial applications ..........................................................................31
3.2.4 RHC Research and Innovation for DHC/Smart cities ....................................................................................33
4.
SOCIETAL BENEFITS FROM
RENEWABLE HEATING AND COOLING ...................................................................................................................................35
4.1 Security of energy supply and the balance of trade ..................................................................................................36
4.1.1 Improving EU’s security of supply ............................................................................................................................36
4.1.2 Saving EUR 49.8 billion in reduced fossil fuel imports .................................................................................37
4.2 Competitiveness ..............................................................................................................................................................................38
4.2.1 Stabilising energy prices ...............................................................................................................................................38
4.2.2 Creating local and sustainable jobs .......................................................................................................................39
4.2.3 Fostering European industrial leadership ...........................................................................................................39
4.3 Sustainability .....................................................................................................................................................................................41
5.
PROMOTING PUBLIC AND PRIVATE INVESTMENTS
IN R&I AND MARKET DEPLOYMENT ........................................................................................................................................43
5.1 Financing the R&I investments of the RHC industry ...................................................................................................44
5.2 Stimulation of market deployment .......................................................................................................................................44
5.3 Investments and market barriers ...........................................................................................................................................45
5.4 Actions to enable and improve private investments in RHC ..................................................................................46
5.5 Business models .............................................................................................................................................................................47
APPENDIX 1 References ............................................................................................................................................................................49
APPENDIX 2 Scale of Technology Readiness Levels (TRL) adopted by the RHC-Platform ....................................51
APPENDIX 3 Abbreviations, acronyms ................................................................................................................................................52
APPENDIX 4 Units of measure ................................................................................................................................................................53
APPENDIX 5 Secretariat of the RHC-Platform .................................................................................................................................54
iv
Editorial • RHC-Platform
It is widely known that Heating and Cooling is responsible for almost 50% of the final energy
demand in Europe. The extensive use of Renewable Heating and Cooling technologies is
therefore, in combination with a strong increase in efficiency, crucial to secure Europe’s energy
supply in a sustainable way. Following the publication of the Strategic Research and Innovation
Agenda for Renewable Heating and Cooling Technologies (SRIA) in 2013, the RHC-Platform
developed this Implementation Roadmap based on the more detailed Roadmaps of its Solar
Thermal, Biomass, Geothermal, and Cross-Cutting panels.
The Roadmap describes the top priority research themes and value chains with the highest
impact on the societal challenges in Europe until 2020. It is obvious that having seen the
potential of Renewable Heating and Cooling technologies neglected for decades, there is a
strong need to significantly increase the research budgets for the sector. The panel Roadmaps
and this Common Implementation Roadmap provide a good overview of the topics and the
budgets needed.
Future energy systems will be far more integrated than they are today. The Heating and Cooling
and the electricity sectors will be interconnected through combined heat and power plants,
heat pumps, and power to heat technologies. Thermal energy supplied by solar thermal,
biomass and geothermal will remain dominant in the Heating and Cooling sector due to high
efficiency and cost competitiveness, especially by covering the heating demand in winter
time. The research and development actions described in this Roadmap will enable the RHCtechnologies to assume its important role in the energy sector.
Gerhard Stryi-Hipp
President of the European Technology
Platform on Renewable Heating and Cooling
Javier F. Urchueguía Schölzel
Lead author of the Roadmap
v
Executive Summary • RHC-Platform
Research is one of the cornerstones for the further development of RHC technologies and
their widespread use. New solutions, the adaptation of existing ones for new applications
and markets, or just critical measures to demonstrate, standardise, combine or popularise
technologies which already exist, will contribute to an accelerated deployment of RHC in the EU
in the context of the 2020 milestones. However, there is an inherent complexity in developing
Renewable Heating and Cooling Technology Roadmaps due to the variety of ways heat can be
produced, transported, stored, and delivered, and the many different profiles of end users, as
well as the difficulty to draw exact boundaries between them.
This need of clarification and identification has been one of the paramount goals of the
RHC-Platform during the past years of activity and is summarised in Chapter 2 and Chapter
3. Three main aspects are considered: the identification of technologies which ought to be
developed as a priority based on the work of the four panels, the relationship between the
different Research & Innovation (R&I) priorities with these cross-cutting technologies and,
finally, how RHC research is addressing the needs of the different users and demand profiles
that exist in the EU.
As noted in the European Commission’s Energy Roadmap 2050, there is no doubt that RHC
is vital to the decarbonisation of our energy sector. Decarbonisation should not be regarded
as a burden, but rather as an opportunity for Europe’s sustainable growth and industrial
renaissance alike.
The significant role that RHC can play in the achievement of this goal is based on three
main pillars which are comprehensively analysed in Chapter 4. These pillars are the RHC
contribution to the security of our energy supply (reducing our fossil fuel imports in doing so),
to a more cost competitive and less price-volatile energy market, and, last but not least, to a
reduction in the emission of pollutants by decreasing our consumption of fossil fuels, leading
to a better urban environment.
Finally, Chapter 5 addresses how private investment - critical in decarbonising the Heating and
Cooling sector - could be stimulated. A key message here is that not only it is necessary to
strengthen R&I investments and increase the budget for R&I projects, but also to strengthen
the market deployment policy for RHC technology.
vi
INTRODUCTION:
From Vision to Implementation
Introduction> From Vision to Implementation • RHC-Platform
The Common Implementation Roadmap is the latest in a series of publications from the
European Technology Platform on Renewable Heating and Cooling (RHC-Platform), which have
led RHC technologies from a vision towards an implementation plan over the last few years.
Endorsed by the European Commission and boasting a strong membership of over 800
RHC sector stakeholders from industry, research, and the public sector, the RHC-Platform
represents all renewable energy technologies for Heating and Cooling from all over Europe.
The RHC-Platform’s mission is to provide a framework for stakeholders to define and implement
an innovation strategy to increase the use of Renewable Energy Sources (RES) for Heating and
Cooling, and to foster growth and market uptake.
The RHC-Platform consists of four Technology Panels which include all Renewable Heating
and Cooling sources and technologies. Acting under the guidance of the respective Steering
Committees, each Panel is responsible for collecting and developing stakeholders’ inputs from
the respective sectors.
The scope and operational structure of the RHC-Platform ensure the balanced and active
participation of the EU stakeholders at the appropriate levels, including all interested industries,
scientific research organisations, public authorities and civil society.
HWG on Common Vision
HWG on Strategic Research and Innovation Agenda
HWG on Common Implementation Roadmap
Figure 1: Current structure of the RHC-Platform
2
RHC-Platform • Introduction> From Vision to Implementation
In 2014, the four RHC panels (Solar Thermal, Biomass, Geothermal, and Cross-Cutting) finalised
their own Technology Roadmaps, investigating the Strategic Research Priorities for each
technology. Building on the efforts of each panel, the ‘Common Implementation Roadmap’
aims to present an integrated vision of the research implementation priorities.
The Common Implementation Roadmap pinpoints the specific measures for Renewable Heating
and Cooling as a whole and considers how each technology’s needs fit together. It analyses
the benefits of RHC for Europe, for example in terms of energy import reduction and job
creation, and it looks at how investments in the RHC sector could be encouraged.
Launched in May 2011, the ‘Common Vision for the Renewable Heating and Cooling
Sector in Europe’1 was the first publication of the RHC-Platform. The study identified the
huge potential of the Renewable Heating and Cooling technologies, which could satisfy up to
100% of the Europe’s Heating and Cooling demand by 2050.
In 2012, the four Technology Panels of the RHC-Platform developed their Strategic Research
Priorities (RHC-Platform, 2012).2 These studies provided stakeholders with a structured view
of the technological potential of all RHC technologies. A comprehensive set of research,
development and demonstration priorities were defined to support the decarbonisation of the
Heating and Cooling sector.
In 2013 the RHC-Platform launched the Strategic Research and Innovation Agenda for
Renewable Heating and Cooling (RHC-SRIA)3, a milestone publication which summarised
the research priorities of the individual panels and, for the first time, provided a comprehensive
overview of the short, medium and longer term R&D needs of RHC technology.
The RHC-SRIA identified the state-of-the-art, the research objectives and the critical targets
(e.g. in terms of performance increase / cost reduction) required to realise the potential of
RHC technology. It also offers recommendations for research, development and demonstration
funding in the timeframe of ‘Horizon 2020’ and in line with the wider EU 2030 Energy and
Climate Framework.
The implementation of the SRIA technological and non-technological priorities will be crucial
in formulating a strong push for a renewable energy paradigm, providing European citizens with
affordable and sustainable Heating and Cooling.
1
RHC-Platform (2011),
Common Vision for
the Renewable Heating
and Cooling sector
in Europe: 20202030–2050. Available
at http://www.rhc-platform.org/publications/
2
Available at http://
www.rhc-platform.org/
publications/
3
RHC-Platform (2013),
Strategic Research and
Innovation Agenda for
Renewable Heating and
Cooling. Available at
http://www.rhc-platform.org/publications/
4
Available at http://
www.rhc-platform.org/
publications/
In 2014 the four panels published their Technology Roadmaps4. These documents provide
detailed implementation plans for research actions until 2020, which are prioritised to generate
the highest impact and societal benefit. The roadmaps also estimate the public and private
financial resources necessary for the achievement of their goals.
The Common Implementation Roadmap takes over from the work done by the four individual
Technology Roadmaps and explores the interconnectivity of the different RHC technologies.
3
Introduction> From Vision to Implementation • RHC-Platform
Common
Implementation
Roadmap
aligned to
RHC-SRIA
(relevant
research action
until 2030)
(priority
research
actions until 2020)
Implementation
until 2020
How do
they fit
together?
Geothermal
Roadmap
Solar
Roadmap
Biomas
Roadmap
Cross
Cutting
Roadmap
Figure 2: Relationhip between SRIA, the four Technology Roadmaps and the Common Implementation Roadmap
4
A COMMON
TECHNOLOGICAL
ROADMAP TO 2020:
Clustering of the 4 Technology Roadmaps
A Common Technological Roadmap to 2020>
Clustering of the 4 Technology Roadmaps • RHC-Platform

This Chapter intends to highlight the main aspects of the Technology Roadmaps produced
by the four panels of the RHC-Platform, individually representing solar thermal, biomass,
geothermal and cross-cutting technologies. Our approach is to provide a general view of
those technologies which, according to the ideas developed by the different panels, deserve
prioritised attention in the 2014-2020 timeframe. For more details about the many proposed
Research and Innovation actions summarised here, the interested reader is strongly on istead
of about advised to consult the individual Roadmaps.
Solar thermal energy has a high potential for Renewable Heating and Cooling in Europe, but
today only generates about 20 TWh of heat, which corresponds to less than 1% of the heat
demand in Europe. To unlock its potential, research and development is needed to reduce
costs, improve user-friendliness, and extend the type of applications. With these actions the
sector aims to provide solutions to critical societal challenges. A focus on the three following
‘pathways’ is suggested for the technological development of solar thermal energy until 2020.
Solar Compact Hybrid Systems (SCOHYS) are compact heat supply systems including both a
solar heating source and a backup heating source (based on bioenergy, heat pumps or fossil
fuels), with a solar fraction of at least 50% in the case of domestic hot water (DHW) SCOHYS
systems, and with a solar fraction of at least 25% in typical Central European applications in
the case of combi SCOHYS systems (delivering both domestic hot water and space heating).
The main objective of the SCOHYS roadmap pathway is the reduction of solar heat costs by
50% with reduced space requirements and installation time. In addition, improvements in
reliability and performance are expected. Research and Innovation (R&I) actions should focus
on three areas: SCOHYS in single family homes (DHW and combi systems), SCOHYS for DHW
in multi family homes, and SCOHYS as combi systems in multi family homes.
The R&I actions involve research on individual components and address how these can be
combined. Additionally, the roadmap identifies actions in the field of enabling technologies,
standards and quality, socio-economic framework, and legal and administrative aspects. The
SCOHYS roadmap pathway and its sub-tasks are shown in Table 1.
6
A Common Technological Roadmap to 2020>
RHC-Platform • Clustering of the 4 Technology Roadmaps
YEAR
2014
2015
2016
2017
2018
2019
Solar heat costs
< 10 €ct/kWh
in South Europe
(fossil fuel parity)
OBJECTIVES
MILESTONES
R&D + Prototype of SCOHYS for single family homes (DHW and
combi systems) and multi family homes (DHW )
2020
Solar heat costs
< 10 €ct/kWh
in Central Europe
(fossil fuel parity)
PROTOTYPE SYSTEM / DEMONSTRATION of
SCOHYS for single family homes for DHW + combi
SCOHYS for multi family homes for DHW
R&D: Cost-reduced collector inclusive mounting structure
Technological
R&D: Simplified water storage technology
R&D: Improved hydraulic and safety system technology
Technology
(Applied
research)
R&D: Smart controller and monitoring technology
R&D: Compact, simplified and robust system design
PROTOTYP DEVELOPMENT / DEMONSTRATION
for combi systems for multi family homes - TRL 5 - 9
R&D: Optimised integration of large water storage into the
building and cost reduced large collector and mounting
R&D: Optimised system design with reduced cost, improved
stagnation protection solutions and smart controller
R&D: New materials and coatings
Materials,
enabling
technologies
R&D: Innovative control and monitoring concepts with forced integration of new ICT
DEVELOPMENTandIMPLEMENTATION:Extention ofstandards
Standards
Quality
DEVELOPMENT:Standardised hydraulicandelectricalinterconnections
IMPLEMENTATION of SCOHYS certification scheme
Non-technological
DEVELOPMENTandIMPLEMENTATION:Standardized methodology
Socio-economic
framework
DEVELOPMENT:Newandimprovedbusinessmodelsfor solarthermal
systemdeploymentlikeleasing,guarantee ofperformance,and
contracting (e.g.financingbysolarkWhpaymentsofthecustomers)
DEVELOPMENT and IMPLEMENTATION of the requirement to monitor system
performance of all types of heating systems (solar, biomass, fossil fuel, heat pumps,etc.)
Legal and
administrative
aspects
Research & Development
IMPLEMENTATION of the requirement that all hot water
consuming appliances must be able to use pre-heated water
Demonstration
Table 1: Roadmap pathway for Solar Compact Hybrid Systems (SCOHYS)
The Solar-Active-House (SAH) provides a solution towards achieving the goal of the ‘nearly
zero-energy building’. With a good, but not high-end insulation, the energy required to meet the
residual heating demand can be provided by solar thermal energy. The SAH roadmap pathway
focuses on cost reduction as well as the optimisation and standardisation of the technology for
Solar-Active-Houses with about 60% solar fraction; the aim is to develop Solar-Active-Houses
as a competitive solution for nearly zero-energy buildings, as required by the European Union
by 2020. ‘Solar fraction’ is the share of solar thermal energy in the overall heat demand for
DHW and space heating.
The objectives of the SAH roadmap pathway are to develop the concept so that it can be used
by the whole construction sector to achieve a nearly zero-energy building. Therefore, in a SAH
with a solar fraction of around 60%, the heating costs should be on a par with those of today’s
combi systems with a solar fraction of approximately 25%.
7
A Common Technological Roadmap to 2020>
Clustering of the 4 Technology Roadmaps • RHC-Platform
The Solar-Active-House (SAH) roadmap pathway includes actions for newly built single family homes,
newly built multi family homes, and refurbishment of existing buildings. This is shown in Table 2.
YEAR
2014
2015
2016
2017
ACTION I: R&D for new built single family SAH
R&D: Improved collector & collector array design
R&D: Improvements on todays available storage technologies
R&D: Improved hydraulic and system technology
Technological
2019
2020
SAH 60 as
construction type
ready for market
deployment for
new +
refurbished SFH
and MFH in
Europe
SAH 60 as
construction type
ready for market
deployment for
NEW single
family houses in
Central Europe
OBJECTIVES
MILESTONES
Technology
(Applied
research)
2018
ACTION II: DEMONSTRATION
of new built single family SAH
ACTION III: PROTOTYPE DEVELOPMENT and
DEMONSTRATION of new built multi family SAH
R&D: Improved controller and monitoring technology
R&D: Storage and system technology
adapted to MFHs
R&D: Improved system design and new design tools
R&D: System design adapted to MFHs
ACTION IV: PROTOTYPE DEVELOPMENT and DEMONSTRATION
of the refurbishment of existing buildings to SAH
R&D: Improved integration of the collector array
R&D: Integration of large storage volumes in existing buildings
R&D: Improved system technology and system design
R&D: New materials and coatings
Materials,
enabling
technologies
(Basic Research)
R&D: Innovative control and monitoring concepts with forced integration of new ICT technologies
R&D: Improvements on solar thermal assisted cooling technologies
R&D: Development of high density heat stores
DEVELOPMENT: Certification scheme for all types of Nearly Zero-Energy
Buildings inclusive Solar-Active-Houses
Standards
Quality
IMPLEMENTATION of certification scheme for Nearly
Zero-Energy Buildings including Solar-Active-Houses
DEVELOPMENT: Standards for testing and certification of SAH
NonͲtechnological
DEVELOPMENT: Standardised hydraulic and electrical interconnections
Socio-economic
framework
DEVELOPMENT: Standardised calculation scheme of heat costs in all types
of energy efficient buildings including SAH
Legal and
administration
Research & Development
IMPLEMENTATION: Support policy for Solar-Active-Houses
(subsidy programs, interest reduced loans, increased efficiency standards, renewable energy
obligations, etc.) for new constructions and refurbishment of buildings
Demonstration
Table 2: Roadmap pathway for Solar-Active-House (SAH)
8
A Common Technological Roadmap to 2020>
RHC-Platform • Clustering of the 4 Technology Roadmaps
The huge potential for solar thermal energy in the field of industrial processes is almost untapped. The SHIP
roadmap pathway enables the sector to enter this market and includes all industrial applications with process temperatures up to 250°C i.e. both low and medium temperature applications and is shown in Table 3.
YEAR
2014
2015
2016
2017
2018
ACTION I: Cost optimal solutions for all relevant industrial processes
2020
< 100°C, non-concentrating:
system price incl. storage 250€/m2
solar heat costs 3-6 €ct/kWh
< 250°C, concentrating:
system price excl. storage 300 €/m2
solar heat costs 4-7 €ct/kWh
< 100°C, non-concentrating:
system price incl. storage 350€/m2
solar heat costs 5-8 €ct/kWh
< 250°C, concentrating:
system price excl. storage 400 €/m2
solar heat costs 6-9 €ct/kWh
OBJECTIVES
MILESTONES
2019
ACTION II: DEMONSTRATION / POST R&D&D:
SHIP systems in key applications
Technological
R&D: Self carrying and modular collector structures for installation on
industrial buildings
R&D: Improved large-scale solar collector arrays for direct steam
generation, and hot water and thermal oil heating
Technology
(Applied
research)
R&D: Improved planning guidelines and innovative design tools for
solar heat in industrial processes
ACTION III: R&D&D of Next generation of medium temperature collectors (100°C - 250°C)
R&D: Improved medium temperature collectors with new materials and production processes for high vacuum, non-tracking
flat plate collectors, stagnation proof flat-plate and evacuated tube collectors, next generation air collctors ...
R&D: Improved reflectors for concentrating collectors with
very high reflection, dirt-proof or self-cleaning, ...
NonͲtechnological
Standards and
Quality
Socio-economic
environment
Legal and
administration
DEVELOPMENT and IMPLEMENTATION: Standards and certification schemes as well as accelerated ageing tests for
medium-temperature collectors and collector systems; test procedures for different concentrating collectors, etc.
DEVELOPMENT and IMPLEMENTATION: Financial sector requirements
for SHIP systems to become "bankable" for the financing sector and integrated
into ESCO's portfolios, etc.
IMPLEMENTATION: Integration of SHIP systems in industry energy audits
obligation in energy audits for industries with heat demand up to 250 °C
IMPLEMENTATION: Effective public support policy for SHIP systems for low (1st phase), medium and high temperature (2nd phase)
Research & Development
Demonstration
Table 3: Roadmap pathway of SHIP systems
Providing 92% of all renewable heat, bioenergy is a key pillar of the Heating and Cooling sector
today. The Biomass Technology Roadmap published in 2014 identified the importance of, and
placed special emphasis on ensuring the commercial availability of reliable, cost-competitive,
supply-secure, and environmentally friendly bioenergy Heating and Cooling solutions for the
different consumer types in Europe.
The Biomass Panel adopted a value-chain approach in the drafting of the Roadmap to encourage successful implementation. This approach integrates the different research priorities
throughout the entire supply chain from the sourcing of the biomass, the logistical aspects
needed to transport it or the energy carriers, as well as its conversion into Heating and Cooling
(and electricity). The Roadmap also emphasizes the need for efficient and sustainable solutions, which are vital in gaining public acceptance of bioenergy as a sustainable and reliable
option in the heating sector. The Biomass Panel recommends the strengthening of current
efforts to deliver a clear legislative framework regarding sustainability requirements for biomass used for Heating and Cooling. This will require a tangible progress towards regulatory
consensus as we approach 2020.
The Biomass Technology Roadmap addresses four selected value chains: 1) Advanced biomass fuels replacing coal, fossil oil and natural gas in heat and CHP production (Advanced
fuels), 2) cost and energy efficient, environmentally friendly micro and small-scale CHP (Micro
and small-scale CHP), 3) High efficient large-scale or industrial steam CHP with enhanced
availability and increased high temperature heat potential (up to 600 ºC) (High efficient largescale or industrial CHP), and 4) High efficient biomass conversion systems for polygeneration.
9
A Common Technological Roadmap to 2020>
Clustering of the 4 Technology Roadmaps • RHC-Platform
Through the development of standardised and sector-oriented, sustainable advanced biomass
fuels (new biocommodities, thermally treated biomass fuels, fast pyrolysis bio-oil and upgraded biomethane), the biomass fuel supply should double by 2020 when compared to its current
use (~110 Mtoe in 2012). This includes the supply of adequate feedstock at competitive production costs. The feedstock range of bioenergy supply chains should be broadened through
the mobilisation of alternative biomass feedstock resources, such as forest and agricultural
residues and wastes.
Sustainable, innovative and cost-efficient advanced feedstock production and pre-treatment
technologies for different biomass sources need to be developed to meet the quality requirements for thermally treated biomass, bio-oil and biomethane production. New and advanced
fuels, as well as generally broadened biomass feedstock require appropriate conversion technologies ensuring the efficient and environmentally friendly use of the supplied fuels.
Action5
KEY PERFORMANCE INDICATORS (ALL BY 2020)
Feedstock
30% reduction of biomass supply costs for forest biomass and 20-30% reduction for
agrobiomass residues through the use of intelligent machinery, and supply chain and
logistical optimisation.
30% reduction of CO2 emissions in the biomass supply chain (forest biomass)
Commercial bio-oil production for heating applications, 20% reduced bio-oil costs
through process integration and logistical optimisation
Full scale bio-oil production with plant availability > 6,500 hrs per annum
Bio-oil upgrading to higher value products demonstrated at industrial scale.
Use of flexible feedstock such as forest and agricultural residues and their blends
Bio Oil
Bio-oil fulfilling the specifications of new EN standard (for boilers and engines) under
development by CEN (mandate accepted 10/2013). New bio-oil grades having
improved quality – higher LHV, no solids, good stability, pH > 4.
Physically upgraded bio-oil usage in small scale CHP and stationary engines
demonstrated;
Chemically upgraded bio-oil usage in micro-CHP and engines demonstrated
(including small scale heating sector)
Increased co-firing potential of >50% commercial operation of biomass co-firing in
coal CHP plants
Reduction of production costs by 5 - 10 €/MWh (1.4 – 2.8 €/GJ)
Operational hours at full load of 8 000 hours/year
Thermally
Treated
Biomass
Fuels
Overall biomass-to-thermal treatment-pellets/briquettes energy efficiencies (based
on net calorific value as received) >90%
Minimum share of agrobiomass 10%
Development of risk avoiding guidelines and MSDS as a standardised procedure
10 to 15% of annual production to have a verified in large scale a quality that can be
stored outdoors
5
10
All base values for
these KPIs are detailed
in the Biomass Technology Roadmap
Proven availability of standardised thermally treated biomass in the EU with the
trading volume of thermally treated biomass about 1 – 2 million tons.
A Common Technological Roadmap to 2020>
RHC-Platform • Clustering of the 4 Technology Roadmaps
Diversification of raw material for biogas production with an increase of biogas yield
of alternative energy crops by 20-30%
Upgrading
of Biogas
to Biomethane
Increase in the efficiency of biogas up-grading to a power consumption of Ø 0.15
kWh/Nm3
Cost reduction of biogas upgrading by 10-20%
Improvement of load flexibility of biogas CHP systems with part load operability of
biogas CHP units > 40%
Increase of efficiency of biogas CHP systems by 10-20%
80% of all European biogas plants have implemented the use of “waste heat” from
their CHP units with GHG savings of almost 14 million tons.
Table 4: Key Performance Indicators for Advanced Fuels
Small and micro-scale CHP constitutes a highly energy efficient solution (total sum of thermal
and electrical efficiency > 85 %) for flexible bio-electricity and thermal energy supply. Small
and micro-CHP technology has been developed for various applications. Micro-scale CHP uses
serial products developed for residential scale heating with electricity production (possibly grid
independent, typical P < 5 kWe) or as cogeneration systems for small industries, the service
sector, or in micro grids (base heat for more than 2,000 hours/year, typical P < 50 kWe). Small
scale CHP systems are plants rather than products for cogeneration in industries, the service
sector, or DHC (base heat for more than 5,000 hours/year, typical P < 250 kWe).
Action6
KEY PERFORMANCE INDICATORS (ALL BY 2020)
50% reduction in electricity production costs
Minimum lifetime of suitable components for bio-oil engines and turbines of
2,000 operational hours
Proven lifetime of 20.000 h (<5 kWel) / 35,000 h / 50,000 h (>50 kWel)
Micro & SmallScale CHP
Electric system efficiencies based on solid state technologies of 2%
Electric system efficiencies based on thermodynamic cycles of 7% (<5 kWel )
<10% -12% (5 - 50 kWel)12-15 (<250 kWel)
Decrease in investment costs of solid state technologies to 10 EUR/W
Decrease in investment costs of thermodynamic cycle technologies to 3.5
EUR/W
Reduce emissions to 1/10 of the specifications in EN303-5 (except for NOx)
Table 5: Key Performance Indicators for Micro and Small Scale CHP
In 2010, about 54% of the gross inland consumption of biomass was fed into electricity and/
or heating plants, or used in industrial processes. Biomass use in industrial power plants and
District Heating and Cooling (DHC) is expected to roughly double in 2020 through the retrofitting of previously fossil-fuelled as well as new biomass plants. Biomass units are base load
units that should be flexible in terms of operation and availability in order to continuously
cover the needs for heating/cooling and electricity demand. Additionally, taking into account
the increasing strictness of air quality requirements, (i.e. IED for large combustion plants and
air quality package for medium-sized plants (1 – 50 MW)), and the limited availability of high
quality wood resources in Europe, significant R&D efforts are required for the development of
highly-efficient and multi-fuel biomass systems.
6
All base values are
detailed in the Biomass
Technology Roadmap
11
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The nearly 143,000 medium-sized combustion plants (MCPs) that are now in operation in the EU
emitted a combined total of some 554 thousand tons (kt) of nitrogen oxides (NOx), 301 kt of sulphur dioxide (SO2) and 53 kt of particulate matter (PM) in 2010. Even without additional measures,
these emissions are expected to come down by 2025, but the potential to further reduce these
emissions is significant. In particular, biomass CHP units should exhibit increased fuel flexibility,
allowing the use of more complex and low cost biomass fuels (e.g. agrobiomass and waste recovered fuels/sludges), while increasing steam parameters and/or heat medium temperature as
well as effectively addressing environmental issues (e.g. emission control and ash utilisation).
High Efficient
Large Scale
/ Industrial
Steam CHP7
KEY PERFORMANCE INDICATORS (ALL BY 2020)
Net nominal electric efficiency of 34% for clean wood boilers and 32% for wide
fuel mix boilers
Steam characteristics of 600°C / 175 bar (clean wood boilers) and 563°C / 160
bar (wide fuel mix boilers)
New
installations
Total increase in CAPEX of no more than 10% over current state of the art for
new technologies
Electricity production costs reduced by at least 5% in clean wood boilers and at
least 9% in wide fuel mix boilers
For emissions, increase catalyst operating times and reach conformity with IED
Increase ash utilisation to 30%
> 50% agrobiomass fuels thermal share in fuel mixture in wood fired units
Existing /
Retrofit
Max. 10% reduction from nominal operational electric efficiency
For emissions, increase catalyst operating times and reach conformity with IED
Increase ash utilisation to 30%
Table 6: Key Performance Indicators for High Efficient Large Scale / Industrial Steam CHP
Bioenergy as a storable energy source presents a real advantage when considering its integration in the overall renewable energy system. Besides the production of Heating and
Cooling, CHP (combined heat and power) and CHP-C (combined heat, power and cooling or
polygeneration) technologies are able to provide intermittent electricity, balancing both daily
and seasonal changes in solar and wind electricity production and loads of boilers, increasing
plant availability, peak load duration and economy. Depending upon the season, climatic
condition, and time of day, the primary function of such biomass-fuelled units may change
from electricity, Heating and Cooling to even bio-oil production (polygeneration, for example
with integrated bio-oil production).
Action8
KEY PERFORMANCE INDICATORS (ALL BY 2020)
>90% overall average annual efficiency
12
7
All base values are
detailed in the Biomass
Technology Roadmap
8
All base values are
detailed in the Biomass
Technology Roadmap
Polygeneration
Emissions reduced (CO, NOx and SOx) by half compared to condensing power
production
Efficiency in electricity production of > 30% (<10MWe) and > 40% (<200 MWe)
Table 7: Key Performance Indicators for Polygeneration
A Common Technological Roadmap to 2020>
RHC-Platform • Clustering of the 4 Technology Roadmaps
REQUIRED RD&D ACTIVITIES UP TO 2020
Topic
2014-2016
2017-2020
Advanced fuels (non-residential, industrial and CHP)
Commercial plants for thermally treated biomass
Sustainable and cost efficient feedstock
Full use of the energy content of biogas
Commercial plant for bio-oil
BR
Demo
AR
AR
Demo
AR
M
Demo
M
BR
Demo
AR
Micro and small-scale CHP (residential and non-residential)
Thermoelectrics
BR
Stirling engine
AR
Steam cycle
AR
ORC
AR
Demo
M
Demo
Demo
M
Micro gas turbine
AR
Demo
Gasification +IC
AR
Demo
High efficient large-scale or industrial steam CHP with enhanced availability and increased high
temperature heat potential
New materials (e.g. for superheat tubes,
catalysts, etc)
AR
Demo
Optimisation of boiler design / placement of
heat exchange surfaces / leaning techniques
AR
Demo
Development and testing of suitable co-firing
matrices for problematic biofuels
AR
Demo
Corrosion control (additives), ash utilisation
AR
Demo
Demonstrate fuel flexibility and optimal
efficiency under variable load at 3-4 CHP units
Demo
Polygeneration (Industrial and CHP)
BR
Energy storage
AR
Demo
Concept developments
AR
M
3 Demonstrations in different scales
AR
Demo
Table 8: Required RD&D activities up to 2020
BR
AR
Demo
M
…
…
…
…
basic research
applied research & experimental development
demonstration
market-ready
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Geothermal energy has the potential to play a crucial role in our future energy mix, providing
decarbonised, affordable energy for society and facilitating the competitiveness of European
industry.
Geothermal Heating and Cooling can supply energy at different temperatures (low or high
temperature), at different loads (it can be base load and flexible), and for different demands
(heat and cold: less than 10 kWth to tenth of MWth). Geothermal will be a key energy source
both in smart cities and in smart rural communities, based on local resources, supplying Heating and Cooling and electricity, as well as solutions for smart thermal and electricity grids via
underground thermal storage.
Currently, geothermal energy sources provide more than 4 million tonnes of oil equivalent
(Mtoe) per year for Heating and Cooling in the European Union, corresponding to more than
15 GWth installed capacity, where geothermal heat pump systems contribute the largest part.
But still the potential is huge for residential and tertiary sectors, as well as for industry.
Following current trends, in the European Union (EU-28), the geothermal contribution in 2020
may amount to around 40 GWth installed, corresponding to about 10 Mtoe. Additionally, the
development of Enhanced Geothermal Systems (EGS) will provide further opportunities for
CHP systems by substantially enlarging the geological areas in which geothermal energy may
be profitability extracted. Furthermore, deep Geothermal energy applications can benefit from
hybridisation with other renewable heat energy sources, such as solar thermal or biomass, in
order to increase the overall efficiency of the thermodynamic conversion cycle.
The technological challenges for an accelerated deployment of geothermal Heating and
Cooling across Europe are to develop innovative solutions especially for refurbishing existing
buildings, but also for zero and plus energy buildings, as the systems are easier to install and
more efficient at low temperatures for both Heating and Cooling. Secondly, there is a challenge
to develop geothermal District Heating (DH) systems in dense urban areas at low temperatures
with emphasis on the deployment of EGS. Finally, the third goal is to contribute to the decarbonisation of industry by providing competitive solutions for Heating and Cooling.
The quantitative development of the European geothermal Heating and Cooling market in the
next decade is expected to be fuelled mainly through the introduction and consolidation of
shallow geothermal systems, with a quite mature market in both Sweden and Switzerland, and
well-developed markets in Austria, Norway, Germany and France. In other emerging European
markets, high growth is possible and is expected over the next years (Italy, Spain, United Kingdom, Hungary, Romania, Poland and the Baltic states). The aforementioned mature market
countries will see a steady increase, mainly stimulated by sales in the renovation segment,
while in all other countries, a significant growth is to be expected. The fast development for
geothermal heat pumps illustrates how shallow geothermal energy resources, previously often
neglected, have become very significant, and should be taken into account in any energy
development scenario.
The main Key Performance Indicators and Objectives for Ground Source Heat Pumps are:
SG1.
A Seasonal Performance Factor in the order of 5 for 2020.
SG2.
A Hellström-efficiency (a measure of the impact of borehole thermal resistance)
of about 80% in 2020.
SG3.
A further decrease in energy input and reduced costs for operating the geothermal heat pump system.
The interlink between the different proposed actions in the Geothermal Roadmap and the
above listed KPI’s is highlighted in the following Table 9.
14
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RHC-Platform • Clustering of the 4 Technology Roadmaps
RESEARCH AND INNOVATION PRIORITIES
KPI’s
TRL
SG3
5->6
SG1, SG2, SG3
5->6
SG1, SG2
3->4
Creation of a new European wide database to map conductivities and
potential (to 100 m depth) and feasibility of vertical BHE systems.
SG3
7->9
Development of a geophysical tools for Shallow reservoir potential
estimation – enhanced TRT methods for non-conventional systems.
SG3
4->6
Integration of design of the shallow geothermal system and building
energy system with regard to optimum thermal use and operational
strategy.
SG1, SG3
7->8
SG1, SG2, SG3
3->7
SG1, SG3
7->8
Ground coupling technologies
Improved vertical borehole drilling technologies to enhance safety and
reduce cost of BHE installations - Improved installation technologies
and geometries for ground Heat Exchange technology.
European-wide Geoactive Structures Alliance. Development of a
network of laboratories to create 4 testing sites.
Improved pipe materials for borehole heat exchangers (BHE) and
horizontal ground loops. New pipes for higher temperatures. Better
thermal transfer fluid.
Systems, integration and environment
System concepts and applications for geothermal large scale and medium
scale cooling in warm climates – hybrid systems, new high temp pipe
materials and new short term storage materials and concepts. Campaign to
support 50 demonstration plants.
Development of ground coupling technologies and installation
techniques for high capacities through hybrid systems and integration
with other RES sources.
Campaign to support 50 demonstration plants.
Non-technical provisions: measures to increase awareness,
harmonisation of shallow geo- standards, shallow geothermal installer
EU wide training certificate, shallow geothermal Smart City deployment
policy along the line of previous projects.
8->9
Table 9: KPI’s and TRL for Research and Innovation Priorities for Shallow Geothermal
Promising areas are the development of smart thermal grids (1st generation) with the building
of new district H&C networks (Geothermal District Heating & Cooling, with ca. 5 €-cent/kWh,
is one of the most competitive energy technologies), optimisation of existing networks, and the
increase of new and innovative geothermal applications in transport, industry, and agriculture.
During the next 10 years, new geothermal combined heat and power (CHP) plants with low
temperature installations and Enhanced Geothermal Systems will be developed. The sector
is forecast to reach an installed capacity for geothermal electricity of 3-4 GWe in the EU-28.
A typical EGS plant today has a capacity of 3-10 MWe, but future commercial plants will have
a capacity of 25-50 MWe and 50-100 MWth (producing from a cluster of 5 to 10 wells, as cur-
15
A Common Technological Roadmap to 2020>
Clustering of the 4 Technology Roadmaps • RHC-Platform
rently found in the oil & gas industry). CHP installations could provide heating representing 2
Mtoe by 2020 at high temperatures, suitable for energy intensive industry. The main KPI’s and
2020 Objectives for Deep Geothermal Technologies are:
DG1.
Improved exploration of geothermal resources and creation of a European geothermal resource database. In the future, not a single project should need to be
abandoned after the decision to go ahead with drilling.
DG2.
Reduce cost for drilling and underground installations by at least 25% compared
to the situation today.
DG3.
Novel, improved production technologies to improve efficiency and reduce operation
and maintenance cost by at least 25%, improve system reliability and energy efficiency of operation, in particular by decreasing energy consumption of production pumps
by at least 50%.
DG4.
Innovative solutions and components for improved surface systems for heat uses in
DHC (including CHP) and industrial processes, developed with the target of providing optimum heat transfer from the ground system to the distribution system, can
increase heat exchange efficiency by 25% and component longevity in the thermal
water circuit by 40 %.
DG5.
Enhanced Geothermal System (EGS) design with reliable performance parameters, such as flow rate, temperature and thermal and electrical power, will,
ultimately, establish EGS as a technology applicable almost everywhere for both
heat and power production.
Related to these KPI the geothermal roadmap has been structured with a number of R&I priorities, which are listed below in tabular form. Shallow and deep geothermal technologies are
considered separately.
RESEARCH AND INNOVATION PRIORITIES
KPI’s
TRL
Create a European Geothermal resource database.
DG1
5->7
Exploration technologies (geochemical and geophysical exploration campaigns),
characterisation and assessment of geothermal reservoirs.
DG1
3->5
European campaign for slimholes:
new technologies & drilling campaign.
DG1
6->7
Improve current drilling technologies.
DG2
4->5
Develop novel drilling technologies by 2020: in laboratories (by 2015), on site
(by 2017), on a demonstration plant (by 2020).
DG2
3->7
New drilling concept: horizontal, multi-well, closed loop systems.
DG2
3->5
Reservoir engineering: Well design & completion, reservoir stimulation and
management.
DG3
3->7
New Materials: corrosion, scaling.
DG3
2->3
HT/HP tools, high temperature production pump.
DG3
5->6
Surface systems equipment: low temperature systems, heat pumps, turbines,
cooling generation (via heat absorption).
DG4
6->7
Deep Geothermal Resources
Deep Geothermal Drilling
Deep Geothermal Production
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RHC-Platform • Clustering of the 4 Technology Roadmaps
EGS Flagship Program
Establish network of complementary 5-10 European EGS test
laboratories.
DG3,
DG5
Demonstration sites in different geological settings (3 plants of 5 MWe-10MWth),
and upscale (1 plant=10 MWe-20MWth & 1 plant=20 MWe-40MWth).
Training and education of new geothermal professionals specialised in EGS.
DG1,
DG3,
DG5
5->6
3/4>6
DG5
Public acceptance: microseismicity, stimulation, environmental impact, emissions.
DG5
Grid flexibility: Flexible and base load electricity production from
EGS plants, test on dispatchability, design regional flexible electricity system.
DG5
3->6
Table 10: KPI’s and TRL for Research and Innovation Priorities for Deep Geothermal
In order to realise the potential of RHC technology, it is necessary to exploit synergies among
renewable energy production, distribution, and consumption, by developing ‘cross-cutting
technology’. Cross-cutting technology enhances the thermal energy output of RES systems,
improves the system output, or allows RES, such as aerothermal energy, to be used in building-specific applications. Cross-cutting technology is an essential enabler of the transition
towards a renewable landscape.
Four key energy technologies or applications have been identified that fit the definition above.
•
District Heating and Cooling
•
Thermal Energy Storage
•
Heat Pumps
•
Hybrid Renewable Energy Systems and priorities with generic impact on RHC applications in the residential sector
District heating and cooling (DHC) provides a broad platform for the integration of RES into
the heat market. It increases the overall efficiency of the energy system by enabling the use
of combined heat and power plants as well as the recycling of heat losses from a variety of
energy conversion processes. DHC further enables the use of renewable energy in areas with
a high building density and a high energy demand since biomass and geothermal energy can
be used in heating stations in a very efficient way. By aggregating a large number of small and
variable heating and cooling demands, DHC allows energy flows from multiple RES to be combined while reducing primary energy demand and carbon emissions in the community served.
RESEARCH AND
INNOVATION PRIORITIES
Large scale demonstration
of Smart Thermal Grids
PREDOMINANT
TYPE OF
ACTIVITY
Demonstration
PRIORITY
TIMELINE
20142016
TRL
KPI
47
Cost of heat with 50%
renewables decreases from
200 €/MWh in 2012 to 50€/
MWh in 2020.
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Booster Heat Pump for
DHC
Develop and roll-out DHC
driven white goods and
low temperature solutions
for domestic hot water
preparation
Improved, highly efficient
substations for both
present and future lower
temperature networks
Optimised integration of
renewable energy sources
in DHC systems and
enhancement of thermal
energy storage at system
level
Demonstration
Development/
Demonstration
Demonstration
Demonstration
20142016
20182020
20162018
20182020
36
The reference sCOP
value compression HP
increases from 3.5 in
2012 to 5 in 2020 while
the heat generation costs
is reduced by more than
30%.
46
The average electricity
consumption of white
goods is reduced from
850 kWh/yr in 2012 to
153 kWh/yr in 2020.
36
Substations’ manufacturing
costs are reduced from
5,000 to 10,000 € in 2012
to 4,000 to 6,000 € in
2020.
Average electricity
consumption of substations
for residential buildings
reduced from 4,380 kWh/
year in 2012 to 2,600
kWh/year in 2020, while
the number of ‘smart
substations’ has a market
share of 80%.
36
The reference heat cost is
reduced from 50-200 €/
MWh in 2012 to 40-90€/
MWh in 2020, while the
energy efficiency of DHC
systems is increased by
10%.
Table 11: District Heating and Cooling Research and Innovation Priorities
Thermal energy storage is the solution to the key bottleneck problem preventing the widespread and
integrated use of RES, since the renewable supply does not always coincide with the demand for Heating
and Cooling. Numerous technologies in sensible, latent or thermochemical form, both in on-site and
large scale applications can time-shift renewable energy supply to periods of greatest demand. Each
technology is characterised by different specifications and specific advantages.
RESEARCH AND
INNOVATION
PRIORITIES
Next generation of
Sensible Thermal
Energy Storage
18
PREDOMINANT
TYPE OF
ACTIVITY
Development
PRIORITY
TIMELINE
20142016
TRL
KPI
38
1,000 litre tank cost
(excluding insulation and
VAT) is reduced from 400 900 € in 2012 to 300 - 700
€ in 2020, while the heat
loss is reduced from 150W
– 200W to 56W.
A Common Technological Roadmap to 2020>
RHC-Platform • Clustering of the 4 Technology Roadmaps
Improving the
efficiency of combined
thermal energy transfer
and storage
Increased storage
density using phase
change materials (PCM)
and thermochemical
materials (TCM)
Improvements in
Underground Thermal
Energy Storage (UTES)
Optimised integration
of renewable
energy sources in
DHC systems and
enhancement of
thermal energy
storage at system level
Research /
Development
Research
Demonstration
Demonstration
2018- 2020
20162018
20162018
20182020
16
New fluids for thermal
energy transfer and
storage allow a reduction
of annual electricity
consumption for pumping
from 75 kWh in 2012 to
50 kWh in 2030, while the
energy density is increased
by 30%.
28
Stable, micro
encapsulated salt hydrate
PCM cost reduced from 8
€/kg in 2012 to less than
2 €/kg in 2030.
Energy seasonal solar
TCM storage increased
from 60 kWh/m3system
in 2012 to 250 kWh/m3
system.
46
Energy efficiency
increased from 60% in
2012 to 75% in 2020.
Lifetime of the UTES at
elevated T increases from
10 years in 2012 to 20 –
30 years in 2020.
36
The reference heat cost
is reduced from 50-200
€/MWh in 2012 to 4090€/MWh in 2020, while
the energy efficiency
of DHC systems is
increased by 10%.
Table 12: Thermal Energy Storage Research and Innovation Priorities
Heat pumps transform renewable thermal energy available at low temperatures from natural
surroundings to heat at higher temperatures. The heat pump cycle can be also used to provide
cooling. Heat pumps use aerothermal, hydrothermal and geothermal energy as stand-alone
installations or in combination with other renewable energy sources.
Although the technology has matured over the past years, research and development can contribute to the improvement of the efficiency, cost effectiveness, and suitability of the technology in
the built environment.
While the majority of heat pumps today use electric compression units, thermally driven heat pumps
using the sorption cycle are a promising technology for heating, and can also provide cooling.
These so called ‘sorption cooling systems’ are regarded as one of the most efficient technologies to convert RES and excess heat into cooling.
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RESEARCH AND
INNOVATION
PRIORITIES
Cost competitive heat
pump kit for houses
with existing boiler
Optimisation of
thermally driven heat
pumps and their
integration in the
boundary system
Development of a heat
pump for near-zero
energy buildings (single
family house)
High capacity heat
pump for simultaneous
production of cold and
hot water for heating/
cooling the building
Sorption cooling
systems driven by hot
water at moderate
temperature
Enhanced industrial
compression heat
pumps
Process integration,
optimisation and
control of industrial
heat pumps
20
PREDOMINANT
TYPE OF
ACTIVITY
Development
Development
PRIORITY
TIMELINE
20142016
20142016
Development
2018- 2020
Development
20162018
Development
Development
Demonstration
20162018
20182020
20142016
TRL
KPI
47
PER of the heat pump and
gas boiler system referred
to primary energy increased
from 0.8 (gas boiler only) to
1.7 in 2020.
Reference average cost of
4-8 kW HP in the range 4-8
kW, including installation,
reduced from 6,000 – 8,000
€ in 2012 to 4,000 – 5,500
€ in 2020.
47
Reference thermal system
sCOP (e.g. for air source)
increased from 1.15 in
2012 to 1.4 in 2020.
Reference specific unit
cost reduced from 450 €/
kWth in 2012 to 350 €/
kWth in 2020.
46
sCOP (for heating and
cooling) increased from
3.5 in 2012 to 6 in 2025.
Contribution to the
production of DHW higher
than 40% in 2025.
46
sCOP of air-to-air HP
increased from 7 in 2012
to 10 in 2020.
Refrigerant charge lower
than 0.1 kg/kW.
36
Driving temp for
absorption today 95°C ->
60°C.
Reference sCOP (water
cooled) increased from
0.5 in 2012 to 0.8 in 2020.
36
Carnot efficiency increased
from 0.3 in 2012 to 0.4 in
2025.
Production cost of the heat
pump unit reduced from
300 €/kW in 2012 to less
than 200 €/kW in 2025.
47
Reference sCOP
compression HP (at T = 35
K , Tevap = 40 °C) increased
from 3.5 in 2012 to 5 in
2020.
Reference sCOP absorption
HP increased from 1.1 in
2012 to 1.5 in 2020.
Average system cost
reduced from 500-600 €/
kW in 2012 to less than 400
€/kW in 2012.
A Common Technological Roadmap to 2020>
RHC-Platform • Clustering of the 4 Technology Roadmaps
Improvement of
sorption cooling from
renewable energy
sources and excess
heat
New concepts for industrial heat pumps
Development /
Demonstration
Research
20182020
20162018
47
Cost for absorption chiller
reduced from 160 €/kWc
in 2012 to 100 €/kWc in
2025.
Specific weight reduced
from 7 kg/kWc in 2012 to 5
in 2025.
24
Temperature of the delivered heat increased from
100°C in 2012 to more
than 200°C in 2020 with
a temperature lift higher
than 70K.
Payback time reduced
from 5 years in 2012 to
less than 3 in 2020.
Table 13: Heat Pumps Research and Innovation Priorities
Hybrid systems are defined as those systems which provide heating, cooling and/or domestic hot water through the combination of two or more energy sources into a single system,
therefore overcoming the limitations of individual technologies. Hybrid systems are used in
small-scale applications like Heating and Cooling systems for single family houses as well as
in large-scale applications suitable for District Heating and Cooling or industrial processes.
Systems using one renewable and one non-renewable source are considered as a merely short
term (i.e. until 2020) technological option. In the long term, hybrid systems will combine two
or more renewable energy sources.
RESEARCH AND
INNOVATION PRIORITIES
Automation, control
and long term reliability
assessment
PREDOMINANT
TYPE OF
ACTIVITY
Development
PRIORITY
TIMELINE
2014- 2016
TRL
KPI
37
Reference system
customer price (for
Central Europe)
reduced from 800 –
1,500 €/kW in 2012
to 640 – 1,200 €/
kW in 2020. Primary
Energy Ratio of a
reference system
reduced from 0.8 in
2012 to 0.65 in 2020.
Increase in the
system efficiency
as a result of the
integration of smart
controllers higher
than 20% in 2020.
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Next generation of highly
integrated, compact hybrid
systems
Integration, automation and
control of large scale hybrid
systems for non-residential
buildings
Development
Development
2018-2020
2016-2018
36
Renewable share of
the reference hybrid
system increased to
more than 75% in
2030.
Reference system
customer price (for
Central Europe)
reduced from 800 –
1,500 €/kW in 2012
to 500 – 1000 €/kW
in 2025.
46
Primary Energy Ratio
of a reference system
reduced from 0.8 in
2012 to 0.5 in 2020.
Average increase
to the payback
time, compared
with conventional
alternatives reduced
to 5 years in 2020
and to 1 in 2025.
Table 14: Hybrid Systems Research and Innovation Priorities
Table 15 shows some items of relevance to all types of residential Heating and Cooling from
RES that will help to improve system efficiency and ease of installation. These issues are related to the system level rather than to the single component level. While components often
are tested and certified with specific procedures (e.g. the Solar Keymark for solar thermal
collectors), such certification practices and schemes do not exist for overall Heating and
Cooling systems.
RESEARCH AND
INNOVATION PRIORITIES
Developing standards for
the overall system design
and for hydraulic and
electrical interconnections
of different building
components
Elaborating standards, tests,
and benchmarks for system
efficiency
PREDOMINANT
TYPE OF
ACTIVITY
Development
Development
PRIORITY
TIMELINE
20162018
2014-2016
TRL
KPI
Applicable
to all TRLs
Installation time is
reduced by 30%.
Material cost reduction
for the end-user of
20% (cfr CCT.3).
20% reduction of
human interventions
for maintenance /
reparation.
Applicable
to all TRLs
Establishment
of harmonised
test procedure(s),
recognised among
industry, research and
standardisation bodies
in EU, in order to test
different RHC systems.
The harmonised test
procedure(s) should be
tested in at least 5 EU
countries by relevant
research and/or
standardisation bodies.
Table 15: Research and Innovation Priorities with generic impact on RHC applications in the residential sector
22
INTERCONNECTION
BETWEEN THE DIFFERENT
RHC TECHNOLOGIES
and links to different demand profiles
Interconnection between the different RHC technologies
and links to different demand profiles • RHC-Platform
One reason for the complexity of the Heating and Cooling sector is the fact that heat and
cold can be generated, transported, stored and delivered in many ways to satisfy the demand
of end users with many different profiles. This leads to a variety of solutions and often to
different technology combinations in order to provide optimal alternatives. The Cross-Cutting
Technologies (CCT), as enablers for all RES, play a special role and so this Chapter presents
the connections between the RES for Heating and Cooling and CCT from the point of view of
R&I actions - as described in the previous Chapter - and technical progress.
Home owners don’t want to buy heating components separately, such as solar collectors, water
storage units, backup-heaters and other equipment, but rather a solution for domestic hot
water and/or space heating. R&I is necessary to further develop solar thermal and cross-cutting components, however it is highly important to also focus on R&I actions for optimised
system technology. Cross-cutting technologies contribute to this process with components
like thermal storage and system technologies like hybrid systems and control technology.
Strong R&I work is required for thermal energy storage (TES). Solar thermal system solutions
require (in almost all cases) a heat store. This is due to the mismatch between solar radiation
and heat demand profile; usually a thermal energy storage system is needed to make solar
thermal energy useable. Depending on the scale of the mismatch and the desired solar fraction, TES is designed to bridge the gap from just a few hours or days, up to weeks and months.
However, to store solar thermal energy means additional investment costs and additional
thermal losses, which increase with storage size and duration. In order to increase system
efficiency and solar fraction, the solar thermal sector requires TES with reduced thermal losses,
improved charging/discharging characteristics, and higher heat density (reduced volume for
the same heat capacity).
Furthermore, concepts and technologies for hybrid systems of solar thermal energy with heat
pumps, as well as with biomass systems such as pellet and wood chip boilers, with improved
control concepts and a reduced number of subcomponents, are necessary. The improved
integration of large collector arrays into buildings (multi family and tertiary ones especially) as
well as decentralised solar collector areas in district heating systems with and without large
seasonal heating storage is another field in which R&I is needed.
Biomass units are able to produce both electricity and heating/cooling on a continuous basis.
Therefore, as it can be considered as a type of stored energy, biomass can cover the energy
needs when other renewable sources are not available. For this reason, biomass can be considered to be an essential element for the stability of integrated renewable energy systems.
The complementarity of bioenergy technologies and cross-cutting technologies is also proven
when high temperature heat (up to 600°C) is required.
24
Interconnection between the different RHC technologies
RHC-Platform • and links to different demand profiles
DHC networks throughout Europe often use the heat produced from biomass heating and/
or Combined Heat and Power (CHP) units as a primary supply. Technologies that improve the
management of small and variable Heating and Cooling demands from customers or minimise
thermal losses also have a direct impact on the supply side, e.g. by allowing more customers
to be connected to an existing grid, or by allowing a better dimensioning of the supply side
during the design phase. Moreover, the large-scale demonstration activities outlined in the
Biomass Technology Roadmap, such as those of the ‘High efficient large-scale or industrial
steam CHP system with enhanced availability and increased high temperature heat potential
(up to 600°C)’ priority can be coupled with the demonstration activities of the CCT Roadmap,
e.g. ‘CCT.17 Large scale demonstration of Smart Thermal Grids’. This way, the efficiency and
environmental performance of new or retrofitted large-scale CHP units can be tested in the
actual operating conditions of a smart thermal grid for DH.
Thermal Energy Storage (TES) technologies are a common supporting feature of several bioenergy heating systems in the residential or District Heating (DH) sector, mostly for short-term
storage. Improvements in TES technologies will allow bioenergy heating units to manage their
heat production more efficiently, e.g. by avoiding shut-downs or abrupt load changes. Also,
using standardised and sector-oriented biomass fuels will secure the energy supply and the
efficient operation of biomass plants. For CHP units, the use of advanced solid and liquid
biofuels means an increase in their heat output, and thus an increase in their total efficiency.
At domestic scale, TES are widely diffused components in space heating and DHW supply
systems based on biomass combustion and on biomass / solar thermal hybrid systems. Next
generation (cost effective and efficient) sensible TES (CCT.6), in addition to phase change materials (PCM) and thermochemical materials (TCM) (CCT.8), will also be a relevant component
for small and micro scale CHPs and are highly relevant for consideration in the automation
and control system of hybrid energy systems at all scales.
Heat pumps are a versatile technology, utilising low temperature waste heat from various sources. Such low temperature streams are produced by bioenergy heating systems of all scales.
Improvements in heat pump technologies will allow for the utilisation of such streams and will
contribute to the increase of the overall total efficiency. Biomass combustion or upgraded biogas systems may substitute natural gas in the field of thermally driven heat pumps (CCT.2).
Hybrid renewable energy systems include a number of technologies that will allow for the
combination of two or more energy sources in a single stream. Since bioenergy is the most
common technology for RHC, it can be expected that most hybrid systems will include some
type of bioenergy system. For example, ‘CCT.3 Automation, control and long term reliability assessment’ allows for improved load control; this leads to better dimensioning of the capacity of
CHP units in the design phase, allowing them to operate as closely as possible to full load, thus
bringing higher efficiencies and lower emissions. A major role of the successful deployment
of CCT.3 will be for packaging purposes of integrated hybrid renewable energy systems. Pellet
burners / biomass micro CHPs may also be an element (first attempts are already on-going)
of the next generation of highly integrated, compact hybrid systems (CCT.5) in order to ensure
independence from electricity.
From the Strategic Research and Innovation Agenda of the RHC-Platform, Priorities ‘RHC.1
Developing standards for the overall system design and for hydraulic and electrical interconnections of different building components’ and ‘RHC.2 Elaborating standards, tests, and
benchmarks for system efficiency’ are absolutely necessary for all RHC technologies at residential scale. There is a strong need to develop new industry standards and testing procedures
in order to improve the efficiency and longevity of installed systems in which the observed
performance is often below the expected and theoretical levels of performance.
There is a fundamental link between shallow geothermal technologies and heat pumps, since the
heat pump is a structural element in any shallow geothermal application, enabling the system to
exchange heat between the underground and the building HVAC (Heating, Ventilation & Air-Con-
25
Interconnection between the different RHC technologies
and links to different demand profiles • RHC-Platform
ditioning) system. Any progress in HVAC components (better efficiency, lower cost, adaptation
to temperatures delivered by geothermal systems), and in particular HP components, will be of
benefit to the overall geothermal system. Additionally, shallow geothermal applications are often
found in combination with other sources of renewable heat. These forms of hybridisation (solar –
geothermal, air source – geothermal, etc.) play a key role in adjusting the demand profile of many
applications to the characteristics of the different heat sources, optimising the balance between
cost competitiveness and efficiency. This is particularly true in high capacity non-residential
applications with unbalanced heating/cooling demand in which the thermal equilibrium in the
soil can only be re-established by means of supplementary heat sources and sinks. Here, the
development of optimised hybrid schemes and control appliances are key factors.
Sensible Underground Thermal Energy Storage (UTES) for low temperature applications (at less
than 40 °C) using either groundwater-bearing layers (ATES) or wells into the ground water, or
using borehole heat exchanges (Borehole Thermal Energy Storage (BTES)), uses the same type
of installation procedures and technologies that make up the core of the shallow geothermal
systems. These areas are thus closely interlinked. In the 40-90 °C heat storage temperature
range for ATES and BTES systems, a breakthrough would be needed that would open up shallow
geothermal systems to a wider range of applications in non-residential and industrial areas.
In the DHC sector, there are two relevant technologies that are closely interlinked with the
Geothermal Roadmap topics. As mentioned before, the first are technologies using the
ground as a vast heat store or sink through UTES, with shallow geothermal technology principles; the second relates to deep geothermal energy production by means of direct heat
supply by thermal water production and reinjection, or additionally by using other technologies like deep borehole heat exchangers (BHE) or heat from geothermal CHP plants. The
capacity of such installations can start from about 0.5 MWth (in particular deep BHE) and may
achieve values in excess of 10 MWth. The heat could be fed directly into a district heating
system (if production temperature matches the required supply temperature), or be used as
a heat source for large heat pumps (including absorption heat pumps, engine-driven compression heat pumps, etc.). Additionally, cold production is possible with absorption chillers
driven by geothermal heat. Further development in DHC technologies (including cascading
and storage) will make it possible to use geothermal heat more efficiently.
The Research and Innovation actions described in the Strategic Research and Innovation
Agenda were structured according to the final users since Heating and Cooling demand profiles, supply temperatures, costs, and relevant technologies vary a lot and therefore markets
with completely different characteristics and needs exist. Four main demand profiles were
identified to cover substantially the most important user groups, which lead to the proposed
classification into residential, non-residential, industrial and district wide (or Smart City) users.
In this subchapter, the different R&I actions will be linked and related to these four application domains to highlight the fact that, from the point of view of technology and research, different solutions
and paths have to be found depending on the market and demand profiles to be addressed.
The needs of the residential market can be divided into two main segments: retrofitting and
newly built. Although in new buildings holistic solutions in line with the nearly zero-energy
building concept are under development, the majority of the market needs solutions that can
be easily integrated into existing buildings and that significantly reduce their fossil fuel demand. Today in Central and Northern Europe, as well as in in the Southern European Countries
with different climates, space heating is responsible for more than 80% of the heat demand in
residential buildings; less than 20% is needed for DHW. Though the space heating demand can
decrease by up to 75% (due to improved thermal insulation and improved façade air tightness
by refurbishment), it will still be comparable with the demand for DHW.
26
Interconnection between the different RHC technologies
RHC-Platform • and links to different demand profiles
Contribution from Solar Thermal Technologies
Today, manufacturers are selling solar thermal systems as units comprising the different components of the system. These components must be installed and connected on-site by the installer
in the building and combined with an external backup-heater. Manufacturers offer solar systems
that can be combined with a huge variety of heating system designs. However, this diversity
increases complexity, costs and installation failures, as well as the risk of suboptimal operation
due to conflicts between the controller of the solar system and the backup-heater.
This challenge can be solved by the Solar Compact Hybrid System (SCOHYS), which includes
the pre-assembled solar system and the backup-heater in one compact unit. SCOHYS will
be a compact solution at reduced costs and with high reliability due to simplified design, the
presence of only one control unit (including both control and monitoring functions), the high
level of prefabrication, and the reduced installation effort. Due to an optimised combination
of components and prefabrication in an intelligent way, the energy performance and the
reliability in the long term will improve.
The Solar-Active-House (SAH) concept as solution for the nearly zero-energy building requirement has been becoming increasingly relevant in the residential sector. The contribution of
solar energy to space heating in this context requires an increase of the solar fraction per
building. Today, in Central Europe, combi-systems for DHW and space heating typically have a
collector area of 10 to 15 m2 and can provide a solar fraction of about 25%, depending on the
size and the efficiency of the building and the climatic conditions on site. This solar fraction
is significantly increased in the SAH to at least 50%. Since in Central and North Europe the
level of solar radiation is in winter time much lower than in summer time, a solar fraction close
to 100% requires the storing, of a significant amount of solar heat that is generated during
the summer for heating purposes through the installation of a very large seasonal thermal
storage tank. However, based on improved insulation standards for buildings and improved
solar thermal technology, the SAH with a solar fraction of about 60% was developed as a
good compromise of a high solar fraction at an acceptable storage volume. In Central Europe,
a typical single family SAH needs a collector area of 30 to 40 m2 and a water storage tank of
only 5 to 10 m3. More than 1300 such Solar-Active-Houses have already been built.
The final goal of the solar sector is to increase the solar fraction with the SAH concept at low solar
heat costs, which can be achieved in two steps. Figure 3 shows the SCOHYS roadmap pathway
(SCOHYS roadmap (rm)) and its result (cost reduction by 50% for the same solar fraction), and
SAH roadmap pathway (SAH rm) and its result (increased solar fraction at the same solar heat
costs), for the year 2020 in the solar fraction to solar heat cost diagram. In a second step (SAH
2030), the final goal of high solar fraction at low heat costs will be achieved by 2030.
SAH 90% - 100%
SAH 2030
2030
80%
60%
SAH 60%
2030
Combi systems
2020
SAH 2030
40%
20%
DHW systems
2020
2020
SAH rm
2013
SAH rm
SAH 2030
Solar fraction on DHW and space heating
100%
SCOHYS rm
2013
SCOHYS rm 2013
0%
0
5
10
15
20
25
Solar heat cost in Central Europe in €ct/kWh
Figure 3: Development of solar heat costs (x-axis) for different applications/solar fraction (y-axis) at specific years (fields
with “2013”, “2020” and “2030”). The arrows stand for the different roadmap pathways (SCOHYS and SAH rm until 2020 and
SAH 2030 beyond 2020) (costs for typical systems in a specific area, Central Europe)
27
Interconnection between the different RHC technologies
and links to different demand profiles • RHC-Platform
Contribution from Biomass Technologies
Biomass based technologies can serve almost any residential application either as an individual Biomass-only solution, or as part of hybrid packages providing heat, hot water, and
ventilation and air conditioning / cooling to residential buildings. As for solar thermal (and
probably all other RHC technologies) the development of package solutions reducing the diversity of system solutions and reducing the potential for mistakes in the practical installation
of the systems is a key requirement for technical solutions for the residential RHC sector. While
firewood will remain the most relevant fuel for the individual room heating systems, upgraded
and advanced biofuels will gain importance in automatically fired boilers and stoves.
In 2013, biomass based solutions for the residential sector included approximately 442,000
pellet boilers installed at residential scale (<50kW) in eight member states9 and more than 2
million pellet stoves in six member states10 according to a study published by the European
Pellet Council (EPC). Due to their commercial viability in several European member states,
significant growth of such applications is foreseen up to 2020.
Biomass technologies will serve the new building market mostly with back up technologies
(individual room heaters, possibly with water heat exchangers, and in any case with advanced
TES opportunities) or with base load supply technologies (in the case of multi-family homes or a
number of flats connected with a micro-grid). The latter is offered by boilers or micro-CHP technologies. As far as pre-fab buildings are concerned, biomass burners are a component of hybrid
HVAC packages developed around TES as a central and enabling technology component.
Contribution from Geothermal Technologies
In the residential sector, the main geothermal technology to cover Heating and Cooling demand is the shallow geothermal heat pump system. This technology is suitable for small,
individual houses as well as larger multi-family houses or groups of houses. Capacities range
from under 10 kWth to over 500 kWth. The depths of geothermal heat exchange ranges from a
few meters to more than 200 m, depending on technology used, geological situation, demand
profile, and other design considerations. Geothermal heat pumps can deliver all the thermal
energy required for living; space Heating and Cooling as well as domestic hot water (DHW).
For space cooling, in certain regions with a moderate climate, direct cooling from the ground via
cooling ceilings etc. is possible, allowing for space cooling with minimum energy input. In warmer
regions with higher cooling demand, the heat pump can be used in cooling mode. For well-insulated houses with a forced ventilation system, geothermal energy can contribute to pre-heating
or pre-cooling ventilation air while it passes through intake pipes buried in the ground.
The R&I actions addressing the European residential geothermal sector more directly are
based on the objectives and KPIs related to shallow geothermal technologies, mainly in increasing the efficiency of systems (new materials, better integration and design), allowing a
better characterisation of suitable areas and applications, and decreasing installation costs
through different techniques (improved drilling or other types of heat exchangers, such as geoactive building structure elements). As in many other areas, a special mention must be given to
the development of measures to increase awareness, harmonisation of shallow geo-standards,
for an EU-wide shallow geothermal installer training certificate, and for a shallow geothermal
smart city deployment policy, consistent with the findings of other projects.
9
10
28
AEBIOM (2013),
European Bioenergy
Outlook, European
Biomass Association, available online:
http://www.aebiom.
org/blog/category/
publications/statistics/
Selected countries
were AT, DE, FI, HU, IT,
SK
Contribution from Cross-Cutting Technologies
All priority I (2014-2016) actions in residential housing sector are seen as developmental activities. Advancements in heat pump technology should focus on developing cost-competitive
heat pump kits for houses with existing non-electrical boilers. This is an essential tool for the
refurbishment of the existing European housing stock, and for the optimisation of thermally
driven heat pumps. Additionally, this is essential to the integration of these technologies into
the boundary system to support the market penetration of such equipment, enhancing the
efficiency and the long-term stability, and reducing their size, weight and cost.
Interconnection between the different RHC technologies
RHC-Platform • and links to different demand profiles
As regards the development of new generation hybrid systems, special attention should be paid
to the automation and control of systems; the scope of this research should be to develop an
integrated control platform with the necessary technical developments on control monitoring
and automation to improve the quality of the systems. Finally, development in sensible thermal
energy stores should focus on significantly reducing heat losses, increasing exergy efficiency,
efficient charging and discharging characteristics, and high flexibility to adapt and integrate
it in existing buildings with limited space for storage. The need for standards in design and
implementation is greatest. End users here do not have sufficient knowledge to judge design
and implementation quality. Standards and standardised test procedures need to be developed to ensure that Renewable Heating and Cooling systems are satisfactory in all aspects.
For priority II actions (2016-2018) research is needed to increase storage density using phase
change materials (PCM) and thermochemical materials (TCM) in order to enable the implementation of TES in applications with less available volumes and to enable the cost-effective
long-term storage of renewable heat.
In the long term, with priority III (2018-2020), the development of a heat pump for near-zero energy buildings (single family houses) is expected. That is a small capacity-reversible heat pump
(around 3-4 kWth), with low cost, and easy installation, operation and maintenance for the new
low-energy consumption houses of the EU. This should entail optimal integration with ventilation
heat recovery, cooling, dehumidification, and domestic hot water production. Development and
demonstration efforts should be put into developing compact/prefabricated hybrid systems with
improved efficiency, which are inexpensive and with simplified installation to reduce damage,
and which are adapted to the various configuration of heating systems and climates. Finally,
the further development and improvement of fluids that combine the heat transfer function
with thermal energy storage is outlined; these will lead to smaller required storage volumes, an
increase in heat transfer efficiency and a reduction in auxiliary energy for pumping.
Non-residential or service buildings require in general a different approach when compared
to residential buildings due to two main differentiating aspects: firstly the demand profile is
substantially different and includes, under certain circumstances, large cooling loads (even
in Northern or Central European buildings), and secondly systems tend to be much larger
and highly integrated whereby hybridisation of different technologies, as well as cross-cutting
technologies concepts are usually widely applied. The complexity in the design and installation
of such systems is higher and safety requirements are more demanding (e.g. by dealing with
steam in the system in the case of Solar Thermal applications).
Contribution from Solar Thermal Technologies
Developments in solar Heating and Cooling solutions for residential buildings are also relevant
for the non-residential sector. The service sector requires larger solar thermal systems which
allow economies of scale but also imply customised planning. The efficiency of the solar thermal system depends a lot on the demand curve and the temperature requirements, e.g. solar
thermal systems are well suited to supply the high volume of hot water consumed throughout
the whole year by hotels, hospitals, homes for elderly people, prisons or swimming pools.
Solar cooling solutions are an option for the non-residential sector due to a high cooling
demand, especially if there is a high demand on domestic hot water and Heating and Cooling,
like in hotels. Most of the cooling demand in the service sector is currently supplied by electrical systems, causing problematic consumption peaks. Therefore, thermally driven cooling
technologies constitute promising alternatives and are set to play a key role in the efficient
conversion of energy in the field of building air-conditioning and refrigeration, especially in
southern Europe. Today, these technologies are used largely in combination with waste heat,
district heat, or co-generation units. Thermally driven cooling cycles can be efficiently run
with solar thermal energy too. In climates where cooling is not required during the whole year,
29
Interconnection between the different RHC technologies
and links to different demand profiles • RHC-Platform
as is the case in Europe, these systems benefit from the possibility to provide cold in summer
and heat in winter time.
R&D priorities for solar Heating and Cooling systems in non-residential buildings look at simplifying installation and maintenance, improving integration, and increasing stability, reliability and
long-term performance, leading to cost competitive solutions. The identification of the accurate
applications and cases suited for solar cooling and heating in the non-residential sector will be
decisive. The improvement of thermally-driven cooling components deserves special attention.
Contribution of Biomass Technologies
Small scale CHPs and fuel flexible boilers shall be developed for the reliable provision of the
base heat loads for non-residential buildings, services and grids for a relevant time span of
the year under competitive conditions. In the field of non-residential buildings, these may
be integrated into smart package solutions with other RHC technologies. Advanced or upgraded biomass fuels, such as biomethane and syngas can be effectively used in existing
gas fired boilers, either directly or following the injection into the natural gas grid. Specific
high temperature applications shall be identified to allow for tailor-made biomass technology
developments and a proper segmentation of the heat market amongst the RHC technologies.
Thermal (biomass based) cooling technologies shall be developed for applications where this
is deemed to be economically competitive. The bigger the application, the more relevant will
be the supply chain management of either locally available fuels or of retailed upgraded fuels.
Contribution from Geothermal Technologies
In the services sector, shallow geothermal energy systems (ground source heat pumps or
underground thermal energy storage) are the most relevant technologies, ranging in capacity
from some 10 kWth for small businesses or offices, to 1 MWth or more for larger projects. The
ability to provide both Heating and Cooling is the major asset of shallow geothermal technologies in this sector. Systems will generally be more complex than those for the residential
sector. In the case of shallow geothermal systems, the economy of plants is usually better,
as a significant demand for cooling extends the running time of the system, and also scale
effects reduce specific first cost to less than 70% of the specific cost of smaller, residential
systems. Generally less than 50% of the cost is related to the underground works on these
shallow geothermal installations.
There are a number of Research and Innovation priorities in the Geothermal Roadmap which
specifically addres non-residential applications, such as areas dealing with larger systems (development of solutions for cooling and high capacities) and priorities that emphasise design,
integration and also the use of shallow geothermal Aquifer systems (ATES technologies) which
are mostly suitable in larger applications.
Additionally, deep geothermal energy (i.e. from boreholes deeper than 400 m, or from high
enthalpy geothermal resources) might be applicable in cases with higher heat demand (thermal
spas, large offices, hospitals, etc.).
Contribution of Cross-Cutting Technologies
Priority II (2016-2018) development is needed in the non-residential sector. Firstly, there is a
need for the development of a high efficiency, high capacity heat pump solution for the Heating and Cooling of buildings with simultaneous production of hot water for space-heating and
chilled water by automatically changing the refrigerant circuit in order to reject/take the necessary heat to/from the air or water from a geothermal loop (air and water versions of the heat
pump). Additionally, the heat pump should preferably employ a low GWP refrigerant and offer
a competitive cost, high reliability, optimised control, and easy integration with other systems.
Secondly, integration, automation and control of large scale hybrid systems for non-residential
buildings are needed. Finally, development of sorption cooling systems driven by hot water at
moderate temperature; for instance, with solar heat or low temperature excess heat. In this case
the expected outcome includes the development of optimised solutions for the heat rejection,
fully reliable and automated operation, and easy integration with other systems.
30
Interconnection between the different RHC technologies
RHC-Platform • and links to different demand profiles
The heat demand for industrial applications in the EU was estimated by the IEA to be 165 Mtoe
in 2010. Most of this demand is covered by well-established fossil-fuel based systems, resulting in significant impact on the greenhouse gas emissions from the industrial sector. From
the point of view of research, RHC technologies for industrial applications have very specific
characteristics since the delivery temperatures vary completely from case to case, being much
higher than in the building related sectors in many of the most relevant applications.
Contribution of the Solar Thermal Technologies
Solar Heat for Industrial Processes (SHIP) is currently at a very early stage of development.
Less than 120 operating SHIP systems are reported worldwide, with a total capacity of over 40
MWth (>90,000 m²). Most of these systems are pilot plants with a relatively small size. However, there is great potential for market and technological developments as 28% of the overall
energy demand in the EU28 countries originates in the industrial sector, with the majority of
this is heat being below 250°C.
Solar industrial process heat costs depend to a great extent on the type of application, and
especially on the temperature level needed. Up to now, several solar thermal process heat
systems exist in Europe with heat costs between €38 and €120 per MWh.
According to a study (Ecoheatcool 2006), around 57% of the total industrial heat demand is
required at temperatures below 400°C and 30% at temperatures below 100°C. A high share of
the heat demand below 100°C could be met with SHIP systems using improved and adopted
current technologies, if suitable integration of the solar heating system can be identified. With
R&I and technological development, more and more medium temperature applications, up to
250°C, will also become market-feasible. The objectives of the SHIP roadmap pathway are the
achievement of cost optimal SHIP systems and its integration in relevant industrial applications, as well as the development of next generation SHIP systems with increased solar fraction
and its adaptation to industry machinery standards (including new ways to feed in solar heat
into the industrial processes).
In several specific industry sectors, such as food, wine and beverages, transport equipment,
machinery, textiles, pulp and paper, the share of heat demand at low and medium temperatures (below 250°C) is around 60% (POSHIP 2001). Tapping into this potential would provide
a significant solar contribution to industrial energy requirements.
Contribution of the Biomass Technologies
Currently covering almost 12% of the industrial heat demand, biomass represents the most
important renewable energy source in this sector. Its main advantage lies in it being a well-established technology, capable of providing heat or process steam continuously and at all
temperature levels. Additionally, certain types of biomass heat are cost competitive with fossil
fuel alternatives, even without the need for subsidies.
Large-scale biomass heat units for industrial applications are already capable of reaching high
thermal efficiencies; therefore, the RHC-Platform highlights the importance of promoting largescale biomass CHP units for industrial applications, since they can produce bio-electricity,
an important value-added product, with a lower subsidy level compared to biomass-fuelled
electricity-only plants. The advantage of the industrial CHP units is the presence of an existing
heat market which in many cases is not subject to seasonal demand variations, as is the case
with DH networks. In addition, large-scale industrial units have a higher degree of fuel flexibility,
which will allow for the mobilisation and effective utilisation of biomass resources that remain
mostly unexplored, such as many types of agricultural residues, or waste derived fuels. Load
flexibility, a key issue in large scale fossil fuel-fired units, can also be increased from biomass
utilization, e.g. by direct or indirect co-firing.
R&D needs for industrial biomass applications are targeted towards increasing the fuel flexibility,
use of new energy carriers like thermally treated biomass fuels as well as increasing the electrical efficiency component of the total CHP plant efficiency, leading to higher availability rates.
31
Interconnection between the different RHC technologies
and links to different demand profiles • RHC-Platform
Furthermore, large-scale applications will require new technological solutions for reducing the
environmental impact of biomass-to-energy schemes, e.g. through the reduction of gaseous
pollutants, as well as the identification of new utilisation routes for process residues, such as
biomass fly ash. There is substantial improvement potential of old and inefficient biomass units
which already operate and if properly retrofitted, can be operated much more efficiently.
In addition to the production of Heating and Cooling, polygeneration technologies are also able
to provide intermittent electricity, balancing both daily and seasonal changes of solar and wind
electricity production and loads of boilers, increasing plant availability, peak load duration and
economy. In the polygeneration process, several cross-cutting issues are taken into account in
order to achieve the maximum utilisation of Biomass and to achieve high operational flexibility
in renewable energy infrastructure.
Contribution of the Geothermal Technologies
Geothermal energy can provide heat in the low temperature range (less than 95 ºC including
cooling) and because geothermal energy has definite base-load characteristics and is always
available when required, it matches perfectly with stable demand patterns of most industrial
processes. The annual full-load hours can be rather high, and thus the return on investment
for the geothermal installation is favourable. In this form, geothermal heat is already used in
agriculture/aquaculture (e.g. greenhouses), drying processes in the food industry, etc.
Another geothermal technology useful for industrial applications is underground thermal energy storage (UTES). In particular UTES at 40-90 °C can directly supply heat for low temperature
industrial needs such as batch processes or seasonal industries (e.g. sugar refineries), where
periods of heat (and/or cold) demand are followed by phases of inactivity.
Geothermal heat can also be used as operating energy for absorption chillers, to supply cooling
to industrial processes. R&D priorities for UTES and absorption cooling are included among
the cross-cutting technologies presented in this Chapter.
In the medium temperature range (95-250 °C), geothermal energy can provide heat above 95 °C
from deep geothermal resources and from high-enthalpy geothermal resources. High enthalpy
resources, some of which show temperatures over 250 °C, are used almost exclusively for the
purpose of electric power production, but often with the cogeneration of heat in a combined
heat and power system. Use of the heat for industrial purposes is also feasible. R&D will be
required to provide for the right matching and adaptation of the geothermal heat source to the
specific characteristics of the industrial process concerned.
For the heat source as such, most R&D needs are the same as for deep geothermal in DHC, as long
as temperatures below about 120 °C are considered. As the temperature of the geothermal fluid
increases, other problems need to be solved, like degassing of the fluid (pressure control), corrosion, and insufficient pump technology. It is also important to mention here the possibility of using
Enhanced Geothermal Systems (EGS) to feed the heat requirements of many industrial processes
or DHC, possibly in combination with electricity production (cogeneration or poly-generation).
All these developments require the support for a range of R&I actions and programs to enlarge
our understanding of deep geothermal resources (mitigating the financial risks inherent in
these types of projects), improve and decrease the cost of deep drilling, and also improve the
surface systems. The launch of EGS flagship program to demonstrate the possibilities of this
technology on a wide scale is also needed.
Contribution of the Cross-Cutting Technologies
Priority I (2014-2016) demonstration activities are needed for process integration, optimisation
and control of industrial heat pumps. The work should focus on the development and demonstration of electrically and thermally driven heat pumps in individual industrial applications as well
as in combination with district Heating and Cooling networks including thermal energy storage.
For priority II (2016-2018), demonstration activities to improve Underground Thermal Energy
Storage (UTES) are encouraged (in the same context as mentioned in the Geothermal pro-
32
Interconnection between the different RHC technologies
RHC-Platform • and links to different demand profiles
gram). Improvement should address system concepts and operational characteristics of UTES
systems, investigation of optimum integration of UTES into industrial processes and DHC
systems. Research on new concepts for industrial heat pumps should look at exploring alternative thermodynamic cycles for heat-pumping and heat-transforming for different industrial
applications with the goal of increasing the operating window of industrial heat pumps so that
they can deliver heat at medium pressure steam levels (around 200°C).
Priority III (2018-2020) activities are the development of advanced compression refrigeration
cycles based on novel working fluids for use in medium temperature industrial applications
(condensation temperatures up to 150 °C and evaporation temperatures up to 100 °C), and the
improvement of sorption cooling from renewable energy sources. In this last topic, development is required for conversion technology for heat into cold, adapted to the characteristics
of the renewable resource, e.g. to improve efficiency of low-temperature absorption chillers
and decrease the necessary source temperature to activate the chiller.
Cities and districts account for most of the European demand for Heating and Cooling for
residential and non-residential uses and it is clear that the extension and deployment of
District Heating Systems will play a key role in reaching the objectives of an increased use of
RHC resources instead of fossil fuels. In DHC applications the issues of cost, integration, and
flexibility as well as storage are primary and RHC technologies must still evolve substantially
to become a suitable choice in many cases.
Contribution of Solar Thermal Technologies
In Europe there are around 195 large-scale solar thermal plants for Heating and Cooling (
500 m²; 350 kWth) in operation with a total installed capacity of approximately 320 MWth. The
largest plants are located in Denmark with more than 25 plants exceeding 7 MWth (10,000 m²)
capacity, while the largest plant worldwide has an installed capacity of 23.3 MWth (33,300 m²).
These large-scale systems are mainly used for solar district heating which, in most countries,
is a small and undeveloped niche market.
Solar heat costs for district heating systems vary a lot from about € 40 to € 190 per MWh,
depending on the existing district heating infrastructure, e.g. due to the high share of district
heating in Denmark the costs to connect solar thermal systems is low. The solar fraction has
an impact on the resulting solar heat cost. This cost will be relatively lower if no additional
hot water storage is needed for the solar thermal system at small solar fractions, and higher
in solar thermal district heating systems with a significant solar fraction and very large central
hot water storage of several thousand cubic meters.
Only 1% of the solar collector surface is currently connected to district heating systems, but a
couple of central pilot solar heating plants with seasonal storage - mainly built in Scandinavia
and Germany - have proved that these type of systems can reach high solar fractions (50%
up to 100%). With the expected growth of district heating systems in densely populated urban
areas, solar thermal systems will be able to contribute to the heat supply to these areas, though
the roof area for collector installation is often not given in this areas.
11
AEBIOM (2013),
European Bioenergy
Outlook, European
Biomass Association, available online:
http://www.aebiom.
org/blog/category/
publications/statistics/
12
Swedish Energy Agency
(2014), Energy in
Sweden – Facts and
Figures 2014, available online: https://
energimyndigheten.a-w2m.se/Home.
mvc
Contribution of Biomass Technologies
In District Heating (DH) Systems, the retrofitting of old and inefficient boilers to become more effective at high availability rates, while increasing their fuel flexibility is a key challenge and priority
in linking biomass and DH. The successful conversion of DH systems to operate on low carbon
fuel sources can be seen in Scandinavia, where many DHC networks are already operating on
biomass. In Sweden, around 65% of the final heat consumption came from solid biomass in 2010,
30% of which was DH11. This contributed greatly to a reduction in fossil fuel use in DH, with production of heat from oil dropping from 30.9 TWh in 1980 to 2.2 TWh in 2012, and coal from 12.9
TWh in 1986 to 2.7 TWh in 201212. Biomass can be seen as the ideal transmission fuel to make
existing fossil fuelled District Heating and Cooling (DHC) networks more sustainable. The work that
33
Interconnection between the different RHC technologies
and links to different demand profiles • RHC-Platform
has been done in Scandinavia to convert fossil fuel boilers to biomass units could be replicated
especially in Eastern European countries, where comparable DH systems exist. On top of this, the
integration of advanced control techniques to reduce energy consumption and losses in existing
biomass CHP and DH plants can greatly increase the efficiency of these units. When looking to
the planning of future biomass DHC networks, to further increase efficiencies and greatly reduce
energy losses, efforts should be made to incorporate multiple enabling technologies, such as heat
pumps, and storage at small and large scale.
There is significant potential for green communities to utilise currently unexploited local biomass sources. For example in agricultural communities where agricultural residues can be
used. Additionally, synergies can be formed with other networks such as in the upgrading of
biogas for use in the transport sector, the injecting of upgraded biogas into the natural gas
grid, or in electricity generation from CHP units.
Contribution of Geothermal Technologies
Deep geothermal energy production is the relevant technology in this sector, mainly with direct
heat supply through thermal water production and reinjection, but also using other technologies
like deep borehole heat exchangers (BHE) or heat from geothermal CHP plants. The capacity
of such installations can start from about 0.5 MWth (in particular deep BHE) and may achieve
values in excess of 10 MWth. The heat could be fed directly into a district heating system if the
production temperature matches the required supply temperature, or be used as a heat source
for large heat pumps (including absorption heat pumps, engine-driven compression heat pumps,
etc.). Cold production is also possible with absorption chillers driven by geothermal heat.
Taking advantage of further development in DHC technologies (including cascading and storage) will make it possible to use geothermal heat more efficiently. These technologies are
not only suitable in combination with DHC networks, but can also be used for large individual
buildings in the services sector or for industrial purposes. From the point of view of R&I actions
needed, progress in geothermal DHC systems will benefit from all the measures mentioned in
the context of industrial applications.
Contribution of Cross-Cutting Technologies
All applications, including DHC and smart-cities, will benefit from priority I (2014-2016) actions
such as the large scale demonstration of smart thermal grids. Advanced DHC systems must
be developed which are able to deal with both centralised and decentralised, hybrid sources
(e.g. solar thermal, biomass, geothermal, heat pumps, waste heat, waste-to-energy, excess
renewable electricity, storage). Additionally, smart metering and load management systems
are needed for the integration of thermal and electrical grids into a liberalised energy market.
Such smart thermal grids have an important potential to meet the load balancing needs of
combined heat and power production in a liberalised market for electricity. Also demonstration
of electrically driven industrial heat pumps in district Heating and Cooling networks has been
highlighted. Heat pumps are used to upgrade heat from low temperature sources to temperatures high enough for direct use in a DH network.
For priority II (2016-2018), the development of improved, highly efficient substations for both
present and future lower temperature (below 70 ºC) networks, looking at harmonising substations standards, reducing materials cost, investing in the automation of manufacturing methods, and achieving good performances are identified. DHC networks need new harmonised
EU standards for the overall system design and for hydraulic and electrical interconnections
of different building components.
A topic with priority III (2018-2020) is the demonstration projects to show the feasibility of using
in-house appliances which directly use thermal energy from the thermal district energy system,
including an evaluation of different possibilities of DHW preparation (e.g. additional heating or direct
heating without storage) considering the local energy systems framework needs to be made. Finally,
further research activities at demonstration level are needed to allow DHC networks to efficiently
integrate all types of RES without jeopardising the quality of the service provided to the consumers.
34
SOCIETAL BENEFITS
FROM RENEWABLE
HEATING AND COOLING
Societal Benefits from Renewable Heating and Cooling • RHC-Platform
Today’s fossil fuel dominated energy supply for Heating and Cooling is unsustainable from an
economic, environmental, and social point of view. To highlight the dominance of fossil fuels,
the Figure below shows the distribution of fuels that contributed to the gross heat generation
in the EU-27 in 2011. According to these figures, 42.8% of this heat was generated by gases,
28.5% by solid fuels, 16.5% by renewables, 6.1% by petroleum and products, 0.2% by nuclear,
and 5.9% by other sources13.
FuelmixintheheatsectorintheEUͲ27,2011(%)
0.2
5.9
6.1
Gases
16.5
42.8
Solidfuels(coalandpeat)
RHC
Petroleumandproducts
Nuclear
Othersources
28.5
Figure 4: Fuel mix in the heat sector in the EU-27, 2011 (%).EU Energy in figures, Statistical Pocketbook 2013
Through the use of Renewable Energy Sources, heat and cold generation will become
sustainable and secure with significant societal benefits. The RHC-Platform’s Common Vision
showed that the share of heat generated by renewable energy could be increased to 148 Mtoe
in 2020 in comparison to some 82 Mtoe in 201214. However, this requires stronger political
support to boost the RHC sector in research and innovation as well as in market deployment.
36
13
EU Energy in figures,
Statistical Pocketbook
(2013a), p. 99, the
share of renewable
differs slightly from the
official reported share
of renewable energy
on heating and cooling
due to statistical definitions.
14
EUROSTAT, http://epp.
eurostat.ec.europa.eu/
portal/page/portal/
statistics/search_database.
In line with the three objectives of the EU energy policy, security of supply, competitiveness,
and sustainability, this Chapter explores some of the short-term societal benefits expected to
be realised through the implementation of this Common Roadmap and the relevant market
deployment policies.
53% of the energy consumed in the EU is imported. Energy import dependency relates to
crude oil (almost 90%), natural gas (66%), and to a lesser extent, solid fuels (42%). The most
pressing security of energy supply issue is the strong dependence on a single external supplier.
As stressed by the European Commission in its Communication on a European Energy Security
RHC-Platform • Societal Benefits from Renewable Heating and Cooling
Strategy, this is particularly true for gas15, of which a very significant share is used for heating
in the building sector16.
Furthermore, domestic conventional gas production in EU Member States, originating mainly
from mature production basins, has decreased by 25% over the last decade. In the same
period, the overall EU gas consumption has increased by 10%17. Consequently, the import
dependency rate for natural gas increased from 47.1% in 2001 to 65.8% in 201218.
However, as shown in Figure 5, the gross heat generation from gases has more or less
stagnated over the last decade following a strong increase in the 1990s, while the use of solid
fuels as well as petroleum and related products significantly decreased over the last 20 years.
Only renewables have had a continued increase since 1990.
As the security of supply of natural gas becomes increasingly critical, the only secure way to
reduce import dependency in the heating sector is to further accelerate the deployment of
Renewable Energy for Heating and Cooling. Given the variety of renewable energy sources
(e.g. biomass, geothermal, solar thermal, as well as in hybrid systems), EU member states will
further benefit from an increased security of supply through the diversification of the energy
sources used, when compared with today’s fossil fuel dominated energy mix.
15
European Commission
(2014c), Communication from the Commission to the European
Parliament and the
Council, European
Energy Security Strategy, p.2.
16
Natural gas is mainly
used two sectors, i.e.
41% for heating of
buildings (185 Bcm)
and 31% in industrial
processes (142 Bcm)
and to a lesser extent
in power plants (25%
or 112 Bcm). Source:
Eurogas Statistical
Report 2013, p.5.
17
European Commission
(2013b), “Member States’ Energy
Dependence: An
Indicator-Based Assessment”, Occasional
Papers 145, p. 14.
18
EUROSTAT, http://epp.
eurostat.ec.europa.eu/
portal/page/portal/
statistics/search_database
19
EU Energy in figures,
Statistical Pocketbook
(2013).
20
European Commission
(2014a), Directorate-General for Economic and Financial
Affairs, “Energy Economic Developments
in Europe”, European
Economy 1/2014,
p.112.
21
European Commission
(2014a), p.116
Figure 5: EU-27 – Gross Heat Generation by Fuel 1990 – 2011 (PJ-GCV)
(GCV = Gross Calorific Value), renewable energy shows the strongest increase19
As a result of this energy dependency, the EU has a strong trade deficit in energy products with
non-EU countries, which reached EUR 421 billion (3.3% of EU GDP) in 2012. The EU spent EUR
545 billion on the import of energy products from outside the EU, while extra-EU exports in
this category amounted to EUR 124 billion. The deficit has increased in recent years, growing
from just EUR 150 billion in 2004 (at current prices)20.
According to the European Commission, the avoided costs of imported fuels, replaced by
biomass used for heating, amounted to EUR 12.2 billion in 201021. By increasing the share of
RHC to 148 Mtoe in 2020 as described in the RHC Common Vision, we could therefore produce
some additional 65 Mtoe from RHC compared to 2012. If this amount of heat generated by
37
Societal Benefits from Renewable Heating and Cooling • RHC-Platform
renewable energy in 2020 would replace natural gas imports, the EU could save as much as
EUR 49.8 billion in avoided costs of imported fuels. This is based on the assumption that the
renewable energy consumption substituted imported natural gas at current average import
prices ($11.5/ MMBtu or EUR 8.4/MMBtu)22. Taking into account that the price of fossil fuel
are set to increase (see next section), the avoided costs could be much higher.
The results of the NREAPs (21.4% RHC) and RHC Common Vision scenarios are depicted
in Figure 6 below; the evidence is overwhelming: RHC technologies, together with energy
efficiency, stand out as a key factor to ensure security of energy supply, reducing foreign
energy dependency.
Gas
GasimportcostsavoidedperyearbyRHC*,2012and2020
import costs avoided per year by RHC* 2012 and 2020
160
50
additional
37.6Mtoe
12.6BlnEUR
120
40
100
30
80
60
40
111 2 Mtoe
111.2Mtoe
37.2BlnEUR
20
82,8Mtoe
27.7BlnEUR
10
GasimportcosstsavoidedbyRHCinBlnEUR
R
GasimporttsavoidedbyR
RHCinMtoe
140
RHCͲVision
148.8Mtoe/49.8BlnEUR
RHCͲVision
NREAP
20
0
0
2012
2020
Figure 6: Gas import costs avoided per year by RHC, if the heat generated by RHC technologies would be generated by
imported gas only (assumptions: gas import price 8.44 EUR/MMBtu, no price increase between 2012 and 2020)
The price of electricity and fossil fuels has been significantly rising over the last years.
According to European Commission’s analysis, between 2004 and 2011 average household gas
prices have increased by 77% over the same period compared to 50% for electricity, whereas
average industrial prices have more than doubled compared to a 53% increase in industrial
electricity prices23.
38
22
In January 2014;
Source: World Bank.
23
European Commission,
(2014a), pp.58-59
24
European Commission (2014b),
“Impact Assessment
on energy and climate
policy up to 2030”,
SWD(2014)15,
pp.28-29.
Under the business-as-usual scenario of the European Commission, fossil fuels and electricity
will become even more expensive in the future: between 2010 and 2020 oil and gas prices
for heating will increase by 38% and 47% respectively, while average electricity prices are
projected to increase by 31% in real terms between 2010 and 2030, from 131 to 172 €/MWh24.
In this framework, it is worth highlighting that in most cases, today’s business environment does
not reflect the real costs of producing heat. Indeed, in most EU countries there is no carbon
price for heat fuels (the sector is mainly made of installations below 20 MW and therefore
largely falls under the non-ETS sector). The main consequence is that the end-user price of
conventional sources of energy is always lower than the real costs to society.
RHC-Platform • Societal Benefits from Renewable Heating and Cooling
Against this background, it is clear that wherever RHC technologies are able to provide a
competitive alternative to fossil sources or direct electric heating solutions, price volatility is
reduced and a more stable market to European consumers is ensured. Therefore, increasing
the share of Heating and Cooling from renewable energy means reducing dependency on
volatile fossil fuel prices and replacing price uncertainty (with a high probability of increasing
prices) with stable and even decreased energy prices for RHC technology.
A 2009 study by the bank HSBC25 concluded that the three most promising sectors in terms of
social return, job creation and relevance to the economic recovery are Renewable Energy, Building
Efficiency, and Sustainable Vehicles. Based on a wide review of studies, mainly taken from the
2013 report “Renewable energy and jobs” by the International Renewable Energy Agency (IRENA),
it is possible to estimate the following figures in terms of direct and indirect jobs:
ESTIMATE OF DIRECT AND INDIRECT EMPLOYMENT IN THE RHC SECTOR (THOUSANDS JOBS)
Sector
Germany
Spain
Other EU
Total EU
Biomass and
biogas
(including for
electricity)
107
40
198
345
Geothermal
(including for
electricity)
14
0.3
37
51.3
Solar Thermal
11
1
20
32
Heat Pumps
(excl. geoth.)
(source: EHPA,
2014)
-
-
-
41. 8
Total
132
41.3
255
470.1
Table 16: Estimate of direct and indirect employment in the RHC sector. Source: IRENA, EHPA26
With an accelerated deployment of RHC technologies, these numbers are expected to grow
substantially. Heating and Cooling supply and demand is, by nature, local. This means that an
important part of the value chain leads to local jobs in the planning, installing and maintaining
of RHC systems. The manufacture of RHC technology hardware is mainly located in Europe,
since the RHC systems and technology used in the different European markets are much more
adapted to local requirements than in the electricity or transport sector. Therefore, detailed
knowledge of national and regional markets is necessary for successful market penetration.
This is why there are only minor imports of (fossil as well as renewable) heating technology to
the European market. European technological leadership can be exported worldwide.
Supporting technological development in RHC technologies shall ensure that Europe retains its
status as a world leader in the manufacturing and design of most RHC technologies, reinforcing
its main competitive strengths and the high quality of its technologies. The following sections
provide an overview for each RHC segment.
25
IRENA, Renewable
energy and jobs, 2013.
26
HSBC, A Climate for
Recovery.
25th February 2009.
39
Societal Benefits from Renewable Heating and Cooling • RHC-Platform
Solar Thermal. China is the largest solar thermal market worldwide, representing 152.2 GWth
total operational installed capacity, which accounted for 65% of the total global operational
installed capacity (234.6 GWth) at the end of 201127. Europe, with an installed capacity of 39.3
GWth, represents 16.7% of this total. Since most of the solar thermal components are produced
locally in China and Europe, China is the largest manufacturer in the world. However, the
European Solar Thermal Industry is still seen as the technology leader with a strong innovation
capacity. While in China, mainly simple systems for domestic hot water heating are installed,
the European industry is providing a huge variety of products for domestic hot water, space
heating, Solar-Active-Houses, solar systems for industrial processes, solar district heating,
and solar cooling systems.
Biomass. The EU, together with the United States and Brazil (mainly for ethanol), is a dominant
producer and employs the largest number of workers in the sector (345 thousand according
to IRENA). As agricultural and forestry operations play a large role in the sector, bioenergy can
support rural economic development as cultivation and harvesting biomass feedstock require
large numbers of people.
To date, technically reliable, sustainable and economically attractive biomass heat solutions
already exist. Biogas and solid biomass can already provide heat at temperatures above 250°C
at costs competitive with fossil fuel alternatives. In the coming years, these solutions will
continue to improve and new solutions should also be available in order to cover the different
consumption types. With biomass supply set to increase significantly by 2020, a sustainable,
innovative and cost-efficient advanced biomass feedstock supply will bring reductions in
supply costs and a decrease in production costs.
The EU is a global leader in biomass technologies and provides a wide range of high quality
biomass harvesting technology and conversion installations with high efficiency, controlled
and clean combustion, and automated operation and modulation both for domestic and
commercial uses. Through a permanent commitment in innovation and R&D, the European
biomass industry keeps improving the quality of the products that are put to the market. To
give an example, the most performant EU biomass small-scale boilers and stoves can today
reach 90% energy efficiency with very low emission levels (NOx, SOx and particulate matters
emission). Europe is also world leading manufacturer in large scale combustion technology
e.g. fluidised bed combustion technology and large scale CHP plants.
Geothermal. With 1.2 million GSHP28 units installed, Europe is the world leader, in terms of
installed capacity, in the shallow geothermal market. It is also leading in innovation such as
in underground thermal energy storage, with the main competition coming from heat pump
manufacturers in China and the USA. With more than 200 geothermal district heating systems
in operation, Europe is also the global leader in geothermal district heating where global
competition exists mainly for heat exchangers and pipes. Regarding direct uses, even though
this geothermal sector started in Europe, China is now leading the market due to the large
demand there. Last but not least, EGS plants are so far only in operation in Europe, whereas
research projects are on-going in the U.S. and Australia.
27
40
European Commission,
Solar Heat Worldwide:
Markets and Contribution to the Energy
Supply 2011. Edition
2013
28
GSHP = Ground Source
Heat Pump
29
EurObserv’ER, 2012
In the EU, employment in the geothermal sector appears to be fairly stable at about 50 thousand
direct and indirect jobs, mostly in heat-related applications29. As geothermal technologies
are site specific (geology is different all over Europe) and capital-intensive, many geothermal
companies have developed customised products (for example: drilling rig manufacturers). The
sector will move from a geological approach to an engineering approach where systems can be
replicated but can hardly be industrialised. Because of the nature of the work, we can assume
that construction and O&M cannot be relocated, meaning that they are truly ‘European’ jobs.
Regarding equipment (rigs, turbines), the number of large manufacturers is not forecasted to
boom internationally.
Heat Pumps. European heat pump manufacturers are often technology leaders. They benefit
from strong know-how in R&D and from a developed value chain. While development and
installation are truly local, sourcing is increasingly becoming global.
Today’s market penetration of heat pumps is providing considerable, mostly local, employment.
RHC-Platform • Societal Benefits from Renewable Heating and Cooling
An increased market share will contribute to this even further. An estimation on the total required
employment to manufacture, install and maintain the 769,790 heat pump units sold in Europe in
2013 reveals that more 41,800 people full time employees are necessary (Source: EHPA 2014).
However, this is a conservative estimation, as many employees are not working full-time on heat
pump technology. Hence, the total amount of employees in this segment is certainly larger.
A large proportion of the employees needed are already active in the heating sector. For this
reason, an up-skilling of the workforce towards obtaining the necessary knowledge to plan,
install, and maintain heat pump technology is necessary. This particularly requires a better
understanding of a building’s energy demand and the influence of climate differences and user
behaviour on the performance of the whole system. The majority of employers are local to
Europe, as development, manufacturing and installation are located on the continent.
The European Industry has invested heavily in research and development, as well as in the
education activities of the work force. Recent legislation such as Ecodesign (for heaters) and
the F-gas regulation require more intense efforts; systems can and will be optimised, heating
systems will have to be integrated into the larger energy landscape, in particular integrating
renewable electricity via improved controls, and new refrigerants need to be developed. This
requires in particular new laboratory capacity for the development of low GWP refrigerants,
components and systems.
The European industry and the EU research arena are prepared for future market growth; it has
invested in laboratory and manufacturing capacity over the past three years and is ready to
continue to do so. This engagement should encourage further public funding.
District Heating and Cooling. District Heating has been well established in Europe for decades, and a large manufacturing sector - comprised of a diverse mix of local SMEs and global
industrial players – has grown up around it. Europe remains the clear world leader within
the global District Heating and Cooling sectors, both with regards to overall network design,
performance and management, and with respect to technical components within systems and
at the level of the interface with buildings. European know-how and products are exported to
facilitate the development of DHC networks around the world, particularly in China and Russia.
Continued investment in R&D, both by operators within the sector and via the public sector, will
help ensure that this leadership position is maintained. It is expected that District Cooling will
cover an important share of the cooling demand in the coming decade in not only Europe, but
in newly developed countries like Brazil, India, etc. where there is huge potential for penetration.
As highlighted in the European Commission’s Energy Roadmap 205030, Renewable Heating and
Cooling will be vital to decarbonisation. Additionally, increasing the share of RHC in the EU will
reduce the combustion of fossil fuels and therefore improve the air quality, especially in urban
areas. Indeed, a reduction in emissions of pollutants such as nitrogen oxides, sulphur dioxide,
heavy metals, etc. from reduced fossil fuel consumption has significant positive impacts on
human health and lowers costs for air pollution control with benefits being disproportionately
larger in lower income Member States, expressed as a % of GPD31.
It would be worth assessing the abatement costs as well as the monetised health benefits from
fuel substitution in the Heating and Cooling sector (industry, residential and non-residential)
compared to other sectors such as electricity or other options like deep renovation of buildings.
In conclusion, decarbonising our energy sector should not be regarded as a burden, but rather
as an opportunity for Europe’s sustainable growth and industrial renaissance alike. Policymakers should look at the overall benefits to society as clear commitments on RHC and energy
efficiency will substantially alleviate EU’s energy dependency, while improving our balance of
trade, creating a significant amount of new local jobs and ensure stable and affordable energy
prices to our consumers and industries.
30
European Commission
(2011), Communication
from the Commission
to the European Parliament, the Council, the
European Economic
and Social Committee
and the Committee of
the Regions “Energy
Roadmap 2050”, COM
(2011) 885.
31
European Commission,
(2014b), p.126-127.
41
PROMOTING PUBLIC
AND PRIVATE
INVESTMENTS
in Research & Innovation and
market deployment
Promoting public and private investments in
Research & Innovation and market deployment • RHC-Platform
The Strategic Research and Innovation Agenda (SRIA)32 estimates that over the period 2014 2020, 4,032 mln EUR is required for research and innovation projects in order to successfully
implement the SRIA; an average of 576 mln EUR annually. These resources are expected to come
from industry (private sector) (60%), European Commission (20%) and Member States (20%).
In the RHC sector, typically 1%-4% of a company’s turnover is invested back into research and
innovation, depending on the type of industry and the position in the value chain.33 The R&I
budget calculated in the SRIA corresponds to the turnover generated by the expected market
deployment. For this reason, the investment from the RHC industry in R&I is mainly dependent
on market development and market perspectives, in turn dependent on public support. That
said, some companies also look to finance their R&I projects on the capital markets, in which
case R&I financing tools are also supportive.
Financing the market deployment of RHC, i.e. the installation of RHC systems, presents
a significant challenge. In order to stimulate market growth in accordance with the RHCPlatform’s Common Vision (2011), concepts and tools must be developed to encourage private
investment in these technologies.
Usually it is not the unavailability of funds that hampers the investment but the attractiveness
and competitiveness of the RHC-technology in comparison to fossil fuel based systems. For
this reason it is necessary to both strengthen R&I investments and increase the budget for R&I
projects, and strengthen the market deployment policy for RHC technology.
32
33
See also SRIA, p. 86
34
See for example ESTIF
(2006), Key Issues for
Renewable Heat in
Europe (K4RES-H) Financial Incentives for
Solar Thermal, page
19.
35
44
European Technology
Platform on Renewable
Heating & Cooling
(RHC-Platform) (2013),
Strategic Research and
Innovation Agenda for
Renewable Heating and
Cooling (SRIA) p. 86
and 87.
See Ecofys, Fraunhofer
ISI, TU Vienna EEG,
Ernst &Young (2011),
Financing Renewable
Energy in the European
Energy Market.
There are several instruments available to support RHC deployment. Their use varies largely
from country to country and from technology to technology. However, it is always vital to focus
on the quality of design and implementation, the correct setting, and the fine-tuning of the
scheme, adapting it to the specific situation. The key quality aspects of a financial instrument
are its continuity (no ‘stop and go’), the coherence of the parameters, a clear target, quality
criteria, a monitoring and evaluation system, simplicity of application and payment procedures,
and flanking measures.34
The primary objective of financial incentive schemes is to compensate for market failures and
unfair competition. They are also intended to favour the deployment of a given technology by
creating a secure investment environment catalysing an initial round of funding and thereby
allowing the technology to progress along its learning curve. Hence, support schemes should be
temporary and can be phased out as a technology reaches full competitiveness in what will, at
that stage, be a complete and open internal market where a level playing field is fully established.
In certain European states, many of the currently available financial support instruments for
RHC technologies come in the form of investment aid (grants, loans and tax exemptions)
and operational aid, while other financial incentives such as soft loans are less available.35
Generally these types of incentives are funded from government budgets:
Grants. A grant is a direct support to project investment provided by a public authority and
can be offered either to the investor/developer or to the manufacturer, thus reducing their
Promoting public and private investments in
RHC-Platform • Research & Innovation and market deployment
investment costs. This is a very common type of support provided in a number of European
countries by local, regional and national governments. As the budget is usually bound, the
number of accepted applications is limited, which restricts further market growth. Grants could
actually also provide cash payments based on the energy generation basis, however this latter
scheme is not yet frequently implemented.
Operational aid. Feed-in tariffs: a fixed financial payment per unit of heat from renewable
energy, or for feed-in premiums: a fixed or variable financial bonus for the green value of the
renewable heat produced.
Fiscal incentives. A fiscal benefit such as a tax reduction has the advantage of not being
tied to a limited budget and therefore a restricted number of accepted applications. However,
such a reduction in tax will usually only take effect a year or two following the completion of
the project, which for some investors is less attractive than a grant.
The structure of the RHC market differs a lot from the electricity market as the heat produced
usually cannot be sold to the market since there is not one grid connecting all producers
and consumers to one market. Usually in the Heating and Cooling market, the supply and
demand are local, and the supply system tends to be individually designed for each consumer.
An exception however, is District Heating grids, which serve a larger number of consumers.
Concepts are currently being developed to allow the feed-in of RHC to the DH grid, however,
since this will be limited to, and dependent on periods of heat demand, it is highly challenging
to develop an attractive business model.
To conclude, financing RHC projects on the capital market and through institutional investors
usually means financing companies that develop local solutions for heat supply, e.g. contracting
projects for large multifamily homes, commercial buildings or factories, or District Heating
systems with RHC technology.
Beside the general need for increased public support, there are barriers which are hindering
the scaling up of private financing in RHC.
Regulatory instability. As investments in RHC are highly dependent on a stable and
predictable policy framework, part of the problem can be attributed to a lack of clarity and
consistency in commitments from policy-makers. This uncertainty increases the risk and
consequently the cost of these investments whose returns must be commercially competitive
with existing investments in more polluting technologies.36
Lack of investor capability and shortage of data. Given the relative immaturity of the RHC
market compared to traditional energy markets, investors may lack adequate expertise or
even confidence in the RHC sector. Capital investments into RHC cannot be valued by a pure
investment specialist if the liquidity (marketability) of the investment is very limited and the
evaluation, according to the standard investment of insurance companies and pension funds,
is still difficult. Most institutional investors do not invest in sectors that do not provide years of
track records on performance data. The consequence for these aspects is that higher risks are
included in project evaluations requiring a higher Return on Investment (ROI) to compensate
for the risk.
Market fragmentation and scale problems. For the investor it is challenging to find
companies that deal holistically with the issue of implementation, or to build up a network of
manufacturers, planners, etc. to actualise the investment. For a company looking for capital
it can be hard to mobilise funds due to the small size of the installations (e.g. solar thermal
collectors or modern biomass heating systems at household level). Transaction costs and
assessment and monitoring of energy savings are complex on the smaller scale and thus
proportionally more expensive than in bigger projects.
36
For examples, see
discussion on social
tariffs and carbon price
in chapter 4.
45
Promoting public and private investments in
Research & Innovation and market deployment • RHC-Platform
High upfront costs. Renewable energy technologies such as solar thermal and geothermal
energy have low running costs but require a high upfront investment when compared to
conventional technologies. The decision of whether to go for a new RHC investment is closely
linked to the cost of available capital and this is particularly challenging for private homeowners and small business owners. Most subsidy programs are dedicated towards SMEs and
municipalities, so outside these groups, major investors also need additional investment
sources and subsidies to overcome the high upfront costs.
Diverging investment criteria and split incentives. In some market segments, regulation
hampers the development of business models. A classic example is the ‘landlord-tenant
problem’, where the landlord provides the tenant with a heating system but the tenant is
responsible for paying the energy bills; similarly, incentives diverge between the real estate
developer and the buyer/owner.
Non-inclusion of external costs. The lack of competitiveness of RHC projects is not only
due to the (relative) high costs of RHC technologies, but also to the subsidised prices of fossil
fuels. Tariffs from traditional energy sources usually do not include external costs, e.g. carbon
emissions, pollution, gas infrastructure, etc. A carbon tax, which could partly compensate for
this disadvantage, is in place in only a limited number of Member States. In certain cases,
such as Finland, Sweden, and Denmark, such a scheme has proven to be very successful for
the market uptake of RES and energy efficiency.
To offer an example, five factors have been identified that limit the attractiveness of investment
in biomass projects.36 These were regulation: the need for long term confidence in the
stability of the incentive regime, fuel availability: long term contractual arrangements between
bioenergy plants and suppliers do not allow market liquidity, sustainability credentials: the
need for biomass to be sustainably sourced with an overall lower carbon footprint than fossil
fuels, supply chain: investment in biomass handling, logistics, port and rail facilities will be
critical, financing: biomass projects must offer attractive ROI to potential investors.
The following actions could be carried out by policy-makers, public financial institutions, RHC
stakeholders and the investor community to remove or weaken some of the barriers presented,
and to accelerate the scaling up of private investments in RHC.
A profitable investment opportunity and stable investment environment should be
provided. The best way to mobilise private finance is to ensure the attractive profitability for
the investment and create a long-term stable investment and regulatory environment in order
to boost investor confidence. A long-term support strategy, consisting of a financial incentive
scheme with stable framework conditions and suitable flanking measures (especially awareness
raising, and training of professionals) has shown to have the highest impact on market growth.
36
46
Deloitte, Knock on
Wood (2012), Is
Biomass the Answer to
2020?
Improving risk perception and addressing lack of knowledge. Risks in RHC are in many
cases perceived to be higher than they are in reality. However, performance data on investments
is becoming available thanks to pilot plants and growing markets. There is a need to address
lack of knowledge by improving data flows and the understanding of sustainable energy
investments by banks, financial institutions, investors etc. Some examples of recommended
actions are, for example, establishing networks between finance, RHC industry and technology
providers, and fostering training for banking and insurance company agents related to RHC
technologies to support the development of appropriate financing products. It would also be
beneficial to develop a pipeline of flagship projects and model innovative financing solutions
to gain investor confidence and enable standardisation and aggregation.
Standardisation aspects. Markets would gain from more harmonisation and cross compliance
and from strengthening energy performance certificates, energy codes and legislative
enforcement. However, the indicators must not be too complex, and the certification process
Promoting public and private investments in
RHC-Platform • Research & Innovation and market deployment
not too demanding or costly. For example, the market penetration of efficient hybrid systems
could be supported by improving energy performance labels, which should be required for all
new Heating and Cooling systems in the EU by 2020. The information provided should not only
include the relative efficiency, but also the annual running cost, greenhouse gas emissions
and the expected system lifetime.37
Development of frameworks for standardisation and benchmarking is also important for the
financing party: standardisation of measurement and verification for project evaluations
will reduce risk perception, increase reliability and certainty. Measurement and verification
approaches in the different European countries should be assessed in order to harmonise
calculation methodologies.
In addition to the need for financial support schemes, new business models are required to
facilitate deployment in the sector. A number of new approaches have been identified and are
described in more detail below.
Energy Service Company (ESCO) models. An ESCO invests in the heat generator, the
heating infrastructure and sometimes in efficiency measures on behalf of the building owner.
The investment is refinanced by selling the heat. ESCOs are particularly interesting for large
commercial, residential and public buildings38.
Two business models can be distinguished:
-
Energy Supply Contracting (ESC): The ESCO is paid for each kWh heat supplied at a fixed
heat price in the contractual period. The more efficient and cheaper the heat generation
is, the higher the profit of the ESCO; RHC units are usually only integrated if they are
cost effective.
-
Energy Performance Contracting (EPC): The ESCO invests in an efficient heat generation
and other efficiency measures and guarantees energy cost savings in comparison to an
energy cost baseline. For its services and the savings guarantee, the ESCO receives a
performance based remuneration.
District Heating and Cooling. There are monetary advantages for District Heating and
Cooling compared to decentralised RES (economy of scale, logistics etc.) since DHC generation
could be located in areas apart from the customer’s premises. DHC is an existing business
model to serve the request for the up-scaling RHC investments into a size that is interesting
for institutional investors.
With the advent of low-energy houses, each customer will consume less heat and some
consumers will produce their own heat. All these aspects will lead to a new way of operating
the networks, allowing less investment in the production side and a smoother delivery flow
for the benefit of the energy system and its customers. The DHC industry needs to adopt
new business models to remain profitable even if less heat is sold. These new models should
incentivise energy savings, delivering capacity and flexibility rather than delivering energy, and
in general support more the integration of strategic thinking and sustainability objectives in
the decision making processes.
37
European Technology
Platform on Renewable
Heating & Cooling
(RHC-Platform) (2013),
Strategic Research and
Innovation Agenda for
Renewable Heating and
Cooling.
38
See also ECN, IEARETD (2012), Business
models for renewable
energy in the built
environment.
Additionally, there are further solutions that can be particularly interesting to small residential
and commercial buildings:
Property Assessed Clean Energy (PACE). PACE financing allows property owners to borrow
money from a local government to pay for renewables and efficiency measures. The amount
borrowed is typically repaid via a special assessment on property taxes over a period of 15 to
20 years through an increase in their property tax bills.
47
Promoting public and private investments in
Research & Innovation and market deployment • RHC-Platform
Business models for rental market. In order to overcome the ‘landlord-tenant problem’,
where the landlord provides the tenant with a heating system but the tenant is responsible for
paying the energy bills, a change in legislation could allow building owners to pass on the cost
of the investment to the tenant through a rent increase. The cost reduction in the energy bill
should be at least the same as the rent increase for the tenants. This model has the advantage
to work well for existing buildings whereas building codes tend to be limited to new buildings
and substantial renovations.39
On-Bill Repayment. The On-Bill Repayment business model foresees that the utility provides
capital to a home owner for RHC installations by having them repaid in the energy or tax bill.
Track record of customer payments with utilities and tax authorities have low default rates
compared to other consumer finance.
Finally, there is an additional range of financial instruments with various terms (credit
enhancement measures, low interest loans and/or loan guarantees, green bonds, Equity
Investments in RES, and Efficiency funds etc.) which are or could be addressed in the promotion
of RHC investments. Particular examples can be seen in the lending activities of the European
Investment Bank in the Renewable Energy sector, even though most of the projects are related
to electricity production. However, these financial instruments have thus far rarely been used
in the RHC sector; they must be adapted to the specific conditions (including framework
conditions) for RHC projects and investors in order to be supportive to market deployment.
39
48
Ibid.
RHC-Platform • Appendix
•
AEBIOM (2013), European Bioenergy Outlook, European Biomass Association, available
online: http://www.aebiom.org/blog/category/publications/statistics/.
•
AEBIOM (2013), European Bioenergy Outlook, European Biomass Association, available
online: http://www.aebiom.org/blog/category/publications/statistics/.
•
Deloitte, Knock on Wood (2012), Is Biomass the Answer to 2020?
•
ECN, IEA-RETD (2012), Business models for renewable energy in the built environment.
Available at http://www.ecn.nl/docs/library/report/2012/e12014.pdf , last accessed
June 2014.
•
Ecofys, Fraunhofer ISI, TU Vienna EEG, Ernst &Young (2011), Financing Renewable Energy
in the European Energy Market. Available at http://ec.europa.eu/energy/renewables/
studies/doc/renewables/2011_financing_renewable.pdf , last accessed June 2014.
•
Energy Efficiency Financial Institutions Group (2014), Energy Efficiency – the first fuel for
the EU Economy, How to drive new finance for energy efficiency investments.
Available at http://www.unepfi.org/fileadmin/publications/investment/2014_fig_how_
drive_finance_for_economy.pdf, last accessed June 2014.
•
ESTIF (2006), Key Issues for Renewable Heat in Europe (K4RES-H) - Financial Incentives
for Solar Thermal.
•
Eurogas (2013), Statistical Report 2013.
•
European Commission (2011), Communication from the Commission to the European
Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions “Energy Roadmap 2050”, COM(2011)885.
•
European Commission (2013a), EU Energy in Figures: Statistical Pocketbook 2013,
Luxembourg: Publications Office of the European Union.
•
European Commission(2013b), “Member States’ Energy Dependence: An Indicator-Based
Assessment”, Occasional Papers 145.
•
European Commission (2014a), Directorate-General for Economic and Financial Affairs,
Energy Economic Developments in Europe, European Economy 1/2014.
•
European Commission (2014b), Impact Assessment on energy and climate policy up to
2030, SWD(2014)15.
•
European Commission (2014c), Communication from the Commission to the European
Parliament and the Council on European Energy Security Strategy COM(2014)330.
•
HSBC Global Research (2009), A Climate for Recovery.
•
IRENA (2014), Renewable energy and jobs 2013.
49
Appendix • RHC-Platform
50
•
OECD/IEA (2012) , Policies for renewable heat . Available at: http://www.iea.org/publications/
insights/insightpublications/Insights_Renewable_Heat_FINAL_WEB.pdf, last accessed June
2014.
•
RHC-Platform (2011), Common Vision for the Renewable Heating and Cooling sector in Europe:
2020-2030–2050. Luxembourg: Publications Office of the European Union.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2012a), Strategic Research Priorities for Solar Thermal Technology, Brussels.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2012b), Strategic Research Priorities for Geothermal Technology, Brussels.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2012c), Strategic Research Priorities for Biomass Technology, Brussels.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2012d), Strategic Research Priorities for Renewable Heating & Cooling Crosscutting Technology, Brussels.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2013), Strategic Research and Innovation Agenda for Renewable Heating and
Cooling. Luxembourg: Publications Office of the European Union.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2014a), Solar Thermal Technology Roadmap, Brussels. Available at http://www.
rhc-platform.org/publications/.
•
RHC-Platform (2014b), Geothermal Technology Roadmap, Brussels. Available at http://www.
rhc-platform.org/publications/.
•
RHC-Platform (2014c), Biomass Technology Roadmap, Brussels.
Available at http://www.rhc-platform.org/publications/.
•
RHC-Platform (2014d), Cross-Cutting Technology Roadmap, Brussels.
Available at http://www.rhc-platform.org/publications/.
•
Solar Heat Worldwide (2013) Markets and Contribution to the Energy Supply 2011.
•
Swedish Energy Agency (2014), Energy in Sweden – Facts and Figures 2014, available at:
https://energimyndigheten.a-w2m.se/Home.mvc.
RHC-Platform • Appendix
TRL 1: Basic principles observed
The initial scientific research has been completed. The basic principles of the idea
have been qualitatively postulated and observed. The process outlines have been
identified. No experimental proof and detailed analysis are yet available.
TRL 2: Technology concept formulated
The technology concept, its application and its implementation have been
formulated. The development roadmap is outlined. Studies and small experiments
provide a “proof of concept” for the technology concepts.
TRL 3: Experimental proof of concept
The first laboratory experiments have been completed. The concept and the
processes have been proven at laboratory scale, table-top experiments.
TRL 4: Technology validated in lab
A small scale prototype development unit has been built in a laboratory and controlled
environment. Operations have provided data to identify potential up scaling and
operational issues. Measurements validate analytical predictions of the separate
elements of the technology. Simulation of the processes has been validated.
TRL 5: Technology validated in relevant environment (industrially relevant environment in
the case of key enabling technologies)
The technology, a large scale prototype development unit, has been qualified through
testing in intended environment, simulated or actual. The new hardware is ready for
first use. Process modelling (technical and economic) is refined. LCA and economy
assessment models have been validated. Where it is relevant for further up scaling
the following issues have been identified: health & safety, environmental constraints,
regulation, and resources availability.
TRL 6: Technology demonstrated in relevant environment (industrially relevant environment
in the case of key enabling technologies)
The components and the process, the prototype system, have been up scaled to
prove the industrial potential and its integration within the energy system. Hardware
has been modified and up scaled. Most of the issues identified earlier have been
resolved. Full commercial scale system has been identified and modelled. LCA and
economic assessments have been refined.
TRL 7: System prototype demonstration in operational environment
The technology has been proven to work and operate a pre-commercial scale
– a demonstration system. Final operational and manufacturing issues have
been identified. Minor technology issues have been solved. LCA and economic
assessments have been refined.
TRL 8: System complete and qualified
The technology has been proven to work at a commercial level through a full scale
application. All operational and manufacturing issues have been solved.
TRL 9: Actual system proven in operational environment (competitive manufacturing in the
case of key enabling technologies; or in space)
The technology has been fully developed and is commercially available for any consumers.
40
The present scale of
Technology readiness
levels (TRL) is based
on HORIZON 2020 –
WORK PROGRAMME
2014-2015, General
Annexes, G. Technology readiness levels
(TRL), available at
http://ec.europa.eu/
research/participants/
data/ref/h2020/
wp/2014_2015/annexes/h2020-wp1415-annex-g-trl_en.pdf . The
description of the TRLs
is based on the related
FAQs, available at
http://ec.europa.eu/
research/participants/
portal/doc/call/
h2020/h2020-lce2014-1/1595100faq_1_lce_call_en.pdf
- last accessed June
2014.
51
Appendix • RHC-Platform
52
BFB
Bubbling Fluidised Bed
BHE
Borehole Heat Exchangers
BIO
Biomass
CAPEX
Capital Expenditure
CCS
Carbon Capture and Storage
CCT
Cross-Cutting Technology
CEN
Comité Européen de
Normalisation
CFB
Circulating Fluidised Bed
CHP
Combined Heat and Power
CHP-C
Combined Heat, Power and
Cooling (tri-generation)
CO
Carbon Monoxide
CO2
Carbon Dioxide
DH
District Heating
DHC
District Heating and Cooling
DHW
Domestic hot water
EC
European Commission
EF-MGT
Externally Fired Micro Gas
Turbine
EGEC
European Geothermal Energy
Council
EGS
Enhanced Geothermal Systems
EHPA
European Heat Pump Association
EPBD
Energy Performance of Buildings
Directive
EPC
Energy Performance Contracting
EN
European Standard (French:
norme, German: Norm)
ESCO
Energy service company
ESC
Energy Supply Contracting
ESTIF
European Solar Thermal Industry
Federation
ESTTP
European Solar Thermal
Technology Platform (or Panel)
ETS
Emission Trading Scheme
EU
European Union
EUREC
The Association of European
Renewable Energy Research
Centres
FC
Fuel Cell
GDP
Gross Domestic Product
GHG
Greenhouse Gas
GSHPs
Ground Source Heat Pumps
H&C
Heating and Cooling
HP
Heat Pumps
HTC
Hydrothermal Carbonisation
HVAC
Heating, Ventilation and Air
Conditioning
IC
Internal Combustion Engine
ICT
Information and communications
technology
IED
International Emissions Directive
ILUC
Indirect Land Use Change
ISO
International Organization for
Standardisation
KPI
Key Performance Indicators
LHV
Lower Heating Value
MGT
Micro Gas Turbine
MSDS
Material Safety Data Sheet
MSW
Municipal Solid Waste
MWD
Measurement-While-Drilling
NOx
Generic term for mono-nitrogen
oxides NO and NO2
NREAPs
National Renewable Energy
Action Plans
OGC
Organic Gaseous Carbon
ORC
Organic Rankine Cycle
PCM
Phase-Change Materials
PER
Primary energy ratio
PF
Power Factor
PM
Particulate Matter
R&D
Research and Development
RD&D
Research, Development and
Demonstration
RES
Renewable energy sources
R&I
Research & Innovation
ROI
Return on Investment
RDF
Refuse Derived Fuel
RED
Renewable energy Directive
(2009/28/EC)
RES
Renewable energy source
RHC
(RH&C) Renewable Heating and
Cooling
RHC-PLATFORM
European Technology Platform
on Renewable Heating and
Cooling
RHC-SRIA Strategic Research
and Innovation Agenda for
Renewable Heating and Cooling
SAH
Solar-Active-House
SAH 60
Solar-Active-House with 60%
solar fraction
SCOP
Seasonal Coefficient of
Perfomance
SCOHYS
Solar compact hybrid systems
SCR
Silicon Controlled Rectifier
SE
Steam Explosion
SET-PLAN The European
Strategic Energy Technology Plan
SH
Super Heater
SHC
Solar Heating and Cooling
SHIP
Solar heat for industrial
processes
SMEs
Small and Medium sized
Enterprises
SRP
Strategic research priorities
SOx
Sulphur Oxides
SRF
Solid Recovered Fuel
TC
Thermo-Chemical
TCM
Thermo-chemical materials
TMF
Thermal Material Fracking
TOE
Ton Oil Equivalent
TRL
Technology Readiness Level
UTES
Underground Thermal Energy
Storage
RHC-Platform • Appendix
Bcm
Billion cubic meter
°C
Degrees Celsius
€/EUR
Euro
€ct/€cent
Euro-cents
cSt
Centistokes
g
Grams
GCV
Gross Calorific Value
GJ
Gigajoule = 109 joules
CHP
Combined Heat and Power
CHP-C
Combined Heat, Power and
Cooling (tri-generation)
CO
Carbon Monoxide
CO2
Carbon Dioxide
GWe
Gigawatt Electrical
GWth
Gigawatt of thermal capacity =
109 watts
K
Thousand
J
Joule
KJ/kg
Kilojoules per kilogram
kWe
Kilowatt Electrical
kWh
Kilowatt-hour = 103 x 1 hour
kWh/m3
Kilowatt hours per meter cubed
kWh/t
Kilowatt hours per tonne
kWth
Kilowatt Thermal Capacity
m
Meter
M€/MW
Millions of Euro per Megawatt
m2
Square Meter
mg
Milligram
MMBtu
Million British Thermal Unit
MJ/kg
Megajoules per kilogram
Mt
Megatonne = 106 tonnes
Mtoe
Million tonnes of Oil Equivalent =
106 tonnes of oil equivalent
MWh
Megawatt hour
MWe
Megawatt Electrical
MWth
Megawatt Thermal
Nm3
Normal cubic meter
P
Power
PJ
Petajoule
pH
Measure of the acidity or basicity
of an aqueous solution
T
Tonne
TWh
Terawatt-hour =
1012 watt x 1 hour
W
Watts
Wel
Watt Electrical
53
Appendix • RHC-Platform
This document was prepared by the European Technology Platform on Renewable
Heating and Cooling (RHC-Platform).
The Secretariat of the European Technology Platform on Renewable Heating and Cooling is
coordinated by EUREC, the Association of European Renewable Energy Research Centres
and is jointly managed with:
European Biomass
Association (AEBIOM)
European Geothermal
Energy Council (EGEC)
European Solar Thermal
Industry Federation (ESTIF)
The European Technology Platform on Renewable Heating and Cooling (RHCPlatform) is officially endorsed by the European Commission and its activities
are supported by the 7th Framework Programme for Research and Technological
Development (GA n. 268205).
54
Secretariat of the European Technology
Platform on Renewable Heating and Cooling
c/o EUREC EEIG
[email protected]
www.rhc-platform.org
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