Renewable Heat Policy Best Practices

Dr. Ute Collier Presentation to UNECE GERE, Geneva, 2 November 2017

© OECD/IEA 2016 © IEA 2017 UNECE lags behind in renewable heat

Heat vs renewable heat consumption 2015, selected countries/regions

Share of global total 100% 90% 80% 70% Renewable heat: 60% 50% Solar thermal 40% Geothermal Renewable electricity 30% 20% 10% 0% All heat Renewable heat EU US China UNECE18 Rest of World

UNECE is 11% of global heat consumption but only 3% of renewable heat. Renewables account for only 3% of heat consumed in UNECE vs 9% global average.

© IEA 2017 EU4Energy Kiev Policy Forum 25 September 2017

• Technology choice

• Data challenges

• Heat mapping

• Case studies from: - EU approach - UK - Lithuania - Belarus - Georgia - Kazakhstan - Ukraine

© IEA 2017 Some heat-related problems & opportunities in EU4Energy

• Problems - Illegal wood cutting & non-renewable resource use - Indoor air pollution from inefficient wood and coal - Urban air pollution from plants (especially coal) - Energy inefficient buildings – lack of comfort

• Opportunities - Agricultural residues - Household waste - Good geothermal potential (e.g. Armenia, Azerbaijan, Georgia, Uzbekistan)

© IEA 2017 Key barriers to renewable heat – EU4Energy countries

• Higher capital costs & lack of finance

• Inefficient buildings/district heating networks

• Low gas, coal & electricity prices

• (some countries) District heating dismantled

• Lack of resource assessment (e.g. geothermal)

• Lack of supply chain

• Lack of consumer awareness

© IEA 2017 Best practice examples from outside the region - Lithuania

Fuel inputs into district heating 1997-2020

Switch to biomass driven by rising costs of imported . Good biomass resources and costs of local woodchip 50% that of natural gas. Facilitated by €127 EU Social Fund funding for upgrades & bio-CHP plants.

© IEA 2017 Best practice examples from the UNECE region

• Moldova – Energy and biomass programme (EU/UNDP, US$11.2mn phase 2, 2015-17): - Support for biomass public buildings in rural communities/small towns - Capacity building and awareness raising

• Georgia – 4 year UNDP/GEF funded (US$1mn) programme: - Biomass Strategy and Action Plan - Establishment of Association of Biomass Producers

• Ukraine – Biomass to substitute imported natural gas

- 1720 MWth new capacity (2014-16) - Heat tariffs for renewable sources (10% cheaper than gas)

• Armenia – green leasing programme for solar in SMEs

© IEA 2017 Conclusions

• There is unexploited potential for renewable heat in UNECE. The best options will vary from country to country and between localities.

• Developments lag behind other countries/regions.

• Some best practice examples but much more needed.

• Some urgent problems need to be addressed, especially unsustainable wood use, indoor air pollution.

© IEA 2017 Thank you!

Спасибо!

© IEA 2017