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Evaluation of improvements in end-conversion efficiency for bioenergy production

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Evaluation of improvements in end-conversion efficiency for bioenergy production ( evaluation-improvements-end-conversion-efficiency-bioenergy- )

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• High efficiency requirements are not always effective when installations serve other goals: Several installations producing bioenergy also supply other services, such as waste treatment. Improvement in the end- conversion efficiency of those installations should be stimulated where possible, but supply of their main service should not be hampered. A bonus system with higher bonus for high end-conversion efficiency serves these BTC best; • Bonus systems are best applicable in systems where strict demands risks diminishing biomass use but where significant improvements in efficiency can be made: In cases where significant improvements can be made but where other means (e.g. minimum efficiency standards) are not feasible, a bonus system is the best option. Due to costs for government, a bonus system should only be applied to those sectors where large improvements can be made; • Minimum efficiency standards are useful for new dedicated biomass installations: Minimum efficiency standards are only an option for new installations and especially for dedicated biomass facilities. For non dedicated facilities, these standards might cause a reduction of the use of biomass. • Chain efficiency policy is not an effective approach when aiming at stimulating end-conversion efficiency: End-conversion efficiency can best be stimulated by focusing on the installation itself, and not including the whole bioenergy production chain as it dilutes the incentive. This does not exclude the use of GHG balances for stimulation of overall efficiency throughout the whole chain or analysing sustainability impacts of a specific chain. • Total savings of efficiency improvement in new installations of large scale power and CHP, district heating and digestion are difficult to estimate but expected to be large: Since no estimates on future installed capacity of these installations are known, no estimates on total gains/savings are included in current impact assessment, but increased use of these type of installations with high end-conversion efficiency can result in large total gains. • Largest gains in end-use efficiency can be obtained trough increased use of heat in new installations and in residential heating: However compliance costs for heat use in installations are considerable. Compliance costs for residential heating are lower, but have to be paid by for by individuals, who might be more difficult to reach. • Investment subsidies for residential heating have the highest administrative costs, investment subsidies for larger facilities have relatively low administrative costs: Residential heating has a dispersed and small scale target group, making it difficult for governments to reach them individually. Large facilities are easier to reach and therefore administrative costs for governments are relatively low. EVALUATION OF IMPROVEMENTS IN END-CONVERSION EFFICIENCY FOR BIOENERGY PRODUCTION 7

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Evaluation of improvements in end-conversion efficiency for bioenergy production

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