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88 5.2.3 A general description of the policy options Business as Usual As mentioned in the policy overview section, a host of policies, directives and regulations exist to support the use of biomass for heat and power generation and to improve energy efficiency. New regulations are also being developed by the EU as well as on Member State level. This means that Business as Usual – or taking no action – will also result in efficiency improvements for biomass installations. Given that several EU directives refer to efficiency improvements (e.g. CHP directive, Energy Efficiency directive) and some Member States have adopted national policies to improve energy efficiency (e.g. included in feed-in tariff, energy efficiency obligations) it is difficult to predict how end-conversion efficiency will develop over the longer term. However, what can be said is that few Member States currently explicitly consider the end- conversion of biomass installations in their policy. And then only in relation to CHP is efficiency improvement directly rewarded. As business as usual, we therefore assume few Member States will introduce policies specifically focused at improving the end-conversion efficiency of biomass installations. Autonomous improvements are also assumed negligible as power and/or heat generating installations generally are already optimised to the local economic conditions. Providing incentives for better end-conversion efficiency The incentivising policy option aims to improve end-conversion efficiency by creating a financial incentive to improve efficiency. This can be done on the one hand by giving a bonus to better performing installations or a penalty to poor performing installations. The incentive can be given through different policy instruments (e.g. differentiating in subsidy level, awarding additional certificates). However, it is important that the economic operators making the decision on the investment in the bioenergy installation feels this incentive directly to influence decision making. Sub option 1 stimulates higher end-conversion efficiency by giving a financial incentive for those economic operators that make use of a national support scheme. A bonus can make investment in more expensive options, that will improve end-conversion efficiency, cost effective. A penalty makes the use of inefficient options less attractive. If the incentive is sufficiently high, the economic operator will respond by shifting to more efficient options. Sub option 2 does not directly put the incentive on the economic operator, but on the national government. National governments have an obligation to meet their renewable energy or GHG reduction target. In order to do so, they have put in place different support schemes. When bioenergy does not count towards their national target, governments have no interest in supporting this option. They are likely to respond by adapting their support schemes to ensure that only those bioenergy EVALUATION OF IMPROVEMENTS IN END-CONVERSION EFFICIENCY FOR BIOENERGY PRODUCTIONPDF Image | Evaluation of improvements in end-conversion efficiency for bioenergy production
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