Economic Perspectives of Renewable Energy Systems

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including options for automation. As "smart" houses gain a bigger sector of the housing market, the opportunity arises to maximize useful solar gains without compromising comfort. Types of devices, control systems and window systems could be investigated in the context of highly insulated houses with and without mechanical ventilation, both with heat recovery. 41. In order to support the further development and market introduction of solar thermal energy, it is necessary to provide, besides the technology itself, the appropriate boundary conditions. Among these are methods of testing and assessing the thermal performance, durability and reliability of systems and components. Tools and education packages for practicing architects are also needed. Furthermore, it is necessary to develop methods in order to assess the environmental benefits from solar thermal systems and to include solar thermal in today's building standards and regulations such as the European Building Performance Directive. (E) Assessment of solar thermal technologies 42. The results of the evaluation of solar thermal technologies are listed in the following table. Solar Thermal Systems against Evaluation Criteria Criterion Comments Potential Economic Contribution at current energy prices large - can compete with fossil fuels and electricity CO2 is taxed and/or solar systems are subsidised at 2 times current very large - will compete with fossil fuels and electricity at 4 times current very large Health & Safety Impacts to work force excellent - installation and maintenance regulated by directives and standards to public excellent Environment Friendliness locally excellent global warming excellent Input Sustainability excellent Security of supply excellent Compatibility with EU needs very good - fluctuating solar requires back-up or demand management Deliverability excellent - modular units can be installed to match demand The need for EU-wide R & D good - need to maintain competiviteness of EU manufacturers Secondary (spin-off) merits good - export opportunities Special Factors excellent - strong public support generally (F) AGE recommendations 43. Almost 50% of the final energy consumption in Europe is used for the heating needs of buildings, for domestic hot water production and for heating in industrial processes. Heat is the largest consumer of energy, being greater than electricity or transport. Renewable heating sources (solar thermal, biomass, geothermal) have a huge potential for growth and can replace substantial amounts of fossil fuels and electricity currently used for heating purposes. AGE believes, that steady funding at an increased level would allow the various solar heating and cooling (SHC) technologies and designs to reach better cost 105

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