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28 01 GLOBAL OVERVIEW ■■HEATING AND COOLING SECTOR Energy use for the provision of useful heat represents about half of total world final energy consumption.78 Modern renewables (excluding traditional biomass) meet a small but gradually rising share of final global heat demand (about 10%).79 In some markets, they already contribute substantially. For example, renewables provide over 60% of final energy for heat in Iceland and Sweden.80 In Brazil, where bio-heat covers a significant portion of industrial heat demand, the renewable share is about 43%.81 Renewables meet 20% or more of final energy demand for heat in Austria, Denmark, Israel, New Zealand, Norway, and Thailand, and significant shares also in India (11%), Indonesia (7%), and South Africa (6%).82 Modern biomass, solar thermal, and geothermal energy provide hot water and space heating for tens of millions of domestic and commercial buildings around the world. These renewables also supply heat for industrial processes, agricultural applications, and cooking, at a range of temperature levels. Modern biomass accounts for the vast majority (about 90%) of renewable heating.83 Markets for renewable heating and cooling have increased rapidly in recent years, particularly for solar thermal and some bio-energy systems.84 In addition, passive solar building designs provide a significant amount of space heating (and light), and their numbers continue to increase, but they are not included in this report due to lack of data. Bio-heat capacity is growing steadily, at an estimated 1–2% annually.85 During 2013, Central Europe and the United States, in particular, saw a continuing shift towards the use of biomass for heating.86 For old and larger buildings, bioenergy systems— such as district heat systems in Scandinavia or pellet stoves in Austria—can be more cost competitive than heat pumps. For industrial heating, bioenergy is the primary resource replacing fossil fuels, often in combined heat and power (CHP) generating systems.87 Most bio-heat is derived from solid biomass resources, but biogas is becoming an increasingly important heat source.88 Although Europe remains the leading region for bio-heat consumption, mainly for space heating, demand is rising elsewhere, particularly in China.89 The use of biogas as a cooking fuel continues to rise in a growing number of developing countries.90 Over the five-year period to end-2013, the capacity of solar water heaters increased by an average of 14% annually.91 Solar thermal collectors are used worldwide for water (and increasingly for space) heating in homes, schools, hospitals, hotels, and government and commercial buildings.92 Their use is extensive in China, where solar water heaters cost less over their lifetimes than do natural gas or electric heaters.93 An increasing number of district heat systems rely on solar thermal technology, particularly in Central Europe, and interest in solar process heating and cooling also is growing as technologies mature.94 Geothermal energy is used for space heating (including district heat networks), domestic hot water supply, direct and indirect heating of public baths, greenhouses, and process heat for industry and agriculture.95 Technological advances are making it possible to extract heat from even relatively low-temperature geothermal fields for both power and heat generation.96 Air-, ground-, and water-source heat pumps also provide renewable heating and cooling. One of the more significant trends related to heat pumps is a move towards the use of hybrid systems that integrate several energy resources (such as solar thermal or biomass with heat pumps) for the range of heat applications.97 China’s market for hybrid-heat pump products is double the size of Europe’s, with both growing rapidly.98 There is also growing interest in the use of larger-scale heat pumps for district heating as well as industrial processes.99 (See Sidebar 4, page 42.) Use of modern renewable energy technologies for heating and cooling is still limited compared with their potential. Market growth in this sector continues to lag behind the power sector, due in part to a limited awareness of the technologies, fragmentation of the market, and a relative lack of policy support.100 Further, growth of renewable energy for heating is constrained, in many countries, by high upfront investment costs of some technologies and competition from subsidised fossil fuels. However, where a carbon charge exists, heat users tend to seek low-carbon fuels.101 Consumers in Denmark, Japan, and the United Kingdom can choose “green heat” via voluntary purchasing programmes, but options are relatively limited compared to green power purchasing.102 Despite the relative lack of policies globally in support of renewable heat, several national and local governments have enacted supporting policies or set ambitious targets. Denmark banned the use of fossil fuel-fired boilers in new buildings as of 2013 and aims for renewables to provide almost 40% of total heat supply by 2020; in early 2014, the U.K. launched its Renewable Heat Incentive for residential consumers; and across the EU, all new buildings must be near zero-energy (producing as much energy as they consume) by 2019.103 Beyond Europe, most heat- related targets focus on solar thermal energy, although Thailand has heat targets for bioenergy as well.104 (See Reference Table R14.) Trends in the heating and cooling sector include the increasing use of renewables for CHP; the feeding of renewable heating and cooling into district systems, particularly in Europe; hybrid solutions to address the building renovation segment; and the growing use of renewable heat for industrial purposes, from Chile to India to the United Arab Emirates.105 At least 20 countries in Europe use renewables in their district heat systems, with at least 20% of EU-wide district heat generated by renewable sources.106 Heat storage systems for low-temperature applications such as district heating have been demonstrated and are now available in some European markets.107 A limited number of countries has begun using district heat systems to absorb heat generated by renewable electricity during periods of excess supply. An example is the use of surplus wind power to heat water, either with heat pumps or directly using resistance heaters.108 Denmark is increasing the reliability of its energy supply by combining variable renewable electricity with CHP and district heating, and has made this practice a cornerstone of its energy policy.109 In 2013, China called on high-wind provinces to begin pilot testing of wind-to- heat technologies to ease the strain on local grids and reduce local air pollution.110 There is also a general movement globally towards electrification in the heat sector.111PDF Image | About ElectraTherm
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