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36 factors besides price can influence the competitiveness of heating and cooling technologies including energy security, improved human health and GHG emission reductions. Industry and commercial buildings Industrial heat is a large portion of total energy demand. In the EU for example, 30% of final energy is used by industry of which two thirds is in the form of heat (SHC, 2007). Industrial process heat applications will therefore play a crucial role in global markets, though higher grade temperature demands may restrict the application of some renewable energy heat sources. Large industrial heating and cooling demands can make REHC applications more attractive due to the large scale of operation. At the small end of the scale, MSW incineration and deep geothermal technologies are unsuitable for single or multi-family dwellings with small heat loads because these technologies usually need a certain minimum capacity to be economically viable. District heating to supply apartment and office blocks, institutions as well as industry can have the advantages of fuel flexibility (thereby allowing the use of seasonal sources), utilisation of local sources, centralised heat load produced under controlled circumstances, and deployment of CHP (Lauerson, 2006). Landfill gas and biogas can also be injected into the distribution grid as a means of distributing renewable energy for use as domestic heat. In the agricultural sector large scale solar thermal applications for crop drying or the use of biomass residues to generate heat on-farm can also be cost-effective options, depending on the resource availability and magnitude of the heat demand (Rantil, 2006). Price relativities can change quickly. Oil, natural gas and electricity prices have shown some volatility in the last few years, whereas cost reductions for renewable energy technologies have also occurred due to learning experience induced by further market uptake. Typically a doubling of installed capacity can result in a 10-20% cost reduction per unit of energy. International efforts to internalize the neglected external costs of fossil fuels might also contribute to better competitiveness of REHC in the future. Environmental taxes, carbon emission charges, or the transfer of subsidies from fossil fuels could all serve to further strengthen the position of REHC (Section 4). Maturity Historically heat energy was mainly supplied from biomass but ancient solar architecture shows that passive solar heating and cooling are also nothing new. More recently however three generations of renewable technologies can be defined: development, early market and mass market (Figure 10) (IEA 2006c; Ros 2007). Developing technologies have a high cost-gap relative to conventional technologies in the market and still need policy support. Early market “second-generation” technologies have a relatively low cost-gap and learning experience often helps them become more cost-effective. By the time they reach the mass market they are usually cost competitive. Mass market Renewable energy technologies that are commercially mature and can compete with conventional technology are referred to as mature (“first-generation”) technologies. Examples include passive solar building design, solar water heaters, biomass combustion and deep geothermal power generation and cascade heat utilisation. Passive solar heating and cooling can be considered commercially viable but often considered as demand-reducing technologies. They integrate various building designs and technologies rather than make use of mechanical components, a simple example being the glazing of open verandas on an old house. This option is not discussed in detail in this report but many books and journals are availablePDF Image | RENEWABLES FOR HEATING AND COOLING
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