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plantations, mitigating the potential environmental impacts, and creating an integrated bioenergy industry that links biomass resources with the production of a variety of other energy and material products. Flexible generation of power, heat, cold and synthetic natural gas (SNG) is technically possible, but at an early stage of development requiring further R&D investment. EGS technology (also called hot dry rock) exploits geothermal resources that are uneconomic using the mature, conventional deep geothermal technology. It is primarily focused on electricity production using low-temperature cycles, but can also be used for the production of heat. These systems are still in the research phase and require additional RD&D to improve existing approaches and to develop new ones, as well as to develop smaller modular units that will allow economies of scale at the manufacturing level. Heat storage technologies for solar thermal systems could help a system provide up to 50% of the heat demand for domestic heating and hot water by increasing the solar fraction. To provide a greater share of the heat demand from solar thermal energy, even possibly up to 100%, thermal storage systems are required3. Excessive solar heat, captured at times when the heat load is low, can be used later during the night, the next cloudy period, or even the next winter. Advanced heat storage technologies can help increase the economic and energetic performance of solar thermal systems, district heating schemes and possibly in some cases, for biomass and geothermal to meet peak demands. Sorption technologies and thermo-chemical storage technologies in principle can be the basis for sufficiently compact systems but are still in the very early stages of development. Research needs and priorities RD&D is important for all energy technologies that have not been able to exploit their full market potential. Improved cost effectiveness and ease of use should be the goals in order to produce widespread deployment. Public RD&D investment by IEA countries for renewable energy was relatively high after the oil price shocks in the 1970s but then decreased by 30% by the early 1990s and has remained around that level since (Figure 11) (though some increase has been observed more recently). Although public research investment in biomass has remained reasonably consistent, solar heating and cooling received around USD 400M in 1979, decreasing to USD 30M by 2002; geothermal received around USD 450M decreasing to USD 58M over the same period. Overall the investment in RD&D for REHC technologies has decreased, in part due to the prioritization of renewable energy power generation and biofuels. If the challenges of growing energy demand, energy security and environmental concerns are to be met, then greater investment in renewable energy RD&D, and in particular in REHC that has recently lagged behind, is needed by both the public and private sector (IEA, 2006c; RD&D 2006; Jurczak, 2006). RD&D for solar thermal technologies Improved competitiveness is necessary for moving from early markets to mass markets. Solar heating and cooling technologies are already close to full competitiveness with the potential for a quick return on investment. Solar water heating technologies are reliable but their capital costs can make them appear more expensive to the potential purchaser compared to conventional water heating systems. However if costed over a full life cycle, then this is not the case, particularly if future projected electricity or gas charges are taken into account. During the last decade capital cost reductions of around 20% have been 3. Demonstration projects have shown that it is possible to meet 90% of domestic heat demand using solar thermal if large scale seasonal storage technologies are used. 39PDF Image | RENEWABLES FOR HEATING AND COOLING
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