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The growth of the biomass heat market has been most successful in countries which have employed a combination of support schemes including indirect incentives for district heating and CHP . For example, Sweden (Annex B11) and Denmark (Annex B2) have both seen impressive growth in their biomass heat markets on a per capita basis due to employing energy taxes to level the playing field and offered direct subsidies for biomass heat generated in CHP plants connected to district heating grids. As such, these high latitude countries with many residents living in high density, apartment blocks, have successfully developed policy support for the generation of biomass heat on a community scale, rather than targeting small individual households. District heating infrastructure has been key in increasing the share of renewable heat in a number of countries. With immediate access to a large number of customers, district heat reduces the more usual distributed nature of heat generation and allows for metering. In addition it can provide an outlet for waste heat from electricity generation to encourage CHP facilities. Policies directly in support of renewable heat via district heating systems are less common than those which support the renewable heating technologies themselves. However, several exemplary schemes have been implemented. For example, between 2001 and March 2007, the Community Energy Programme of the UK provided grants for district heating systems, with roughly 16% of the funding allocated for biomass support. Geothermal heat is not often used in district heating but could be where suitable resources exist such as in Iceland. Geothermal Geothermal heat (primarily from shallow, low-temperature sources) is responsible for 3% of the total renewable heat supply in the 12 nations examined. Most of the heat generated is captured in geothermal heat pumps whose markets have grown considerably in recent years (Section 3). Good potential exists for the expansion of both shallow and deep geothermal technologies. Less policy attention appears to have been directed toward geothermal heat than either solar thermal or biomass. Most political support for geothermal technologies has been based around electricity production and the limited support for geothermal heat has mainly focused on heat pumps. Geothermal heating can also encounter political barriers inapplicable to the other renewable heating technologies such as fees placed on mining/drilling and groundwater use that increase the gap between the costs of geothermal and conventional heat. Less that half of the global geothermal direct heat use is provided from deep geothermal resource development and much of this comes from the use of separated hot water from geothermal power developments (a form of CHP), or from deep wells drilled into geothermal resources that were previously proven as part of exploration for electricity generation. For the few cases where unproven deep geothermal resources are specifically developed to provide heat, resource exploration incurs significant additional costs. Unproven resource availability implies a high degree of uncertainty as to the success of geothermal development (Firke-Mariam, 2006). As such, there is perhaps a higher degree of economic risk for geothermal heat than for either solar or biomass heat. Risk guarantee funds that offer to cover the loss of unproductive geothermal wells are one solution to mitigate the risk of geothermal exploration. The German development bank, KfW, offers such incentives for projects in developing nations. In summary most of the policies in place today to support renewable heat generation are carrot- based incentives offering direct financial support. The budget allocated per capita vary significantly for each policy and national package of policies as do their time-spans, technologies applicable, and eligible parties. Policies are generally technology specific and most have been focused on support for solar thermal and biomass heat. The few policies supporting geothermal heat have concentrated on geothermal heat pumps. 71PDF Image | RENEWABLES FOR HEATING AND COOLING
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