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District heating and cooling While demonstrations have proven the technical feasibility of the equipment and infrastructure, investment costs and the high degree of perceived risk currently discourage developers from prioritising these solutions. This is further compounded by the complex map of stakeholders involved in district heating/ cooling projects, including developers, local authorities, utilities, consumers and housing associations. It is labour and resource intensive for developers to manage relationships with these disparate groups. Projects can be accelerated with investment support mechanisms and command and control mechanisms, e.g. through public procurement. Additionally, clear guidelines and regulations for planning, building standards and environmental protection will assist in facilitating projects that deploy TES alongside a district heating/cooling asset. The current EU strategy on district heating and cooling is for it to be flexible, allowing for the more rapid integration and deployment of renewable energy sources (European Commission, 2016). UTES technologies can provide significant storage capabilities with limited covered ground area, and are relevant for these infrastructure types. A subsurface presence invariably requires specialist planning permission, however, and policy makers can remove barriers to project progress and assist developers in managing relevant stakeholders by ensuring planning procedures are robust. Market demand for renewable district heating (and any accompanying TES) can be limited by convenient and cost-effective fossil fuel alternatives. Recognising the externalised costs of continued fossil fuel use would help to level the playing field. Price support mechanisms (e.g. carbon taxes) that form part of wider enabling regulation frameworks can help drive competitiveness of renewably powered district heating. Buildings Utilities will require support from policy makers to facilitate solutions that manage the increasing share of renewables and electrification solutions in buildings. TES assets could aid in managing building-scale energy demand, but they are not yet cost-competitive options. There is a lack of consumer awareness and market demand for novel thermal storage (heat and cold) in buildings. The availability of cheap electricity or gas and a lack of price signals (e.g. time-of-use tariffs) have restricted consumer demand for thermal storage beyond traditional non-smart water tanks. For commercial buildings energy is typically a small fraction of the total cost of the business, and rarely seen as a strategic issue compared to other parts of the cost structure more central to a business. Policy makers could assist with funding for R&D and demonstrations to prove the system benefit, ecosystem support such as media campaigns to encourage consumer uptake and price support mechanisms to enhance feasibility. Policy makers can also provide systems support by encouraging the uptake of heat pumps, or ensuring that grid operators are properly incentivised to manage grids efficiently rather than investing in grid reinforcement as the default. Reliance on incumbent technologies and established infrastructure has limited decarbonisation efforts in heating and cooling in many countries. Nonetheless, moving away from gas boilers towards renewable heat would help to drive demand for thermal storage, and thus help to deal with intermittency issues. From a buildings perspective, decarbonisation of heat is being considered through direct renewable heating (e.g. rooftop solar thermal panels), clean hydrogen or the electrification of heat. Wider adoption of these solutions can be achieved through mandatory building codes defined by national or sub-national authorities. For example, In June 2017 the Norway Ministry of Climate and Environment announced a ban on the use of oil and paraffin to heat buildings from 2020. This ban will cover old and new buildings, publicly owned facilities as well as private homes and businesses. Some of the alternatives outlined include heat pumps and wood chip burning stoves, whose deployment is set to rise significantly. THERMAL ENERGY STORAGE 115PDF Image | THERMAL ENERGY STORAGE Outlook
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