State Budget Independent, Market-Based Instruments to Finance Renewable Heat Strategies

Jan Steinbach, Friedrich Seefeldt, Edmund Brandt, Veit Bürger, Ulf Jacobshagen, Markus Kachel, Michael Nast and Mario Ragwitz

Energy & Environment, 2013, vol. 24, issue 1-2, 195-218

Abstract: At present, expanding the use of renewable energy sources for heating (RES-H) relies predominantly on publicly funded support instruments. As these are subject to subsidy cuts and suspensions, these instruments do not provide long-term security for investors and technology suppliers. Although feed-in tariffs and quota-based systems are the major support schemes for renewable energy sources in the electricity sector, similar policy designs have not been applied to RES-H. This paper presents and evaluates three different policy instruments which have the potential to finance RES-H without using public funds: A physical quota system for biomass, a technology-based quota system ( Portfolio Model ) and a remuneration-based system ( Premium model ). The assessment suggests that while the Portfolio Model and the Premium Model are both promising policies to enhance RES-H deployment, there is greater acceptance among stakeholders for the Premium Model .

Keywords: Policy instruments; renewable heating; financing renewable energy sources (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:24:y:2013:i:1-2:p:195-218

DOI: 10.1260/0958-305X.24.1-2.195

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