Support Measures for DHC

Support Measures for DHC

Country

France



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#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

 

“Grenelle I” Law (#2009-967 dated Aug. 03rd 2009)

+ support scheme 

Law + support scheme 

ADEME 

Existing 

 

Quotations from the measure

 

“VAT is collected with a rate reduced to 5,5% regarding: (...) The subscriptions concerning (...) thermal energy (…)delivered through district heating systems, as well as heat deliveries when the heat is produced from at least 50% of biomass, geothermal energy, waste and recovery energies.”

 

The Purpose of the measure

 

The purpose of the measure is to grant the same VAT rate as the other heating sources (gas and electricity for instance), in order to put a stop to the pre-existing competition distortions, and to give an incentive to DHC systems to increase the share of R&R energy sources in their fuel mix.

 

 

 

Eligibility Criteria

 

 

 

DHCS must reach, at least, a 50% share of R&R energies in their fuels mix. A ministerial circular gives a precise list of those energies and some information on how to calculate the R&E ratio.

 

Impact of Measure

 

The measure is designed to have a positive impact on giving DHC a competitive position in comparison with the other heating solutions (especially electricity, gas, coal and oil individual solutions) and on giving incentive for developing R&R energies on DHCS.

 

 

 

 

 

Effectiveness of the measure

 

 

French statistics show that the R&R energy rate in DH has greatly increased between 2007 and 2008 (3 points). Credit can certainly be partly given to the VAT measure.

 


Renewable heat fund

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

“Grenelle I” Law (#2009-967 dated Aug. 03rd 2009)

+ support scheme

Law + support scheme

ADEME

Existing

Quotations from the measure

 

“The Grenelle [works] emphasize the important role DHC have in the R&R Energy development. DHC allow, on one hand, an optimum way to recover the energetic value of biomass, geothermal energy, as well as recovered energy; on the other hand, to the expression of a city’s will to catch hold of the issues energy related from production to consumption.

The heat fund makes provision for specific subsidies for DH systems. These specific subsidies, described below, apply to the distribution function of the DHS. It adds up on top of the subsidies herein set for the R&R energy production function of the DHS (biomass, geothermal energy ...)”

 

The Purpose of the measure

 

 

The Purpose of the measure

The purpose of the measure (which could also apply to DCS) is to help DHC to incorporate R&R energy sources in their fuel mix, in order to help reach the very ambitious goals that are assigned to DHC (50% average of R&RE in the fuel mix and 4 to 6 million households equivalents by 2020).

 

Eligibility Criteria

 

The principle criteria are:

- DHCS must have already reached a 50% share of R&R energies in their mix, or establish a formal scheme to reach this ratio.

- The project (creation or extension) must comply with city-planning and bring forward efficiency qualities.

- The operation must be of a minimum size (200 meters and 25 tep/year of R&R heat production)

- The DHCS must bring forward a thermal density

 

 

 

 

 

 

Impact of Measure

The measure is designed to have a positive impact on giving DHC a competitive position in comparison with the other heating solutions (especially electricity, gas, coal and oil individual solutions) and on giving incentive for developing R&R energies on DHCS.

 

Effectiveness of the measure

 

The effectiveness of the measure is yet to be assessed, since it has been implemented less than a year. Nonetheless, it is said that some 200 km of DH network have yet benefited from the heat fund.

 

 


Feasibility studies

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

Decree dated Dec. 18th 2007

Decree

Government

Existing

Grenelle I” Law (#2009-967 dated Aug. 03rd 2009)

Law

Parliament

Existing

Quotations from the measure

 

- Decree: “prior to the request for a building permit (…), the project owner :

o Chooses a system among those defined (...)

o Conducts a technical and economical feasibility study comparing the chosen system to the following variants, combined if needed: solar thermal; solar photovoltaic; wood or biomass heating systems; wind systems; connection to a DHC system; geothermal heat pumps

- Grenelle: “Every city-panning action or operation (...) under impact study must be subject to a feasibility study about the R&R energy development potential in the area, in particular about the opportunity of a creation or extension to a DHCS using R&R energy sources”

 

The Purpose of the measure

 

The purpose of the measure is to have local authorities/project owners make the effort of analysing various heating possibilities before choosing the relevant one.

 

Eligibility Criteria

 

Not applying

 

Impact of Measure

The measure is designed to have a positive impact on actions and decisions prior to choosing a type of heat production that will bound the stakeholders for years.

 

 

Effectiveness of the measure

 

The effectiveness of the measure is yet to be assessed.

 

 

 

OTHER IMPORTANT INFLUENCE

Country

FRANCE

 

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

Sub-station of a DHS using 50% or more R&RE in its fuel mix being regarded as a R&R heat in situ production unit

Law

Parliament

Existing (Grenelle I)

Purchase obligation for CHP electricity. Law n°2000-108 dated Feb. 10th 2000

Law

Parliament

Existing

Quotations from the measure

- Grenelle: “R&R energy production from a DHS will be taken into account in all construction and city-planning related regulation, in particular in the thermal regulation and in energy efficiency labels, as if it were in situ R&R energy production. The sub-station of a DHS using 50% or more of R&R energies is regarded as a R&R production unit.”

- Purchase obligation: “(...) EDF [Electricity of France] and (...) the non state distributors (...) are compelled, if requested by the electricity producers, to conclude a contract for the purchase of the electricity produced on the national territory, by: waste valorisation plants (...) or plants designed to supply DHS (...); plants using renewable energies (...) or which implement efficient techniques in terms of energy efficiency, such as cogeneration”.

The Purpose of the measure

- Grenelle: Put an end to the discriminations against DHC productions created by the simple fact that regulation often refers to the R&R equipments placed in the buildings.

- Purchase obligation: allow CHP, which is mobilized especially for demands peaks, to be economically balanced.

Impact of Measure

- Grenelle: The impact expected is to gain equal treatment between R&R heat productions, whether implemented inside or outside the building to which the heat is supplied.

- Purchase obligation: This measure has proven indispensable to CHP durability.

Effectiveness of the measure

- Grenelle: Not yet assessed.

- Purchase obligation: See above.

Other NON-legal important influence

#

Name and reference of measure

Type of measure

Responsible organ

Existing or planned?

National statistics

-

SNCU

Existing

Quotations from the measure

No quotation

The Purpose of the measure

Give to all stakeholders, every year, a clear and rigorous overall picture of the sector.

Impact of Measure

The impact is very positive, because producing figures rigorously collected and presented participates in convincing the policy makers that DHC is a key system for a sustainable energy management.

Effectiveness of the measure

The measure has played a great role, at least do we believe, in all the measures recently taken in favour of DHC.