Rabia Ferroukhi, Director, KPFC, IRENA

Paolo Frankl, Head, Renewable Energy Division, IEA

Rana Adib, Executive Director, REN21

Fossil fuels still dominate
Share of energy sources in total final energy consumption of heating and cooling, 2019

• Heating and cooling:almost half of global energy
demand• Demand for renewable
heating and cooling barelygrowing• Urgent need to transitionWidespread potential benefits

Existing barriers limit uptake

Policy deficit and stagnation
Countries with policies for renewable heating and cooling, 2009-19

Renewable-based electrificationGlobal share of electricity in the buildings sector byservice, 2019

Overcoming highupfront cost ofappliances (HP)

Addressing highoperationalcosts

Capital grants,subsidies,loans, rebates

Electric
heatingtariffs, energy
efficiency inbuilding codes

Increasing
consumerconfidence
Qualitystandards,
labels, MEPS

Addressing
network
constraints
Tariffication
schemes (ToUtariffs), digitalmonitoring &control for
DR, conducive
market design

Ex:• China’s Clean Winter Heating inNorthern Regions pilot program• UK’s Renewable Heat Incentive• Illinois’ ToU tariffs (US)Renewable gasesBiogas production by region and by feedstock and end use, 2017

Closing thegap withfossil fuels
Recognitionof avoided
CH4emissionsfrom biogas/biomethane

Renewable gas production cost
range, 2018

RE gasinjection
subsidies

Stimulating
investment
by lowering
the risk
Clear longterm
frameworkfor the gas
industry
Targets
Capitalgrants, loan
guarantees,
soft loans

Harnessing
the potentialof existinggas infrastructure“Guaranteeof origin”
registries

Deployingrenewable
gases inindustry
Industrial
clusters forhydrogenprojects

Blending
demonstrat
ion projects• Denmark’s target : 100% of gas injected into its grid
renewable by 2035; France’s target : 10% of renewable gas
consumption by 2030
• California’s low carbon fuel standard• Port of Rotterdam’s hydrogen hub project

Sustainable use of biomass
Bioenergy used for heating, 2018

Developing
reliable supply
chainsAddressing
cost andmarket barriers

Ensuring
sustainabilityof biomass
supplyEnsuring
quality ofinstallations
and fuels

Consistent &long-term
policyapproach incoordination
with allstakeholders ;clear planning& regulatory
framework

Capital grants,
tax incentives,loans, FiT,inclusion inRPS,
investment
funds

Clear
sustainability
guidelines &biomass
certification
schemes

Strictstandards,
certification ofsystems &installers

Ex:• Italy’s « Conto termico » (grants) & France’s « Fonds Chaleur » (subsidies)• Loan support for biomass CHP from Brazil’s development bank
• India’s grant scheme for industrial-scale biomass co-generation• Sustainability criteria in the EU RED II Directive

Direct use of solar thermal heat
Solar thermal heat use by country,
2017 (PJ)

Improving
investors
confidence

Overcoming
upfront costs
Loans,
grants,subsidies,tax
incentives
Drivingdemandthroughregulation

Source: IEA-SHC, 2020.

SWHmandates,
REmandatesin buildingcodesTechnologyspecific targets

Rising consumers
awareness andconfidence in available
options and benefits
Publiccampaigns,
informationsharing activities

Improving therange ofpossible
applications
RD&D

Certification
schemes•••

China’s SWH deployment was supported by a mix oftargets, subsidies and mandates
Combinaison of grants, tax exemptions andpreferential loans in Tunisia (PROSOL), Rwanda(SolaRwanda) & Lebanon
Solar thermal District Heating in Denmark developed
thanks to high fossil fuel taxes

Direct use of geothermal heat
Geothermal heat use by sector, 2020(%)

De-risking
geothermal
exploration
Data collection
and sharing ongeothermal
resources

Improving
investors
confidenceRoad maps andaction plans

Dedicated loan
guarantees andgrants

Overcoming highupfront costs

Risk insurancefunds

Tax incentives,loans

Ex: The Netherlands• Geothermal Action Plan (2011) &Acceleration Plan for Geothermal
Energy in Horticulture (2014)• SDE+ feed-in-premium forrenewable heat
• Public geological database• Post-damage guarantee scheme(financed by an insurance fee forparticipants)• Collaborative venture programme
between government andindustry for information sharing

Provide universal access toclean, affordable, reliable energy
Ecosystem needs for supporting livelihoods•Access to finance•Cost of capital•Ownership models•Efficient technology•Caters to specific needs•Last mile supply chain•Awareness of solutions•Training•Knowledge transfer•Stable input sources•Access to new or existing
markets to sell products

Source: SELCO Foundation, 2018

•Cross-cutting plans•Awareness in financial inst
•Derisking tools

Raise ambition
Renewable energy targets in the NDCs, 2020

Develop an integrated long term
plan and institutional coordination
Operating lifetime of heating and cooling infrastructure, systems and appliancesIntersectoral coordination
EnergyAgriculture/Forestry

Transport

Level the playing field
Energy sector subsidies by source excluding climate
and health costs, 2017

Jurisdictions with selected climate change policies, early 2020

Ensure a just inclusive transition
Human resources required for the manufacturing and installation ofSWHs for 10 000 single-family households, by occupation

The broad dimension of renewable energy
policy making

Thank you

Rabia Ferroukhi, Director, KPFC, IRENA

Paolo Frankl, Head, Renewable Energy Division, IEA

Rana Adib, Executive Director, REN21