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www.egec.org Increasing deployment of GSHP in Europe - market, incentives, regulations - and savings Philippe Dumas European Geothermal Energy Council, Brussels Ground Source Live ! Peterborough, 7-8 June 2011

Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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Page 1: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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Increasing deployment of GSHPin Europe - market, incentives,

regulations - and savings

Philippe DumasEuropean Geothermal Energy Council, Brussels

Ground Source Live !Peterborough, 7-8 June 2011

Page 2: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – a diverse market

European Geothermal Energy Council

Map prepared by BRGM for the Geotrainet project

Climatic and geologicalconditions throughoutEurope are varying wideley

Also economic circumstances and traditional construction methods are rather different

Page 3: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – the Market

European Geothermal Energy Council

Tendency:• Heat pump sales (all types) generally rather stable• GSHP share decreasing, in particular in countries with fully developedmarket

Development of HP sales numbers in 9 countries (AT, FI, FR, DE, IT, NO, SE, CH, UK); graph EHPA (2010)

Page 4: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – the Market

European Geothermal Energy Council

Tendency:• Heat pump sales (all types) generally rather stable• GSHP share decreasing, in particular in countries with fully developedmarket

• Interest in GSHP increasing in Southern Europe(starting from lowlevel) Development of HP sales numbers in

9 countries (AT, FI, FR, DE, IT, NO, SE, CH, UK); graph EHPA (2010)

Page 5: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – the Market

European Geothermal Energy Council

Tendency:• Heat pump sales (all types) generally rather stable• GSHP share decreasing, in particular in countries with fully developedmarket

• Interest in GSHP increasing in Southern Europe(starting from lowlevel)

Groundmed:Advanced ground source heat pump systems for heating and cooling in Mediterranean climate www.groundmed.eu

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GSHP in Europe – the Market

European Geothermal Energy Council

Development of heat pump sales in Germany (after data of BWP)

0

10000

20000

30000

40000

50000

60000

70000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

num

ber o

f HP

units

sol

d

0

10

20

30

40

50

60

70

80

90

100

Air

Geothermal

% GSHP

GSHP share in 2010 under 50 % for the first time

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GSHP in Europe – the Market

European Geothermal Energy Council

Market penetration, example: new single-family houses in Germany

Share of GSHP in single-/double-family-houses in Germany(after Mands et al, 2008, and Rumohr, 2009)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Deutschland

Hessen

Similar development in other countries, e.g. Finland, Austria, Switzerland

Page 8: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – the Market

European Geothermal Energy Council

Geothermal heating capacity

0

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1000

1500

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4000

4500

Sweden

German

y

Turkey

Icelan

d

France

Switzerl

and

Italy

Norway

Austria

Hunga

ry

Poland

Denmark UK

Roman

ia

Irelan

d

Greece

Slovak

ia

Netherl

and

Sloven

iaSerb

ia

Bulgari

a

Croatia

Lithu

ania

Maced

onia

Portug

al

Bosn-H

erzgSpa

in

Albania

inst

alle

d ca

paci

ty (M

W)

shallow GSHP

others deep

deep Agri-/Aquaculture

deep Balneological

deep DH+heating

Installed heating capacity, after data from WGC 2010

Page 9: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – Market incentives

European Geothermal Energy Council

• Financial incentives: Any public policy giving a financial advantage to those who install a RES H&C system or who make use RES energy

• Direct grants, Tax reductions, reduced or zero interest rate loan, green certificates, insurance

• Non Financial: Any public policies aimed at increasing the use of RES H&C except those mentioned above

• Simplification licensing procedures• Information

Page 10: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – Market incentives

European Geothermal Energy Council

Flanking measures are crucial:• Promotion and information• R&D and demonstrationprojects

• Training and certification

• Standards and quality

• Building regulationand RES ordinances

Page 11: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – Market incentives

European Geothermal Energy Council

Financial incentives, a necessary evil?• Fossil technologies without externalities stilltoo cheap ( and receive more subsidies ! )

• Difficult to sell long term “pay-back”• Emerging markets • However, they provide results…

They lead to strong market uptake but may have unwanted effects

- so right policy decisions are crucial !

Page 12: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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Financial incentives I

European Geothermal Energy Council

Direct financial incentives Tax incentives

Investment grants Feed-inTariffs

Tax reduction VAT reduction

- • Effect on prices• Red tape

• energy output?

• control?

• indirect effect• black market ?

• VAT EU reg• Indirect effect

+ • Most common• Very efficient

• Increase RES share

• long term

• no application• “Emersione”

• simple• little effect on public finance

Examples Czech Republic, Germany, Poland, Slovakia, Ireland

UK in 2011 Italy, France France

Page 13: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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Financial incentives II

European Geothermal Energy Council

Low or zero interest rates loans White, green certificates

- • little impact• processing of requests• overhead can be high

• General measure• Complexity

+ • good flanking measure• relevant also for specific targets (large installations-R&D)

• Long term• self financed

Examples France, Poland, Germany, Portugal Sweden, ESD (France)

Page 14: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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A promising example: the UK Renewable Heat Incentive (RHI)

European Geothermal Energy Council

First phase in force since March 2011Non-domestic sector:• RHI payments to be claimed by, and paid to, the owner of the heat installation

• Payments will be made quarterly over a 20 year period• Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems

• Heat output to be metered and the support calculated from the amount of heat used for eligible purposes,multiplied by the tariff level

Page 15: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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A promising example: the UK Renewable Heat Incentive (RHI)

European Geothermal Energy Council

Domestic sector, further details to come up soon (and fully in force in 2012), with the following criteria:• a fair spread of technologies across all regions of Great Britain, including biomass, solar thermal and heat pumps (including air source heat pumps)

• a well insulated home based on its energy performance certificate

„The Coalition Government has decided that the RHI will be funded from general Government spending. The previous Government’s plans for an RHI levy to fund the scheme were considered overly complex“

Page 16: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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A warning: Incentives could also lead to unwanted results – like a huge share of electricity for heating

European Geothermal Energy CouncilFrom EURELECTRIC Policy Paper April 2011

Page 17: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – Market incentives

European Geothermal Energy Council

Recommendations• Have mid & long term perspectives: no stop-and-go schemes !!!

• One-stop-shop for project developers & customers

• Link with quality

• The key positive effects of well designed and managed financial incentive schemes are:

- Reduction of the upfront investment costs- Psychological effect: signal of the public authority to the potential users

Page 18: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – current status

European Geothermal Energy Council

All material for GSHP today readily available from manufacturers

Brine-water heat pumps

Borehole heat exchanger(BHE, right)

Material for BHEand grouting on site (below)

Austria

FranceGermany

Page 19: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – current status

European Geothermal Energy Council

Drilling equipment in various countries

Switzerland

Romania

Hungary

Germany

Sweden

Portugal

Page 20: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – current status

European Geothermal Energy Council

Specific standards and regulations exist meanwhile

AT ÖWAV Regelblatt Thermal use of the groundwater and the underground, heating and cooling 2009

CH AWP T1 Heating system with heat pumps 2007

CH SIA D 0190 Use of earth heat through foundation piles etc. 2005

CH SIA 384/6 (SN 565)

Borehole heat exchangers for heating and cooling 2009

DE DIN 8901Refrigerating systems and heat pumps - Protection of soil, ground and surface water

2002

DE VDI 4640 Blatt 1-4 Thermal use of the underground - part 1-4 2001-2010

SE Normbrunn-07 Drilling for water wells and energy 2008

New standards coming up in Spain and UK

Page 21: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – current status design

European Geothermal Energy Council

Subsurface investigation for planning: TRT-equipment in various countries

Finland

Germany

Sweden

Spain

Greece

Page 22: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – current status design

European Geothermal Energy Council

Subsurface investigation for planning: Data from Geological Surveys

Data on CD-ROM from NRW (right),Online GIS System in Sachsen(below)

Page 23: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – current status design

European Geothermal Energy Council

Widely accepted GSHP design rules and methods

Calculation with simple soft-ware (EED, below) or numerical simulation (right)

Base loadPeak cool loadPeak heat load

Year 25JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Flui

d te

mpe

ratu

re [º

C]

12

10

8

6

4

2

0

-2

-4

-6

Page 24: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – examples

European Geothermal Energy Council

Large GSHP projects

Heat pump and BHE manifold for county administration Gelnhausen(86 BHE)

Drilling in granite for educational centre

Page 25: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

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GSHP in Europe – examples

European Geothermal Energy Council

Large GSHP project:Ümraniye Meydan ShoppingCenter (Metro), Istanbul

HP

HP

HP HP

HP

HP

"water loop"

main manifold

submanifolds

Borehole Heat Exchangers

Page 26: Increasing deployment of GSHP in Europe - market ...gshp.org.uk/GroundSourceLive2011/PhillipDumasGSHP_Europe_gsl.p… · GSHP in Europe – the Market. European Geothermal Energy

www.egec.orgEuropean Geothermal Energy Council

EU-Policy – the way to the future

In 2006, a share of 49 % of the final energy consumption in EU 27 was in the form of heat.

Heat accounted for: 86 % of the final energy consumption in households, 76 % in commerce, services and agriculture, and 55 % in industry.

49 %

31 %

20 %

Heat

Electricity

Transport

suitable for geothermal supply

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EU-Policy – the way to the future

EU Policy related to Shallow Geothermal Systems

Directives:

EU Directive 2009/28/ECon the Promotion of Renewable Energy Sources

EU Directive 2010/31/ECon the Energy Performance of Buildings

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EU-Policy – the way to the future

EU Directive 2009/28/ECon the Promotion of Renewable Energy Sources

Inclusion of shallow geothermal:Art. 5.4:Aerothermal, geothermal and hydrothermal heat energy captured by heat pumps shall be taken into account for the purposes of paragraph 1(b) provided that the final energy output significantly exceeds the primary energy input required to drive the heat pumps. The quantity of heat to be considered as energy from renewable sources for the purposes of this Directive shall be calculated in accordance with the methodology laid down in Annex VII.

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EU-Policy – the way to the future

EU Directive 2009/28/ECon the Promotion of Renewable Energy Sources

Inclusion of shallow geothermal:Annex VII:Heat pumps must fulfill the criterion:

(η is the electricity production efficiency per country)

Than all energy from the ground to the system is counted:

(SPF and η have to be determined by EC / Eurostat)

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www.egec.orgEuropean Geothermal Energy Council

EU-Policy – the way to the future

EU Directive 2009/28/ECon the Promotion of Renewable Energy Sources

The implementationin the member statesis via the National Renewable Energy Action Plans (NREAPs)Alas, some are notvery ambitious, others exclude GSHP completely

Geothermal Heat in the German NREAP draft

0

100

200

300

400

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600

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800

2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year

Kto

e

deep geothermalgeothermal heat pumpsair source heat pumps

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EU-Policy – the way to the future

Geothermal heat pumps as planned in the NREAPS

UK: n 1

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www.egec.orgEuropean Geothermal Energy Council

EU-Policy – the way to the future

EU Directive 2009/28/ECon the Promotion of Renewable Energy Sources

Geothermal heat pumps as planned in the NREAPS

239,5

1155

4087,5

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2005 2010 2020

Ktoe

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www.egec.orgEuropean Geothermal Energy Council

EU-Policy – the way to the future

EU Directive 2009/28/ECon the Promotion of Renewable Energy Sources

Training and certification:Art. 14.3:Member States shall ensure that certification schemes or equivalent qualification schemes become or are available by 31 December 2012 for installers of small-scale biomass boilers and stoves, solar photovoltaic and solar thermal systems, shallow geothermal systems and heat pumps.

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www.egec.orgEuropean Geothermal Energy Council

EU-Policy – the way to the future

Training and certification:• For a sustainable market, quality of material and services is paramount

• To guarantee the necessary knowledge and skills, training and certification has to be established

• Some countries have national schemes:

Switzerland Germany Sweden

The recently completed project GEOTRAINET (supportedby IEE / EU) aims at providing harmonised material and curricula

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www.egec.orgEuropean Geothermal Energy Council

EU-Policy – the way to the future

EFGEGEC

Univ. Newcastle Univ. Lund

U.P. Valencia

GT Skills

BRGM Arsenal Research

RGS

More places for training / national contacts possible at later stage

Training and certification:• Started with a consortium from 8 countries, needs to be taken over after project end by national associations or similar

• Education board on European level to be established

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EU-Policy – the way to the future

Training and certification:Geotrainet Training ManualGeotrainet Website with E-Learning Platform:http://geotrainet.eu

Geotrainet course in Uppsala 2009

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www.egec.orgEuropean Geothermal Energy Council

European Technology Platform

The “Common Vision” of the relevant sectors is published, for the time horizon 2020-2050

Official Presentation on 5 May 2011

Available from Website:

www.rhc-platform.org

www.rhc-platform.org

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European Technology Platform

Main target are 100 % renewable energy for heating

overall scenario

www.rhc-platform.org

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www.egec.orgEuropean Geothermal Energy Council

European Technology Platform

www.rhc-platform.org

GSHP are well represented in the Common Vision

overall scenario

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www.egec.orgEuropean Geothermal Energy Council

European Technology Platform

www.rhc-platform.org

GSHP are well represented in the Common Vision

geothermalshare

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Thank you for your attention !

more information:www.egec.org