Promoting renewable energy sources for heating and cooling in EU-27 countries

In addition to public policies aimed at improving the energy efficiency of buildings, EU authorities have also promoted the use of Renewable Energy Sources for heating and cooling uses (RES H&C). This paper analyses the main policy measures implemented in EU-27 countries up to 2009: i.e. subsidies, tax incentives, financial support and feed-in tariffs. Twenty-three Member States (MSs) have developed some of these policy measures.The most widespread measure is the subsidy (22 MSs have implemented these) because from a political point of view, subsidies provide a straightforward approach to promote the use of RES H&C. Secondly, tax incentives have been used for reducing investment costs and making renewable energy profitable. Thirdly, financial incentives and feed-in tariffs have been used sparingly. While financial incentives might be used more extensively for promoting RES H&C if they are accompanied by other policy measures, feed-in tariffs are not likely to be implemented significantly in the future because this measure is not designed for household heat producers.

► Main EU policies to reduce energy consumption are focused on buildings’ efficiency. ► Alternative incentives to promote the use of RES H&C in EU-27 are now studied. ► Subsidies are the most widespread measure. ► Tax incentives are used for reducing investment costs and making RES profitable. ► Financial incentives and feed-in tariffs have been used sparingly.