Introduction
Methodology
System boundaries, scope of the study and selected scenarios
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IEE-project ZEBRA 2020: “ambitious policy scenarios” for 15 selected countries1 (Bointner et al. 2016). In the project ZEBRA 2020, a current policy and an ambitious scenario were developed. Compared to the current policy, the ambitious scenario is based on more intensive policies, which lead to higher renovation rates and depths, more efficient new building construction, a higher share of renewable energy and corresponding CO2 and energy savings. The detailed policy settings have been discussed with national stakeholders and policy makers. In particular, building codes have been strengthened in 2017 for new buildings and building refurbishment. Public budgets for subsidies have been increased and obligations to install RES-H systems have been implemented in a more stringent way in the ambitious scenario compared to the current policy scenario. However, the detailed settings are country specific, based on the stakeholder consultation. For more detailed documentation, see Bointner et al. (2016). For the analysis in this paper, we selected only the “ambitious policy” scenarios.
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IEE-project ENTRANZE: “ambitious scenario, high energy prices”, for 8 countries2 (Kranzl et al. 2014). Although there are country-specific deviations and exemptions, the general logic for the scenarios derived in ENTRANZE is as follows: scenario 1 refers to a moderate ambitious scenario according to current national and EU legislation; scenarios 2 and 3 are more ambitious, innovative and stringent policy packages. The decisions on policy packages to be modelled were made in policy group meetings, which resulted in country-specific deviations. The timeframe of the policy scenarios is from 2008 to 2030. More details are described in Kranzl et al. (2014) and in ENTRANZE - Data tool (n.d.). For the analysis in this paper, we selected the scenarios with the highest energy savings and highest share of RES-H in each analysed country.
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Mapping and analyses of the current and future (2020–2030) heating/cooling fuel deployment (fossil/renewables): unpublished sensitivities with higher support for RES-H/C, 28 European Countries3. In this project, the authors developed a current policy scenario, considering targets and measures concerning RES-H/C and energy efficiency, which were agreed upon or already implemented at the latest by the end of 2015. Within this scenario, all implemented instruments are assumed to be in place by 2030, including current financial support programs, without significant changes throughout the years. The timeframe of the scenarios is 2030.
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Energy scenarios for Austria 2015. Heating demand of small scale consumers. A project in the frame of the reporting obligations for the monitoring mechanism (Müller and Kranzl 2015). In this project, three scenarios were developed: The scenario “with existing measures” takes into account the currently implemented policy framework. The scenario “with additional measures” considers additionally measures which are under preparation and expected to be in place very soon. The scenario “with additional measures—plus” assumes a high policy intensity towards energy efficiency improvement and RES-H/C implementation. These policy measures were discussed and agreed upon with stakeholders and policy makers. The scenarios have been developed until 2050. For the analysis in this paper, we took into account the scenario “with additional measures—plus” and is labelled as “MonMech”.
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Energy scenarios for Austria 2017. Heating demand of small scale consumers. A project in the frame of the energy scenarios 2050 and reporting obligations for the monitoring mechanism (Müller et al. 2017). Corresponding to the above-mentioned scenarios for Austria, two scenarios were developed: a “with existing measures” (WAM) and a “with additional measures—plus” (WAM-plus) scenario. However, in contrast to the scenarios from the year 2015, the overall objective of WAM-plus was to achieve consistency with Paris targets. In this paper, this scenario is labelled as “EnSzen”.
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Long-term scenarios and strategies for the expansion of renewable energy in Germany considering sustainable development and regional aspects (Pfluger et al. 2017)
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This project provided two scenarios: A reference scenario, assuming that relevant measures of the “Energiewende” will no longer be in place; and, a basis-scenario, assuming further enhancement of Energiewende in all relevant sectors, including the building stock. We selected the latter, more ambitious “basis-scenario” for this paper.
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Scenario runs within the Briskee project4 including all EU28 member states (see Fries et al. 2017). Only the residential sector was analysed. Within this project, a current policy run and a scenario with intensified policy measures for thermal efficiency and renewable heating systems were calculated. In an additional scenario, lower discount rates for low income households were introduced, which are estimated to lead to more investments in renewables and higher efficiency standards.
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H2020 project progrRESsHEAT: A current policy scenario and an integrated advanced policy scenario were developed for six target countries. The integrated advanced policy package includes a rising CO2 price level, according to the EU reference scenario (EC 2016). Additionally, a strong political commitment to the increase in prices is given, which let investors consider the CO2 price 10 years ahead for their investment and ensures secure conditions. Building codes in this scenario include raising obligatory shares of renewable supply for new buildings from 2020 on as well as for major renovations beginning in 2030. On the other hand, higher subsidies for building renovation and renewable heating and district heating are available, compared to the current policy.
The model Invert/EE-Lab
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Economic incentives change the economic effectiveness of different options and thus lead to other investment decisions.
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Regulatory instruments (e.g. building codes or renewable heat obligations) restrict the technological options that decision makers have; limited compliance with these measures can be taken into account.
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Information, advice, etc.: Agents (mainly building owners) have different levels of information. Lack of information may lead to neglecting of innovative technologies in the decision-making process or to a lack of awareness regarding subsidies or other support policies. Information campaigns and advice can increase this level of information.
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R&D can push technological progress. The progress in terms of efficiency increase or cost reduction of technologies can be implemented in Invert/EE-Lab.
Indicators to assess whether a scenario is in line with the Paris COP21 agreement
Indicator description | Indicator definition | Argument for including this indicator in the assessment |
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1. CO2 emission reduction assuming constant emission factors for district heating and electricity; emission factors are country specific and refer to the base year (2012) of the scenarios. |
\( {a}_{1,t}=1-\frac{\sum \limits_i{\mathrm{FED}}_{t,i}\times {\mathrm{emi}}_{t0,i}}{\sum \limits_i{\mathrm{FED}}_{t0,i}\times {\mathrm{emi}}_{t0,i}} \)
| The first and most obvious indicator is the achieved reduction of GHG-emissions. However, there needs to be an approach to deal with GHG-emission factors for electricity and district heating. For this analysis, we have decided to strongly focus on the building stock as such. Thus, we decided not to distort results by assuming decreasing emission factors for these two sectors. This also would have to be distinguished between countries, making it difficult to identify key impact factors and drivers for decarbonisation. |
2. CO2 emission reduction excluding electricity and district heating. |
\( {\displaystyle \begin{array}{l}{a}_{2,t}=1-\frac{\sum \limits_i^I{\mathrm{FED}}_{t,i}\times {\mathrm{emi}}_{t0,i}}{\sum \limits_i^I{\mathrm{FED}}_{t0,i}\times {\mathrm{emi}}_{t0,i}}\\ {}I=\left\{i\in \left. EC\right|i\notin \left\{\mathrm{dh},\mathrm{ele}\right\}\right\}\end{array}} \)
| This second indicator focuses on direct emissions in the building stock, not considering the current structure and possible changes in the electricity and district heating generation mix. |
3. Increase district heating from base year in percentage points (pp) |
\( {a}_{3,t}=\frac{{\mathrm{FED}}_{t, dh}}{\sum \limits_i{\mathrm{FED}}_{t,i}}-\frac{{\mathrm{FED}}_{t, dh}}{\sum \limits_i{\mathrm{FED}}_{t,i}} \)
| Indicator 2 may lead to distortion, in case that district heating and electricity would strongly increase, since the decarbonisation effort is just shifted to another sector. In order to take this into consideration, we also need to know about the increasing share of electricity and district heating to cover the building stock’s energy demand. 1. |
4. Increase electricity from base year (pp) |
\( {a}_{4,t}=\frac{{\mathrm{FED}}_{t, ele}}{\sum \limits_i{\mathrm{FED}}_{t,i}}-\frac{{\mathrm{FED}}_{t, ele}}{\sum \limits_i{\mathrm{FED}}_{t,i}} \)
| |
5. Increase biomass from base year (pp) |
\( {a}_{5,t}=\frac{{\mathrm{FED}}_{t, bio}}{\sum \limits_i{\mathrm{FED}}_{t,i}}-\frac{{\mathrm{FED}}_{t, bio}}{\sum \limits_i{\mathrm{FED}}_{t,i}} \)
| The use of biomass as a decarbonisation option is of relevance, since biomass is expected to play an increasingly crucial role in sectors where carbon energy carriers are more difficult to substitute (e.g. aviation, industry). See e.g. the analyses in Forsell et al. (2016); Pfluger et al. (2017); Schipfer et al. (2017) or Kalt et al. (2016). |
6. Energy savings compared to the base year (%) |
\( {a}_{6,t}=1-\frac{\sum \limits_i{\mathrm{FED}}_{t,i}}{\sum \limits_i{\mathrm{FED}}_{t0,i}} \)
| This indicator accounts for the share of final energy demand reduced from the base year until 2030 and/or 2050. It should be emphasised that this is not delivered energy, but rather final energy demanda in the sense of the renewable energy directive, i.e. including solar thermal and ambient heat.b |
7. Installation of fossil-based heating systems |
\( {a}_{7,t}=\frac{P_{t, gas}+{P}_{t, oil}+{P}_{t, coal}}{\sum \limits_i{P}_{t,i}} \)
| Due to the long lifetime of heating systems, a high share of the heating systems installed, e.g. in 2030, will still be in place in 2050. Additionally, markets typically do not change very quickly. For example, if the share of fossil heating systems in the installation of all new heating systems in the year 2030 is still extremely high, it would need strong regulatory policy instruments, as well as a complete change of the manufacturer structure to reduce this market share quickly. Moreover, stranded investments could occur in case that heating system replacement would be required before the lifetime has ended. Some scenarios are not available until 2050. So, in order represent the future decarbonisation perspective, we selected this indicator. Thus, this indicator allows an assessment also for those scenarios which have been modelled only until 2030. |
Results
Country | Project | a1, t: CO2 reduction assuming constant emission factors | a2, t: CO2 reduction excl. electricity and district heating | a3, t: increase district heating from base year (pp) | a4, t: increase electricity from base year (pp) | a5, t: increase biomass from base year (pp) | a6, t: share of installation of fossil-based heating systems | a7, t: energy savings (reduction of final energy demand from base year) | |||||||
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2030 (%) | 2050 (%) | 2030 (%) | 2050 (%) | 2030 (%) | 2050 (%) | 2030 (%) | 2050 (%) | 2030 (%) | 2050 (%) | 2030 (%) | 2050 (%) | 2030 (%) | 2050 (%) | ||
FR | ENTRANZE | 59 | 64 | 5 | − 4 | 7 | 39 | 32 | |||||||
AT | ENTRANZE | 37 | 74 | 13 | − 1 | 6 |
10
| 28 | |||||||
BG | ENTRANZE | 47 | 54 | − 1 | − 9 | 4 | 21 | 23 | |||||||
CZ | ENTRANZE | 40 | 57 | 1 | 1 | 9 | 25 | 28 | |||||||
ES | ENTRANZE | 50 | 60 | 2 | − 3 | 7 | 26 | 26 | |||||||
FI | ENTRANZE | 26 | 49 | 0 | − 3 | 1 |
4
| 13 | |||||||
IT | ENTRANZE | 40 | 42 | 1 | 1 | 5 | 66 | 29 | |||||||
RO | ENTRANZE | 45 | 47 | − 7 | 1 | 9 | 18 | 29 | |||||||
FR | Mapping | 36 | 37 | 2 | − 2 | 8 | 40 | 9 | |||||||
AT | Mapping | 21 | 57 | 13 | − 4 | 1 | 31 | 19 | |||||||
BE | Mapping | 39 | 42 | 5 | − 2 | 10 | 76 | 23 | |||||||
BG | Mapping | 44 | 51 | − 3 | − 6 | 12 | 21 | 10 | |||||||
CH | Mapping | 11 | 14 | 1 | 0 | − 10 | 70 | 2 | |||||||
CY | Mapping | 17 | 62 | 0 | 5 | 12 | 18 | − 15 | |||||||
CZ | Mapping | 37 | 52 | 2 | − 2 | 22 | 27 | 6 | |||||||
DE | Mapping | 39 | 38 | 1 | − 1 | 0 | 84 | 33 | |||||||
EE | Mapping | 54 | 57 | − 2 | − 6 | 13 | 6 | 22 | |||||||
ES | Mapping | 57 | 59 | 0 | − 5 | 36 | 15 | 4 | |||||||
FI | Mapping | 23 | 48 | 4 | − 9 | 5 | 7 | 2 | |||||||
GB | Mapping | 37 | 40 | 9 | − 2 | 3 | 75 | 30 | |||||||
GR | Mapping | 55 | 59 | 1 | 0 | 15 | 42 | 35 | |||||||
HR | Mapping | 39 | 63 | 10 | − 1 | 19 | 15 | 8 | |||||||
HU | Mapping | 39 | 47 | 4 | − 1 | 14 | 48 | 23 | |||||||
IE | Mapping | 29 | 27 | 0 | − 2 | 3% | 92 | 19 | |||||||
IT | Mapping | 39 | 37 | 0 | − 1 | 9 | 57 | 23 | |||||||
LT | Mapping | 38 | 49 | 4 | − 1 | − 2 | 18 | 34 | |||||||
LU | Mapping | 25 | 27 | 4 | − 2 | 8 | 78 | 9 | |||||||
LV | Mapping | 28 | 18 | 1 | − 2 | − 7 | 51 | 29 | |||||||
MT | Mapping | 44 | 52 | 2 | − 13 | 17 | 18 | 24 | |||||||
NL | Mapping | 30 | 35 | 5 | 0 | 4 | 83 | 24 | |||||||
NO | Mapping | 32 | 41 | 0 | 0 | − 2 | 1 | 13 | |||||||
PL | Mapping | 26 | 18 | − 6 | − 1 | 3 | 73 | 11 | |||||||
PT | Mapping | 30 | 23 | 1 | − 5 | 1 | 67 | 14 | |||||||
RO | Mapping | 39 | 41 | − 9 | 1 | 16 | 7 | 12 | |||||||
SI | Mapping | 48 | 63 | 7 | − 4 | 18 | 6 | 14 | |||||||
SK | Mapping | 35 | 36 | − 1 | − 1 | 8 | 71 | 24 | |||||||
DE | Long-term scenarios | 40 | 71 | 45 |
85
| 6 | 11 | − 1 | 4 | − 1 | 0 | 58 | 34 | 29 | 56 |
FR | ZEBRA | 38 | 65 | 42 | 75 | 5 | 10 | − 2 | − 1 | 2 | − 1 | 38 | 38 | 17 | 31 |
BE | ZEBRA | 47 | 72 | 53 | 80 | 10 | 15 | − 1 | − 1 | 10 | 12 | 66 | 62 | 33 | 53 |
DE | ZEBRA | 50 | 70 | 51 | 78 | 1 | 2 | 0 | 4 | 1 | 1 | 76 | 71 | 43 | 59 |
DK | ZEBRA | 34 | 53 | 59 | 80 | 3 | 0 | − 2 | − 3 | 8 | 11 | 25 | 16 | 17 | 30 |
ES | ZEBRA | 46 | 78 | 51 |
86
| 0 | 0 | 0 | − 2 | 3 | 4 | 25 | 38 | 28 | 43 |
GB | ZEBRA | 45 | 65 | 49 | 79 | 9 | 24 | − 2 | − 2 | 4 | 6 | 68 | 66 | 34 | 46 |
IT | ZEBRA | 45 | 67 | 44 | 71 | 0 | 1 | − 1 | 1 | 4 | 4 | 54 | 43 | 30 | 48 |
LT | ZEBRA | 40 | 68 | 54 |
95
| 5 | 6 | 0 | 0 | − 3 | 4 | 7 | 3 | 36 | 55 |
LU | ZEBRA | 35 | 55 | 38 |
62
| 3 | 9 | − 2 | − 2 | 11 | 15 | 75 | 73 | 19 | 34 |
NL | ZEBRA | 36 | 57 | 41 | 67 | 5 | 14 | 0 | 2 | 5 | 7 | 79 | 62 | 30 | 48 |
NO | ZEBRA | 32 | 67 | 41 | 74 | 1 | − 1 | − 3 | − 8 | 2 | 1 | 3 | 6 | 21 | 46 |
PL | ZEBRA | 33 | 60 | 27 |
56
| − 6 | − 15 | 0 | 1 | 0 | 3 | 65 | 64 | 22 | 46 |
RO | ZEBRA | 33 | 60 | 29 | 77 | − 7 | − 12 | 1 | 5 | 4 | 4 | 14 | 11 | 24 | 49 |
SE | ZEBRA | 20 | 35 | 29 | 76 | 4 | 5 | − 5 | − 6 | 3 | 0 | 3 | 2 | 22 | 36 |
SK | ZEBRA | 39 | 72 | 43 | 82 | 2 | 0 | 0 | 5 | 6 | 12 | 62 | 46 | 30 | 60 |
FR | Briskee | 40 | 41 | 2 | − 3 | 9 | 39 | 13 | |||||||
AT | Briskee | 17 | 26 | 7 | − 3 | 0 | 32 | 20 | |||||||
BE | Briskee | 45 | 48 | 6 | − 1 | 8 | 73 | 33 | |||||||
CZ | Briskee | 38 | 56 | 2 | − 1 | 20 | 34 | 12 | |||||||
DE | Briskee | 47 | 51 | 5 | − 1 | 6 | 60 | 35 | |||||||
DK | Briskee | 33 | 54 | 6 | − 3 | 5 | 18 | 19 | |||||||
ES | Briskee | 45 | 49 | 0 | − 2 | 8 | 32 | 16 | |||||||
GB | Briskee | 43 | 48 | 10 | − 2 | 6 | 62 | 31 | |||||||
IT | Briskee | 30 | 25 | 0 | − 2 | 2 | 78 | 17 | |||||||
LT | Briskee | 36 | 46 | − 3 | 0 | 3 | 13 | 26 | |||||||
LU | Briskee | 25 | 26 | 4 | − 2 | 2 | 85 | 14 | |||||||
NL | Briskee | 30 | 32 | 4 | − 1 | 4 | 81 | 24 | |||||||
PL | Briskee | 38 | 30 | − 7 | − 1 | 4 | 59 | 23 | |||||||
RO | Briskee | 36 | 27 | − 10 | 0 | 12 | 12 | 14 | |||||||
SE | Briskee | 21 | 41 | 2 | − 8 | 8 | 6 | 16 | |||||||
SK | Briskee | 40 | 45 | − 1 | 0 | 6 | 70 | 32 | |||||||
AT | MonMech | 31 | 65 | 32 | 75 | 4 | 6 | − 4 | − 2 | 1 | − 4 | 34 | 19 | 52 | |
AT | Enszen | 38 | 70 | 48 |
96
| 6 | 6 | − 2 | 2 | 0 | 0 | 17 | 5 | 26 | 50 |
CZ | Progressh | 26 | 49 | 53 |
86
| 4 | 3 | 1 | 3 | 14 | 18 | 28 | 14 | 6 | 27 |
DE | Progressh | 48 | 62 | 59 |
94
| 5 | 5 | 3 | 23 | 6 | 3 | 38 | 18 | 36 | 56 |
DK | Progressh | 33 | 52 | 54 | 82 | 5 | 6 | − 3 | − 5 | 6 | 10 | 15 | 19 | 19 | 32 |
RO | Progressh | 29 | 63 | 36 | 81 | − 1 | 0 | 0 | 0 | 6 | 13 | 11 | 8 | 16 | 43 |
Share of EU-28 emissions of selected sector covered (In brackets: covered share excl. DH and electr.) (%) | Emission reduction compared to 2012 emissions | ||||
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2030 (%) | 2030 excl. DH and electr. (%) | 2050 (%) | 2050 excl. DH and electr. (%) | ||
(In brackets: emission reduction of covered countries compared to mapping scenario) | |||||
Mapping | 97 (99) | 36 (100) | 38 (100) | ||
ZEBRA | 90 (90) | 42 (117) | 46 (123) | 65 | 75 |
ENTRANZE | 35 (33) | 47 (123) | 55 (131) | ||
Progressheat | 29 (29) | 44 (124) | 57 (148) | 61 | 92 |
Briskee | 90 (90) | 40 (112) | 42 (112) | ||
Long-term scenarios | 22 (24) | 40 (104) | 45 (117) | 71 | 85 |
MonMech | 2 (2) | 31 (146) | 32 (56) | 65 | 75 |
Enszen | 2 (2) | 38 (179) | 48 (59) | 70 | 96 |
Scenario | Specific design elements of the policy mix determining the level of ambition | Institutional settings leading to policy assumptions in the model | Yeara |
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ES—ZEBRA | Renewable heat obligations: starting with moderate obligations only for new buildings, they are increasingly also applied in cases of major renovation and heating system replacement; mandatory efficiency improvement with strong compliance, achieved partly by proper advice and economic support. | Discussions in a small group of policy makers. Involved policy makers intended to illustrate potential impacts of ambitious policies in contrast to current policies. Focus of the project was on nZEB standards. | Late 2015–early 2016 |
LT—ZEBRA | Focus on economic support of building renovation and efficient new building construction. | Consultation of selected policy makers in bilateral meetings. Policy makers emphasised the economic rationality of building owners requiring economic support. Focus of the project was on nZEB standards. | Late 2015-early 2016 |
DE—long-term scenarios | Slightly increased stringency of building codes, stricter mandatory instruments for RES-H; from 2035 also including heating system replacement, continued and partly increased economic support (subsidies), backed by increased awareness raising campaigns; | Numerous meetings and feedback loops from stakeholders in the involved ministries and beyond. Intention of the scenario was the analysis of related “Energiewende” policies. | 2015 |
CZ—progressh. | Intensified renewable heat obligation, from 2030 also for building renovation and heating system replacement; increased budgets for subsidies, in particular for RES-H, favourable financing conditions for DH; CO2-taxes(*), Awareness and information campaigns regarding the instruments mentioned above. | Discussions in a small group of policy makers. Involved policy makers intended to illustrate potential impacts of ambitious policies contrasted to the current scheme. | Mid 2016-mid 2017 |
DE—progressh. | Slightly increased stringency of building codes, stricter mandatory instruments for RES-H; from 2035 also including heating system replacement, continued and partly increased economic support (subsidies); CO2-taxes(*), favourable financing conditions for district heating, Awareness and information campaigns regarding the instruments mentioned above. | Discussions in a small group of policy makers. Involved policy makers intended to illustrate potential impacts of related “Energiewende” policies. | Mid 2016-mid 2017 |
AT—EnSzen | Mandatory renovation of inefficient buildings, not renovated within the last 30 years; mandatory replacement of coal and oil based heating technologies older than 27 years within 10 years after 2025. Ban of coal and oil in new buildings after 2022. CO2-taxes(**), slightly rising budgets for subsidies, awareness and information campaigns regarding the instruments mentioned above. | Numerous meetings and feedback loops from stakeholders in the involved ministries and beyond. Intention of the scenario was the development of a “Paris consistent” transition pathway of the energy system. However, stakeholders took into account limitations regarding the speed of policy implementation. | Mid 2016-mid 2017 |