Support schemes for geothermal heat pump technology: What key successful factors?

Abstract

Support schemes for geothermal and other renewable energy sources are defined as instruments that compensate for market failures and unfair competition. They are also intended to favour the deployment of a given technology by creating a secure investment environment catalysing an initial round of investment and thereby allowing the technology to progress along its learning curve. For geothermal heat pump technology, support schemes also serve the purpose of increasing awareness and boosting consumer confidence in the technology.
Geothermal heat pump technology has hitherto been supported mainly through fiscal incentives and investment grants, in certain cases accompanied with or substituted with zero interest loans. Operational aid similar to a feed-in tariff system is now beginning to be explored in some Member States. But the competitiveness of geothermal heat pumps technology must be measured against broader market conditions, including subsidies for competing technologies, carbon pricing, electricity tariffs, etc.
This presentation will discuss some results of the IEE-project FROnT (Fair Renewable Heating and Cooling Options and Trade), notably on the key successful factors for support schemes.