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WP2 DH report

4.2.2. Absence of Grid Tariffs on Electricity (When Used for Heat Generation) Transmission, distribution and other tariffs applied when electricity is used for P2H in the DH system. Operation: Grid tariffs increase marginal operation cost and hence decrease the competitive advantage. Investment: The operational barrier reduces incentive to invest. 4.2.3. Absence of Other Levies or Taxes on Electricity (When Used for Heat 17 Generation) Electricity use is levied in various ways and to various degrees, but often with an energy/electricity tax or similar. Operation: Levies increase marginal operation cost and hence decreases competitive advantage. Investment: The operational barrier reduces incentive to invest. 4.2.4. Presence of Reduced Electricity Tax on Electric Boilers In case electricity taxation is present, some degree of tax exemption or reduction can be applied for electric boilers. Operation: If taxation on electricity is reduced for electric boilers in the DH system, it decreases marginal operation cost. Investment: The operational driver increases incentive to invest. 4.2.5. Presence of Reduced Electricity Tax on Heat Pumps In case electricity taxation is present, some degree of tax exemption or reduction can be applied for heat pumps. Operation: If taxation on electricity is reduced for heat-pumps in the DH system, it decreases marginal operation cost. Investment: The operational driver increases incentive to invest. 4.2.6. Absence of Regulatory Priority to Heat from Waste, RES, Biomass or Geothermal Priority in terms of supplying heat to the system is given to waste incineration, heat produced by biomass, geothermal or other RES. Operation: Special priorities may reduce the profitability of the P2H units, by displacing their production with other heat sources. Investment: The operational barrier reduces incentive to invest.


WP2 DH report
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