In Finland subsidies for heat pumps are limited to certain new types of heat pumps, and in Norway it is included as part of subsidy for a whole DH plant. In Latvia and Lithuania some degree of support for heat pumps can be obtained as part of the general RE-support schemes. Subsidy for electric boilers is almost absent, apart from Norway where electric boilers are subsidised under the same conditions as for heat pumps. Lack of sufficiently low electricity prices is mentioned specifically for the Baltic countries as a disincentive for investment in P2H. For the Nordic countries, tariffs and electricity taxes appear to be the barrier. Table 13: Framework conditions for P2H in the Nordic and Baltic countries. Framework conditions for power to heat DK ES FI LA LI NO SE Absence of PSO on electricity (when used for heat generation) Absence of grid tariffs on electricity (when used for heat generation) Absence of other levies or taxes on electricity (when used for heat generation) Presence of reduced electricity tax on electric boilers Presence of reduced electricity tax on heat pumps Absence of regulatory priority to heat from waste, RES, biomass or geothermal Presence of subsidy for heat pumps Presence of subsidy for electric boilers Mitigation of Barriers – Power-to-Heat In the case of P2H, all framework conditions that provide barriers are related to regulation. Tariffs and levies should receive special regulatory attention in the Baltic countries and Denmark, and for all countries, dynamic tariffs could be a flexibility-improving option. Similarly, it could be considered to introduce dynamic taxation, in case fiscal or other concerns are prohibiting a general reduction in electricity taxes. Regulatory priority for non-flexible heat generators happens as a result of a priority for securing use of certain technologies. In order to address the issue of regulatory priority, it is hence necessary to consider the larger system context. For Denmark, this would be the interplay between waste and P2H, where heat storages might be able to mitigate the problem on the short term, and consideration on choice of heat supply on the longer term. For Norway and Lithuania, the short term solution might be heat storages as well. As with Denmark, changing conditions in the energy system on the longer 43
WP2 DH report
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