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Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 1c: Energy efficiency and low-carbon heating in Germany


Citation Frontier Economics Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 1c: Energy efficiency and low-carbon heating in Germany, ETI, 2015. https://doi.org/10.5286/UKERC.EDC.000522.
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Author(s) Frontier Economics
Project partner(s) Frontier Economics Limited
Publisher ETI
DOI https://doi.org/10.5286/UKERC.EDC.000522
Download SSH_SS1401_5.pdf document type
Associated Project(s) ETI-SS1401: Smart Systems and Heat (SSH) Programme - Value Management and Delivery
Associated Dataset(s) No associated datasets
Abstract This project studied how value can be delivered across a smart energy value chain - in the context of the UK. It built a clear understanding of how smart energy systems can deliver combined consumer value alongside commercial value for market participants - producers, suppliers, distributors. The analysis will help to make the commercial deployment of smart energy systems more likely. This £600,000 project was delivered by Frontier Economics, a leading economic consultancy.

The final report has 11 annexes. This is Annex 1c: Energy efficiency and low-carbon heating in Germany
  • Germany is a world leader in energy efficiency, including low-carbon heating.Germanyis one of thefew countries in the world whose rate of primary as well as end user energy consumption has been falling for years despite increased economic output.
  • Uptake of low-carbon heating interventions isstrong in Germany.
  • Germany also has a pioneering role for smart home solutions
  • Policy measures and instruments are a key driverof the comparably high uptake of energy efficient and low carbon systems in Germany. Building regulations mandate adoption of lower carbon heating solutions and of thermal insulation in newly built properties in Germany. Various other policy measures also support voluntary uptake, such as funding as set out in the National Energy Efficiency Action Plan.
  • Policy in Germany also supports certain heating technologies by “indirect subsidies”.
  • Other drivers of uptake are high (residential) energy and fuel prices, replacement of old buildings and demographic changes followed by urban restructuring.
  • The promotion of cogeneration (combined heat and power) is another package of measures to increaseenergy efficiency.
We summarise the key policy instruments provided by government that promoted high uptake of low carbon heating solutions and supported retrofit and insulation.

This document was prepared at the time to contribute to ETI internal thinking and planning only.