Efficiency gains in the heat supply sector are even larger. Under the Energy [R]evolution Scenario, final demand for heat supply can even be reduced (see Figure15). Compared to the Reference Scenario, consumption equivalent to 328 PJ/a is avoided through efficiency gains by 2020. As a result of energy-related renovation of the existing stock of residential buildings, as well as the introduction of low energy standards and ‘passive houses’ for new buildings, enjoyment of the same comfort and energy services will be accompanied by a much lower future energy demand.
Development of renewables in the heating and cooling supply sector raises different issues.Today in Australia, renewables provide over 17% of primary energy demand for heat supply, the main contribution being the traditional use of biomass for heating.The lack of availability of more efficient but cheap appliances is a severe structural barrier to efficiency gains. Large-scale utilisation of geothermal and solar thermal energy for heat supply is restricted to the industrial sector.
Experience shows that it is easier to implement effective support instruments in the grid-connected electricity sector than in the heat market, with its multitude of different actors. Dedicated support instruments are required to ensure a dynamic development of renewables in the heat market.
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