7) Defining policy & measures

Step seven aims to underpin the strategy identified in step six with appropriate measures. For example, if the strategic goal is to increase the renovation rate by a certain percentage by 2030, step seven is about finding measures to achieve this. The working group plays a central role on H&C planning in interaction with the stakeholder group. The working group develops proposals and consults the stakeholder group. Part of this step should explicitly identify projects that have the most potential to be successfully deployed and that the municipality can actively influence. For example, the expansion of the district heating network in a particular area or the refurbishment of residential buildings in a particular neighbourhood. Measures may also include influencing and engaging with planning policy teams to explore the evidence base that would be needed to support and formally adopt appropriately-worded policies which will help to achieve the strategic aims defined in Step 6. The results of this step are therefore measures and project proposals that help to achieve the strategic goals.

Strategic H&C planning: embedding in overarching policies

Strategic H&C planning should be embedded in a policy framework. European policies provide the framework at the highest level, in particular directives that have to be transposed into national law by EU Member States (EED, RED, EPBD, etc.). Below that, national, regional and local policies set the framework. In this regard, strategic H&C planning can be understood as a local policy. An essential task of strategic H&C planning is therefore to map the policy framework for the municipality under consideration in a structured manner in order to identify the municipality’s room for manoeuvre. The following table can help with this.

Exemplary table to structure policy framework for H&C planning

While mapping the policy framework, it is particularly important to capture the local framework in detail. In other words, what framework and policy options does the municipality have to influence H&C planning? Spatial planning issues are essential here. However, these differ from country to country, region to region and municipality to municipality. Therefore, there is no blueprint of which policies and measures are effective in the context of H&C planning. For example, formal measures (compulsory connection to DH, requirements in zoning plans, etc.) can be very effective, but may have little chance of success depending on the legal situation and the willingness of stakeholders. In contrast, informal measures (information campaigns, action plans, etc.) may be adopted without strong resistance, but may have little impact. The crux of the matter is therefore to find policies and measures that can be legally implemented, are supported by stakeholders and contribute significantly to the climate goals.

H&C planning: a new policy instrument in many countries with unanswered questions

In the Ff55 proposal for the revision of the EED, the EC suggests that “Member States encourage regional and local authorities to develop local heating and cooling plans at least in municipalities with a total population of more than 50,000 inhabitants” (EU Commission 2021). However, heat planning has so far only been institutionally anchored in Denmark over a longer period of time. There, in 1976, the goal was formulated to cover two thirds of the total heat consumption through “collective heat supply” by 2002. This was followed in 1979 by the Heat Supply Act, which aims to “promote the best economic use of energy for heating buildings and supplying hot water, and to reduce the country’s dependence on mineral oil” (Sovacool & Martiskainen, 2020 based on Mortensen and Overgaard, 1992). In this context, municipalities were obliged to prepare heat plans in which they set priorities for heat supply in certain areas (zoning) and determine locations for future heat supply units and district heating networks. Since in Denmark municipalities make the final decision on heat planning and development (cf. Danish Energy Agency, 2017) , they have been able to control the development of district heating. Thus, Sovacool & Martiskainen (2020) summarise that from ”1976 to 2011, Denmark blended small-scale decentralised community control with national standards and policies to promote district heating so it reached 80% of household needs.“ Johansen and Werner (2022) conclude that a ” cooperative mind-set, welfare state values and the notions of energy efficiency-, availability-, independency- and sustainability were all pivotal for the evolution of the district heating networks throughout Denmark. Other unique features of the Danish district heating sector include large-scale collective heat planning, the mandatory connection, the non-profit principle, the same approximate price for customers irrespective of heat density, and the relatively high average price of district heating.“

Against the background of the Danish example, the question arises which role heat planning should, can or will play in other countries and regions (formal vs. informational significance). Furthermore, which policy framework it is subject to, as this essentially determines which measures can be carried out.

Sources: 

Economidou, M., Todeschi, V., Bertoldi, P., D'Agostino, D., Zangheri, P., & Castellazzi, L. (2020). Review of 50 years of EU energy efficiency policies for buildings. Energy and Buildings, 225, 110322.

Johansen, K., & Werner, S. (2022). Something is sustainable in the state of Denmark: A review of the Danish district heating sector. Renewable and Sustainable Energy Reviews, 158, 112117.

Kranzl, L., Hummel, M., Müller, A., & Steinbach, J. (2013). Renewable heating: Perspectives and the impact of policy instruments. Energy Policy, 59, 44-58.

Sovacool, B. K., & Martiskainen, M. (2020). Hot transformations: Governing rapid and deep household heating transitions in China, Denmark, Finland and the United Kingdom. Energy Policy, 139, 111330.