Decarbonize district heating

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Developing a ‘flagship’ to decarbonize the district heating sector Key elements for the flagship analysis What is a flagship?

Key transformative investment opportunities that are priorities for climate action in sector Flagship analysis is accompanied by a set of recommendations for financing and reforms to implement then Example: “add XX thousand solar rooftops by 2025” or “help XX cities decarbonize their district heating & cooling networks by XX”

• Assessment of the progress that can be achieved by the Recovery and Resilience Plan (RRP) against the respective investment needs baseline, discussion of the gaps and how they can be closed through modifications in the RRP and/or the National Energy and Climate Plans, provision of a critical review considering the 2030 and 2050 targets/ relevant strategies • Assessment of contribution for GHG emission reduction

• Review of cost-effectiveness and investment needs (in order to achieve 2030 climate targets) • Reforms: Identify the existing regulatory and non-regulatory barriers to investment in flagship technologies and identify key enabling reforms • Finance: Identifying the role of public and private sector finance to enable implementation of flagships. Opportunities from RRP and EU Green Deal: what's missing and what can be covered by national government or promotional banks

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Flagship overview: Decarbonizing district heating Decarbonization of district heating and sector coupling through lowering the temperature in the system and use of low-carbon/non-combustion technologies. Illustratively, by installing heat pumps to the wastewater treatment plants in four cities in Czechia, heat consumption of 170,000 flats can be decarbonised.

Rationale behind the flagship target • District heating supplies heat for about 40% of households in Czechia and is mainly reliant on coal and natural gas • Making use of an existing waste heat source is an innovative way to contribute to the decarbonisation of the heating sector

Investment need • Costs of the illustrative case (heat pumps at waste-water treatment plant) would be roughly €37 mln (CZK 925 mln).

CO2 emission savings • Estimated emission savings is 70,000 t CO2 per year by 2030.

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Flagship overview: Investment needs By installing heat pumps to the wastewater treatment plants in four cities in Czechia, heat consumption of 170,000 flats can be decarbonized.

Total investment needs to transform the district heating sector • If business is continued as usual, it would cost between €3.9 – 4.3 bn (CZK 98 – 107 bn) by 2030 to phase out coal completely from the district heating sector • The costs of the full decarbonisation of the district heating sector estimated at €2.2 bn by 2030. This would include replacing coal with waste heat, large heat pumps, CHP + boilers, and energy efficiency measures.

Role of public vs. private sources in the district heating sector • Distric heating sources are mostly funded through public sources

What is currently committed?

• RRP - €66 mln (CZK 1.66 bn) for the modernisation of the heat distribution network • Modernisation Fund – €1.5 bn (CZK 39 bn) for the modernisation of district heating • Just Transition Fund - €1.493 bn (CZK 38 bn) for Czechia, but specific to three “coal” regions 6

Overview: Flagship implementation

What is needed to implement the flagship ?

• Reform 1: Improve Strategic Planning to reach the full decarbonisation of the district heating sysetm in Czechia • Reform 2: Develop Risk Mitigation Framework – supported by a long-term strategic and

legislative framework and with better data • Reform 3: Increase Awareness – providing customers with more data (i.e. on the energy bill) and better information on the share of renewable energy in their district heating sources

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District Heating – Background information

heating oil 0.1% other solid fuels 2.8%

Traditional district heating (DH) market with older generations of systems1 The share of district heating on total heat supply for households is about 40% 2,3 The district heating system is reliant on coal and natural gas; other sources (biomass, waste) only play minor role

Commerce and services 24%

other liquid fuels 0.3% Industry 27%

other gas 6.5%

biomass 12.4% biogas 2.5%

waste heat 5.0% Energy 3%

Households 43%

natural gas 19.0%

Agriculture 0.5% Construction, agriculture and other 3% Image Source: author’s own figure

nuclear 0.5%

hard coal 9.2% brown coal 41.7%

In time, the share of coal

heat pump 0.1%

share of natural gas Image Source: author’s own figure

• 43% of DH supply goes to households, 27% to industry, and 24% to commerce and services (2020)4 • 55% of (district) heat supply is coal, 27% natural gas2,4 • Heat consumption by final consumers amounted to approximately 77.5 PJ in 2020, which was about 2 PJ (3%) less than in 2019 with most decrease in industry and energy sectors (presumably due to the COVID-19 pandemic)2,4. In 2021, a new strategy of shift from coal until 2030 is in preparation by the Ministry of Industry and Trade, with a dominant role of natural gas.

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District Heating – Background information Share of total heat demand in residential sector satisfied by District heating1

Good starting point: The share of district heating in CZ (in residential sector) is among the highest in the EU, which is a good starting point for heating decarbonisation.

Existing DHS can enable effective inclusion of decentralized sources (e.g., heat pumps, solar panels) and flexibility in heat (electricity) production.

Image source: Ramboll, 2020

But the district heating systems in Czechia need to be modernised to a significant extent. They are largely supply-driven and reliant on fossil fuels.2

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District Heating – Background information

District heating supply in the Czechia by source, 2000-19

Coal accounted for 58% of the district heating supply in 2019.

Image Source: IEA, 2021

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District Heating – Background information Volume of coal in heat supply (PJ), by region1

Share of heat supply from coal in the total heat supply from plants by region1

[PJ] 100%

14 hard coal

brown coal

90%

12

80%

10

70% 60%

8

50% 6

40%

4

30% 20%

2

10%

0

0% PHA

JHM

LBK

VYS

HKK

KVK

OLK

PLK

ZLK

JHČ

PAK

MSK

ULK

STČ

PHA

JHM

LBK

VYS

HKK

MSK

PLK

KVK

JHČ

STČ

Adapted from: ERU, 2020

OLK

ZLK

ULK

PAK

Adapted from: ERU, 2020

There is a regional aspect to coal production & implications for a Just Transition.

Reliance on coal is a national issue.

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District Heating – Background information

Switching to natural gas is currently the main solution – but this strategy threatens to lock-in carbon emissions.

→ Previous scenarios have calculated with the price of 35 EUR/t CO2 in 20302,3 → New studies estimates the prices to go up to 130 EUR/t CO2 in 20302,3 → This further enhances the role of EU ETS and carbon prices in the DH transformation → High prices of emission allowances threaten the sustainability of heat suppliers (threat of bankruptcies) and push up heat prices (socio-economic impacts).

60 50

Price (EUR/t)

85% of district heating in CZ will phase out coal use by 20301

The price of CO2 has been the major driver for the transformation in the EU ETS sector (which includes many DH installations)1

Daily carbon prices4

40 30 20 10 0

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District Heating - Overview Decarbonisation and transformation of the district heating sector as an integral part of the transformation of the energy/building sectors1

Energy sector transformation

District heating sector transformation

Energy efficiency and RES in buildings

Energy Union targets Increased deployment of District Heating and Cooling systems is an inherent part of and allows for faster and cost-effective decarbonisation of the energy system, together with energy savings and renewable individual technologies2.

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Policy context – National Energy and Climate Plans (NECP) NECP2 goals for district heating - summary

The Renewable Energy Directive II1 sets an indicative target to increase renewables in in the heating and cooling sector by 1.3 percentage points per year and to promote renewables in district heating.

→ Priority to keep the effective DH systems → Cover at least 60% of heat supply from heat supply systems by highefficiency cogeneration → Diversify the fuel base (but transition role of natural gas) → Heating sources should be more involved in the provision of support services at the distribution and transmission system levels → Heat pumps and electric boilers and heat accumulation to contribute to management of intermittent RES → Flagship idea not touched upon in NECP

Next steps → Ministry of Industry and Trade3 preparing its heating and cooling strategy for district heating, though it will be mainly reliant on natural gas → Special programme for DH sector transformation in Modernization Fund 14

Policy context – Recovery and Resilience Plan (RRP) District Heating in the RRP1 → Part of Component 2.3 Transition to cleaner energy sources (next to support to PV installations) → Aim is to address the challenge of low-carbon transition, particularly through the replacement of steam by hot water in heat distribution networks, leading to savings in primary energy sources. → Includes two relevant reforms and one investment → Reform 1: Preparation of an assessment of decarbonisation of district heating in Czechia (due 30 June 2022) → Reform 2: Preparation of an assessment of the trajectories of sustainable use of bioenergy and supply of biomass → Investment: Achieving primary energy savings resulting from the modernization of heat distribution RRP – energy efficiency and reconstruction of distribution networks

→ Expected impacts → Primary energy savings of 245 TJ to be achieved through modernisation of the distribution network. → In 2021 - 2030, a change of fuel base to use other less emission-intensive fuels (biomass, waste or natural gas) to be implemented or initiated. The remainder of coal powered sources to switch to small-scale boilers and small-scale decentralised CHP sources. Electric boilers "may also play a role in the future".

→ Budget allocation for the modernisation of the heat distribution network: €66 mln (CZK 1.66 bn) which is about 1% of RRP allocation 15

Policy context – Recovery and Resilience Plan (RRP) District Heating in the RRP1 → Reform 1: Preparation of an assessment of decarbonisation of district heating in Czechia

Includes main policies and measures leading to the transformation of the heating sector: 1) Defining the basic strategy; 2) Setting up new systems of operational support after 2020 (in this respect, an amendment to the relevant law has already been prepared and is now in the legislative process);

3) Setting up new systems of investment subsidies after 2020; 4) Other financial and economic forms of support; 5) Preparing a new model of regulation of the heat sector; 6) Protecting efficient heat supply systems; and 7) Introducing new requirements under EU legislation (in particular, verification of the correctness of cost allocation, adjustment of metering rules, and guarantees of origin for RES heat).

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Policy context – NECP and RRP Evaluation of the NECP1 by European Commission (assessment by the author in italics) → The heating potential of waste is not taken into consideration. → Waste is considered in NECP as part of biogas strategy and as part of energy from waste recovery. However, it is not considered to its full potential. → The key policies and measures in the heating and cooling sector are green bonuses for biomass and geothermal energy. → The current version of the act on RES assumes compensation of emission allowances for district heating. → Detailed support measures for bioenergy in heating only, so the policies and measures mentioned are considered insufficient as to the target. → "District heating is widespread in Czechia, but no comprehensive plan to decarbonise DH has been developed.

Nor is it listed among the plan’s priorities – in contrast, for example, to securing a long-term supply of coal."1 → The MoIT prepares the strategy for district heating, but it is not published yet and mostly reliant on natural gas.

Commission evaluation of the RRP2 → Reform responds well to the recommendations in the European Semester Country Reports → Helps reaching the targets of RES and Energy efficiency while contributing to "lowering the level of coal combustion for heat and electricity production by increasing the efficiency of district heating distribution and reducing greenhouse gas emissions and pollutants"

Flagship reflection in the NECP and RRP → The RRP envisages "basic strategy for stabilisation of the district heating", which is based on "change of fuel base to use other less emission-intensive fuels (biomass, waste or natural gas)" (CZ RRP, Component 2.3) → Low-carbon, non-combustion technologies are little explored

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District Heating – Background Information on Governance

→ The distribution network and supply are a form of natural monopolies → Ownership of energy generating plants – large scale usually owned by large energy companies. Smaller companies (up to 50 MW) mostly owned by municipalities, or private entities → Organized in Association of District Heating Companies and Association for combined production of electricity and heat (COGEN Czech) → Obligation to connect based on Energy Act – if the source of heat comes from RES and it does not substantially

increase the heat price

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District Heating - Investment needs Investment needs estimates for decarbonization of DH sector → Investment needs according to study by Czech Technical University in Prague1 → “Business as Usual” scenario: €3.92 – 4.28bn (CZK 98 – 107 bn) by 2030 in nominal values to phase out coal1 → Investment need is twice as high compared to the investment that was tracked in recent years (2014 - 2019)1

→ Investment needs according to a study by Ember2 → Replacing coal in the DH sector by waste heat (24%), large heat pumps (33%) and CHP + boilers (32%) + energy efficiency (11%). → Expected uptake of heat pumps: + 500 MWt by 2030 → + 1.2 TWh electricity consumption → Replacing coal CHP with heat pumps in Czechia would cost €1.35 bn (of €2.2 bn total for the phase out of coal in district heating as estimated by the study2)

Image source: Ember2

→ Would increase the current European HP “fleet” by 33% → The study only presents a demonstration model though – regional validation and overall feasibility of the solutions needed

→ Further investment barriers → Time difference between the energy efficiency measures (renovation rates) and the need to decarbonize the DH systems. → Investment needs should compare energy efficiency measures with the costs of energy supply.

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District Heating - Investment barriers and opportunities → Strategic planning → Unclear how to develop the current portfolio to reach the RE target set by RED II (+ loopholes in the directive to keep the status quo) → Modernisation of the DHS focus mostly on transformation from coal to other fuels without long term decarbonisation strategy, thus, with insufficient ambition → carbon lock-in1 → RES development in DH mainly relies on biomass as a fuel source1

→ Energy efficiency in buildings → A key prerequisite to deployment of RE in DHS (low-temperature DHS) → Low level of coordination of renovation & DH should be interconnected → Expected heat demand reduction impacts the techno-economic parameters of DHS2,4

→ Cost effectiveness of the solutions – price signals4 → Prices of emission allowances vs. persisting low competitive advantage of renewable fuels → High upfront costs of the new technologies → Unfair competition with individual fossil-based heating systems or electric cooling systems.3 No carbon tax versus burden of emission allowances for systems over 20 MW.

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District Heating - Investment barriers and opportunities → Sunk costs of the previous period → Of €1.32 bn (CZK 33 bn) invested in DH systems in CZ from 2014 – 2019, two-thirds went to solid fossil fuel-based systems1, primary focus on implementation of regulation on conventional emissions reduction

→ Lack of knowledge and risk management compared to fossil fuels → Data availability – insufficient knowledge, experience, and awareness about the best available technologies

→ Technology availability – financing of natural gas as an unsustainable fuel → Lengthy administrative procedures2

→ Definition of efficient district heating and cooling (framework measures under ‘Fit for 55’ package) → Loophole makes it possible for 100% fossil fuel systems to be qualified as “efficient” indefinitely into the future3

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District Heating – Rationale behind the flagship Decarbonisation of district heating and sector coupling through lowering the temperature in the DH system and use of low-carbon/non-combustion technologies1,2 By installing heat pumps to the wastewater treatment plants in four cities in Czechia, heat consumption of 170,000 flats could be covered leading to roughly 70,000 t CO2 emission savings per year by 2030.

→ Limited sustainability of the current pathway of the district heating decarbonisation → The current DH transformation relies mostly on natural gas. While this brings immediate GHG emissions savings (by about 50%), it does not lead to climate neutrality. → The flagship therefore draws attention to other/full decarbonisation pathways in the sector. → Decarbonisation of the heating sector → Decreasing dependence on coal and related GHG emissions → Avoiding and preventing the fossil-fuel lock-in effect → Investment needs: Costs of the illustrative case study (heat pumps at waste-water treatment plants) would be roughly €37 mln (CZK 925 mln). The costs of the full decarbonisation of the district heating sector estimated by3 €2.2 bn (CZK 55 bn) by 2030. However, infrastructure costs are not included in this estimate.

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District Heating – Rationale behind the flagship Decarbonisation of district heating and sector coupling through lowering the temperature in the system and use of low-carbon/non-combustion technologies1,2 By installing heat pumps to the wastewater treatment plants in four cities in Czechia, heat consumption of 170,000 flats could be covered.

2025-2035 will be a crucial period in the transformation of European heating systems → The transformation of the district heating sector is a complex task with no silver bullet, characterised by differentiated solutions according to the individual conditions in particular DHS, implemented by multiple organisations → Mix of highly efficient cogeneration and direct electrification using RES (solar collectors, heat pumps, PV,

electric boilers). → CHP systems can also be used for energy storage (power-to-heat technology), where with large systems having significant accumulation possibility, CHP systems can efficiently use surplus electricity from intermittent sources (wind and solar) to generate and store heat using large heat pumps. → The DH systems generally have some capacity to store heat either in their own distribution systems or in specially designed heat storage tanks.

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District Heating Flagship

"4th generation district heating (4GDH) systems are based on

renewable energy sources, heat transmission takes place by using smart thermal grid and the system as a whole is a part of the smart energy system."1, adapted from 2

Image Source: Lund et al., 20143

low-temperature networks and

Note: 1G: First generation district heating; 2G: Second generation district heating; 3G: Third generation district heating; 4G: Fourth generation district heating. CHP: Combined heat and power

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District Heating Flagship

Image Source: author’s own

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Implementation: Financing instruments and reforms REFORM I: Support the development of national, regional and local district heating strategy and plans →

Mandatory development of municipal heating planning1 (31.12.2025 as a feasible date linked to the update of NECP)

→

Stress the preference to renewable/low-carbon options and use the potential of investment cycle

→

Strategic planning should be an inherent part of the update of the NECP and LTRS

→

Financial sources – see also section on Financing

REFORM II: Risk mitigation framework for small/large projects →

Financing – direct support, lower the cost of capital (transparent, stable and predictable conditions)

→

Data – promoting socio-economic calculations and assessments of district energy1

→

Technical assistance and “one-stop shop” solutions2

REFORM III: Awareness raising campaign

→ Cross-connection to energy efficiency in buildings →

Phase out of subsidies to fossil fuel boilers in individual

heating →

Make sure buildings are prepared for the use of lowtemperature district heating supply

→

The LTRS needs to address the DH-RES development and strategic planning

→ Definition of efficient district heating and cooling (framework measures under Fit for 55) →

Loophole makes it currently possible for 100% fossil fuel systems to be qualified as “efficient” indefinitely into the future2

→ Sustainable heat demand vs. flexibility of the services →

Direct link to the Grid flagship

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Reform 1: Strategic planning - overview Main steps to be taken in strategic planning2

DATA is CRUCIAL2,3 For planning, it is crucial to have detailed knowledge about → Heat demands

Coordinated infrastructure planning involving local authorities can lead to important economic savings and avoid inefficiencies1

→ The status of the building stock → The availability of heat sources

© IRENA

→ The performance of existing district heating systems

In Czechia, the main aim of the DH planning should not be primarily the development of new heating and cooling structures, but maintenance and decarbonisation of the existing DH network.

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Reform 1: Strategic planning - overview → EED Article 14 requirement1 – comprehensive assessment of the potential for the application of high-efficiency cogeneration and efficient district heating and cooling – updated in 2020

→ Mandatory municipal heating planning → Case example of Denmark2 → The municipalities are responsible for preparing and updating municipal heat plans and approving heat projects. → When changing the DH unit or network, the project proposal must be submitted to the municipal council including socio-economic and environmental analyses and must abide to certain rules, such as choice of fuel, etc. → Case example of Baden-Wuerttenberg (Germany)3,4 → Cities with >20,000 inhabitants to develop a plan for CO2-neutral heat supply by 2050 (together with building stock data requirements, etc.). → Steps: heat consumption data gathering (incl. databases from chimney sweeps, utilities, etc.) → assessment of the EE measures in buildings and the local options for reheating (e.g. industry excess heat, WWTP, solar, etc.) → city heatmap → heating strategy to 2050 (by 2023) → Connected with financial support to develop the plans and technical assistance (guidebooks, toolboxes, etc.)

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Reform 1: Strategic planning - city examples →

Addressing the risk of potential administrative overburden if starting from scratch

→

HotMaps Guide, HotMaps Toolbox

→

Handbook for Assessment of Heating and Cooling

→

Integrating low-temperature renewables in district energy systems: Guidelines for policy makers

→

Make use of the results of relevant projects, such as Upgrade DH and Thermos

Stakeholder engagement →

Stakeholder involvement to initiate the decarbonisation of the heating sector

→

May be conflicting interests between the key stakeholders (typically the heating utility and the municipality*) 1 - the municipality as the main driver and initiator of the change and facilitator (see Case of Prague) (though the policy cycle can be a challenge)

→

Benefits and opportunities of the transition are crucial to engage the stakeholders (including business case, enhancing the ESG profile and compliance with sustainable investment criteria, stable energy supply, and others)1

Financing →

Assuming 60+ cities, the costs could be roughly estimated at €2.4+ mln (CZK 60+ mln) + 10% administration and support

→

Strategic planning could be supported through a line under a Modernisation Fund, alternatively as a special devoted call under the EFEKT programme (so far calls for Energy management plans of municipalities and Territorial energy policies), possibly the RRP, Component 2.5.3 ”Support for pre-project preparation, awareness, education, training and information in the field of energy saving and reduction of emissions of greenhouse gases” and other air pollutants could be used. →

See also slide on Financing using the EFEKT programme

* The municipality is often the (co)owner or shareholder of the facility.

Supporting tools for strategic planning (examples)

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Reform 2: Risk mitigation framework → Risk mitigation through long-term strategic and legislative framework → Clear target setting of RES share in heating and cooling in the key strategic documents (NECP, State Energy Policy, LTRS) → Clear strategy for renovation of buildings → Clear strategy in development of electricity sector (electricity production, availability in year bands etc.)

→ Legislative framework - transparent transposition of EU directives, e.g., on energy communities → Levelling of economic conditions of sources within and outside EU ETS

→ Risk mitigation through better data → Promoting socio-economic calculations and assessments of district energy1, e.g., evaluating the impact of various options of DHS development, including their termination, on consumers → As part (first step) of the strategic assessment and planning → Can be supported through technical assistance (EFEKT programme, Technical Support Instrument)

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Reform 2: Risk mitigation framework → Risk sharing through financing facilities → Direct support, lower the cost of capital and thus mitigate the capital intensity of the decarbonisation strategies (see Financing) → Additionally, financial investment support for innovative and sustainable technologies (R&D support) might have a dampening effect on costs as well as on the volume risk – Programme Theta of the Technology Agency of the Czech Republic is a suitable instrument → Planning and investment security through an obligation to utilize DH infrastructure, no “opt-out” → Standardization of DH parameters1 to reduce risk and facilitate access to cheaper loans (possibly from EU programs) → Could be connected with municipal DH plans (Reform 1)

→ Risk mitigation through technical assistance → Standards for impact assessment, potential sites assessment, one-stop shop design2

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Reform 3: Awareness raising campaign → Clear information about carbon footprint and prices to customers → Following the RED II (2018/2001/EU, Art. 24.1): information on the energy performance and the share of renewable energy in their district heating and cooling systems is provided to final consumers in an easily accessible manner, such as on the suppliers' websites, on annual bills or upon request → Provide easy access to reliable information as an important factor for consumer engagement in the energy transition. “Energy mix information must be accurate, certified and carefully monitored to avoid greenwashing.”2 → Ensure that final energy consumers are kept informed and use this requirement to its full potential → Information on the bill on the decile of heat prices compared to other options/national price and additional information on the share of RES in district heating →

According to nudging theory1, the use of social norms when emphasizing what “most people do” is an effective tool to inform people of what desirable behaviours others are doing. E.g.: show consumers what “class” of heating system they are using compared to their neighbours.

→ Work with public opinion and general awareness → Part of the information campaigns (see also Buildings Reform 3) → Promote the benefits of decreasing local pollution and other potential environmental benefits 32

Implementation: Financing instruments and reforms District Heating - Financing options I → Modernisation Fund1 → Funds from EU ETS, total (est.) ~€6 bn (~CZK 150 bn) → Modernisation of District heating, ~€ 1.5 bn (CZK 39 bn), 16% of allocation → For reconstruction or replacement of a heat source with a change of fuel base to RES, energy recovery from waste, natural gas, electricity (electric boiler), waste heat

→ Prioritisation to renewable energy

→ Recovery and Resilience Fund2 → €65.2 mln (CZK 1.66 bn) / 1 % of RRP allocation in 2021 – 2026 → For upgrade of the distribution networks – i.e., accompanying and facilitating the decarbonisation

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Implementation: Financing instruments and reforms District Heating - Financing options II → Innovation Fund1 → Financed from EU ETS - from the auctioning of 450 million allowances from 2020 to 2030 – therefore, €20 bn expected for 2020 – 2030 (depending on the price of CO2 and the "Fit for 55" update) → Support of flagship projects – could be highly suitable to pilot decarbonisation projects in district heating → Up to 60% of additional capital and operational costs to be covered

→ Just Transition Fund/Mechanism2 → €1.493 bn in JTF for Czechia, but specific to three “coal” regions → According to Art. 8 (2) of the Regulation 2021/1056 establishing the Just Transition Fund3, DH investment possible, provided the “heat production installations are supplied exclusively by renewable energy sources” → The projects on installations under EU ETS must be explicitly part of the Territorial Just Transition Plan, must lead to a substantial GHG emission reduction substantially below relevant benchmarks and be necessary for protection of significant number of jobs (Art. 11 (2)) → Clean energy as one of the priorities in all regions → The priority areas to be funded will be subject to Territorial Just Transition Plan, to be finalised in Autumn 2021

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Implementation: Financing instruments and reforms District Heating - Financing options III → EFEKT Programme →

→

The EFEKT programme can support strategic planning (similarly to the calls for Energy management plans of municipalities and Territorial energy policies)possibly the RRP, component 2.5.3 ”Support for pre-project preparation, awareness, education, training and information in the field of energy saving and reduction of emissions of greenhouse gases“ and other air pollutants could be used.

Using up full potential of R&D programmes →

E.g., LIFE Programme, Topic ID: LIFE-2021-CET-COOLING2 Facing the increase in cooling demand of buildings in the coming years - can be used to assess the heating/cooling needs and provide data

→

E.g., HORIZON Programme, Topic ID: HORIZON-CL5-2021-D3-02-052 Integrating and combining energy systems to a cost-optimised and flexible energy system of systems – could be used to assess the potential of CHP plants

→

The ActionHeat Project3 will identify success factors in heating & cooling plans and support 120+ municipalities in strategic heating & cooling plans. Results TBD.

→ Technical Support Instrument4 →

Managed by the Commission's Directorate-General for Structural Reform Support (DG REFORM)

→

Member State can request tailor-made technical expertise to design and implement reforms. Support is demand-driven and does not require cofinancing from Member States.

→

Budget: €864 mln (CZK 21.6 bn) for the period 2021-2027

→

Open to public bodies, including regional and local governments → can be suitable to assistance in developing the heating plans.

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District Heating - Case Study Prague1 Utilisation of low-potential heat from waste-water treatment plant Background → Energy centre to be built near the wastewater treatment plant → System of heat pumps (water-water) of total installed capacity of 100 - 150 MW → To cover heating and cooling needs of the new residential areas nearby → Could cover heat demand of up to half of current residential DH needs in Prague and reduce GHG emissions by 196,000 t CO2/year by 2030 Investment

→ €0.3 bn (CZK 8 bn) of which 45% expected to be financed by subsidy (Modernisation Fund, Innovation Fund) & the rest by commercial loans Governance - stakeholders → Municipality as a facilitator of the negotiations among the stakeholders and e.g., changing the zoning plan

→ Owner of the distribution network

Decarbonisation of district heating in Prague Energy from waste Low-potential heat from WWTP

High-efficient cogeneration using natural gas Energy efficiency in distribution networks

→ Investor not yet clear in the case study As described in the Prague Climate Plan 2030 36

District heating - Case Study Linz1 Background → Study of transforming the DH system from the provider’s point of view → 4 scenarios: realistic portfolio options until 2030 based on local conditions – CO2 emissions, share of RES heat, and levelized costs of heat

Key conclusions → Heat storage is a no-regret option – beneficial in all scenarios → The renewable energy/heat pump/waste heat and biomass is shown to be the most resilient to future development of energy and CO2 prices

→ The decisions for heat supply scenarios must take into account both: 1) being able to make use of different market and price settings and 2) meeting the tightening decarbonisation targets

Image source: Büchele et al. 2020

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District Heating - Case Study Bierutow1 Background → Bierutów is a Polish town (4,800 inhabitants) with an existing coal-based district heating system. → Plan in the demo site demonstrates the low-carbon transition - replacing coal with renewable energy-based district heating and to demonstrate the economic and environmental impacts of the new system. → Important for residents, industry, and commerce to maintain the levels of energy costs.

→ Current heat generation units at the demo site include 2 coal boilers with output of 1 MW. → Part of the WEDISTRICT project (2019-2023)

Technologies planned → Biomass heat generation unit with addition of PV installation

→ Air-source heat pump (300 kW) + thermo-storage for domestic hot water. → Intelligent energy management system

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District Heating – Helsinki Energy Challenge1 Background → The city’s goal is to become carbon neutral by 2035, but half of the city’s heat is produced by coal

→ This global €1 mln challenge tried to find potential solutions to how the city can decarbonise its heating with using as little biomass as possible → A similar competition could draw attention and work to Prague or other Czech cities to develop feasible solutions for the DH sector

Results → 252 teams from 35 countries submitted ideas for the Helsinki Energy Challenge → 10 finalist teams moved forward with the top 4 ideas being: → Solar thermal fields, thermal energy storages, and district heating grid optimization taking advantage of the sea with heat pumps → An energy transition management model based on clean heating auctions

→ Using novel energy storage and AI technology to store energy and dispatch it when needed → Plug sea heat pumps directly into the existing district heating system

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District Heating flagship - Conclusions → The flagship goes beyond the main aims of the NECP and RRP in district heating (focusing mainly on the switch to natural gas, biomass, and energy from waste), but is in line with other studies on decarbonisation of the sector1,2 → The flagships focuses not only on phase-out of coal, but on decreasing the role of natural gas and broadening the services of the heating sector, which will be needed for the decarbonisation of the sector

→ The flagship addresses the need to decarbonise the district heating sector in Czechia, avoid carbon lock-in in natural gas, and enhance decentralisation of the sector and sector coupling → It does so by addressing the lack of strategic planning at regional and municipal level, strengthening the technical capacity, risk mitigation, and awareness raising

→ The total investment needs for decarbonisation of the district heating amount to €4 bn (CZK 100 bn) (with reliance on natural gas)2 or €2.2 bn (CZK 55 bn) when estimating only phase out of coal1. → The GHG emission reduction potential is estimated at the level of whole power and heat sector at 87% emission savings compared to business-as-usual by 20301.

→ Suggested reforms and actions needed include: → Reform 1: Strategic planning – making full use of the requirements of the EED and enhance mandatory heating plans for municipalities (over 15 – 20,000 inhabitants) → Reform 2: Risk mitigation through strategic framework (Reform I), better data, and financial support → Reform 3: Awareness raising on benefits of low-carbon heating

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Additional Slides District Heating Flagship

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District Heating – Additional Information District heating definition(s) ∙ District heating, or heat networks, is a heat distributing system. Heat is generated in one (or several) central (or decentralised) location(s) and transported through a network of insulated transmission and distribution pipes and auxiliary equipment. This system meets the requirements of space heating and domestic hot water (DHW) for residential and tertiary buildings. (IRENA 2021) ∙ ‘district heating’ or ‘district cooling’ means the distribution of thermal energy in the form of steam, hot water or chilled liquids, from a central source of production through a network to multiple buildings or sites, for the use of space or process heating or cooling (EPBD)

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District Heating – Additional Information District heating fuel mix and cogeneration share in 2018

Image source: Tilia under ENER/C1/2018-496

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District Heating – Additional Information

Map of regional heat balances – Excess heat vs. heat demand in the Czechia

Image source: KeepWarmEurope, 2020

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District Heating – Additional Information

Image source: Mathiesen et al., 2019

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District Heating – Additional Information

Image source: Mathiesen et al., 2019

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District Heating – Additional Information Case example: Poland → high share of inefficient DH and building stock

Image Source: Mathiesen et al. 2019

Similar takeaways for Czechia: Even with high share of DH there is a room for cost-effective growth.

Key is the phase out of fossil base, modernisation, lowering the temperature in the network and EE in buildings 47

District Heating – Additional Information Comparison of Financial data for different DHC supply technologies

Image source: KeepWarmEurope, 2020

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District Heating – Suitable instruments / reforms Reform 1: Strategic planning

There is a synergic effect between energy savings in building stock (heating) and development of district heating to decarbonise the system.

The dark green area represents optimal levels of district heating and end use savings.

Image Source: Mathiesen et al. 2019 49

District Heating – Best Practices Lessons learned from heat planning in Baden-Wuerttenberg 1) Heat planning needs to be locally anchored 2) Capacity building and knowledge sharing was key to successful heat planning

3) Multilateral municipal coordination groups were key to human capacity building 4) Developing common planning assumptions improved the quality of the planning process 5) Educational programs linked to the concrete planning contributed to human capacity building 6) Policies need to ensure that solutions that are desirable from a social perspective are also advantageous from a consumer viewpoint 7) District heating projects need to prove that they benefit society as a whole 8) Requirements for mandatory connection has been a powerful but debated tool in Danish heat planning 9) Both normative and financial policies were applied to incentivize green heating 10) Political attendance at the highest level ensures resources and commitment to heat planning

11) Public involvement was key to get commitment to the plans among citizens 12) New district heating systems and extension of existing systems were driven by existing district heating companies and cooperatives with strong local support.

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Annex – Footnotes, abbreviation, glossary Decarbonizing district heating Slide 1 2 3 4 5

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Footnotes and sources 1 Chance for Buildings, Long Term Renovation Strategy for Czech Republic, Update May 2020. https://sanceprobudovy.cz/wp-content/uploads/2020/06/strategie-renovace-a-adaptace-budov-kveten2021.pdf 2 Ministry of Industry and Trade, Long-term renovation strategy to support the renovation of the national stock of both public and private residential and non-residential buildings 2020, https://ec.europa.eu/energy/sites/default/files/documents/cz_2020_ltrs_official_translation_en.pdf 1 Chance for Buildings, Long Term Renovation Strategy for Czech Republic, Update May 2020. https://sanceprobudovy.cz/wp-content/uploads/2020/06/strategie-renovace-a-adaptace-budov-kveten2021.pdf 2 Ministry of Industry and Trade, Long-term renovation strategy to support the renovation of the national stock of both public and private residential and non-residential buildings 2020, https://ec.europa.eu/energy/sites/default/files/documents/cz_2020_ltrs_official_translation_en.pdf 1 IRENA and Aalborg University, Integrating low-temperature renewables in district energy systems: Guidelines for policy makers. International Renewable Energy Agency, 2021 2 Eru, Annual Report on the Operation of Heating Systems in the Czech Republic, 2019, http://www.eru.cz/documents/10540/5391332/Rocni_zprava_provoz_TS_2019.pdf/a4d8e72d-4f7b-4d02-b464201bf1648479 3 CZSO, Energo 2015, 2017, https://www.czso.cz/csu/czso/spotreba-paliv-a-energii-v-domacnostech 4 Eru, Annual Report on the Operation of Heating Systems in the Czech Republic, 2020, https://www.eru.cz/documents/10540/7156840/TEPLO_2020_Q4.pdf/9bbdd2c9-945a-406a-b3d9-7245da663e42 1 Ramboll, District Heating and Cooling Stock at EU level. Deliverable D2.3. under project WEDISTRICT, 2020, https://www.wedistrict.eu/wp-content/uploads/2020/11/WEDISTRICT_WP2_D2.3-DistrictHeating-and-Cooling-stock-at-EU-level.pdf 2 Mathiesen et al, Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf 1 IEA, Czech Republic 2021: Energy Policy Review, 2021 1 Eru, Annual Report on the Operation of Heating Systems in the Czech Republic, 2020, https://www.eru.cz/documents/10540/7156840/Rocni_zprava_provoz_TS_2020.pdf/f353f7f2-ad73-4a82-8bb2c0209b38b26a www.eru.cz Note 1: Regions: PHA:Prague, JHM:Jihočeský, LBK: Liberecký, VYS: Vysočina, HKK: Královéhradecký, PLK: Plzeňský, OLK: Olomoucký, ZLK: Zlínský, JHČ: Jihočeský, PAK: Pardubický, KVK: Karlovy Vary, MSK: Moravian-Silesian, STČ: Středočeský, ULK: Ústí

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Note 2: E.g. Prague is supplied from a heat plant in the Central Bohemian region, which skews the results.

1 Knápek, J., Valentová, M., Krejcar, R., Vašíček, J., Vecka, J., Climate and energy investment in the heating industry 2014-2030, 2021, https://ekonom.feld.cvut.cz/cs/katedra/lide/valenmi7/cic2030/reports/ipp-report-final-en.pdf 2 Potsdam Institute for Climate Impact Research (PIK), 2021, Press article in https://www.sciencedaily.com/releases/2021/04/210427094822.htm 3 Robert C. Pietzcker, Sebastian Osorio, Renato Rodrigues. Tightening EU ETS targets in line with the European Green Deal: Impacts on the decarbonization of the EU power sector. Applied Energy, 2021, https://ember-climate.org/data/carbon-price-viewer/ 1 Knápek et al., Dopady z propojování trhů s energiemi v ČR [Impacts of energy sector coupling in CR]. Technology Agency of The Czech Republic, Project No. TK02010113, 2020 2 IRENA and Aalborg University, Integrating low-temperature renewables in district energy systems: Guidelines for policy makers, 2021 1 European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 , 2021, https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-with-annexes_en.pdf For District Heating and Cooling, Member States must promote renewables by fulfilling a 1 percentage point annual average increase in the period of 2021-2030 (which can be up to 100% met with waste heat and cold) or as an alternative, may implement third party access to district heating networks for renewables, high-efficiency cogeneration and waste heat/cold suppliers. Third party access is subject to several exceptions, which can be granted for example for systems meeting the efficient district heating and cooling definition, or systems below 20 MW threshold. Member States with low district heating penetration below 2% are exempted from these provisions.

TARGET for DH: For district heating and cooling, the current indicative target in REDII will be increased to 2.1%. (pp. 195) 2 Czech Government, National Energy and Climate Plan of the Czech Republic, 2019, https://ec.europa.eu/energy/sites/default/files/documents/cs_final_necp_main_en.pdf 3 Ministry of Industry and Trade. www.mpo.cz. Personal communication.

Further reading: https://www.solarthermalworld.org/news/europes-first-ever-renewable-heating-and-cooling-target 1 CZ RRP http://www.planobnovycr.cz/ CZ RRP Assessment https://ec.europa.eu/info/recovery-and-resilience-plan-czechia_en *Investment 2 Milestone (https://ec.europa.eu/info/sites/default/files/com-2021-431_annexe_en.pdf): Czechia shall provide, before the network investment is completed, a concrete plan for investment in heat/power generation facilities compliant with the Guidance ‘Do no significant harm’ Technical Guidance (2021/C58/01), in particular the criteria for natural gas-based heat and power set out in Annex III of the Guidance, in case natural gas shall be utilised, including through contractual obligations taken up by the Czech government to commission the relevant work.

Refurbishment of the heat and power generation facility shall start within three years of the modernisation of the network, in order to comply with the definition of ‘efficient district heating and cooling’ in Article 2(41) of the Directive 2012/27/EU (“a district heating or cooling system using at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a combination of such energy and heat”).

1 CZ RRP http://www.planobnovycr.cz/ NECP: https://ec.europa.eu/energy/sites/default/files/documents/cs_final_necp_main_en.pdf EC CZ NECP Assessment: https://ec.europa.eu/energy/sites/default/files/documents/staff_working_document_assessment_necp_czechia_en.pdf CZ RRP Assessment https://ec.europa.eu/info/recovery-and-resilience-plan-czechia_en

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*Investment 2 Milestone (https://ec.europa.eu/info/sites/default/files/com-2021-431_annexe_en.pdf): Czechia shall provide, before the network investment is completed, a concrete plan for investment in heat/power generation facilities compliant with the Guidance ‘Do no significant harm’ Technical Guidance (2021/C58/01), in particular the criteria for natural gas-based heat and power set out in Annex III of the Guidance, in case natural gas shall be utilised, including through contractual obligations taken up by the Czech government to commission the relevant work.

Refurbishment of the heat and power generation facility shall start within three years of the modernisation of the network, in order to comply with the definition of ‘efficient district heating and cooling’ in Article 2(41) of the Directive 2012/27/EU (“a district heating or cooling system using at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a combination of such energy and heat”).

1 European Commission, COMMISSION STAFF WORKING DOCUMENT Assessment of the final national energy and climate plan of Czechia, 2020, https://ec.europa.eu/energy/sites/default/files/documents/staff_working_document_assessment_necp_czechia_en.pdf 2 European Commission, Recovery and Resilience Plan for Czechia, 2021, https://ec.europa.eu/info/recovery-and-resilience-plan-czechia_en https://ens.dk/sites/ens.dk/files/Globalcooperation/regulation_and_planning_of_district_heating_in_denmark.pdf (pp. 8) 1 Knápek, J., Valentová, M., Krejcar, R., Vašíček, J., Vecka, J., Climate and energy investment in the heating industry 2014-2030, 2021, https://ekonom.feld.cvut.cz/cs/katedra/lide/valenmi7/cic2030/index 2 Ember: Coal-free Czechia 2030, https://ember-climate.org/project/coal-free-czechia-2030/ 1 European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652, 2021, https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-with-annexes_en.pdf (p. 13/90 and 32/108, 94/171) 2 Andrić I., J. Fournier, B. Lacarrière, O. Le Corre, P. Ferrão, The impact of global warming and building renovation measures on district heating system techno-economic parameters, 2018, https://doi.org/10.1016/j.energy.2018.03.027 3 IRENA and Aalborg University, Integrating low-temperature renewables in district energy systems: Guidelines for policy makers, 2021 4 Osis, U. & Talcis, N. & Ziemele, J., Challenges and Barriers by Transition Towards 4th Generation District Heating System: A Strategy to Establish a Pricing Mechanism, 2019 Büchele, R.; Kranzl, L.; Hartner, M.; Hasani, J. Opportunities and Challenges of Future District Heating Portfolios of an Austrian Utility, 2020, https://doi.org/10.3390/en13102457 1 Knápek, J., Valentová, M., Krejcar, R., Vašíček, J., Vecka, J., Climate and energy investment in the heating industry 2014-2030, 2021, https://ekonom.feld.cvut.cz/cs/katedra/lide/valenmi7/cic2030/reports/ipp-report-final-en.pdf 2 IRENA and Aalborg University, Integrating low-temperature renewables in district energy systems: Guidelines for policy makers., 2021 3 European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652, 2021, https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-with-annexes_en.pdf (p. 13/90 and 32/108, 94/171) 1 Lund, H., Østergaard, P., Connolly, D., & Mathiesen, B.V., Smart energy and smart energy systems, 2017, DOI: 10.1016/j.energy.2017.05.123.

2 Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf

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3 Ember: Coal-free Czechia 2030. https://ember-climate.org/project/coal-free-czechia-2030/ 1 Lund, H., Østergaard, P., Connolly, D., & Mathiesen, B.V., Smart energy and smart energy systems, 2017, DOI: 10.1016/j.energy.2017.05.123.

2 Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf 1 Osis, U. & Talcis, N. & Ziemele, J., Challenges and Barriers by Transition Towards 4th Generation District Heating System: A Strategy to Establish a Pricing Mechanism, 2019, 10.2478/lpts-2019-0022.

2 Lund, H., Østergaard, P., Connolly, D., & Mathiesen, B.V., Smart energy and smart energy systems, 2017, DOI: 10.1016/j.energy.2017.05.123.

3 Henrik Lund, Sven Werner, Robin Wiltshire, Svend Svendsen, Jan Eric Thorsen, Frede Hvelplund, Brian Vad Mathiesen, 4th Generation District Heating (4GDH): Integrating smart thermal grids into future sustainable energy systems, 2014, https://doi.org/10.1016/j.energy.2014.02.089.

1 Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf 2 European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652. 2021/0218 (COD). https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-withannexes_en.pdf (ANNEX 7: DETAILED ASSESSMENT FOR HEATING AND COOLING, pp 156 for loophole), 2021 Further reading: https://klima.praha.eu/DATA/Dokumenty/Klimaticky_plan_HMP_2030_revidovany_k_27_5_2021.pdf https://www.oeko.de/en/e-paper/50-million-by-2030-the-heat-transition-making-it-work/artikel/individual-heating-here-district-heating-there https://www.euroheat.org/wp-content/uploads/2017/01/study-on-efficient-dhc-systems-in-the-eu-dec2016_final-public-report6.pdf 1 European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652. 2021/0218 (COD). https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-withannexes_en.pdf (ANNEX 7: DETAILED ASSESSMENT FOR HEATING AND COOLING), 2021 2 IRENA and Aalborg University (2021), Integrating low-temperature renewables in district energy systems: Guidelines for policy makers. International Renewable Energy Agency, Aalborg University, Abu Dhabi, Copenhagen.

3 Mathiesen et al. 2019. Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy. Aalborg University. http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf 1 Official Journal of the European Union, Energy efficiency directive, Consolidated version, 2012, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02012L0027-20210101 2 Danish Energy Agency, Regulation and planning of district heating in Denmar, 2017, https://ens.dk/sites/ens.dk/files/Globalcooperation/regulation_and_planning_of_district_heating_in_denmark.pdf 3 Decarb City Pipes 2050, HEAT PLANNING: BADEN-WURTTEMBERG TAKES THE BULL BY THE HORNS, 2021, https://decarbcitypipes2050.eu/2021/02/10/heat-planning-baden-wurttemberg-takes-thebull-by-the-horns/ 4 Kienzlen, V., Urban Thermal Energy Planning – a booster for district heating?, 2020, http://www.e-pages.dk/dbdh/78/16 Further reading on strategic planning:

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Mathiesen et al. 2019. Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy. Aalborg University. http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf Djørup, S. R., Bertelsen, N., Mathiesen, B. V., & Schneider, N. C. A. (2019). Definition & Experiences of Strategic Heat Planning: Handbook I. https://vbn.aau.dk/ws/portalfiles/portal/302317030/Handbook_1_Hotmaps_definition_experiences_of_strategic_heat_planning.pdf Djørup, S. R., Bertelsen, N., Mathiesen, B. V., & Schneider, N. C. A. (2019). Guidance for the comprehensive assessment of efficient heating and cooling.

Guide to assessment under Art. 14 https://vbn.aau.dk/ws/portalfiles/portal/302317295/Handbook_2_Guidance_for_comprehensive_assessment_of_efficient_heating_and_cooling.pdf https://publications.jrc.ec.europa.eu/repository/handle/JRC124024 , https://publications.jrc.ec.europa.eu/repository/handle/JRC112225 Responsibilities in heat planning https://vbn.aau.dk/ws/portalfiles/portal/302317030/Handbook_1_Hotmaps_definition_experiences_of_strategic_heat_planning.pdf (pp. 32) 1 IRENA and Aalborg University, Integrating low-temperature renewables in district energy systems: Guidelines for policy makers, 2021 1 Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf IEA, Czech Republic 2021: Energy Policy Review, 2021. https://www.iea.org/reports/czech-republic-2021 1 Interreg Europe / HeatNet NWE, HeatNet Guide to Financing 4DHC, 2019 2 European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652. 2021/0218 (COD). https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-withannexes_en.pdf (Annex 7), 2021 1 Sunstein, Cass R., Nudging: A Very Short Guide, 37 J. Consumer Pol'y 583, 2014, Available at SSRN: https://ssrn.com/abstract=2499658 or http://dx.doi.org/10.2139/ssrn.2499658 2 CEER. CEER Report on Billing Issues in the Clean Energy for All Europeans Package, 2021, https://www.ceer.eu/documents/104400/-/-/5f7bcb34-ae39-086d-58b3-5fd0cecf4039 1 Modernisation Fund: https://www.sfzp.cz/dotace-a-pujcky/modernizacni-fond/ 2 Czech RRP http://www.planobnovycr.cz/ 1 Innovation Fund: https://ec.europa.eu/clima/policies/innovation-fund_en 2 DotaceEU.cz, Uhelné regiony, https://dotaceeu.cz/cs/evropske-fondy-v-nbsp;cr/programove-obdobi-2021-2027/uhelne-regiony 3 REGULATION (EU) 2021/1056 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 June 2021 establishing the Just Transition Fund. https://eur-lex.europa.eu/legalcontent/EN/TXT/HTML/?uri=CELEX:32021R1056&from=EN#d1e39-1-1 1 EFEKT programme, https://www.mpo-efekt.cz/cz/programy-podpory/efekt 2 European Commission Funding & tender opportunities. https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/home 3 ActIonHeat Project: https://cordis.europa.eu/project/id/101033706 4 Technical Support Instrument. https://ec.europa.eu/info/technical-support-instrument-2022-call_en 1 DotaceEU.cz, Uhelné regiony, https://klima.praha.eu/DATA/Dokumenty/Klimaticky_plan_HMP_2030_revidovany_k_27_5_2021.pdf 1 Büchele et al. Opportunities and Challenges of Future District Heating Portfolios of an Austrian Utility, 2020, doi:10.3390/en13102457 1 W.e. District, Demonstration Cases: Bierutów Non-renewable District Heating retrofitting, https://www.wedistrict.eu/demonstration-cases/bierutow/

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1 Helsinki, Helsinki Energy Challenge, https://energychallenge.hel.fi/ 1 Ember: Coal-free Czechia 2030. https://ember-climate.org/project/coal-free-czechia-2030/ 2 Knápek, J., Valentová, M., Krejcar, R., Vašíček, J., Vecka, J., Climate and energy investment in the heating industry 2014-2030, 2021, https://ekonom.feld.cvut.cz/cs/katedra/lide/valenmi7/cic2030/index

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IRENA and Aalborg University, Integrating low-temperature renewables in district energy systems: Guidelines for policy makers, 2021.

EPBD, DIRECTIVE 2010/31/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 19 May 2010 on the energy performance of buildings (recast), 2010.

European Commission, Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652, 2021, https://ec.europa.eu/info/sites/default/files/amendment-renewable-energy-directive-2030-climate-target-with-annexes_en.pdf (pp. 90/167) https://keepwarmeurope.eu/ KeepWarmEurope, Improving the performance of District Heating Systems in Central and Eastern Europe Development of Business and Financial Models District heating market in KeepWarm partner countries, 2020, https://keepwarmeurope.eu/fileadmin/user_upload/Resources/Promotional_materials/WP3-Keep_Warm_DHS-Markets.pdf Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf https://keepwarmeurope.eu/ KeepWarmEurope, Improving the performance of District Heating Systems in Central and Eastern Europe Development of Business and Financial Models District heating market in KeepWarm partner countries, 2020, https://keepwarmeurope.eu/fileadmin/user_upload/Resources/Promotional_materials/WP3-Keep_Warm_DHS-Markets.pdf Mathiesen et al., Towards a decarbonised heating and cooling sector in Europe. Unlocking the potential of energy efficiency and district energy, 2019, http://www.districtenergyinitiative.org/sites/default/files/publications/towardsadecarbonisedhcsectorineufinalreport-111220191046.pdf Experience with heat planning in Denmark, input for developing a heat planning in Baden Württemberg, Danish Energy Agency (https://www.ea-energianalyse.dk/en/front-page/), 2019 https://www.oeko.de/en/e-paper/50-million-by-2030-the-heat-transition-making-it-work/artikel/individual-heating-here-district-heating-there

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Acronyms BAU

Business as Usual

BEV

Battery electric vehicle

BIK

Benefit in kind

CAPEX

Capital Expenditures

CC

Carbon Capture

CCU

Carbon Capture and Use

CCUS

Carbon Capture, Use and Storage

CCS

Carbon Capture and Storage

CCfD

Carbon Contract for Difference

CDA

Carbon Direct Avoidance

CEE

Central and Eastern European region

CEF

Connecting Europe Facility

CF

Cohesion Fund

COM

European Commission

CSP

Clean Steel Partnership

CZ

Czechia / Czech Republic

DNSH

Do no significant harm principle

EA

Emission Allowances

ECSC

European Coal and Steel Community

EED

Energy Efficiency Directive

EIB

European Investment Bank

EPBD

Energy Performance of Buildings Directive

ESF+

European Social Fund

ESIF

European Structural and Investment Funds

ERDF

European Regional Development Fund

EU ETS

EU Emissions Trading System

GBS

Green Bond Standard

H2

Hydrogen gas-powered vehicles

ICE

Internal combustion engine

IEA

International Energy Agency

JTF

Just Transition Fund

LTRS

Long-term Renovation Strategy

MFF

Multiannual Financial Framework

MoIT / MPO

Ministry of Industry and Trade

MWt

Megawatt thermal

NACE

Nomenclature of Economic Activities

NECP

National Energy and Climate Plans

NG

Natural Gas (fossil gas)

NGEU

Next Generation EU

OPEX

Operating Expenditures

PHEV

Plug-in hybrid electric vehicles

R&D

Research and development

RRF

Recovery and Resilience Facility

RRP

Recovery and Resilience Plan

SMEs

Small and medium-sized enterprises

TA

Technical Assistance

TCP

Technology Collaboration Programme

TEN-E

Trans-European Networks for Energy

TEN-T

Trans-European Transport Network

TJTP

Territorial Just Transition Plan

TWh

Terawatt hours

VAT

Value added tax

ZEV

Zero-emission vehicle

Definitions Agrivoltaics

Blast Furnace

This technology generates renewable electricity through large ground-mounted photovoltaic systems installed on farmland that is simultaneously used for food production. It has the potential to reduce land competition through a dual use of the land. With a suitable technical design, agrivoltaics can increase resilience of crops and agricultural yields beyond just improving land use efficiency.

BF

Blended Finance Instruments

Integrated blast furnace is a type of metallurgical furnace used for smelting to produce industrial metals, generally pig iron, but also lead or copper.

The strategic use of finance to attract or mobilize additional funds through other EU financial instruments, member state co-financing, or private sector investment to achieve policy objectives. Instruments are often designed to provide financial safety nets or hedge certain risks through e.g. credit insurance facilities.

Building-integrated photovoltaics

BIPV

Building components which fulfil classic functions such as thermal insulation, protection against wind and weather or also architectural functions, in addition to generating electricity.

Basic Oxygen Furnace

BOF

A vessel used to convert pig iron into steel

Building Performance Institute Europe

BPIE

A thinktank on the sustainability and decarbonization of the building sector, founded by the European Climate Foundation and partly funded by Horizon.

Battery Electric Vehicle

BEV

Also called, all-electric vehicle, only electric vehicle, pure electric vehicle, or zero-emission vehicle (ZEV). BEVs use chemical energy stored in rechargeable batteries without secondary sources of propulsion. They do not use internal combustion engines (ICEs) but electric motors or motor controllers. Often BEV refers to light-weight automobiles, but can also include bikes, vans, trucks, etc.

Business-As-Usual Scenario

BAU

A baseline scenario that examines the consequences of continuing development of current trends in e.g. the economy, demographics, technological innovation, climate change and human behaviour. Often refers to an outcome of a scenario analysis, e.g. as a contrast to the outcomes of EUCO scenarios.

Carbon contracts for difference

CCfDs

CCfDs are policy instruments for supporting the deployment of new ultra-low carbon projects by ensuring a guaranteed carbon price to make up the cost-difference relative to a reference technology. They can be designed to reduce the up-front investment cost for developers, give creditors a higher security for their loans and minimize the downstream costs for consumers. CCfDs work to accelerate R&D and ensure new innovative low carbon/deep decarbonization technologies become commercially viable sooner relative to conventional technologies and have a shorter time period required for commissioning.

Putting a price on carbon that captures the external costs caused by their emissions. Carbon prices can be set via taxation or cap-and-trade schemes.

Carbon pricing Carbon capture, utilization and storage

CCUS

Circular economy

Carbon capture and storage (CCS) and carbon capture and utilization (CCU) technologies that aim to capture CO2 emissions from point sources, such as industrial sources, to prevent emissions from entering the atmosphere.

The purpose of a circular economy is to decouple economic growth from the consumption of non-renewable resources. It is a method of economic development that benefits enterprises, society and environment because of its restorative and regenerative characteristics. The circular economy can be achieved via new resource management systems, nutrient flow systems and reverse logistics systems, which makes it possible to return, classify and reuse products. A circular economy follows the 3R principle of Reducing, Reusing and Recycling materials.

Cleaner Transport Facility

CTF

Initiative of the EIB to support the funding of the development and deployment of cleaner vehicles and their needed infrastructure. It is a one-stop shop that provides technical assistance and access to transport-related loans of the EIB itself and grants, loans, debt guarantees of CEF, TEN-T, Horizon and through JASPERS (technical assistance) and ELENA (technical assistance).

Combined heat and power

CHP

Also known as cogeneration, this implies that heat and electricity are produced simultaneously in one process. Use of combined heat and power helps to improve the overall efficiency of electricity and heat production as these plants combine electricity production technologies with heat recovery equipment.

Component (RRF context)

Recovery and Resilience Plans should be composed of reforms and investments grouped into components. A component is a constituent element or a part of the RRP. Each component should reflect related reform and investment priorities in a policy area or related policy

areas, sectors, activities or themes, aiming at tackling specific challenges, forming a coherent package with mutually reinforcing and complementary measures.

Concessional loans

Also known as “patient debt”, these are loans that allow more flexibility on the part of the borrower, often in terms of longer maturities, longer grace periods, lower collateral requirements, subordinated debt or technical assistance. Concessional loans are often issued by financial non-governmental organizations or development banks as opposed to commercial banks.

Deep renovation

Achieve a 60% reduction of energy demand in a given building, as compared to 30% for shallow renovations and 40% for medium renovations.

Digital target (RRF context)

Each Recovery and Resilience Plan should allocate at least 20% of the total plan allocation to digital measures.

District heating system

DH

A system where heat is distributed from a central point through a network of insulated pipes fed by various heat sources, such as heat from heat and power plants, excess heat from industry, and heat from fossil combustion. In the future, district heating may be fed by heat and power plants fuelled by (sustainably produced) biomass, surplus heat from industry, and a combination of other renewables such as solar, geothermal, or heat pumps.

Do it yourself (building renovation context)

DIY

The DIY market aims to help customers improve their home without the need for any extra professional help. Oftentimes, these renovations are shallow, low-quality, step-by-step renovations that do not make a substantial difference in lowering energy use of a home.

Do no significant harm principle

DNSH

Principle under the EU Sustainable Finance Taxonomy: there are six environmental objectives to which no significant harm should be done: (i) climate change mitigation, (ii) climate change adaptation, (iii) water and marine resources, (iv) the circular economy, (v) pollution prevention and control, and (vi) biodiversity and ecosystems. For the RRF, technical guidance has been published on the application of the principle.

Direct Reduced Iron

DRI-C/H

Iron ore in the form of lumps, fines or pellets that has the oxygen removed by using hydrogen (H) or carbon monoxide (C)

Electric Arc Furnace

EAF

A furnace that heats material by means of an electric arc, especially for steel-making

Energy Service Company

ESCO

Companies that supply and install equipment that incur energy savings. ESCOs can also arrange the financing of their operation, sometimes tying their level of success to their renumeration.

EURO 7 European Fund for Strategic Investment

European emissions standards for petrol and diesel cars. Rounds of proposals and feedback have been completed for a revision and Commission adoption is planned for Q4 of 2021.

EFSI

Also known as the Juncker Plan. Initiative launched in 2015 by the EIB Group and the COM to boost the economy by mobilizing private financing for strategic investments.

European Investment Bank

EIB

EU Climate Law

The long-term lending institution of the EU; a public bank owned by the 27 member states, shared based on economic weight at the time of member state accession. Its activities are funded via bond issuance in international capital markets.

Aims to write into law the goal set out in the European Green Deal – namely, for Europe’s economy and society to become climate-neutral by 2050.

European Semester

ES

An annual cycle of coordination and monitoring of the EU’s economic policies and national budgets.

EU Emissions Trading System

EU ETS

A cap-and-trade system administered by the EU. Consists of carbon emissions ceilings (caps) that are lowered over time. Companies can buy or sell emission allowances, trading them when needed.

Electric Vehicle

EV

An electric vehicle uses one or more electric motors for propulsion. Can include only electric motors or battery electric vehicles (see BEV) or combustion motors or plug-in hybrid electric vehicles (PHEV).

Flagship

As used in this assessment context, taken as country-specific recommendations for future key transformative investments and policy reforms that can be used to accelerate climate action

(New) Green Savings Programme

(N)GS

The Czech Ministry of the Environment administers this energy savings program in family houses and apartment buildings funded by the State Environmental Fund of the Czech Republic. It supports the reduction of the energy intensity of residential buildings (complex or partial thermal insulation), construction of houses with very low energy intensity, environmentally friendly and efficient use of energy sources and renewable sources of energy (RES).

Greenhouse gases

GHG

Gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit radiation, which together causes the greenhouse effect. Water vapour, carbon dioxide, nitrous oxide, methane, and ozone are the primary GHGs in the Earth’s atmosphere.

Grant

Grants are non-repayable funds that are given from a government, foundation, corporation to a recipient, for specific projects for reimbursement of necessary costs. Grants often require some level of conditions and mandatory reporting of activities and results.

Green hydrogen

Hydrogen that is produced with sustainable energy, most often through electrolysis where water is split into hydrogen and oxygen.

Green Public Procurement

A voluntary instrument streamlining and promoting the sustainable production and consumption of goods and services by the EU’s public institutions with comprehensive and verifiable environmental criteria.

Green Bonds

A fixed-income instrument to finance climate-related or other environmental projects, often linked to specific assets like hydropower projects. The first green bonds were issued by the World Bank in 2009. They are often combined with tax incentives to make them a relatively attractive investment. The sustainability of green bonds is verified by third parties.

Financial Guarantee

Heat pump

A financial commitment of third-party (guarantor) to repay a percentage of losses in case a borrower cannot honour his repayments to a credit provider, both interest and principal components. Guarantees are insurance policies that often allow investors some financial breathing space to invest a larger share of their funds.

HP

Investment

Device used to heat or cool building by transferring thermal energy from a warmer to a cooler place or vice versa.

The RRF uses a broad concept of investment as capital formation in areas such as fixed capital, human capital and natural capital. This would also cover for instance intangible assets such as R&D, data, intellectual property and skills.

Internal Combustion Engine

ICE

Heat engine in which the ignition and combustion of and fuel occurs within the engine itself, i.e. with an oxidant (usually air) to convert the energy from combustion chamber that is an integral part of the working fluid circuit. ICE can be powered with fossil fuels, biofuels or efuels.

Important Projects of Common European Interest

IPCEI

Special projects that can promote the innovation of a specific technology up to industrial scale on the basis of a common European interest. This allowance is rather new as innovations are generally only regionally allowed as R&D projects to avoid unfair competition between MS. IPCEI’s are currently limited to microelectronics and batteries but an IPCEI for hydrogen technology is being implemented.

Lead market

In innovation theory, a first sub-market where a specific innovation can be early adopted to spur adoption also by other “lag” markets, e.g. by internationalization. Policies to create lead markets are focussed on creating demand for a specific technology or concept.

Lock-in effects

Lock-in effects come into play when there are substantial costs or other barriers for consumers to get a similar product or service from another vendor. Consequently, consumers or businesses become dependent on one provider. Furthermore, lock-in effects may create serious barriers to market entry, therefore undermining fair competition.

Long-term renovation strategy

LTRS

Strategy enacted by the EU (Directive 2010/31) to support the renovation of Member States’ national stocks of residential and nonresidential buildings, both public and private, into a highly energy efficient and decarbonised building stock by 2050, facilitating the costeffective transformation of existing buildings into nearly zero-energy buildings.

Minimum Energy Performance Regulations

MEPR

Performance requirements for any energy-using technology, effectively limiting the amount of energy that may be used for a particular task.

Minimum Energy Performance Standards

MEPS

Regulations that require buildings to meet a minimum performance standard, specified in terms of a carbon or energy rating or minimum renovation measures, by a certain deadline or at a certain point in the natural life of the building, e.g. at the time of sale or when other construction work is undertaken.

Mobility as a Service

MaaS

Denotes a shift away from personally owned modes for transportation towards shared vehicles that can be booked, planned through joint digital channels. Examples for urban mobility include the business models of companies like Uber and Lyft.

Multiannual Financial Framework

MFF

Also called the financial perspective, the MFF is a 7-year framework regulating the EU’s annual budget by setting ceilings of spending for broad policy themes.

National Energy and Climate Plans NECP

EU countries needed to establish a 10-year integrated national energy and climate plan (NECP) for the period from 2021 to 2030 to show how they meet the 2030 energy and climate targets (within the Energy Union governance).

Next Generation EU

The temporary instrument designed to boost the recovery from the COVID-19 pandemic, includes the recovery and Resilience Facility

NGEU

One-stop shop

A facility or location where a “customer” can get all the help they need in one go to reach a certain goal, delivered by one provider at a clear central location with low administrative barriers.

Plug-in Electric Vehicle

PEV

Includes battery electric vehicles and plug-in hybrid electric vehicles. Road vehicles that be charged with external sources of electricity, stored in battery packages.

Plug-in Hybrid Electric Vehicle

PHEV

Hybrid electric vehicle that uses batteries to power an electric motor and another fuel, such as gasoline, to power an internal combustion engine (ICE).

Power Purchasing Agreement

PPA

PPAs are long-term contract where a business or public entity agrees to purchase electricity directly from an energy generator, with agreed price terms for the sake of financial stability often for a period of 15 to 25 years.

Quasi-equity

Quasi equity instruments are long-term financial instruments, with multiple variants that fall between debt and equity, including subordinated loans, convertible bonds and preferred stocks. Can be more complicated and costly to administer.

Recovery and Resilience Facility

RRF

Makes €672.5 billion in loans and grants available to support reforms and investments undertaken by EU countries with the aim to mitigate the economic and social impact of the coronavirus pandemic and declared objective to make economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the twin transition

Recovery and Resilience Plan

RRP

Every Member States wishing to access recovery funding under the RRF has to prepare a Recovery and Resilience Plan.

Reform (RRF context)

An action or process of making changes and improvements with significant impact and long-lasting effects on the functioning of a market or policy, the functioning or structures of an institution or administration, or on progress to relevant policy objectives, such as growth and jobs, resilience and the twin transitions.

Renovation Wave

Comprehensive EU strategy put forward by the EC in 2020 to support climate neutrality, economic recovery through actions in building sector with detailed list of policies, measures and tools that must be put in place to overcome existing barriers to renovation and mobilize

all actors, including citizens, local authorities, investors and the construction industry. The strategy has a dual ambition of energy gains and economic growth and aims to double annual energy renovation rates in the next 10 years.

Repayment grant

Grant repayment, i.e. if the project achieves a certain energy performance level.

Retrofitting

Process of adding something new to the original building or structure, aiming to improve the functionality of the building by adding new technology, building systems or equipment, such as heating systems, but it might also refer to the fabric of a building, for example, retrofitting insulation or double glazing.

Scenario

Explain use of scenarios?

SECAP

Sustainable Energy and Climate Action Plan; local authorities which join the Covenant of Mayors for Climate and Energy – Europe initiative commit to submitting an action plan within 2 years of sign-up. This action plan is a key implementation tool. It defines mitigation and adaptation goals and is based on a Baseline Emission Inventory and a Risk & Vulnerability Assessment, which provide an analysis of the current situation.

Shallow renovation

A building renovation that is performed quite often (rate of 3%) with an average energy efficiency ambition level reduction of 32% (in energy use for space heating by 2050 compared to 2010), may fail to treat the building envelope as a whole, and includes a low use of renewable energy. This type of renovation misses both environmental targets (CO2-emission and final energy savings) while not providing substantial economic advantage compared to a deep renovation.

Soft Loan

Loans with no interest or below-market rate of interest. May also have lenient terms, such as extended grace periods or interest holidays.

OFten used to encourage investment supporting energy policies and are often complementary to subsidies of fiscal incentives.

Small and medium-sized enterprises

SMEs

SME status depends on both the size and resources of a private enterprise. SMEs have a workforce of under 250 people and have either an annual turnover lower than €50 million or a balance sheet total lower than €43 million.

Structural reforms

Structural reforms generally refer to liberalizing economic structures in the national context, including making labour markets more adaptable, liberalizing services, altering taxation systems and restructuring the welfare state.

EU Taxonomy for sustainable activities

The EU Taxomony regulates a sustainability-related classification system of financial products. Providers of financial products and services need to use the taxonomy to report the sustainability of their portfolios. To comply with the EU Taxonomy, companies need to prove that their activities make or enable a “substantial contribution” to climate mitigation or adaptation and fulfil the do-no-significant-harm principle for biodiversity, water, the circular economy and pollution targets.

Territorial Just Transition Plans

TJTP

Central element of the EU Just Transition Mechanism, which defines territories in which the Just Transition Fund will be used and outlines challenges in each territory, development needs and 2030 targets.

Total cost of ownership

TCO

The total cost of ownership of a vehicle is typically calculated for financial purposes by companies to determine the direct and indirect costs of owning the vehicle. In this case, it includes the purchase price of the vehicle plus the costs of operating it over an expected period of time.

Twin transition

The green transition and digital transformation

Trigger points (for renovation)

Key moments in the life of a building (I.e. rental, sale, change of use, extension, repair or maintenance work) when carrying out energy renovations would be less disruptive and more economically advantageous than in other moments. Taking advantage of these moments would facilitate investment decisions to undertake energy renovation works.

Trans-European Transport Network

TEN-T

A planned network of roads, railways water infrastructure and airports across Europe, with ten core networks to be completed in 2030 and a larger comprehensive network to be completed in 2050. The ultimate purpose of the network is to ensure the cohesion, interconnection and interoperability of the trans-European transport network, as well as access to it.