COMING IN FROM THE COLD - Improving District Heating Policy in Transition Economies

s from the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects (PEEREA) Article 3 Basic Principles Contracting Parties shall be guided by the following principles: (1) Contracting Parties shall co-operate and, as appropriate, assist each other in developing and implementing energy efficiency policies, laws and regulations. (2) Contracting Parties shall establish energy efficiency policies and appropriate legal and regulatory frameworks which promote, inter alia: -efficient functioning of market mechanisms including market-oriented price formation and a fuller reflection of environmental costs and benefits; Article 8 Domestic Programmes (1) In order to achieve the policy aims formulated according to Article 5, each Contracting Party shall develop, implement and regularly update energy efficiency programmes best suited to its circumstances. (2) These programmes may include activities such as the: -support and promotion of cogeneration and of measures to increase the efficiency of district heat production and distribution systems to buildings and industry. policy approaches to address the sector’s challenges. The high-level participants at the conference on district heating policy that the IEA held in Prague in February 2004 acknowledged the importance of exchanging experiences between countries to build national policies.34 This publication aims to stimulate further discussion. This discussion and exchange of experiences benefit not only to transition economies but also to many other OECD countries. Very few OECD countries have an explicit district heating policy today, yet the potential environmental, energy security and social benefits of district heating are well worth closer attention by policy makers. OECD member countries can be important sources of encouragement and advice to transition economies. The U.K. government, for example, has funded a study on district heating policy in Russia and the U.K. Minister of Energy visited Russia to discuss district heating with the government and to participate in a U.K.-sponsored conference on energy efficiency. OECD member countries should include district heating in their bilateral energy discussions with transition countries.