To understand the socio-economic challenges of the heating and cooling transition, the WP2 team conducted 17 semi-structured interviews with actors involved in the development of thermal grids:
- utilities,
- municipal administrations,
- engineering firms, and
- intermediary organizations.
The study provides a comprehensive picture of current dynamics.
Thermal grids in Switzerland have been growing rapidly since around 2010. This growth is not only quantitative, but is also accompanied by an increase in quality and professionalism. A pool of common resources was instrumental for this development:
- norms and standards,
- a common knowledge base, as well as
- increased legitimacy help build a competitive business ecosystem.
Faced with a skills shortage, utilities find themselves struggling to satisfy a rapidly increasing customer demand for local, low-carbon heat.
Amid the complexity of the heating and cooling and transition, 4 distinct problem solutions were identified.
- Municipalities often lack the resources and capacities to adequately manage their energy transition.
- The modernization of thermal grids and integration of low-carbon heat sources entails high transaction costs.
- The implementation of thermal grids is subject to delays and quality risks, with consequences for the timely achievement of decarbonization goals.
- Customers face uncertainty on available options, as well as on the systemic impacts of their decisions.
However, Switzerland is not alone in facing these challenges. Combined with answers from interviewees, a synthesis of international literature helped us identify four development areas:
- Empower and support municipalities.
- Manage the scarcity of qualified workforce.
- Leverage digital technology for the planning, realization and operation of thermal grids.
- Collaborative piloting of technological and organizational innovations.
This complements the measures suggested by previous research to support the development of thermal grids, which focused strongly on technical and regulatory aspects.
The ecosystem around thermal grids is already relatively well-established. However, there are further technological innovations such as deep geothermal energy, industrial heat pumps, seasonal thermal energy storage and thermochemical networks for which we are identifying further organizational innovations for the emerging corresponding ecosystems; they yet have to build a common pool of resources.
Links:
- Speich & Ulli-Beer (2023): Applying an ecosystem lens to low-carbon energy transitions: A conceptual framework
- Forthcoming paper on interview study
