The Austrian political system is such that it allows a study of the effects of different policies on BMDH deployment individually. Austria is a federal republic with nine different states. The energy policy of these states is quite different and had a profound impact on the rate of diffusion of BMDH technology. Remarkably, the majority of the BMDH plants is situated in only four states (Lower Austria, Upper Austria, Salzburg and Styria).

The comparison of state policies and their impacts shows the role of various economic incentives in the diffusion process. During the early development phase of BMDH, implementation management was of central importance. Successful introduction occurred only in provinces that established a dedicated institution or focal point that managed daily problems effectively. These institutions facilitated cooperation among all relevant actors, conducted public information activities and provided advice to local developers.

After 5-10 years of dedicated introduction management, the establishment of a plant became more of a routine process. Economic incentives established in neighboring provinces were able to learn from previous lessons and foster diffusion faster. Nevertheless, efforts to keep the development on track remain important even after twenty years since the first plant was established. The actual tasks that need to be addressed include the establishment of a program to upgrade old plants, benchmarking of plant performance, and educational activities for operators.

4.4. CONCLUSIONS

Given the complex approach necessary to get technology deployment started, two common myths regarding renewable energy can be discarded. The first says that renewable energy is primarily a question of research. The second myth says it is nothing but a question of economic incentives. Neither myth is true. Admittedly, both research and economic incentives are important ingredients. However, they must be integrated systematically taking into account the complexity of issues involved in setting up a new energy system. In other words, a systematic approach is required if the efforts are to succeed. These conclusions are also confirmed in a recent investigation where about 30 different cases of successful market deployment of energy technologies were compared (Kliman, 2001). In the majority of the cases, success was closely linked to dedicated institutions managing the innovation.

The case of biomass district heating in Austria shows the complexity of estab­lishing a renewable energy system. It is of fundamental importance for successful renewable energy policies to avoid a simplistic economic and technical focus, and address this complexity. Resources need to be made available for a systemic man­agement during the introduction of renewable energy technologies. Money invested in proper advice, monitoring of technical development, benchmarking, quality control, educational measures, and promotion based on a profound understanding of the social processes in communities is an indispensable prerequisite for success.