Substituting Natural Gas with Solar Energy in Industrial Heating Applications : A Multiple Case Study within Italy and Spain

With the increasing awareness of global warming and the need for limiting greenhouse gas emissions, several sectors are witnessing comprehensive transformations towards sustainable generation and consumption. The European Union can be considered the home for most of these transformations given the union’s efforts to enable decarbonization through regulatory frameworks and initiatives. However, one overlooked source of carbon emissions is the industrial heating sector which is heavily dependent on fossil fuel. Emerging technologies such as solar thermal could provide a solution for limiting the greenhouse gases emitted by this sector. This study examines the factors influencing the diffusion of solar thermal technology and its potential for substituting natural gas in the industrial heating sector. Specifically, the study examines the thermal energy supply side as being a potential facilitator for the diffusion of solar thermal technology. Certain elements from Everett Rogers’ (1995) work on the diffusion of innovations are applied to solar thermal technology along with the concept of lead users by Hippel (1986). The study follows a qualitative approach in collecting and analyzing data through interviews and document analysis. Experts from the energy sector were interviewed along with examining public documents of two major utility companies. The findings suggest that utility companies examined, despite their evident decarbonization efforts, do not represent a suitable vehicle for the diffusion of solar thermal technology. Instead, a business model based on energy efficiency could be the possible breakthrough for this technology. Finally, the study concludes with suggestions for possible actions to expedite the diffusion of solar thermal in the industrial sector