The European Commission’s plans to help boost competitive clean industries and affordable energy pinpoint several areas that are crucial for boosting heat pump uptake.
It is positive that the need for industrial decarbonisation and clean tech manufacturing feature in the Clean Industrial Deal and the importance of reducing electricity bills and remunerating energy grid flexibility in the Affordable Energy Action Plan.
All these are key to speeding up the transition to clean heating and cooling in homes and industries through heat pumps. Such an increase in heat pump uptake can reduce Europe’s dependence on imported fossil fuels and therefore provide greater energy security. Indeed, the European Commission’s communication notes that import spending could be cut by €60 billion with more heat pumps.
In spite of this, both the Clean Industrial Deal and the Affordable Energy Action Plan fail to specifically address this critical contribution the heat pump sector, a mature and proven technology, can make to energy security, industrial competitiveness and the path to net zero.
What’s more, they do not address the crucial issue of long-term demand predictability for heat pumps. These issues must now be brought into focus in the European Commission’s upcoming Electrification Action Plan and the EU Heating and Cooling Strategy and these must be reflected in legislation and budgets.
Paul Kenny, Director General at the European Heat Pump Association said:
“We cannot expect people and industry to put in a heat pump when they pay less for fossil fuel heating. The EU Commission’s plans to make electricity more affordable come not a second too soon. Consumers need to be offered a competitive and flexible power price in return for choosing a heat pump and so bolstering European energy security.”
“The heat pump sector must be recognised as a major European strategic industry in the plans that will follow today’s publication, so that a clear policy direction is set that reassures manufacturers, investors and consumers,” added Kenny.
About 60-73% of the heat pumps installed in Europe are manufactured here, across 300 production sites but sales fell 23% in 2024, according to data from 13 countries. This is due to the economic slowdown generally, but also to changing policy support in many European countries and heavily subsidised gas. Giving heat pumps clear support in EU policy and levelling the energy price playing field is therefore crucial and urgent to get growth back on track.
