Increasing heat pump sales to 4 million per year by 2030 and tackling electricity to gas price ratios are two of the goals of the European Commission’s highly on-point energy plan, published today.
The plan is a ‘toolbox’ of measures to shield European consumers from high energy prices caused by the fossil fuel crisis. A key area of focus is electrification, identified as crucial for the economy, competitiveness and security.
Accelerating electrification in the heating and cooling sector means reducing VAT on heat pumps and encouraging waste heat recovery from industry, the plan says.
It announces a legislative proposal to address electricity taxes and power network charges, stressing that in many countries electricity tax is several times higher than that on fossil fuels, slowing electrification – as EHPA has long argued.
The goal of 4 million heat pumps by 2030 is positive but the sector already has the European manufacturing capacity to deliver far more.
Paul Kenny, EHPA Director General said:
“The European Commission’s plan gets it spot on. It sets a clear direction towards electrification and pinpoints how to step up the switch to heat pumps in buildings, districts and industry. Doing so will be a huge boost for Europe’s energy independence and protect us all from unreliable fossil fuel suppliers, while strengthening jobs and the economy. EU governments should enact these measures urgently.”
Other important points in the plan include supporting social leasing for heat pumps – which is where less well-off households can rent one – and scaling up financial support for heat pumps in buildings and industry.
EHPA has long supported and called for the measures outlined in the plan, from tackling tax on electricity to reducing VAT on heat pumps, from promoting social leasing to encouraging waste heat recovery.
EHPA calls on the European Commission to include binding targets and clearer numbers on electricity to gas price ratio reduction, heat pump targets per type of use, and waste heat recovery use in the upcoming Electrification Action Plan.
With this plan, the EU has joined France and UK which have also pinpointed increased heat pump rollout as key to protecting citizens from energy price spikes triggered by the Middle East war.
EU leaders will discuss the proposal in Cyprus on 23-24 April.
