Heat pumps are at the centre of Europe’s path to electrification as set out in the European Commission’s action plan, published today.
The EU Electrification Action Plan wants heat pump installations to increase to 4 million per year by 2030, from 2.4 million in 2025. To ensure there is sufficient demand, it sets out measures including improving electricity-to-gas price ratios, ensuring electricity is taxed no higher than gas, supporting flexibility and accelerating industrial electrification.
All these points have long been advocated by EHPA.
Jozefien Vanbecelaere, Policy Director at the European Heat Pump Association, said:
“This Electrification Action Plan is a game-changer. For the first time it focuses on boosting electrification of demand – and does so via a great line-up of measures, from tackling energy taxation and electricity prices and tapping on heat pumps’ flexibility, to supporting industrial electrification and waste heat recovery.
“To ensure it delivers, the European Commission must swiftly convert it into legislation and measures to enact at national level. EU governments should then pull together on implementation in order to score greater energy security, electrification and lower bills.”
One of the most significant commitments is the proposal to improve the electricity-to-gas price ratio by reducing national ratios to a maximum of 2.5 for households and 2.0 for industry by 2030. The plan states that Member States should not tax electricity more than gas – currently in many countries, electricity is taxed multiple times more than gas.
Alongside reforms to electricity taxation and network charges, and the phase-out of fossil fuel subsidies, these measures will help make heat pumps more affordable and strengthen the business case for electrification.
To address upfront costs, the Commission proposes expanding financing and social leasing schemes, leveraging public procurement for accelerating heat pump uptake and improving price transparency for consumers.
Recognising that electrification requires a smarter and more flexible energy system, the Commission proposes measures to reform network charges, accelerate smart meter deployment and better integrate heat pumps into demand response markets. These reforms will allow consumers to reduce their energy bills while helping balance the electricity grid.
The Action Plan also sends a strong signal to industry. It recognises that around 60% of industrial fuel-based energy demand can be electrified using heat pumps and backs this with support through the Industrial Decarbonisation Bank, a second Innovation Fund industrial heat auction, sector-specific electrification roadmaps and investment in grid connections, thermal storage and energy management systems.
EHPA also welcomes the launch of an EU Waste Heat Initiative and the target to supply 11% of Europe’s heat demand through waste heat recovery by 2050. Together with support for district heating and cooling networks and municipal heating plans, these measures will help unlock one of Europe’s largest untapped clean energy resources.
The Action Plan further strengthens Europe’s heat pump value chain through support for manufacturing, installer skills and workforce development, including the creation of an Electrification Action Plan Alliance to bring together policymakers, industry and other actors from manufacturing through to installation.
This Action Plan strengthens the need for Member States to implement the Energy Performance of Buildings Directive. It reinforces requirements, such as ensuring public buildings become net zero, by proposing mandatory heat pumps in public buildings.
Contact:
Daniela Floris
Communications Officer
daniela.floris@ehpa.org
+32 499717539
