CETO has published its latest report on heat pump technology

The European Clean Energy Technology Observatory (CETO) has published its latest report on heat pump technology, detailing the current advancements and applications in buildings, industry, and district heating systems. The report highlights the potential of heat pumps as a key driver of the clean energy transition, emphasizing their role in decarbonizing heating and cooling sectors.

Key Insights from the Report:

1. Technology State-of-the-Art:

   • Over 21.5 million heat pumps installed in the EU by 2023, with a significant increase in adoption projected by 2030.
   • Heat pumps in buildings, particularly in energy renovations, are crucial for achieving carbon-neutrality goals.
   • Industrial applications of heat pumps are advancing, with potential to meet over 11% of process heat demands.

2. Market Growth and Trends:

   • While heat pump sales grew significantly in 2022, a 7% decline was noted in 2023 due to economic and policy factors.
   • The industry has committed over €7 billion for capacity expansion between 2020 and 2030.

3. Research and Development:

   • Ongoing innovations include high-temperature heat pumps and hybrid systems.
   • EU-funded projects focus on reducing costs, improving efficiency, and scaling up manufacturing capabilities.

4. Challenges:

   • High initial costs, policy uncertainties, and supply chain vulnerabilities are barriers to wider adoption.
   • The shortage of skilled labor remains a bottleneck in the industry.

The report emphasizes the need for stable policy frameworks and increased investments to accelerate the deployment of heat pumps. As a cornerstone of the EU's Green Deal and REPowerEU initiatives, heat pumps are poised to play a pivotal role in reducing Europe's dependence on fossil fuels and meeting climate targets.

Read the full report.