Market news, 02 January 2025
Cost of Electricity Influences Heat Pump Market Success in Europe
Date:
26 October 2024
Cost-effective electricity is a significant factor in the proliferation of heat pumps across Europe, according to data from the European Heat Pump Association (EHPA). Typically, governments subsidize gas, keeping its price below electricity by avoiding carbon taxes, which hinders the competitiveness of heat pumps.
Animated maps released by EHPA illustrate a brief period during the 2022 energy crisis when gas prices exceeded those of electricity, leading to a surge in heat pump sales. However, the trend was short-lived, and electricity now costs more than 2.5 times the price of gas in many European countries. For heat pumps to remain an attractive investment, electricity should ideally be priced no more than twice that of gas.
Recent statistics show a 47% decline in heat pump sales in Europe during the first half of 2024 compared to the same timeframe in 2023. Contrarily, countries like Finland, Norway, and Sweden, which have minimal gas usage, see widespread adoption of heat pumps.
Paul Kenny, director general of EHPA, emphasized that heat pumps play a crucial role in reducing Europe's dependency on fossil fuels and establishing an energy system immune to geopolitical influences. He urged EU governments to ensure energy pricing policies support the adoption of heat pumps to enhance energy sovereignty, competitiveness, and sustainability.
These insights are highlighted on the inaugural Heat Pump Day, celebrating the environmental and energy independence benefits of heat pumps, with various events taking place across Europe in recognition.
Animated maps released by EHPA illustrate a brief period during the 2022 energy crisis when gas prices exceeded those of electricity, leading to a surge in heat pump sales. However, the trend was short-lived, and electricity now costs more than 2.5 times the price of gas in many European countries. For heat pumps to remain an attractive investment, electricity should ideally be priced no more than twice that of gas.
Recent statistics show a 47% decline in heat pump sales in Europe during the first half of 2024 compared to the same timeframe in 2023. Contrarily, countries like Finland, Norway, and Sweden, which have minimal gas usage, see widespread adoption of heat pumps.
Paul Kenny, director general of EHPA, emphasized that heat pumps play a crucial role in reducing Europe's dependency on fossil fuels and establishing an energy system immune to geopolitical influences. He urged EU governments to ensure energy pricing policies support the adoption of heat pumps to enhance energy sovereignty, competitiveness, and sustainability.
These insights are highlighted on the inaugural Heat Pump Day, celebrating the environmental and energy independence benefits of heat pumps, with various events taking place across Europe in recognition.
