Market news, 07 March 2025
EU Focus on Energy Costs Could Boost Heat Pump Adoption
Date:
02 March 2025
The European Commission's latest initiatives to support clean industries and affordable energy highlight key areas that could drive greater heat pump adoption. The Clean Industrial Deal and the Affordable Energy Action Plan recognize the need for industrial decarbonization, clean technology manufacturing, and lower electricity costs - all essential to accelerating the shift to heat pumps in homes and industries.
Increased use of heat pumps could reduce Europe’s reliance on imported fossil fuels and enhance energy security. According to the European Commission, higher heat pump adoption could cut import spending by €60 billion. However, the Commission’s plans do not specifically address the heat pump sector’s role in achieving energy security, industrial competitiveness, and net-zero targets.
Additionally, the long-term demand predictability for heat pumps remains unaddressed. These issues must be incorporated into the European Commission’s upcoming Electrification Action Plan and the EU Heating and Cooling Strategy, with corresponding legislative and budgetary support.
Paul Kenny, Director General of the European Heat Pump Association, stated:
“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.”
He added: “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.”
Currently, 60-73% of heat pumps installed in Europe are manufactured within the region, with production spread across 300 sites. However, sales declined by 23% in 2024 due to economic slowdowns, shifting policy support, and heavily subsidized gas. Ensuring clear policy backing and addressing energy price disparities are critical to reversing this trend and sustaining industry growth.
Increased use of heat pumps could reduce Europe’s reliance on imported fossil fuels and enhance energy security. According to the European Commission, higher heat pump adoption could cut import spending by €60 billion. However, the Commission’s plans do not specifically address the heat pump sector’s role in achieving energy security, industrial competitiveness, and net-zero targets.
Additionally, the long-term demand predictability for heat pumps remains unaddressed. These issues must be incorporated into the European Commission’s upcoming Electrification Action Plan and the EU Heating and Cooling Strategy, with corresponding legislative and budgetary support.
Paul Kenny, Director General of the European Heat Pump Association, stated:
“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.”
He added: “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.”
Currently, 60-73% of heat pumps installed in Europe are manufactured within the region, with production spread across 300 sites. However, sales declined by 23% in 2024 due to economic slowdowns, shifting policy support, and heavily subsidized gas. Ensuring clear policy backing and addressing energy price disparities are critical to reversing this trend and sustaining industry growth.
