To tackle Europe’s heat pump market crisis, the European Heat Pump Association (EHPA) highlights the importance of cheap electricity and calls on the EU to publish the long-awaited action plan of the EU on heat pumps.
Heat pump manufacturers have been warning for several months about the crisis facing the sector. According to the European Heat Pump Association (EHPA), sales of heat pumps fell by 47% in Europe during the first six months of 2024, compared to the same period in 2023. The cause: less support national policies and an advantageous price of gas compared to electricity.
The association promoting heat pumps highlights their benefits in the fight against climate change. “ The 24 million heat pumps currently installed in Europe avoid the consumption of 5.5 billion cubic meters of gas, or 1.6% of the EU’s total annual gas consumption. she says. Enough to avoid the emission of 45 million tonnes of CO2 every year. If Europe reached 60 million heat pumps installed in 2030, the Old Continent would avoid the emission of 112 million tonnes of CO2 and 13.7 billion cubic meters of gas each year.
Support electricity rather than gas
In a communication published on October 21, the EHPA points out that in most countries, gas is subsidized by governments. This allows it to avoid carbon taxes and keep it artificially low in price compared to electricity. Paul Kenny, chief executive of the European Heat Pump Association, is urging governments to act and calling on the new European Commission to publish the long-awaited EU action plan on heat pumps. “ To ensure Europe’s long-term competitiveness and eliminate coal, oil and gas from the heating and cooling sector, we urgently need to reverse the slowdown in the heat pump market”he insists.
At the heart of the energy crisis, when the price of gas reached record highs, this is precisely where heat pump sales were highest. “ However, this did not last and today, in much of Europe, electricity costs more than 2.5 times as much per unit as gas”analyzes the EHPA. “ Electricity would need to be at most about twice as expensive as gas for a heat pump – which only uses a small amount of electricity to operate – to be a good investment. »
In Finland, Norway and Sweden, gas is very little present and the use of heat pumps is widespread. Paul Kenny, warns: “ Heat pumps are essential to ending Europe’s dependence on fossil fuel imports, essential to achieving a sovereign and secure energy system, insulated from foreign actors and their use of energy prices as a weapon of war. But that won’t happen if it costs consumers and businesses too much. If EU governments are serious about energy sovereignty, competitiveness and sustainability, they must ensure that energy prices favor heat pumps. »
Swiss
