In order to break away from dependence on Russian fossil fuels and accelerate the green energy transition, the European Commission officially announced on 18 May the “REpowerEU” energy transition action programme, which plans to invest €300 billion until 2030 to achieve energy independence and green transition in Europe through three pillars: accelerating the deployment of renewable energy capacity, diversifying energy supply and improving energy efficiency.
It is mentioned that energy efficiency is the cheapest, safest and cleanest way to solve the current European energy crisis and reduce energy bills. The European Commission proposes to strengthen long-term energy efficiency measures, including raising the binding energy efficiency target in the European Green Deal ‘Fit for 55’ package of legislation from 9% to 13%. It also allows cities and regions to take a leading role in encouraging the purchase of heat pumps and more efficient
It also mentions the acceleration of the clean energy transition and the large-scale expansion of renewable energy use in power generation, industry, buildings and transport. The European Commission proposes to increase the overall target for renewable energy from 40% to 45% by 2030 under the “Fit for 55” package, which means that the EU’s installed renewable energy capacity is expected to increase from the current 511 GW to 1236 GW by 2030. Among the specific initiatives are measures to integrate geothermal and solar energy into modern district and public heating systems to replace fossil fuel heating. And doubling the current rate of heat pump deployment to a cumulative 10 million units over the next five years.
EU multi-nationals encourage deployment of heat pumps
This year, the International Energy Agency (IEA) said on its official website that the EU sanctions would reduce the bloc’s gas imports from Russia by more than a third. In response the IEA has given 10 recommendations aimed at increasing the resilience of the EU’s gas network and minimising the difficulties that vulnerable consumers may encounter. Among them is the mention of speeding up the process of replacing gas boilers with heat pumps.
Ireland has announced an €8 billion plan that will almost double the value of grants for heat pump projects, with the hope of installing 400,000 domestic heat pumps by 2030.
The Dutch government has announced plans to ban fossil fuel boilers from 2026 and to make hybrid heat pumps the standard for domestic heating. The Dutch cabinet has committed €150 million per year until 2030 to support homeowners in purchasing heat pumps.
In 2020, Norway is subsidising more than 2,300 homes through the ENOVA programme, with a focus on the market for high temperature heat pumps for district heating.
In 2020, the UK government announced its ‘Ten Point Plan for a Green Industrial Revolution’, which mentions a £1 billion investment (approximately R8.7 billion) in homes and public buildings to make new and old homes and public buildings more energy efficient and comfortable; to make public sector buildings greener; and to cut spending on hospitals and schools. To make homes, schools and hospitals greener and cleaner, 600,000 heat pumps are proposed to be installed each year from 2028.
In 2019, Germany proposes to achieve climate neutrality by 2050 and to advance this target to 2045 in May 2021. In the study “Germany Climate Neutral 2045”, the German Agora Energy Transition Forum and other leading think tanks estimate that if Germany’s carbon neutrality target is brought forward to 2045, at least 14 million heat pumps would have to be installed in Germany’s heating sector.
“REpowerEU” may make the heat pump industry welcome again
According to industry online data, the export value of domestic heat pumps will be about 5 billion yuan in 2021, an increase of more than 100% year-on-year. The “REpowerEU” will promote the EU’s large-scale demand for renewable energy sources such as heat pumps, short-term European local manufacturing level is limited, the development of alternative supply chain is very complex and expensive, most of the EU renewable energy products are still dependent on imports, the Chinese heat pump enterprises will be a huge opportunity. Therefore, the domestic heat pump industry should increase research and development efforts, cultivate their own brands, to meet the new opportunities and challenges.