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Advancing Heat Pumping Technologies: A Key to Europe's Energy Transition

Advancing Heat Pumping Technologies: A Key to Europe’s Energy Transition

The latest Clean Energy Technology Observatory (CETO) report, published by the European Commission, highlights the transformative role of heat pumps in driving Europe’s clean energy transition. With over 21.5 million units installed across the European Union (EU) as of 2023, heat pumps are emerging as a cornerstone in reducing greenhouse gas emissions, improving energy efficiency, and meeting the EU’s ambitious climate neutrality goals.

Heat pumps: A growing market with challenges

Heat pump sales saw a meteoric rise between 2013 and 2022, culminating in a 44% growth in 2022 alone. However, sales dipped by 7% in 2023 due to fluctuating gas prices, inflation, and political uncertainties (see Figure 1). Despite these challenges, the EU heat pump market remains robust, supported by over €7 billion in industry investments from 2020 to 2030, according to the report.

Figure 1: Heat pump sales in 13 Member States in 2022 and 2023 (Source: EHPA, 2024)

 Technological advances and applications

According to the report, heat pumps have reached Technology Readiness Level (TRL) 9 for building applications and TRL 8 for industrial applications below 140°C (see Table 1). This maturity positions them as critical solutions for heating, cooling, and hot water supply in buildings, as well as for industrial process heat and district heating networks. Notably, high-temperature heat pumps capable of exceeding 200°C are under development, opening pathways for broader industrial applications.

Table 1: Technology Readiness Levels by heat pump type or sector

Economic and environmental impact

The report states that the heat pump industry is a leading employer within the renewable energy sector, supporting over 416,000 direct and indirect jobs in 2022. With approximately 60% to 73% of heat pumps sold in Europe also manufactured locally, the sector strengthens EU competitiveness while reducing dependency on fossil fuel imports.

Environmentally, heat pumps significantly lower operational emissions compared to gas boilers. For instance, integrating heat pumps into older buildings or district heating systems can cut energy consumption and enhance sustainability. However, high upfront costs and electricity-gas price disparities remain barriers to widespread adoption.

Innovation and policy support

To ensure continued growth, the report emphasizes innovation in areas such as hybrid systems, modular heat pump designs, and integration with renewable energy sources. Additionally, EU policy frameworks like the REPowerEU plan aim to accelerate installations, with targets for 30 million new hydronic heat pumps by 2030. Tax reforms and subsidies have proven effective in markets like Sweden and Finland, making electricity-driven heat pumps more competitive.

Industry opportunities and future outlook

Heat pumps offer dual benefits for Europe: they strengthen the industrial value chain and contribute to energy independence. By leveraging waste heat recovery, renewable integration, and large-scale district heating projects, the technology can redefine heating and cooling across sectors.

As the EU transitions towards a sustainable future, heat pumps stand out as a pivotal technology, promising economic growth, environmental benefits, and enhanced energy security. While challenges persist, innovation, policy coherence, and industry investments can ensure the EU retains its leadership in this transformative field.

This report reflects Europe’s readiness to harness advanced technologies to meet its climate commitments while fostering economic resilience in an increasingly competitive global market.