Federica Sabbati: 'When integrating heat pumps into existing buildings, the solution approach needs to be holistic, and local specificities need to be considered'
Federica Sabbati: 'When integrating heat pumps into existing buildings, the solution approach needs to be holistic, and local specificities need to be considered'
Introduction
Federica Sabbati is Secretary General of the European Heating Industry, an association that brings together industry leaders in the production of efficient heating systems. EHI members cover 90% of the European market for all heating solutions, from heat pumps to hybrids, boilers to solar thermal systems, mCHP (micro combined heat and power), fuel cells, radiators, and underfloor heating. Since 2020 Federica is also Facilitator of the European Clean Hydrogen Alliance’s Buildings Round Table.
BUILD UP (BUP): How does the current EU regulatory framework support the widespread implementation of heat pump technology in building heating systems? Are there any areas where more support would be beneficial?
FEDERICA SABBATI (FS): The role of heat pumps for the decarbonisation of the European building stock is largely recognised throughout the EU regulatory framework. In particular, the REPowerEU communication launched in May 2022, sets up specific targets for the installation of heat pumps as a key element to support the switch away from fossil fuels; 10 million additional hydronic heat pumps should be installed by 2027 and an additional 30 million by 2030. These targets, despite being indicative, have sent a strong signal to the market and the European heating industry responded with an unprecedented scale and speed of investments in heat pump technologies. Meanwhile, the new Energy Efficiency and Renewable Energy Directives, the upcoming amendments to the Energy Performance of Buildings Directive, and the new Ecodesign and Energy Labelling regulations for space and water heaters recognise the efficiency and renewability of heat pumps and create favourable conditions for their uptake in the market.
In addition, the Net Zero Industry Act proposed in March 2023, explicitly acknowledges heat pumps as a strategic technology for the achievement of EU climate objectives. As such, it foresees to support their deployment throughout EU funding programmes, public procurement and national incentives.
As a result of this widespread recognition, and as a direct effect of national incentive schemes supporting the purchase of heat pumps, in 2022 hydronic heat pump sales soared by 52% compared to 2021, reaching more than 1.5 million units sold. However, during 2023, key EU markets saw heat pump orders stagnating or declining, showing a dropping demand which is threatening REPowerEU objectives, the EU energy and climate targets, and finally the investments already made.
'During 2023, key EU markets saw heat pump orders stagnating or declining, showing a dropping demand which is threatening REPowerEU objectives, the EU energy and climate targets, and investments already made'
Thus, we believe that more specific support would be beneficial to deal with the real market barriers that have not been tackled effectively so far, such as the upfront consumer investment, the cost of energy (i.e., the heat pump operating costs), the insufficient capacity of electricity grids across Europe, and the shortage of skilled installers. A legal and market framework that effectively deals with these barriers starts with including the REPowerEU target for the installation of hydronic heat pumps in legislation such as the Energy Performance of Buildings Directive.
BUP: What are the main challenges faced by building owners or developers when integrating heat pumps into existing buildings? What are some effective solutions to these challenges?
FS: The main challenges faced when integrating heat pumps into existing buildings are related to:
Physical and technical characteristics of heat pump technologies. For instance, space constraints because part of the heat pump needs to be installed outside or because of a hot water storage tank needs to be installed indoors and these can pose challenges to their installation in some buildings.
Limited financial capabilities of EU citizens that emerge because of the higher upfront cost of heat pump technologies and their still relatively high running costs in many European countries.
The heterogeneity, structure, and age of the European building stock may demand investments to insulate as well to ensure that the heat pump technology works at optimum efficiency and with lower running costs.
The electricity grid capacity which would need to be increased and flexibility-enabled to be able to connect as many heat pumps as required by the EU climate targets.
The shortage of installers and the need to train more installers to work with heat pump technologies, electricity, and using natural refrigerants.
Solutions to these challenges exist, but the approach needs to be holistic and avoid oversimplification because Europe’s buildings differ from each other, and local specificities need to be considered in order to find the most effective decarbonisation solution for each of them. This is crucial to succeed in the energy transition of buildings which ensures no one is left behind and that the European energy system remains reliable and stable.
Industry is doing its part by developing and perfectioning heat pump technologies to fit in most buildings. Where their installation encounters physical constraints, the industry is developing different solutions, for example component integration, higher temperature heat pumps, or by installing the outdoor unit on the roof.
'Industry is doing its part by developing and perfectioning heat pump technologies to fit them in most buildings'
Financial incentives or regulatory interventions can help in making the purchase and use of heat pump technologies more attractive and affordable. National scrappage schemes targeting the replacement of old and inefficient heating systems are also a good way to support households in the purchase of a heat pump. These can be progressive and dedicate higher funding to low and middle-income households, helping to fight and alleviate energy poverty.
When it comes to the supply chain and the electricity grid capacity needed to support heat pump deployment, close collaboration between the heating sector and grid operators on the energy system planning is inevitable. Meanwhile, increasing demand-side response, meaning the fact that heat pumps can react to signals from the grid while still delivering heat (e.g. by means of a heat storage system), can reduce the pressure on the electricity grid via load shedding during peaks of demand. In addition, investments in the electricity grid can be optimised by making use of existing gas infrastructure, by using hybrid heat pump technologies able to switch from molecules to electrons when needed and when it makes most sense. Thermally driven heat pumps and hybrid heat pumps on the market today can already work with 100% bio-methane and they can work with blends of hydrogen or can be converted to work with 100% hydrogen.
Finally, the industry is investing in training and retraining more and more installers. Today there are over 1.5 million installers of heating systems in Europe. In order to reach the REPowerEU target for heat pump installations we estimate that the number of installers will have to increase by 50% and of the existing installers at least 50% will have to be reskilled to be able to work with heat pump technologies. Co-operating at the EU and national level in this regard to raise awareness of the job opportunities, to support the installers going into reskilling, to harmonise programmes across the EU are some of the solutions we are currently exploring.
BUP: What are the benefits for building owners who choose to install heat pump systems, considering both short-term and long-term?
FS: Short-term benefits include reducing the environmental impact of heating by increased energy savings and reduced emissions and in those countries where the price of electricity is low, reduced energy bills. In the long-term, benefits would be the lower total cost of ownership, including upfront costs and maintenance and running costs over the lifetime, in some EU Member States (depending on the electricity price), and increased energy performance of their building resulting in an increased property value.
BUP: How can heat pumps be integrated with renewable sources to further reduce carbon emissions in buildings?
FS: Electricity and fuels used to power electric heat pump technologies need to be increasingly generated from renewable sources to reduce the emissions from heat pumps further. Heat pumps can be combined with solar thermal systems to produce domestic hot water. This may increase the upfront cost of the heating system, but it reduces further its carbon emissions. Finally, smart homes often integrate other systems, such as PVs and batteries with an energy management system that will optimise the energy storage and consumption of all appliances in the buildings. This should reduce the carbon emissions of the building, going beyond the heating system.
It should also be considered that hybrid (i.e., combining an electric heat pump and a boiler) and thermally driven heat pumps (a heat pump that uses heat to drive a thermal compressor) can work with renewable gases, and therefore are an optimal solution for areas where there is a high capacity of renewable gases generation, a well-developed gas infrastructure and electricity grids constraints. The boiler part of the hybrid and the thermally driven heat pump can work on 100% biomethane or blends containing up to 20% hydrogen, while some can work with 100% hydrogen.
'Hybrid and thermally driven heat pumps can work with renewable gases and are an optimal solution for areas where there is a high capacity of renewable gases generation, a well-developed gas infrastructure and electricity grids constraints'
BUP: What actions are the European Heating Industry undertaking to support the implementation of heat pumps in the EU building stock?
FS: The European Heating Industry is advocating for strong, appropriate policy support for heat pumps at EU level, throughout the EU regulatory framework, and supporting members at national level to do the same. Heating manufacturers are investing massively in scaling up production capacity of heat pumps to deliver on the REPowerEU targets. At the same time, consistent effort and resources are put into research and innovation into new technologies to make heat pumps smaller, quieter, and work with natural (or more sustainable) refrigerants.
Last but not least, manufacturers are providing training and investing resources to scale up the professionals who will install and service heat pumps, upskilling and reskilling installers (who are the clients of heating systems’ manufacturers), developing innovative training models. As an example, in 2022 European manufacturers trained around 254,000 installers, and in 2024 they are expected to train around 340,000 installers, according to an EHI internal survey.
