The European Commission has published an energy plan that identifies electrification as a key measure to protect consumers from high energy prices linked to the fossil fuel crisis. The plan includes a target to increase heat pump sales to 4 million units per year by 2030 and proposes action on electricity-to-gas price ratios.
According to the plan, accelerating electrification in heating and cooling would include reducing VAT on heat pumps and encouraging waste heat recovery from industry. It also announces a legislative proposal on electricity taxes and power network charges, noting that in many countries electricity tax is several times higher than tax on fossil fuels.
The plan also refers to support for social leasing for heat pumps, allowing lower-income households to rent units, and to scaling up financial support for heat pumps in buildings and industry. EHPA said it has long supported measures such as lower electricity taxation, reduced VAT on heat pumps, social leasing and greater use of waste heat recovery.
EHPA called on the European Commission to add binding targets and clearer figures in the upcoming Electrification Action Plan, including on reducing electricity-to-gas price ratios, heat pump targets by application, and waste heat recovery use.
“The European Commission’s plan gets it spot on. It sets a clear direction towards electrification and pinpoints how to step up the switch to heat pumps in buildings, districts and industry. Doing so will be a huge boost for Europe’s energy independence and protect us all from unreliable fossil fuel suppliers, while strengthening jobs and the economy. EU governments should enact these measures urgently,” said Paul Kenny, Director General of EHPA.
