European Heat Pump Market and Statistics Report 2014 - EHPA

European Heat Pump Market and Statistics Report 2014

ehpa.org

Cover pictures of the European Heat Pump Market and Statistics Report 2014: In order to make the application potential of heat pump technology more visible, the cover page of the European Heat Pump Market and Statistics Report 2014 shows 7 examples of successful heat pump applications.

Example 1

Commissioning Building type Heat source Heat pump type Service Flow temperature Heating capacity Example 2

Commissioning Building type Heat source Heat pump type Service Source temperature Flow temperature Heating capacity Example 3

Commissioning Building type Heat pump type

Features Cooling capacity Heating capacity

Kieler Fördeterrassen: Dimplex brine/water heat pump SI 50 TE © Dimplex September 2009 5 multiple dwellings, each with 9 housing units Ground source, 4 x 100 m deep boreholes, 56 x 13 m boreholes brine/water heat pump Dimplex SI 50 TE Space heating, hot water max. 58 °C 50 kW per house Aberglasney Mansion and Gardens in Carmarthenshire © NIBE March 2013 Multipurpose: Mansion and gardens lake water F1345.60 kw heating, hot water 9,4 °C in winter; 15 °C in summer 6 °C in winter designed for 200 000 kwh Residential/Office Building of Via Fratelli Gabba © Robur 2011 residential/offices 27 reversible gas absorption heat pumps + air source renewable energy 31 Gas absorption chillers reduction of 342 910 kWh/year in primary energy consumption 1 090 kW 1 400 kW

1 2

3

4

5

6

7

Example 4 Cost Service COP cool COP heat Features

Example 5 Commissioning Heat source Heat Pump type COP heat Features Heat capacity

“Energicentralen” © Grundfos 17 million DKK/2,3 million EUR heating, cooling = 3,6 = 4.6 reduction 3 000 tons CO2 emission per year Drammen Fjernvarme– Brakerøya © Star 2011 biodiesel, natural gas, propane and heating oil two stage ammonia heat pumps 3,05 use of hydroelectricity 14 Mw

Example 6

Grand SPA Lietuva © NIBE Heat pump type air/water and brine/water heat pumps Building type SPA centre Heat sources waste air of the ventilation system, waste mineral water, waste water, pipe ground boreholes, 140 borehole, outside air Heated/cooled area 20 000 m2 Total heating capacity 1 800 kW Example 7

Commissioning Building Type Heat source Heat pump type Service Flow temperature Heating capacity Cooling capacity

s.Oliver HQ / Rottendorf: brine/water heat pump Dimplex SI 130TE © Dimplex July 2008 Office building (headquarter) Brine water brine/water heat pump Dimplex SI 130TE Heating and cooling max. 60 °C 175 kW 134 kW

European Heat Pump Market and Statistics Report 2014

Authors Sara Demeersman Jaganjacova Phone: +32 2 400 10 17 [email protected]

Pascal Westring Phone: +32 24 00 10 17 [email protected]

European Heat Pump Association Rue d’Arlon 63-67 B-1040 Brussels

Austria Siegfried Kopatsch Verband Wärmepumpe Austria Phone: +43 732 600 300 [email protected] www.waermepumpe-austria.at

Germany Tony Krönert BWP Germany Phone: +49 30 208 799 711 [email protected] www.waermepumpe.de

Norway Bård Baardsen | Norsk Vaermepumpefoerening NOVAP Phone: +47 22 80 50 30 [email protected] | www.novap.no

United Kingdom Kelly Butler | BEAMA Domestic Heat Pump Association Phone: +44 0 20 7793 3000 [email protected] www.beama.org.uk

Belgium Jan Lhoëst Warmtepomp Platform Vlaanderen Phone: +32 2 218 87 47 [email protected] www.ode.be/warmtepompen

Hungary Tarek Maiyaleh Hungarian Heat Pump Association Phone: +361 463 26 24 [email protected] www.hoszisz.hu

Poland Sebastian Kaletka Polish Organization of Heat Pump Technology Development PORT PC Phone: +48 664 979 972 [email protected] www.portpc.pl

Ireland Jonathan Jennings and Richard Sherlock Heat Pump Association of Ireland [email protected] www.hpa.ie

Portugal Nuno Roque | Portuguese Association of Industrial Refrigeration and Air Conditioning Phone: +351 213 224 260 [email protected] | www.apirac.pt

Italy Alberto Spotti Italian Heat Pump Association ANIMA / Assoclima Phone: +39 02 45 1 85 55 [email protected] | www.anima.it

Slovak Republic Peter Tomlein Slovak Association for Cooling and Air Conditioning SZ CHKT Phone: +42 124 564 69 71 [email protected] www.szchkt.org

Thomas Nowak Phone: +32 2 400 10 17 [email protected]

National Editors

Lieven Demolder Warmtepomp Platform Vlaanderen Phone: +32 2 218 87 47 [email protected] www.ode.be/warmtepompen Czech Republic Josef Slovacek Czech Heat Pump Association AVTC Phone: +420 724 324 445 Email: [email protected] | www.avtc.cz Denmark Svend Vinther Pedersen Danish Technological Institute Phone: +45 72 20 12 71 Email: [email protected] www.teknologisk.dk Estonia Jüri Miks Estonian Heat Pump Association ESPEL Phone: +372 50 86 772 [email protected] www.espel.ee Finland Jussi Hirvonen Finnish Heat Pump Association SULPU Phone: +358 505 00 27 51 [email protected] www.sulpu.fi France Valérie Laplagne Uniclima Phone: +33 1 45 05 72 69 [email protected] www.uniclima.org

© 204 The European Heat Pump Association EEIG (EHPA) Rue d’Arlon 63-67 B-1040 Brussels Phone: +32 2 400 10 17 Fax: +32 2 400 10 18 [email protected]

Lithuania Daina Batoriene Lietuvos šilumos siurbliu˛ Asociacija Phone: +370 5 264 35 82 [email protected] | www.lietssa.lt Malta Charles Yousif Institute for Sustainable Energy University of Malta Phone: +356 21 650 675 [email protected] www.um.edu.mt/ise The Netherlands Peter Oostendorp Dutch Heat Pump Association DHPA Phone: +31 55 506 00 05 [email protected] www.dhpa-online.nl Reinoud Segers Statistics Netherlands [email protected] www.cbs.nl

Design by Ebmeyer & Ebmeyer GmbH, Munich www.2-se.de

Spain José Maria Ortiz Asociacion De Fabricantes De Equipos De Climatización AFEC Phone: +34 91 402 76 38 [email protected] | www.afec.es Sweden Anne-Lee Bertenstam Swedish Heat Pump Association SVEP Phone: +46 8 522 275 05 [email protected] www.svepinfo.se Switzerland Stephan Peterhans Swiss Heat Pump Association FWS Phone: +41 31 350 40 65 [email protected] www.fws.ch

The content of this publication may not be copied, reproduced, republished, downloaded, posted, broadcast or transmitted in any way without EHPA's written permission.

Bulgaria Vasil Kolikovski | Bulgarian Heat Pump Association BHPA Phone: +359 29 55 43 71 [email protected] www.geosolarv63.com China Cooper Zhao | Cooper Zhao International Copper Association [email protected] Japan Juriko Terao International Department & Technical Research Department Heat Pump & Thermal Storage Technology Center of Japan (HPTCJ) Phone: +81 3 5643 2416 [email protected] www.hptcj.or.jp

Contribution Chapter 4 Stefan Wolf Institute of Energy Economics and the Rational Use of Energy IER Phone: +49 (0) 711 685 878 52 [email protected] www.ier.uni-stuttgart.de Contribution thermally driven heat pumps (Chapter 4) Peter Wagener Dutch Heat Pump Association Phone: + (0) 31 341 768 130 [email protected] www.dhpa-online.nl Editing support Pieter-Jan Cluyse | EHPA

This report was prepared to the best of our knowledge. The opinions and interpretations presented are those of the authors and editors and do not necessarily apply to all industry actors. Neither the authors, the editors nor EHPA shall be held liable or responsible for any loss, cost damages or expenses incurred or sustained by anyone resulting from use of this report.

Contents

Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

1 European Heat Pump Market and Statistics Report 2014 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

2 European Energy Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

3 European Legislation affecting Heat Pumps: 2014 Update . . . . . . . . . . . . . . . . . . . 16 3.1

The Directive on the promotion of the use of energy from renewable sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.2 Energy Performance of Buildings Directive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.3 The Ecodesign for Energy related products-Framework Directive; Lot 1 / Lot 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3.4 Energy Labelling Directive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3.5 Commission decision on an Ecolabel for heat pumps . . . . . . . . . . . . . . . . . . . . 21 3.6 F-gas Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 3.7 Energy Efficiency Directive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3.8 A 2030 EU climate and policy framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 4 Industry and Technology Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 4.1 Market development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 4.2 Technology development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 5 European Heat Pump Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 5.1

European heat pump market development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

5.2 Overview on heat pump sales in 21 European markets . . . . . . . . . . . . . . . . . . . 38 5.3 Market penetration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5.4 Market segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5.5 An economic force and a provider of local labor: the European heat pump industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5.6 Heat pumps enter the energy debate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5.7 Outlook for 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 6 Focus reports on selected European markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 6.1 Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 6.2 Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 6.3 Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 6.4 Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 6.5 Estonia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 6.6 Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 6.7 France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 6.8 Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 6.9 Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 6.10 Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 6.11 Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 6.12 Lithuania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 6.13 The Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Contents

3

6.14 Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 6.15 Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 6.16 Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 6.17 Slovakia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 6.18 Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 6.19 Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 6.20 Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 6.21 United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 7 Focus reports on selected markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 7.1

Bulgaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

7.2

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

Annex I | EHPA sales data acquisition and processing methodology . . . . . . . . . . . . 170 Annex II | EHPA heat pump statistics: questionnaire used . . . . . . . . . . . . . . . . . . . . . . . . 172 Annex III | Consolidated sales of heat pump units 2005– 2013 . . . . . . . . . . . . . . . . . . . 176 List of tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 List of figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

4

Contents

Editorial

Dear Reader, It is time for another edition of Europe’s heat pump markets and statistics report. We have worked a lot behind the scenes to improve the content of this edition even further. Part of this work was a complete revision of the database backend of our statistics. As a first result of this work, the collected data was made available to our members from May onwards. A number of updates and revisions have been performed to make the data increasingly accurate. We have closed data collection at the end of July and the report that we present to you today is based on this data. Eventually, our EHPA members will benefit from a much more attractive and versatile interface allowing data evaluation based on multiple criteria. On the content side we have improved the report’s consistency by adding general data from only Eurostat sources, thus making it more comparable. We have also added historical sales data to each national chapter to make the country reports more complete. Interpreting available data reveals a silver lining on the horizon. After three years of stagnation and even slight decline, the markets are recovering. Heat pump sales in Europe increased by nearly 3%. Initial data for 2014 shows that this trend is going to continue. The political framework will support this development. The implementation of the different kinds of legislation on the use of renewable energy and energy efficiency are picking up speed. An evaluation of the Member States status reports reveals that Europe is still on track for the moment, but more will have to be done with regards to achieving the energy efficiency target, maybe even with regards to the renewables targets. Heat pumps are a perfect solution to overcome expected shortages and this fact is increasingly recognized in the political discourse. Even the just finalized revision of the F-gas regulation will most likely not pose a major threat to the development of heat pump technology. The main limiting factor for our technology is still the price of fossil fuel and fossil fuel based systems. More precisely, it is the price ratio between alternative energy sources and electricity. In many countries this ratio has deteriorated even further, reducing the traditional operating cost advantage of heat pump technology. It is high time to take brave political decisions that result to an acknowledgment of the benefits of heat pumps and to reimburse the technology for its positive contribution to energy efficiency, supply security and grid stability. Heat pumps can and should be a cornerstone of European energy policy, to the benefit of the individual and society at large. Last, this report would not be what it is without the national editors, special contributors and the team in the EHPA office. We would like to thank them for their work, for input given and for critical comments made. We hope that you enjoy reading the report and if you do, please drop us a line on your perception of its quality.

Thomas Nowak

Sara Demeersman Jaganjacova

Pascal Westring

Editorial

5

European Heat Pump Market and Statistics Report 2014 Executive Summary

1

The number of heat pump units sold in the European heat pump market increased by 3% in 2013. A total of 769 879 units were sold in the 21 European countries covered by this year’s EHPA report. During the last 20 years, the total amount of installed Heat Pump has exceeded 6,74 million (see Table 1-1). SUM EU-11

SUM EU-21

TOTAL STOCK

2005

446 037

1 015 607

2006

504 428

1 525 401

2007

568 131

2 114 519

2008

770 538

2 918 976

2009

686 076

2010

671 392

800 388

4 437 530

2011

666 873

808 591

5 237 003

2012

621 818

750 436

5 979 042

2013

636 639

769 879

6 741 251

3 644 998

Table 1-1: Heat pumps in Europe – sales and stock, 2005 – 2013

The heat pump market continues to be governed by three major trends: 1. Air is and will remain the dominant energy source for heat pumps (note that cooling-only units are not counted in the report, see Annex I). 2. Sanitary hot water heat pumps are the fastest growing heat pump segment across Europe. This category is the only one showing double-digit growth. Sanitary hot water units combine a heat pump and a hot water storage tank. They are either sold as stand alone units with the heat pump and the tank in one casing or as systems combining a heat pump and a separate tank. 3. Larger heat pumps for commercial, industrial and district heating applications are increasingly popular. They quite often use geothermal or hydrothermal energy. However also here, air is an energy source used by a number of installations. After a difficult year in 2012, many markets could find back the growth path. On an individual country perspective, 15 out of the 21 markets saw a positive development (see Figure 1-2). Some countries even experienced double-digit growth for a second year in a row. A complete turnaround could be observed in Portugal, Spain, Sweden and Finland where the heat pump markets were decreasing in 2012. The biggest markets such as France and Sweden strongly influence the overall positive results of the market in Europe. Early signs from 2014 sales confirm this positive trend. It is indeed expected that 2014 will see larger growth rates than 2013.

Executive summary

7

European Heat Pump Market and Statistics Report 2014

900 000 800 000 700 000 600 000 Exhaust air 500 000

Sanitary hot water H-ground/water H-air/water

400 000

Reversible other Reversible air-air w/heating

300 000 200 000 100 000

Figure 1-1: Development of heat pump sales in Europe 2005 – 2013, by category

It is well known that growth in the heating segment is mainly influenced by the development in the construction sector. While the outlook for the building sector remains sluggish, heat pump sales are slightly growing. It is known that strict building requirements shape heat pumps markets. As a matter of fact, the result of those requirements is that, when a heater is installed or replaced, heat pump technology is increasingly often chosen. Still (a) high initial investment cost and a short-term decision horizon and (b) high electricity cost influence the total cost of ownership of a heat pump system and limit market growth. Despite the obvious benefits of heat pump installations towards the 2020 climate and energy targets, government support for the technology is still underdeveloped. In 2013, a total heat pump capacity of over 24 GW was installed producing approx. 13 TWh of useful energy, integrating 8,26 TWh of renewables in heating and cooling

40% 2013

30%

2012 20%

Figure 1-2: Development of heat pumps sales in 21 European countries – growth rates 2011 – 12 and 2012 –13

10%

0% SK

PL

PT HU U CZ

-10% -10%

-20% -20%

-30% -30%

-40% -40%

8

Executive summary

LT

IE IE

EE FR

ES DK DK DE DE BE SE SE AT CH ES

F FI

T IT

UK NO NO NL N UK

25 22,29

20

15 12,88

9,70

10

9,09

5

4,43

3,99 2,86

2,70 1,06

0,67

1,90

1,00 0,65 1,05

0,07 0,10

0 AT BE CH CZ DE DK EE ES

FI

FR HU IE

0,54

0,06 IT

1,54

1,19 0,06

Figure 1-3: RES from 2013 heat pump stock, by country (in TWh)

LT NL NO PL PT SE SK UK

and avoiding 2,12 Mt of CO2-equivalent emissions. An additional 4,83 TWh of primary energy was saved resulting in a reduced final energy demand of 10,56 TWh. In order to produce the 2013 sales volume and to maintain the installed stock, a total of 41 495 man years were necessary. Obviously real employment related to the heat pump market is larger. In aggregated terms, a total of more than 6,7 million heat pump units were installed since 1994. This amounts to an installed capacity of nearly 224 GW. All installed heat pumps produce 120,8 TWh of useful energy, 77,8 TWh of which being renewable. Their use saved 99,1 TWh of final and 47,1 TWh of primary energy. Figure 1-3 shows the split of renewable energy production from heat pumps on a country level. France is the country that produces the most renewable energy, followed by Sweden. They belong to a group of only six countries (France, Sweden, Germany, Italy, Norway and Finland) that produce 62,38 TWh or more than 80% of the total renewable energy production from heat pump technology. 6

5,68

5

4 3,36 3 2,53

2,32

2

1

1,12

1,03 0,74

0,71

0,50 0,27

0,17

0,26 0,17 0,27

0,02 0,03

0 AT BE CH CZ DE DK EE ES

FI

FR HU IE

0,02 IT

0,14

0,39

0,30 0,02

Figure 1-4: Greenhouse gas emissions saved by 2013 heat pump stock, by country (in Mt)

LT NL NO PL PT SE SK UK

Executive summary

9

European Heat Pump Market and Statistics Report 2014

The heat pump stock in 2013 (heat pumps sold in the past twenty years) contributed to 20 Mt of greenhouse gas emission savings (see Figure 1-4). The distribution of emission savings per country is very similar to that of renewable energy production, since both calculations are directly linked to the number of units installed. In summary, heat pumps are performing well but there is still a tremendous potential. This is underlined by a recent study by Ecofys. Looking at the 8 most important markets, the analysis concludes that an ambitious heat pump scenario would lead to a 47% decrease of greenhouse gas emissions in the building sector (compared to current levels) by 2030. However this will require a heat pump-based strategy for heating and cooling with significant government interventions in all Member States of the European Union. Clearly, today's business as usual will not be enough to unearth the technology’s potential.

10

Executive summary

2

European Energy Trends

Energy consumption – climate change warning European energy consumption is expected to grow until 2030 (see Table 2-1). This increasing demand needs to be covered by corresponding energy supply. The current trend foresees coverage of this demand to a large part from fossil fuels – with the related negative impact on supply security and the environment. More renewables and increased energy efficiency requirements would be a perfectly suitable option to meet the demand and to reduce the amount of fossil fuels needed. Ignoring this option creates a serious threat to the future of the planet. Type (Mtoe) Year

Eurostat

POLES 2009 (IPTS)

Present

Baseline

2011

2020

2030

PRIMES 2009 (EC)

Mitigation

Baseline

2020

2020

2030

2030

WEO 2013 (IEA) Reference 2020

Present Current policies New policies

2030

2011

2020

2030

2020

2030

450 ppm 2020

2030

Coal and Lignite

285

324

343

225

196

287

260

261

253

286

263

222

249

175

229

122

Oil

598

693

671

585

492

627

579

605

560

549

484

435

273

399

450

320

Gas

398

582

617

550

552

463

439

412

393

404

421

480

407

442

384

361

Nuclear

234

254

314

262

345

238

268

227

244

236

219

199

226

213

229

252

Renewables

169

268

351

331

356

209

263

279

305

184

250

300

260

327

270

386

Imports-exports of electricity

n/a

n/a

n/a

n/a

n/a

-2

-2

-2

-2

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Total primary energy consumption

1 698

2 121

2 296

1 952

1 941

1 822

1 807

1 782

1 753

1 614

1 635

1 636

1 614

1 556

1 562

1 442

Total energyrelated CO2 emission (Mt CO2)

3 614

4 493

4 452

3 690

3 134

3 404

3 193

3 403

3 193

3 499

3 280

3 101

3 157

2 702

2 936

1 985

This assessment is shared by an increasing number of actors. Most recently, the International Energy Agency (IEA) sent a clear and alarming message: current efforts, taking into account the impact of measures already announced by governments on improvement of energy efficiency and RES support, leave the world on a trajectory consistent with average temperature increase of 3,6 °C. This can have devastating impact on the environment.

Table 2-1: Primary energy consumption in the EU 27 forecasts

Currently, over 70% of European energy is produced from fossil fuels causing greenhouse gas emissions and air pollution thus negatively impacting ecosystems and human health. Another 14% of energy demand is covered by nuclear power (with the known safety issues) and the rest comes from renewable energy sources. A sustainable energy system will most likely have to be based on a complete reversal of these shares – over 70% of renewables and only a negligible share from fossil and nuclear sources.

European energy trends

11

European Heat Pump Market and Statistics Report 2014

In order to set the energy system on track to have a 50% chance of keeping to 2 °C the long-term increase in average global temperature, business as usual approach is not sufficient, instead strong and decisive action promoting energy efficiency and the deployment of renewable energy sources is needed. All measures will have to include a phase out of subsidies for fossil and nuclear energy sources. In scope of 2030 climate and energy framework discussions, European Commission proposed targets of 40% GHG emission reduction, 30% energy efficiency and at least 27% of renewables. Many stakeholders believe that these targets are not ambitious enough and they are bound to failure due to the fact that they are mandatory only on the EU level. As a reaction to the Energy Roadmap 2050, in which European Union sets ambitions goal of a reduction of greenhouse gas emissions by 80% by 2050 (in comparison with 1990 levels), the European Renewable Energy Council (EREC) suggested a binding interim target of 45% renewables in the energy mix by 2030 [8,9]. This target was deemed achievable by industry sources, showing the limited ambition of the current Commission proposal. The implementation of such a target is expected to have a significant and much needed economic and environmental impact on the European economy. Investment into the sector will contribute to a sustainable energy supply and will provide local employment. An ambitious target reduces uncertainty in the market and may further encourage investors. It will reduce the costs of financing and lower the need for support mechanisms. At the same time ambitious targets will contribute to technological development, diversification and increased competitiveness of the EU energy sector on a global level. Heat pumps provide an energy efficient and renewable solution to address these crucial issues. This is supported by a number of industry calculations as well as by independent studies. According to MacKay (2008) if we replace all fossil fuel heaters with electric-powered heat pumps we can reduce the energy required to 25% of today’s levels [10]. Additionally, if properly supported, heat pump technology can contribute to 47% of the necessary decrease of the greenhouse gas emission in the EU’s building sector by 2030 and thus help governments to follow the reduction path set as necessary to achieve the 80% reduction by 2050 (Ecofys study on eight European markets: Austria, Belgium, Germany, Spain, France, Italy, Sweden and United Kingdom). However, it would require strong and decisive policy measures at EU level to achieve this target. On the other hand the target will hardly be reached if heat pumps are not used more in the European Energy supply for heating (see Figure 2-1).

Figure 2-1: Total CO2-eq emissions for all countries [11]

12

European energy trends

Consequently, heat pumps should be given more immediate support across Europe. This report presents the necessary background information to unleash heat pumps potential.

European import dependency Europe has a limited access to the natural energy sources. This shortage is mainly addressed by imports. Currently, Europe imports more than half of its energy consumption (see Figure 2-3) and its energy dependence is expected to increase further. The main imported commodities are crude oil (88%), natural gas (66%), solid fuels such as coal (42%) and uranium (95%).

Figure 2-2: EU energy dependence (Source: European Commission 2014) [12]

High dependency on external sources is very costly. The external energy bill amounted into around 545 billion euro in 2013, which means over a 1 billion euro a day. However the cost is only the second main concern after the security of supply. Russia supplies 27% of total EU gas consumption trough Ukraine. Disputes between Russia and Ukraine about natural gas prices and debts caused several distortions of gas supply in winters of 2006 and 2009, affecting also some eastern EU Member States. In the light of the current Ukrainian crises and upcoming winter 2014/2015, the concerns related to the energy security increased further. The main concern comes in case of the six EU Member States for which Russia is a single natural gas supplier. As a response to this crisis, European Commission presented European energy security strategy identifying main focus areas for boosting energy security in Europe. Next to the completing internal energy market, speaking with one voice in external energy policy and strengthening emergency and solidarity mechanisms, there are improvement of energy security and increasing energy production in the EU including deployment of renewables. Investment in domestic and emission free renewable energy production and energy efficiency simultaneously boosts Europe’s energy security, contributes to the mitigation of the climate change and increases local employment, and thus these objectives shall be high on the EU energy strategy agenda. Heat pumps can serve as immediate solution to this issue and significantly contribute to the overall European energy security! In order to replace all imports of Russian natural gas for heating purposes by renewable and energy efficient domestic production, around 25 million heat pump units need to be installed. This cannot be done sufficiently fast and effective without support!

European energy trends

13

European Heat Pump Market and Statistics Report 2014

European RES H&C Developments According to the European Commission, current measures implemented by the EU Member States are sufficient to keep on track with the 2020 renewable energy targets until 2013, but since then significant additional effort is needed. This trend is also present in case of heating and cooling sector. The widening gap between targets illustrated in the national renewable energy action plans and the actual production presented within the progress reports (see Figure 2-4) shows that EU Member States undermine the potential of heating and cooling sector.

Figure 2-3: EU-20 shares of renewable energy (Source: Eurostat, 2013) [13]

Today, heat is mainly generated from fossil fuels, predominantly gas. Efforts to change the status quo are insufficient, even though renewable alternatives such as biomass (87,9%), geothermal energy (10,7%), heat pump technology (5,5%) and solar thermal energy (2,4%) are available. These technologies must be supported in order to unreap the potential of the sector to reach the 2020 targets. According to ECOFYS (2013), reaching targets for building sector would not be possible without heat pump technology at all, but on the other hand, if sufficiently supported, heat pumps can lead to 47% savings of total CO2 emissions by 2030.

Figure 2-4: EU-27 heating and cooling targets (Source: Progress reports, 2013) [14]

14

European energy trends

Sources [1] [2] [3] [4] [5] [6] [7a] [7b]

[8] [9] [10] [11] [12] [13] [14]

European Climate Foundation (2010): Roadmap 2050. The Hague Download at: www.roadmap2050.eu Eurelectric (2009): Power Choices: pathways to carbon-neutral electricity in Europe by 2050. Brussels Download at: www.eurelectric.org/powerchoices2050 EREC (2010): RE-thinking 2050. A 100% Renewable Energy Vision for the European Union. Brussels Download at: www.rethinking2050.eu Gross inland energy consumption by fuel [tsdcc320], Eurostat: http://ec.europa.eu/eurostat European Commission, Joint Research Centre, Economic Assessment of Post-2012 Global Climate Policies, http://ftp.jrc.es/EURdoc/JRC50307.pdf European Commission, EU Energy trends to 2030, Update 2009, http://ec.europa.eu/energy/observatory/trends_2030/doc/trends_to_2030_update_2009.pdf IEA (2012): World Energy Outlook 2012, Paris A maximum temperature increase of 2°C has been agreed upon at the COP16 meeting in Cancun in 2010 and is widely believed to be an acceptable maximum to avoid a negative impact of climate change to societies around the world. In order to achieve the 2 °C target the concentration of greenhouse gases in the atmosphere must be limited to 450 parts per million (ppm) EREC (2011): 45% by 2030 – Towards a truly sustainable energy system in the EU, Brussels EREC (2013): Hat-trick 2030 An integrated climate and energy framework, Brussels MacKay (2008) Sustainable Energy - without the hot air, UK Ecofys (2013): Heat Pump Implementation Scenarios until 2030, Cologne European Commission (2014), European Energy Security study, http://ec.europa.eu/energy/doc/20140528_energy_security_study.pdf Eurostat (2013), Share of renewable energy, http://ec.europa.eu/eurostat Member States Renewable Energy Progress Reports (2013): http://ec.europa.eu/energy/renewables/reports/2013_en.htm

European energy trends

15

3

European Legislation affecting Heat Pumps: 2014 Update

The European Union is slowly awakening from the economic crisis that has hit the continent since 2008. Reduced debt rates, a generally more optimistic opinion and low interest rates lead to a slow recovery in many sectors and result in small positive growth. Yet industry is still careful with its investments and too ambitious climate and energy targets are not favoured as this would put extra burden on the companies and would hit Europe’s competitiveness in relation to third countries. That is one of the main reasons why the European Commission has come up with a rather weak proposal for a 2030 climate and energy package in January 2014. However, the recent political crisis in Ukraine might change this. Since the end of 2013 tensions between the country and Russia increased, which amongst others lead to a steep rise of the gas price that Russia asked from the Ukrainian government. As about one third of Europe’s gas imports come from Russia and half of that is passing through Ukraine, the question of energy independence and security of supply got high on the European political agenda, in particular as import dependency is expected to continue to increase. The European Council asked the Commission to look closer to the matter of energy security. Energy efficiency is a key area to address the issue and current discussions may lead to mandatory targets, maybe even to ambitious ones in the future. The situation will have an impact on the final climate and energy package for 2030, which will be put forward by the European Council during its Summit in October 2014. In the meantime, the European Commission is also reviewing the Energy Efficiency Directive (EED) in which it will assess whether the EU and its Member States are on track to meet its non-binding 20% energy efficiency target. With the current measures in place and announced in the National Energy Efficiency Action Plans (NEEAPs) it is not clear yet, if this target will be reached. Thus, more and faster efforts to increase energy efficiency in the Union are paramount. In the light of an increasing import dependency and the likelihood of higher fossil fuel prices (once the economy comes back into full swing) governments should set a clear message on both the European and national level by creating a strong incentive for more renewables, higher energy efficiency and less CO2-equivalent emissions. This would safeguard energy supply and affordability as well as mitigate climate change. With construction being local, this could kick-start the European economy and create the much needed employment, not least for the younger generation. A triple target on a European level – more renewables, more energy efficiency and fewer emissions – could start a positive cycle, reinforcing itself. In this chapter, we look at the European policy framework that affects the heat pump technology and the heating and cooling sector in general. It is based on last year’s status quo with updates and adjustments made where necessary.

16

European legislation affecting heat pumps

Heat pump technology is affected by all legislation addressing energy efficiency, the use of renewables and the reduction of GHG emissions. Fortunately, the technology is by now acknowledged in all these pieces of legislation and stands out as being one of, if not the most efficient and least polluting alternatives. This framework – if properly implemented in all EU-28 Member States and EEA countries – will encourage a heat pump market growth in the future. Further benefit is expected from an upcoming Commission focus on the heating and cooling sector as a whole. Apart from the prevailing need to outline the benefits of the technology for gaining maximum support in upcoming initiatives and legislation, the focus of EHPA's work is slightly shifting towards ensuring consistency between the different legal acts. Since our last years report the Ecodesign and Energylabelling Directives, a new Fgas Regulation and Ecolabel for water-based heaters have been published. Besides the Commission has come up with a proposal for an EU 2030 climate and energy policy framework and it is reviewing the Energy Efficiency Directive. Furthermore we have had European Parliament elections and new Commissioners will be chosen in the upcoming semester. Legislative acts influencing heat pump technology include (non-exhaustive list): ➔ Renewable Energy Sources Directive (RES Directive); ➔ Energy Performance of Buildings Directive (EPBD); ➔ Ecodesign for Energy related Products-Framework Directive (ErP) and its implementing measures; ➔ Energy labelling Directive; ➔ Energy Efficiency Directive (EED); ➔ F-Gas Regulation; ➔ Ecolabel Framework Directive with its Ecolabel for heat pumps, water-based heating systems and office buildings. If this legislation is correctly transposed and implemented in the Member States it should create very favourable conditions for a higher market uptake of heat pumps. However, that is not enough. In order to ensure investments also short-, mid- and long-term policy actions should encourage renewables, GHG reduction and energy efficiency in order to have the heat pump technology growing to its full potential.

3.1 The Renewable Energy Sources (RES) Directive The Renewables Directive ‘RES Directive’ (EC/28/2009) requires the EU Member States to significantly increase the contribution of renewable energies to its energy mix, leading to an overall EU share of 20% by 2020. At the time of its adoption, the Directive was widely welcomed by many groups. It officially recognises heat pumps as a technology that uses air, water and ground as renewable energy sources.

State of play Article 4 of the Directive sets the requirements towards adopting National Renewable Energy Action Plans (NREAPs) by all Member States, this on a bi-annual basis. A summary is published on the Commission’s Transparency Platform [1]. The latest progress report dates back to March 2013 and shows an ambiguous picture. Although currently the countries are well on track, it is unsure if the Union will actually reach the 20% RES-target.

European legislation affecting heat pumps

17

300 000 250 000 200 000 ktoe

European Heat Pump Market and Statistics Report 2014

This applies in particular to heat pumps. While the targets originally set for this technology were unambitious, the progress report indicates that they will not be reached. This is worrying, as the target achievement in the biomass and transport sectors is also at risk. If supported strongly, the contribution potential of heat pumps could overcompensate shortcomings in other sectors. Using them may be particularly tempting, as they are one of the most effective technologies when considering the target impact per euro invested. In consequence, more effort on a Member State level is necessary to fulfil an increasingly more ambitious target trajectory.

150 000 100 000

Figure 3-1: Planned (blue) versus estimated (reddotted) trend in EU renewable energy [2]

50 000 0 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

In March 2013 the European Commission provided the final calculation methodology for the proper accounting of the RES share from heat pumps [3]. This method is based on determining the useful energy produced, the average efficiency of heat pumps and the average efficiency of power conversion in Europe (η | eta2011 = 45,3%). A few countries, e.g. Poland, have included this method for their own statistics. EHPA uses the new method in this report for the first time.

TIMELINE ➔ 25.06.2009: RES Directive came into force in all MS ➔ 01.03.2013: Method published to calculate the RES share from heat pumps in statistics ➔ 2015/17/19/21: MS present bi-annual reports to the Commission

3.2 Energy Performance of Buildings Directive The recast of the Energy Performance of Buildings Directive (2010/31/EU | EPBD) has the purpose to improve the energy performance of new and existing buildings in the EU via several minimum requirements, such as a cost-optimal methodology and an energy performance certificate. Further it includes amongst others that by the end of 2020 all new buildings need to be nearly Zero-Energy Buildings (nZEBs) and it demands a regular inspection of heating and air conditioning systems. The legislation is in force since July 2010. The impact of the legislation on the heat pump technology is positive. Heat pumps benefit from a focus on minimum energy requirements for the building envelope and the obligation to consider the use of available heating alternatives prior to construction. The comparison of different alternatives needs to be documented. This is mandatory for new building and shall be encouraged for existing ones as well. In the countries that have transposed these measures one can notice that it becomes very hard to build a new house without any renewable technology installed. Heat pumps can bring the solution in such a case. And in reality this is also more and more the preferred technology in such cases.

18

European legislation affecting heat pumps

State of play The Directive was supposed to be fully implemented in Member State law by 09.07.2012. 24 Member States missed this deadline and infringement procedures are on going. A review on the Member States plans on NZEBs showed that they are making too little progress and that more guidance will be necessary. Standardisation Committee CEN is working on developing EPBD standards to be used for a certification scheme for buildings. It is foreseen to be finalised by 2015. Progress can be monitored by interested stakeholders via the Commission’s implementation status website via the obligatory reporting.

Timeline ➔ 08.07.2010: The Directive came into force (09.07.2012: transposition deadline) ➔ 2013-2014: The Commission shall publish a report on the progress of the MS in reaching cost-optimal levels of minimum energy performance requirements. The MS had to send in their national reports by 30.06.2012 ➔ 2015: EPBD standards for voluntary certification scheme to be expected ➔ 2017: Revision of the legislation ➔ 31.12.2018: All new public buildings (owned or occupied) should be nZEBs. The number of these nZEBs shall be developed via action plans, setting measurable targets. ➔ 31.12.2020: MS to ensure that all new buildings are nZEBs

3.3 The Ecodesign for Energy-related Products Framework Directive: Lot 1 / Lot 2 The Ecodesign for Energy-related Products Framework Directive aims at establishing Ecodesign requirements for several product groups (‘Lots’) that are consuming energy, such as televisions, washing machines and light bulbs. Also heat pumps are subject to implementing measures. More in particular they are addressed in the implementing measures of Lot 1 (boilers, 0 – 70 kW output capacity, heating and combi-systems), Lot 2 (water heaters) and Lot 10 (air conditioning units below 12 kW). By these implementing regulations the energy consumption of the heating installation and the hot water unit will become transparent and should trigger consumer choice on energy efficient products. The requirements are based on a common methodology for the calculation of each product's primary energy efficiency. For heat pumps, primary energy efficiency (with a primary energy factor of 2,5) will be calculated on a low (35 °C) and a high temperature (55 °C) heat emitter system, and are applicable in three climate zones.

Figure 3-2: Implementing measures to the ErP Directive with relevance to heat pumps [4]

European legislation affecting heat pumps

19

European Heat Pump Market and Statistics Report 2014

State of play After seven years of negotiations the Ecodesign Directive for boilers (Lot 1) and water heaters (Lot 2) has finally entered into force on the 26th of September 2013. The ErP Directive will have far reaching implications for manufacturers, importers, consumers, contractors, consultants and architects and is set to have a very positive impact on the heat pump industry: ➔ It is linked to the EPBD and will promote innovation in design and marketing of boilers. ➔ The implementing measure for Lot 1 enables the comparison of the efficiency of functionally equivalent heat generators for heating and of combi-systems for heating and hot water production independent of the energy source used (fossil fuel combustion, solar thermal, electrically- or thermally-driven heat pumps or cogeneration). ➔ As such, the legislation maintains comparability among functionally equivalent products (1 single label). ➔ Its calculation method for energy efficiency may eventually be used in other legislation and make it more consistent.

Timeline ➔ 26.09.2013: Regulation enters into force. ➔ 26.09.2015: Minimum efficiency requirements have to be fulfilled. For heat pumps a minimum etas of 100% (55 °C) and 110% (35 °C) applies. ➔ 2018: review of the Regulation.

3.4 Energy Labelling Directive Directly connected to the Ecodesign Directive is the “Directive on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products” (2010/30/EU), in short “Energy Labelling Directive”. It establishes a framework for a uniform, European-wide product label and information fiche. The label visualises the performance of the product, covering a range from A (best) to G (worst) performance with the option of adding classes A+, A++ and A+++ to accommodate for technical progress. It applies to all new energy-related products with a significant (in)direct impact on the consumption of energy and other essential resources during use. As such it also applies to heat pumps. Heat pumps are – as in line with Ecodesign – part of Lot 1 (heaters and combiheaters), 2 (water heaters) and 10 (air conditioning systems). Based on the results of the calculation, as outlined in Ecodesign, the heat pump unit receives an information fiche and a label, which visualises the energy efficiency of the product to the potential customer. This label will show the primary energy efficiency in a range from A++ to G from 2015, and in a range from A+++ to D from 2019 onwards. The so-called package label will show the A+++-class from the beginning onwards. For Lot 2, the range will start with A+ (for heat pumps) and A+++ to G (for solar thermal water heaters) in 2015. In the case of combi-systems, this means that a single unit will have two labels, one indicating its heating efficiency, the other its hot water production efficiency. The label will be attached to the unit itself. The consumer who chooses the better performance will benefit from lower relative operating cost and may enjoy financial and fiscal national incentives if these are set-up by the EU Member States.

20

European legislation affecting heat pumps

Figure 3-3 (left): Energylabel for a heat pump combi-heater from 2019 onwards Figure 3-4 (right): Energylabel for a heat pump water heater from 2017 onwards

State of play Delegated acts for an energy label for heaters and water heaters were developed in parallel to the implementing measures for ErP Lot 1 and 2. They entered into force in September 2013 alongside the Ecodesign Directive for Lot 1 and 2. From 26 September 2014 onwards it will become mandatory to show the energy label on every heating system. The whole heat pump industry is very pleased with the finalisation of the files as it allows the end-user to compare different but functionally identical heat generators via 1 single label and select the one that best suits his needs. Heat pumps are the best-in-class technology and will cover the highest classes of the label. In relation to minimum efficiency requirement, only heat pumps with an efficiency class of A+ and better will be allowed in the market. The manufacturers currently preparing for next year’s catalogues and fairs to start using the energy labels. It is expected that the introduction of this mandatory label will trigger market growth.

TIMELINE ➔ 26.09.2013: Regulation comes into force. ➔ 26.09.2015: A label with classes from A++ to G will be introduced for Lot 1. ➔ 26.09.2019: The label will show only classes A+++ to D for Lot 1.

3.5 Commission Decision on an Ecolabel for heat pumps The EU Ecolabel aims at helping the customer to identify products and services that have a reduced environmental impact throughout their lifecycle, from the extraction of raw material through to production, use and disposal. Recognised throughout Europe, the Ecolabel is a voluntary label promoting environmental excellence. By the end of 2011, more than 1 300 licences had been awarded, and today, the EU Ecolabel can be found on more than 17 000 products, amongst them however only 60 heat pumps.

State of play The EU Ecolabel for electrically-driven and gas-driven heat pumps is based on Regulation (EC) 66/2010. To obtain the Ecolabel the heat pump needs to fulfil a

European legislation affecting heat pumps

21

European Heat Pump Market and Statistics Report 2014

range of requirements that address the efficiency and environmental performance of the heat pump unit and also stress the need for proper planning (match of heat source, heat pump and building) and installation. Until very recently all the ecological criteria for heat pumps were set out in the Commission Decision 2007/742/EC. Yet in the past couple of years the Commission has worked on a EU Ecolabel for all water-based heaters, thus including air/ brine/water-to-water heat pumps. This work has been finalised in the Spring of 2014, which means that these types are left out of the 2007/742 Decision and have now become part of the Commission Decision 2014/314/EU of 28 May 2014 establishing the ecological criteria for the award of the EU Ecolabel for waterbased heaters.

Figure 3-5: Ecolabel

By consequence the 2007/742 Decision now covers all electrically-driven, gasdriven or gas absorption air-source heat pumps up to an output capacity of 100 kW. Sanitary hot water heat pumps, exhaust air heat pumps and water-source heat pumps are excluded, the latter ones being part of the 2014/314 Decision. The environmental impact of heat pump technology is tightly regulated even today. Hence it is debated whether another piece of legislation is necessary in light of the numerous pieces of legislation already affecting heat pump technology today: energy efficiency, hazardous substances and the use of F-gases are all already dealt with by other legislative acts. Both the existing and the new Ecolabel do not really provide additional benefits. Most heat pumps fulfil the requirements, even without showing the label. It is therefore to be expected that acceptance and impact of the Ecolabel on the EU market will also in the future be limited, especially with the energy label that becomes mandatory from September 2015 onwards.

3.6 F-gas Regulation Fluorinated gases (‘F-gases’) are man-made gases that are used in several industrial applications, including the vast majority of heat pumps. The refrigerant within a heat pump is mostly a hydrofluororcarbon (HFC), which is a specific type of F-gas. F-gases however are greenhouse gases that have global warming potential (GWP) that is much (up to 23 000 times) higher than CO2 emissions. Since their use, and by consequence their emissions are increasing, EU legislation has been established to reduce these. The main piece of legislation on EU level is the ‘F-Gas Regulation’ (EU 517/2014), which will apply from 01.01.2015. Until then, the existing 2006/842 Regulation will remain valid. The purpose of the legislation is to reduce the amount of F-gases placed on the European market. It has several instruments to do this: improving leak-tightness, training and certification of persons handling the gases, proper recovery procedures etc. Yet, the main instruments of the 2014 legislation are a steep phasedown of all F-gases on the EU market (79% reduction by 2030 compared to current levels) and the ban to use HFCs in some specific products. For example, by 01.01.2025 it will be forbidden in the EU to use F-gases with a GWP > 750 for air-toair heat pumps [6].

State of play The new F-gas Regulation rules will certainly have an impact on the heat pump industry as most heat pumps deploy F-gases. However the final impact will not be too bad for the industry. The phase-down is quite steep but can certainly be overcome if the search for alternative lower GWP-refrigerants (e.g. ammonia, propane and CO2) continues as before. Furthermore, there is no ban to use F-gases in pre-charged equipment, nor is there a future ban to use them in heat pumps.

22

European legislation affecting heat pumps

Both were written in earlier versions of the Regulation but after several constructive meetings with the involved stakeholders a good compromise was found. Also wrong definitions of “heat pump” and “hermetically sealed equipment” were either left out or corrected. The heat pump manufacturers are content that the Regulation entered into force and as such they can start planning the necessary investments, including the search to more environmentally friendly and safe alternatives as well as ensuring the leak-tightness.

Timeline ➔ 9.6.2014: New F-gas Regulation (517/2014/EU) enters into force ➔ 01.01.2015: New F-gas Regulation rules start applying > 2006 Regulation repealed ➔ 01.01.2017: First decrease of F-gases on the EU market, following the phasedown ➔ 01.01.2025: Ban on the use of HFCs with a GWP higher than 750 in stationary AC equipment (incl. air-to-air heat pumps)

3.7 Energy Efficiency Directive The Energy Efficiency Directive (EED) aims at the improvement of the energy efficiency of products and installations by setting up measures to achieve the nonbinding energy efficiency target for 2020. The Directive states, amongst others, that EU Member States shall set indicative national energy efficiency targets, based on either primary or final energy consumption/savings, or energy intensity. Furthermore they should establish national energy efficiency obligation schemes in order to achieve 1,5% of energy savings per year. With regards to heat pumps, the main measure is written down in article 14, which says that countries shall adopt policies that encourage the potential of using efficient heating and cooling systems. That includes for instance a cost-benefit analysis. The EED and the full implementation in the Member States thereof should also bring the heat pump market forward, even though it generally puts too much focus on large-scale installations. In many articles of the Directive, heat pumps can bring a solution to the different obligations. For instance, they should be part of the energy efficiency obligation schemes (Art. 7). Furthermore, they should come forward as very energy efficient solutions when renovating public buildings (Art. 5) as well as in public procurement (Art. 6). Obviously they are also to be taken into consideration in the assessments for efficient heating and cooling solutions (Art. 14).

State of play According to first assessments of the national targets and plans by the European Commission, about 18 – 19% of energy savings would be reached. As such, it would just miss the 20% target. However, an analysis carried out by the Coalition for Energy Savings is less optimistic and claims that much more will need to be done in order to close the gap towards the 20%. In any case, the EED has not fully been transposed by all Member States on the deadline (5th of June 2014). The Commission will now have to push these via the famous infringement procedure. At the same time the Commission is now in the process of analysing the progress towards 2020 and also looking at what could be done for energy efficiency in a 2030 framework. The communication on that is to be expected in July or latest September. Whereas at first an energy efficiency target seemed to be utopia, it now seems more and more likely that one will be proposed. There is still uncertainty about the exact number and if it would be binding, although rumours say that it would be between 25 and 35%.

European legislation affecting heat pumps

23

European Heat Pump Market and Statistics Report 2014

Timeline ➔ 04.12.2012: Directive entered into force ➔ 30.04.2014: MS to submit their National Energy Efficiency Action Plans (NEEAPs) ➔ 05.06.2014: Transposition deadline ➔ 30.06.2014: Commission review of the national targets ➔ 2016: Review of the 2020 sunset clause for energy efficiency obligations

3.8 A 2030 EU climate and policy framework Last year’s Commission Green Paper on a 2030 framework for climate and energy policies initiated the discussions on post-2020 climate and energy targets. That framework should build on the significant progress already made in this area. It must draw on the lessons learned from the current framework and identify where improvements can be made. The Green Paper was built upon several documents – a.o. the low-carbon economy roadmap by 2050, the 2050 energy roadmap and the renewable energy communication. Since then, Member States, the European Parliament, industry groups, NGOs etc. have been passing on their views on the matter. Then, on 22 January 2014 the Commission published its Communication, which included amongst others a binding 40% target for GHG emission reductions and an EU-wide27% target for renewables. Contrary to the 2020 package it did not include an energy efficiency target. Unsurprisingly this Commission proposal was not welcomed by all stakeholders, for various reasons. Yet, not much later the political situation in Ukraine was reaching an escalation point with fights between different groups. Russia also played its role and the state-owned gas supplying company Gazprom started to raise its gas prices for the Ukrainian government enormously. It became very likely that they would not be able to pay the gas any longer, and by consequence, the gas supply would stop. Since one third of the gas consumed in the EU is flowing through Ukraine, the debate of energy security and independence got high on the political agenda again. At the March European Council, the leaders of the EU Member States gave the Commission the task to look closer at alternatives to Russian energy supply in the short-, medium- and long-term. As such, the European Commission came up with its European Energy Security Strategy (EESS) in the end of May. Different alternatives were put forward that can have an impact on the final decision for a 2030 framework. The last major important document that can still have a significant impact on the final climate and energy package for 2030 is the Commission review on the Energy Efficiency Directive, due to come out over Summer. More in particular it will have an impact on whether the European Union will opt for a binding energy efficiency target or not. The final discussions and proposal will come out of the European Council meeting in October. That final package will also be the base for discussions one year later during the UN climate meeting in Paris, where a global deal should create a successor for the Kyoto-agreement.

State of play What can be in for the heating and cooling sector? Although the Commission Communication of January is not really favouring the heating and cooling sector, recent presentations and discussions seem to show a slightly different opinion. With the threat of limited gas supply and/or rising prices the European Union is forced to look at greener alternatives in all sectors, hence not only electricity but also heating and cooling. That was a.o. argued for by Commission officials during

24

European legislation affecting heat pumps

the European Sustainable Energy Week (end of June). Heat pumps were often mentioned as a very good technology to switch from conventional technologies and there are positive signs that the technology will be increasingly supported by the EU regulatory framework in the future. The first phase might thus already be in the review of the Energy Efficiency Directive.

EHPA Targets The upcoming framework is, in combination with the EED review, one of the most important dossiers for EHPA in the upcoming months. This is because the 2030 framework will be the base for new legislation that could be a trigger for a larger uptake of heat pumps in Europe. That is why EHPA will continue to express ➔ Recognition of heating and cooling as a central area of activity in the current and future policy debate. ➔ Acknowledgment of heat pumps benefits and integration of the technology as a central, economically efficient and sustainable solution to Europe's energy and climate goals. ➔ Setting of a triple target on GHG reduction, RES and energy efficiency in a 2030 framework and beyond. For RES, this should be based on final energy and be minimum 30%, possibly even 45% as suggested by some green NGOs. ➔ Request for an ambitious European heating & cooling strategy and policy based on RES and efficient, decentralised production. ➔ Ensure EU and Member States understand heat pumps benefits towards their targets on RES use, energy savings and emission reductions. ➔ Establishment of reliable energy statistics including RES, the enhancement of analytical capacities and the reassessment of future scenarios. ➔ Development of a micro-level energy model to simulate the impact of the future energy strategy.

Timeline ➔ 22.01.2014: Commission Communication on a 2030 framework ➔ 20.03.2014: European Council (a.o. on political crisis in Ukraine) ➔ 28.05.2014: European Energy Security Strategy ➔ 26 – 27.06.2014: European Council (a.o. on 2030 framework) ➔ Summer 2014: EED review ➔ 23 – 24.10.2014: European Council: decision on 2030 targets

Sources [1] [2] [3] [4] [5] [6] [8] [9] [10]

European Commission (2010): Renewable energy transparency platform http://ec.europa.eu/energy/renewables/transparency_platform/transparency_platform_en.htm European Commission (2013a): Renewable energy progress report European Commission (2013b): Commission decision on establishing the guidelines for Member States on calculating renewable energy from heat pumps Baert, E. (2011): Ecodesign for Energy related products challenges for heat pumps. European Heat Pump summit 2011, 28.09.2011, Nürnberg Documents available at http://susproc.jrc.ec.europa.eu/heating/stakeholders.html European Commission (2011): http://ec.europa.eu/clima/policies/f-gas/index_en.htm European Commission (2012b): Directive on energy efficiency European Commission (2012c): Energy Roadmap 2050 European Commission (2012d): Communication on Renewable Energy Strategy (RES)

European legislation affecting heat pumps

25

4

Industry and Technology Trends

4.1 Market Development Heat pumps are used for heating, cooling and domestic hot water and as such can be seen as an alternative solution to traditional boiler and the air conditioning systems. The vast majority of manufacturers in the heating industry is offering heat pumps, at the same time, most cooling manufacturers are selling their refrigerant cycle based systems also for heating. Even though heat pumps do not dominate the market in most countries, the offering is focussing more and more on an integrated heating and cooling service. The creation of large ‘European Heating and Cooling Groups’ has not continued on the same scale as in the past. 2013 was another year characterised by smaller acquisitions and consolidation. The internet is slowly making an inroad into the distribution strategy of manufacturers. More heat pump products find their way into electronic sales channels and a few companies have started a regional or national service offering that comprises of the heat pump unit and the installation by a local installer. On a product level, three major trends are ongoing: 1. The use of air as energy source for heat pumps – both in air/air and air/water heat pumps 2. sanitary hot water heat pumps to augment any sort of heating system 3. introduction of hybrid heat pumps in the market 4. an increasing number of heat pumps use a variable speed compressor. It seems, that competition in the heat pump market segment is more focussed on competition among heat pump manufacturers than on competition between heat pump and traditional boiler manufacturers. With the wide introduction of hybrid systems this may change. Heat pumps are (still) not a mass market product and the perception of heat pumps as “a premium product, that has its price” is still valid.

4.2 Technology Development Products use the refrigeration cycle and cover capacities from a few kilowatts to several megawatts to provide heating and cooling, sometimes even both services in parallel. Figure 4-1 illustrates the range of applications. It also shows that a clear distinction in heating and cooling is increasingly difficult to maintain. This creates a communications and advocacy issue when trying to sell the resulting product as well as when trying to ensure proper recognition in legislation.

26

Industry and technology trends

Figure 4-1: Heat Pump Applications in proportion to scale and temperature (Source: HPTCJ)

In today's market environment, approx. 90% of all heat pumps are sold in the small residential sector. In the current cost-capacity situation, this segment is at the limit of its growth potential. A number of manufacturers has started to focus more on the development and sales of heat pump solutions for larger residential and commercial applications as well as for industrial processes.

4.2.1 Industrial Heat Pumps The use of industrial heat pumps in large and complex applications and processes is not a new phenomenon. Heat pumps in industrial applications benefit from the prevailing parallel need for heating and cooling, thus the waste heat of one process becomes the energy source of another. Heat pumps become the centre of an internal energy cycle that bridges supply of excess energy and demand for it. As such a system requires only very little auxiliary energy, it is highly efficient. This type of installation is used across Europe. The successful installation of heat pump technology in industrial processes requires a comparatively larger share of planning work. The final product or system is most often tailored to the specific requirements of a manufacturing site. Thus, a much closer cooperation between client and provider is necessary. This includes planning, commissioning and maintenance. This may partly explain why this segment is not very known. The examples of German speaking countries and Scandinavia show many successful installations. However the potential for the technology in industrial applications is still not exploited. Much more has to be done before it is adequately recognised and documented both in energy policy action plans and in the minds of investors and consumers. There are a number of reasons for the increased interest in industrial heat pumps at this time: ➔ Higher energy costs make payback now acceptable ➔ A few countries have set up subsidy schemes to unleash the efficiency potential of industrial applications ➔ Higher temperatures required for industrial processes are now feasible ➔ Higher capacities required for many industrial applications are available ➔ Additional energy savings can be achieved through waste heat, which can be recovered

Industry and technology trends

27

European Heat Pump Market and Statistics Report 2014

Info box: Potential for the application of heat pumps in German industry Germany’s final energy consumption accounted to 8.998 PJ in 2012. More than half of this energy, namely 4.960 PJ, was used for heat generation. After private households, the industrial sector is the second largest consumer of heat with a total consumption of 1.992 PJ. The major industrial heat consumers, metal and chemical industry, account for more than half of the industrial heat demand. They are followed by stones & earths, paper and food industry. A detailed breakdown of the heat demand in Germany can be seen in Figure 1.

Figure 1: Allocation of the heat demand in Germany in 2012

To derive the potential for the application of heat pumps in Germany’s industrial sector, technical limitations have to be taken into account. Since the deliverable flow temperature is the most limiting technical parameter, an in-depth analysis of the industrial heat demand has been carried out. By combining statistical data with a detailed analysis of heat consuming industrial processes, the industrial heat demand was broken down to temperature levels. The resulting technical potential is shown in Figure 2. In the low temperature range up to 70 °C space heating, hot water production and process heat sum up to 211 PJ (11% of the industrial heat demand), which can be delivered by heat pumps. Modern industrial heat pumps, however, reach temperatures of up to 100 °C. This technical progress raises the potential to 437 PJ (23% of the industrial heat demand) with major gains in the paper industry. If the achievable temperature is pushed even higher to 140 °C, huge additional potentials can be found in food and chemical industry. The development of such heat pumps would raise the potential to 611 PJ (32% of the industrial heat demand).

Figure 2: Technical potential for heat pumps in industry in Germany (611 PJ in 2012)

Source: S. Wolf, M. Blesl, U. Fahl. Institute for Energy Economics and the Rational Use of Energy, University of Stuttgart

28

Industry and technology trends

The awareness of the benefits grows, and the technology enhancements and economics continue to improve. High capacity heat pumps are being deployed in a wide range of branches including chemical and biochemical processes, food & beverage, manufacturing processes, ICT (cooling for datacentres) and many other industries. Accordingly, it is expected that this market segment will experience significant growth in the coming years.

4.2.2. Hybrid Systems Hybrid systems are the talk of town. They integrate two or more energy sources or technologies into one system. Thus, they address limitations connected to single source technology applications and provide advantages in terms of: ➔ energy source flexibility, ➔ energy use efficiency, ➔ reliability, emissions reductions, ➔ integration of renewables in electricity and heating/cooling, and (or) ➔ better economics. Without being labelled as such, most residential heat pumps sold today are hybrid heat pumps, as they combine an electric heat pump with a back-up resistant heater. This electric heater is usually not used, but could in fact play an important role in realizing the load shifting potential of heat pumps technology, thus allowing the storage of surplus electricity in heat pump systems. Today's most common heat pump hybrid system combines a heat pump with a boiler (fossil or biomass) providing a cost competitive alternative to other conventional solutions while contributing to carbon savings. This type of installation is often advertised as “securing the lowest energy cost under all conditions”. The heat pump-boiler hybrid systems are becoming particularly relevant in renovation applications. They are being developed by all of the biggest five boiler companies in Europe, and traditional heat pump players are also entering the market. The solution is mainly aimed at buildings on the gas grid, where a heat pump alone has difficulties to compete with gas on a cost level. A specific variation of hybrid systems combines an existing boiler with a hot water heat pump. Probably more important for the products success is its compatibility with the typical sales process of installers which improves their acceptance with this important stakeholder group. . In a full electric building, hybrid solutions combine photovoltaic panels and heat pumps (see Figure 4-2). This combination is increasingly sophisticated. Heat pump manufacturers have upgraded their controls allowing the units to “talk” directly to the Inverter. The integration of weather forecast data allows a maximum of local energy use. High electricity prices and the continuous phase out of subsidies for PV makes becoming a "prosumer" economically very attractive in many countries. Demand for this system is growing, because of a good overlap between PV production, and cooling demand in summer. The combination of domestic hot water heat pumps with PV is also gaining interest. On a much smaller sale, heat pumps are also combined with solar thermal systems. Again, the challenges of the combination have been overcome and in countries like the UK, it is suject to subsidies under the RHI. Recent advancement in technology research has helped to overcome most obstacles. Heat pump based hybrid systems are available solutions. With economies of scale they are getting increasingly cost efficient and more and more stakeholders are developing an understanding on their benefits.

Industry and technology trends

29

European Heat Pump Market and Statistics Report 2014

Figure 4-2: Schematic illustration of combining photovoltaic cells and a (sanitary hot water) heat pump (Source: Stiebel-Eltron)

Thermally (gas) driven heat pumps Thermall driven heat pumps are a small yet promising and emerging segment of the heat pump market. Thermally activated heat pumps use renewable energy based on the principle of sorption. As in the compression cycle, auxiliary energy is necessary. Sources of auxiliary energy can be fossil fuels, biomass, solar thermal energy or waste heat from industrial processes. Thermally driven heat pumps can provide heating and cooling services. Ongoing R&D is expected to overcome a number of challenges that the technology still faces: ➔ Widening the operating parameters to optimise performance in existing buildings; ➔ Scaling down absorption systems to residential scale (capacity); ➔ Developing more compact systems (size); ➔ Intelligent integration with other heat sources.

4.2.3. Optimised Components Heat pumps consist of a limited number of component types that can be optimised in accordance with the refrigerant used. Heat pumps consist of seven components: 1. the compressor 2. the evaporator (heat exchanger transferring energy from the environment to the refrigerant) 3. the condenser (heat exchanger transferring energy from the hot refrigerant vapor to the heat distribution system 4. the expansion valve 5. the controls board and sensors 6. the pumps 7. the refrigerant All of them can be optimised individually, but most critical is an optimization of the system as a whole via the controls unit and a number of sensors. The list of standard components and improvement potential is to be found in the Annex IV (table 4-1). Correct component choice is critical for heat pump performance.

30

Industry and technology trends

A major development trend focuses on standardizing controls making heat pumps ready for home automation systems in general and for the integration of autoproduced electricity in particular.

Refrigerants The finalisation of the revision of the F-gas regulation sets a limit to the availability of fluorinated gases in Europe. The foreseen phase-down path will reduce the amount of f-gases placed on the market to 21% of the 2009 – 2012 average. The impact that this phase-down will have on heat pumps is difficult to assess. On the one hand, availability of today's F-gas will be limited in the medium term future. On the other hand, available alternatives for sectors like mobile airconditioning and refrigeration may reduce the use of F-gases in these applications, thus leaving amounts available to be used in heat pumps. Any future scarcity may impact the price level of F-gases on the market. It is thus advisable already today to start R&D action 1. to reduce the amount of refrigerant required per kWh of heating/cooling. Current research looks into micro-channel heat exchanger architectures as well as more compact compressors 2. to develop components and systems suitable to run with new synthetic refrigerants. Known replacements (HFO1234yf, HFO1234ze, blends of these refrigerants and other HFCs) show a much lower GWP than the typical HFCs currently in use. Properties of different refrigerant options are to be found within the Annex V. 3. to develop components and systems suitable to be efficiently use well know natural refrigerants (CO2, ammonia and hydrocarbons). This option requires parallel socio-economic research to influence the administrative framework governing permits for the use of flammable, lightly flammable or toxic requirements. The European Union and the Member States should support the transition to alternatives by financing necessary research. It should be noted, that a perfect alternative has not yet been found:: ➔ The use of natural refrigerants comes at the cost of reduced efficiency, increased flammability or higher toxicity. ➔ New synthetic refrigerants are not yet completely understood with regard to safety and their impact on the environment. ➔ Additionally, industry should be allowed a choice of refrigerants, as no single refrigerant exists, that can be used with the same economic and environmental efficiency across all application requirements.

Modulation Systems / Capacity Control Heat Pumps can operate as fixed speed units, or as a capacity control units depending on the speed of the compressor. There is a direct relation between the temperature of the energy source and the heat pump capacity. The lower the source-temperature, the smaller the capacity provided (and vice versa). A heat pump designed to cover a large part of the energy demand at design conditions (-16 °C in average climate) will consequently be over dimensioned at warmer temperatures. Fixed speed units overcome this limitation by on-off operation, which might lead to losses and thus decrease efficiency. On the other hand, capacity modulating units change the speed of a compressor (and thus the capacity provided), which can also lead to a lower efficiency at full load operation, but it results in superior performance under part load conditions. As

Industry and technology trends

31

European Heat Pump Market and Statistics Report 2014

heat pumps operate most of the time at approx. 2 °C outside temperature, modulation bridges the gap between proper sizing and efficiency over the full operating range, especially when using air as the energy source. Capacity modulation is most often achieved by using frequency-controlled inverters, a technology that originated in the (reversible) air conditioning market. Their use is becoming increasingly popular as part of hybrid systems in combination with existing (fossil fuel) boilers, particularly in the renovation segment. The capacity control system is facing an increasing success, mainly because it: ➔ provides an efficiency advantage, when dealing with part load challenges; ➔ allows installation of smaller units, while covering a significant proportion of the total heat demand; ➔ bridges the gap between the high capacity needed at low outside (air) temperatures and potential overcapacity at high outside temperatures; ➔ reduces start-stop losses. In addition, the currently set minimum efficiency requirements for air-source heat pumps (ErP, Lot 10) are difficult to reach with fixed speed compressors, supporting an already existing trend towards capacity modulating units in the future.

Control & integration management Controls manage the integrated operation of various components. System manufacturers are therefore firstly challenged with enabling these components to function together in their system in the most efficient manner. Secondly, as many installations are climate, environment, and application specific, the system has to allow the flexibility to be configured to meet individual requirements. Thirdly vendors are challenged with making their control architecture both intelligent and user friendly, so it can adapt to changing conditions and requirements, and also be used in an as intuitive manner as possible by installers and end consumers. Improved controls are a prerequisite and a success factor for the integration of other energy sources into heat pump systems and to communicate with the related technologies. Continuous development of controls has made them ever more ‘intelligent’ with interfaces to the Internet and to home automation systems quickly becoming the standard. Where smartphone applications where deemed to be innovative only a few years ago, they rarely still impress any consumer today. The next step in innovation is the integration of weather data and user behaviour into the controls logic of these smart heating/cooling/ventilation systems. From a corporate perspective, collection and analysis of end-user data in corporate data centers helps to improve product quality and performance. A number of manufacturers are offering solutions. A possible next step is the offering of performance guarantees based on experiences gained with the evaluation of larger numbers of performance data.

Smart grids While last years edition of the outlook has identified the integration of heat pumps in smart grids as a trend, not much has happened. There is still no cost flexible contract offering on the utility side. Such tarif would make the use of heat pumps as peak shaving devices not only attractive for the grid operator, but also for provide an economic advantage to the end user. With the share of renewable power production still increasing, the topic is still on the discussion agenda. It can be expected, that concrete offerings in the market will follow, but this will most likely not happen before 2015.

32

Industry and technology trends

5

European Heat Pump Market Statistics

This years edition of the European Heat Pump Market report maintains the number of European countries covered twenty one (21) markets are described in detail: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Lithuania, The Netherlands, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland and the UK. Our analysis provides sales data, a market overview and in particular the impact of heat pumps on energy savings, greenhouse gas emissions and the use of renewables. The numbers presented here are based on industry sales figures accumulated from the information provided by the different national heat pump associations using a uniform questionnaire (Annex II). Details on assumptions taken are presented in Annex I.

5.1 European heat pump market development The European heat pump market is currently recovering. After 4 years of sluggish development, the main influencing factors of market dynamics (energy price ratio, development of the building sector, policy support) show positive development: 1. The price relation of the different energy sources and technologies (in conjunction with the investment cost of the respective heating system) identifies the cost of heating per kWh of thermal energy (€/kWhth) and allows a direct comparison of operating cost. It is developing heterogeneously across Europe. 2. The European building and construction markets strongly influence the installation of heating systems in new and renovated buildings. While heat pumps are used to a large share in new buildings, the renovation sector lags behind both in construction activity (the renovation rate being below 2%) and in the use of heat pump technology. This may, however, be an advantage, as the past four years of low renovation were of benefit to heat pump technology. Industry has developed new, more powerful and more compact solutions that are better suited to market requirements. In consequence, those projects that would have been employed with a fossil fuel solution three years ago, would most likely find suitable heat pump solutions today. 3. A policy framework should focus on heating and cooling as cornerstone of every energy strategy. It should include institutional and (even more important) financial subsidy schemes on a European and on a national level favouring energy efficiency – both for buildings and products – and renewable energy sources. Policy measures should be supported by an increasing recognition of the risks associated with security of supply, energy cost increases, and the environmental impact of non-renewable sources. All energy related policy measures have acknowledged heat pumps – directly or indirectly and once fully implemented, they should become a booster to market development.

European heat pump market statistics

33

European Heat Pump Market and Statistics Report 2014

Final Energy prices [euro cents/kWh]

AT

BE

CH

Electricity

CZ

DE

DK

EE

ES

FI

FR

20,82

21,73

-

14,97

29,19

30,00

13,51

22,28

15,78

14,72

Heat pumps (useful energy price)

7,39

8,27

-

5,26

11,01

11,60

5,21

8,25

5,84

5,67

Heating oil

9,40

8,37

-

9,56

8,70

15,25

9,88

9,04

10,84

Domestic gas

7,67

6,59

-

6,59

6,61

11,30

5,24

7,32

-

6,78

Pellets (sack delivery)

5,70

-

-

5,00

-

-

-

-

6,00

5,85

Pellets (bulk delivery)

5,13

-

-

5,00

5,23

-

4,90

-

5,00

5,38

District Heating

9,21

-

-

6,00

7,37

-

6,90

-

8,20

7,00

Table 5-1: Energy prices for selected countries 2013 (average end consumer prices including VAT and distribution)

Clearly, heat pumps have not yet reached the price conscious mass market segments in most countries. They still have a higher initial investment cost than many alternatives, and the recent reduction of gas prices that took place in parallel to an increase in electricity cost harmed the competitiveness of heat pump technology also on the operational cost level. It must be concluded, that consumers that decide towards heat pumps are driven by motivation outside a simple cost rationale. Influencing factors include, but are not limited to: ➔ the personal intention to use renewable energy and to reduce CO2 emissions, ➔ the decision to consume an increased share of electricity produced on-site (i.e. PV), ➔ the reduced uncertainty related to the long term costs associated with heating and cooling, ➔ the comfort of simultaneous provision of heating, cooling and hot water attributed to heat pumps, ➔ the wish to employ the latest and best in technology.

Price relations of energy sources Heat pumps are a possible substitute for standard fossil fuel based burners. Functionally equivalent, they provide heating and sanitary hot water. Reversible units have the ability to also provide cooling, which improves efficiency and adds additional comfort for the user. In a rational world, consumers would base their purchasing decision on a mix of cost and comfort criteria. Thus, they would calculate the total cost of ownership (TCO) over the expected useful life of each alternative and choose their heating system accordingly. In taking a TCO perspective, higher initial investment in a system can be overcompensated by lower operating costs. Obviously, the outcome of such a calculation depends on the difference in initial investment, on the difference in energy demand and on the difference in energy cost (prices at the time of decision and their expected development trajectories over the useful life). In reality, investors are more often guided by a short term focus on investment cost only, ignoring the TCO perspective. In the past, a TCO perspective revealed a cost advantage for heat pumps due to much lower operating costs, this advantage decreased significantly in many markets as a result of a parallel reduction of fossil fuel prices and an increase in the cost of electricity. This leads to a less favourable energy price ratio for heat pumps. To overcome the resulting negative impact on sales developments, manufacturers need to focus more strongly on ➔ creating awareness both for the concept of total cost of ownership as well as of the side benefits of heat pump systems

34

European heat pump market statistics

9,20

HU

IE

IT

LT

NL

15,49

22,95

6,62

8,34

14,93 4,83

NO

PL

PT

SE

22,92

12,60

19,16

-

14,80

8,50

3,94

7,17

-

5,21

10,62

13,99

8,69

9,94

-

6,53

8,34

5,10

8,12

-

SK

UK

19,93 7,40

21,01

16,98

17,41

7,62

6,44

6,67

8,97

12,86

4,70

7,39

13,76

-

8,19

12,27

4,99

5,31

3,00

6,77

6,27

-

-

-

7,00

-

7,40

4,45

5,00

2,00

5,07

5,30

5,00

-

3,00

6,00

8,00

6,70

4,20

4,00

5,00

-

9,40

9,10

-

7,00

8,00

-

10,10

7,30

-

➔ increasing cost competitiveness over the useful life of the product: influencing factors are increased efficiency at current cost and cost reductions across the value chain ➔ offering additional value to the consumer such as the integration of heat pumps into the buildings ventilation system, the use of electricity produced on site, the employment of free waste heat from cooling processes for heating and sanitary hot water. The latter is particularly noteworthy in large commercial buildings. Learning curve effects are expected to materialize in the (near) future as a result of steadily increasing total aggregated sales. At current sales levels the European heat pump market will double every 10 years which should result in a cost reduction of approx. 20% by 2024. Both cost and efficiency improvements can be expected from dedicated developments at the component level. Compressors are optimized for heat pump applications, expansion valves, three way valves and control systems are getting more standardized and are sold in much larger numbers. The manufacturing of pre-fabricated sub-units (refrigerant cycles, complete outdoor units) that are then integrated into the casing and connected to the hydronic system greatly helps to reduce manufacturing time and cost. Standardisation on the heat pump unit itself will allow for an easier, faster installation, whilst also limiting the scope for installation quality issues. Subsidy schemes and other incentive programs by government and industry stakeholders can in principle also help to overcome cost disadvantages. They need to be designed with a long-term perspective, ideally independent of government budgets. A good example is the UK Renewable heat incentive. Unfortunately, the future of this and other subsidy schemes is uncertain. The prevailing limitations on budgets for most governments in Europe have resulted in most existing programmes being scaled down or stopped completely. In the majority of countries, heat pumps are sold as a premium product today. A significant increase in sales volumes can thus be expected, once this product enters the mass market. This has been the case in Sweden and Switzerland, both countries with a 30+ year history of continuous market development. Others can follow these pioneering markets, if investing in heat pump systems can be viewed not only as environmentally friendly, but also as economically sensible. From a consumer perspective, this translates into the need for lower system prices and low operating costs – either via low prices for electricity (possibly as part of favourable tariffs within smart grids), or via much more improved system efficiency or via both. The price level relativities may be illustrated via energy prices. Table 5-1 shows the cost per kWth of thermal energy for different energy sources.

European heat pump market statistics

35

European Heat Pump Market and Statistics Report 2014

HP | gas

HP | oil

HP | pellets

Figure 5-1: Energy price ratios for heat pumps vs. oil, gas, pellet and district heating systems in 2013

HP | DH

6 5 4 3 2 1 0 AT

BE

CZ

DE

DK

EE

ES

FI

FR

HU

IE

IT

LT

NL

PL

PT

SE

SK

UK

AT

BE

CZ

DE

DK

EE

ES

FI

FR

HU

IE

IT

LT

NL

PL

PT

SE

SK

UK

AT

BE

CZ

DE

DK

EE

ES

FI

FR

HU

IE

IT

LT

NL

PL

PT

SE

SK

UK

AT

BE

CZ

DE

DK

EE

ES

FI

FR

HU

IE

IT

LT

NL

PL

PT

SE

SK

UK

6 5 4 3 2 1 0

6 5 4 3 2 1 0

6 5 4 3 2 1 0

The energy price ratio (calculated based on data from table 5-1) is the ratio between the price of electricity and the price of 1 kWh of useful heating energy delivered by the competing technologies. It is based on the use cost of energy (excluding annual fees, meter readings etc.) and includes efficiency losses of the fossil fuel boiler. The energy price ratio shows the operating cost of heating systems using different types of fuel vs. the cost of electricity: a heat pump system has a comparative operating cost advantage over competing technologies whenever the seasonal performance factor (SPF) in the location of application is higher than the energy price ratio. The larger the difference between SPF and energy price ratio, the bigger the advantage. Figure 5.1 shows a comparison of energy price ratios for all countries with data available. The graphs show that electric compression heat pumps are very cost competitive in comparison to oil and pellets systems across Europe. However the low gas price has harmed their competitiveness versus gas boiler technology. The same exercise can be done for thermally driven heat pumps. It is planned to be executed in a future version of the document. It should be noted that the energy price ratio provides a reliable guidance but due to the volatility of energy prices, this guidance must be interpreted with care.

The building market The sale of heat generators in general is heavily influenced by construction activity. The construction sector has seen several years of decline, a trend that was further supported by the impact of the economic crisis. Whilst 2012 and 2013 construction output was negative, the sector has seen a turnaround in 2014, reporting 1,8% of average growth across the 21 countries covered. This development is expected to continue in 2015 and 2016. Thus, for the first time in many years a positive impact can be derived from the construction sector itself. A stabilization of this trend in conjunction with the stricter building requirements should provide positive momentum for heat pump market development [1].

Policy framework A direct link between official recognition and financial subsidies on the one hand and market success on the other exists. The package of Directives and Regulations

36

European heat pump market statistics

(see Chapter 3) targeting the use of renewable energy as well as the efficiency of energy use in buildings and in products has moved forward. Both the EPBD and the RES Directive are close to being fully implemented in the Member States significantly the resulting requirements related to the maximum acceptable energy demand for buildings, and use of renewables fuel the demand for heat pumps. While heat pumps are a helpful technology to achieve the targets set in these pieces of legislation it must be noted that the prevailing economic constraints have also limited the sale of heat pumps over the past two years. The consequence is that targets set two years ago are maybe out of reach now, if markets are not developing. Thus, financial and institutional support schemes can be justified and should be introduced to give priority for efficient technologies using renewable energy. This is necessary to get markets back on track as well as to develop heat pump markets where the technology is in the initial stages. Money invested in such support schemes is well spent. It encourages extra investment usually creating local employment, it frees future budgets with less financial outlay on energy, and it reduces import dependency. Quite often, the initial budget for support is paid back quickly via additional government income from VAT and other taxes. Institutional and financial support to heat pumps furthermore assists governments in reaching their RES and energy efficiency targets.

A market in transition In summary, the market outlook for heat pumps in Europe is positive. 2013 shows a small yet stable growth and initial data for 2014 reveals this to be a continuous development. Industry stakeholders expect this trend to continue and even to become stronger. There are a number of reasons for this: ➔ on a European Level the introduction of energy related legislation is in full swing. Ecodesign and the Energylabel are in the process of introduction; the effect of stronger efficiency requirements in the building sector starts to make an impact. The current focus on energy efficiency and the proposed maintenance of mandatory targets for renewable energy, energy efficiency and GHG emission reduction does provide planning security and will have to have an impact on Member State policies. ➔ on a government level, achieving the European targets will trigger a set of measures to be introduced in the coming years. Unfortunately, the lack of coherent approach across Europe leads to many different national solutions that negatively affect Europe's single market. ➔ on the industry level, stakeholders are often still unsure on the continuity of government action. In particular the lack of recognition for the heating sector is limiting a stronger turn towards investment in R&D and production capacity. The maintained level of fossil fuel subsidies is not helpful in this respect, in particular as renewable subsidies are slashed and support for energy efficiency is rarely given due to budget constraints. ➔ on the individual level, stakeholders most often decide for the best economic solution. With the disadvantage of the price energy ratio for heat pumps in mind, no major change can be expected in the near future. Addressing the mass market will mean focussing and optimizing total cost of ownership and including additional services for the end consumer. Governments can influence this by interventions that change the cost situation for heat pumps. This will align individual and national rational and trigger individual decisions that help governments achieve their targets.

European heat pump market statistics

37

European Heat Pump Market and Statistics Report 2014

900 000 su m EU-14 EU-14 sum 800 000

804 457 734 282

su m EU-21 EU-21 sum

729 190

808 591

800 388

750 436

713 515 15

712 643 43

700 000

16 674 716

769 879 9

30 688 830

589 1 18 118

600 000 509 794 500 000

446 0 037

400 000

Figure 5-2: European heat pump market development in 14 and 21 countries from 2005 to 2013 (* Value for 2009 includes 19 European countries). Total accumulated sales: 6 742 617 units

300 000

200 000

100 000

2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

5.2 Overview in heat pump sales in 21 European markets The 2014 report covers 21 European countries. As in the past, two groups of countries are aggregated next to each other: 1) those 14 countries for which data is available since 2005 2) a separate evaluation is provided for the current 21 countries. Available data for 2013 shows a slight growth (+ 2,8%) leading to a total of 769 879 units sold across Europe. Assuming a life expectancy of approx. 20 years, the current European heat pump stock amounts to 6 741 251 units (cumulated sales from 1994 – 2013). A detailed overview of the sales data for 2013 can be found in Table 5-2. 683 985 heat pumps or nearly 90% of the European market volume were sold in only ten countries. These top-10 markets by sales volume was led by France, 151 986

FR 1 14 620 114

IT 96 550

SE 72 100

D E DE

62 496

NO

61 225

FI

52 651

ES 31 269

D K DK

22 610

CH

18 477

AT U K UK

17 632

PL

15 061

EE

14 660 10 049

PT

9 458

BE

7 628

NL CZ IIE E

Figure 5-3: Sales of heat pumps in 2013 | by country

38

7 528 1 515

SK

861

HU

783

LT

720

European heat pump market statistics

1 11 1 000

9 000

7 000

5 000

3 000

Figure 5-4: Annual change of heat pump sales in 21 countries | sorted by size of change 2012/2013

1 000

000 -10 00

FR PL ES D DE E SE PT EE CH AT DK DK CZ

FI

SK BE

IE IE

HU LT UK UK

IT T

NL NO

-30 000 00

-50 000 00

followed by Italy and Sweden, with all of them exceeding annual sales of 100 000 units (see Figure 5-3). These three countries constitute for nearly 50% of the total sales in Europe. They have been leading the European markets in different combinations since 2010. Germany, Norway, Finland and Spain exceed 50 000 sold units per year. The remaining places to fill the top 10 list were taken by Denmark, Switzerland and Austria, with Poland and the UK being very strong candidates for an entry into the top 10 in the near future. In terms of absolute change only the French market increased by more than 10 000 units. Compared to 2012 more markets have returned to growth and this includes in particular the larger markets like Finland, Spain and Sweden. The fact that only four out of 21 markets are still declining gives room for optimism, especially since the extent of decline has been reduced. It is deemed most likely that the UK, Italy, Netherlands and Norway will return to previous growth rates in 2014 due to a positive legal environment (see Figure 5-4).

2013

3 %

2012 %

Figure 5-5: Change of growth of heat pump sales in 21 countries over the past two years | sorted by growth 2012/2013

1 %

% 0% SK -

%

-

%

-

%

PL

P T H U CZ PT HU

LT

IE IE

EE FR

ES DK DK DE DE BE SE SE AT CH ES

F FI

T IT

UK NO NO NL NL UK

%

European heat pump market statistics

39

Heating and cooling – hydronic distribution Exhaust air

Air/water Water/water Brine/water Direct expansion/water

AT

BE

CH

CZ

DE

DK

EE

8 506

4 167

12 025

4 623

38 900

3 429

800

2 464

915

71

381

82

2 700

7

246

4 441

1 265

6 873

2 258

15 500

57

2 900

5 503

19 279

7 020

60 000

71

508

Subtotal hydronic distribution

14 448

Air/air

149

149

Subtotal hydronic + exhaust Heating and cooling (air based distribution)

6 110

2 200

910

Subtotal exhaust air

Heat pump water heaters

1 393

FI 1 278

12 341

14 597

5 503

71

508

19 350

7 528

2 710

13 619

1 537

Air/water

Air/air*

2 681

ES

586

Others

Sanitary hot water

European Heat Pump Market and Statistics Report 2014

Accumulated sales figures

60 000

32 953

- Air/air with heating function*

60

1 874

2 447

60

8 557

2 260

2 710

15 493

1 874

18 813

12 400

518 675

45 718

18 813

12 400

49 274

45 718

18 813

12 400

49 274

45 718

27 370

14 660

51 984

61 211

VRF/VRV Subtotal air based distribution Subtotal space heating

14 597

5 503

19 350

3 847

3 955

3 260

7 528

60 000 12 100

Exhaust air

667 3 899

Subtotal sanitary hot water

3 847

3 955

3 260

12 100

3 899

667

District heating

2

Industrial heat pumps

33

12

Thermally driven heat pumps Total HP sold 2013

18 477

9 458

22 610

7 528

72 100

31 269

14 660

52 651

61 225

Total HP sold 2012

17 494

9 310

21 497

6 662

70 300

30 393

13 495

50 418

60 986

2012/13 evolution

6%

2%

5%

13 %

3%

3%

9%

4%

0%

2012/13 evolution, absolute numbers

983

148

1 113

866

1 800

876

1 165

2 233

239

Table 5-2: Heat pump sales in EU-21 countries (Air/air data adjusted according to EHPA methodology, cf. Annex I)

40

European heat pump market statistics

FR

HU

IE

IT

53 899

226

1 169

15 248

2 006

23

7

1 295

1 687

150

298

382

585

LT

NL

NO

PL

PT

SE

SK

UK

sum EU-21

110

4 277

2 733

2 119

437

6 635

516

15 656

179 217

7%

5

942

661

24

9

110

9 484

-14 %

460

1 980

24 891

143

646

337

58 823

736

16 924

580

7 331

47

21

783

1 495

354 206

617

7 261

461

700

85 906

13 564

11 756

114 586

10 015

19

461

41 550

788

56 290

71 763

55 000

84

56 290

6 817

55 000

7 331

6 206

24 811

7 261

1 943 56 290 700

3

7 331 62 496 297

3

17 632

19

97 662 1 495

769

10 015

496 16 924 904 276

47 213

31 535

120

33 650

45 950

5 710

496

58 823

45 950

1 976

132 1 474 21

783

4 115 366

47

106 036

2 977

5

297

8 761

55 000

41

9 222

96 550

829

7 800

593

17 632

11

-7 %

1 542

-13 %

4 089

1%

280 142

1%

2 425

112 %

13 402

4%

15 707

12 %

295 969

2%

363 868

-2 %

27 303

-4 %

391 172

-2 %

687 141

-1 %

78 483

29 %

3 899

58 %

82 382

30 %

593

11 2

38

-59 %

234

15

314

105 %

2

4

-71 %

34 20

85 811

2 095 606

41

7 261

7 800

17 632

151 986

783

1 498

114 620

720

7 628 62 496

15 061 10 049

96 550

859

17 632

771 151

140 586

687

1 389

115 302

645

9 010

12 568

95 107

704

17 869

750 436

8%

14 %

8%

-1 %

12 %

-15 %

-7 %

20 %

16 %

2%

22 %

-1 %

3%

11 400

96

109

-682

75

-1 382

-4 878

2 493

1 408

1 443

155

-237

20 715

67 374

2013/2013 evolution

8 641

European heat pump market statistics

41

European Heat Pump Market and Statistics Report 2014

Sanitary hot water 11% Reversible other 5%

Exhaust air 2% H-air/water 18%

H-ground/water 13%

Figure 5-6: Split of sales by product category in EU-21, 2013 (Includes sales of reversible air/air heat pumps; “H-” indicates primary heating function)

Reversible air-air w/ heating 51%

As growth can again be observed in mature markets like France, Sweden and Switzerland it can be concluded that part of this growth is taking place in the renovation segment. This is a positive sign, as the growth potential for heat pumps lies in the renovation sector. In relative terms, the Czech Republic (+ 33,5%) and Slovakia (+22,3%) showed the strongest growth, followed by Poland (+ 20%), Portugal (+ 16,3%), all showing double digit growth. With the exemption of Portugal, the top growth countries enjoy a positive development over the last two years. Poland takes a specific role in the European heat pump market, as it shows an impressive growth development on comparatively high absolute market numbers (see Figure 5-5). Analysing the product trends by energy source, it becomes obvious that the airsource segment, including reversible heat pumps and exhaust air heat pump remains the largest. Compared to the sales in 2012, the segment of air/water heat pumps grew (+ 7,7%), as did exhaust air units (+ 11,9%), while sales of ground coupled units (-7,4%) and reversible air/air units declined (- 2,9%). The share of sanitary hot water increased again strongly (+29,7%), now representing 11% of the total market (see Figure 5-6). The analysis underlines the increasing dominance of air as an energy source. Inside this segment, air-water units and exhaust air units are very interesting product categories catering to the renovation market and to the new build market. Exhaust air heat pumps are a result of stricter requirements on the maximum energy demand of buildings including acceptable transmission and ventilation losses. Ground coupled heat pumps saw the lowest number of sales in 8 years. Hot water heat pumps are an entry level product that in most instances are installed next to an existing boiler system. Figure 5-7 illustrates this trend and shows the difference between air-source systems using air (light blue) and water (darker blue) as heat distribution system. In the future, sales numbers for ground-coupled heat pumps are expected to remain stable, however due to an overall increase in the market – driven by aerothermal solutions, their share will decline even further. However the overall contribution to renewable energy from ground-coupled heat pumps is increasing, as more and more larger units are integrated in commercial buildings. With regard to the categories covered, air as an energy source dominates the system choice in most countries. Looking at the distribution side, hydronic systems

42

European heat pump market statistics

900 000 Air/air 800 000 700 000

Air/water Ground source

600 000 500 000 400 000 300 000 200 000 100 000

Figure 5-7: Development of sales by category, 2005 – 2013 (EU-21). 2005

2006

2007

2008

2009

2010

2011

2012

2013

(radiators, low temperature floor and wall heating; 35 °C) are often favoured for their comfort as a result of radiation. They have seen a slight increase in sales and market share (see Table 5-3). The trend towards compact, standardised solutions remains intact and the share of specialised solutions such as water/water or direct expansion units continues to decline both in absolute and in relative terms. Air continues to be the main energy source (more than 85%) used in the European heat pump markets. The aerothermal heat pump segment is dominated by air/air (with heating functionality) and air-water units used for heating and hot water production (sanitary hot water heat pumps | SHW). The use of geothermal and hydrothermal energy has stabilised at around 100 000 units (approx. 13% of the market), air-water units are now comprising 193 903 units for heating purposes and an additional 82 382 sanitary hot water heat pumps. Air/air heat pumps comprise of the rest. The latter segment is the most volatile and thus responsible for both growth and shrinking of the European markets in the years 2009 to 2013. 100% Share air-source

90%

Share ground-source

80% 70% 60% 50% 40% 30% 20% 10%

Figure 5-8: Share of energy used per country, 2013

0% AT BE CH CZ DE DK EE ES FI FR HU IE

IT

LT NL NO PL PT SE SK UK

European heat pump market statistics

43

European Heat Pump Market and Statistics Report 2014

90 000 82 382 80 000 70 000 63 502 60 000 50 917 50 000 40 000 30 000

Figure 5-9: Development of sanitary hot water heat pump sales, 2005 – 2013. Total accumulated sales: 332 917 units or 5 % of the heat pump stock

28 518

29 323

2008

2009

31 588

21 594 20 000 13 840

11 253 10 000

2005

2006

2007

2010

2011

2012

2013

It is interesting to note that the use of air vs. ground also differs from country to country. The observed differences can only partly be explained by climate variations. In general, aerothermal units are used in warmer climates where they can also be used for cooling, while colder climates demand a more stable source temperature and thus lead to a larger share of ground-coupled units. The fact that the general rule is not substantiated by available data suggests that other factors such as building standards, tradition and preference for a certain heat distribution medium (air vs. water | hydronic heating) influence the selection of the heating system and the related energy source (see Figure 5-8). Sanitary hot water (SHW) is the heat pump type with the strongest growth. This product category is continuing its revival in the renovation segment. The number of units sold in 2013 compared to 2012 increased by 29,7%, this means a double digit growth for the third year in a row and this trend is expected to continue in 2014. This growth is mainly caused by two factors: 1. The combination of a hot water heat pump with a fossil fuel boiler is in many countries sufficient to fulfil the requirements legislation, either in terms of the use of renewables, in terms of energy efficiency or both. Due to the fact that hot water heat pumps reduce the amount of non-renewable energy required by a building, this reduction is often sufficient to fulfil the requirements of ever stricter building codes. As a single measure, their installation increases the efficiency of the whole system without the need for larger renovation work. 2. The use of a hot water heat pump in combination with a photovoltaic system provides a long term cost efficient solution for hot water production in times of increasing electricity prices and decreasing feed-in tariffs. It ensures nearly emission-free sanitary hot water production all year round. The electricity that is not used for the building itself can still be sold, making 100% system utilisation possible. In a systems perspective, the heat pump system serves as a thermal battery that stores electricity converted into heat for later use. Its potential storage capacity provides a cost efficient option to balance fluctuating electricity supplies from wind and PV in smart grids. The storage potential is deemed to be far greater than that of pumped hydro storage and electric cars combined.

44

European heat pump market statistics

5.3 Market penetration While analysing volume sales in a market can show the technology’s achievements, its true potential is best observed when looking at market penetration. In figure 5-10 the number of heat pumps sold per 10 000 households is illustrated. Not surprisingly, the Scandinavian countries still show impressive levels of penetration. The low penetration for all other countries indicates that all markets in Europe still have a large growth potential. For policy makers, this is good news as it provides a huge potential to reduce Europe's energy demand for heating, cooling and hot water production. As is to be expected, the share per 10 000 units is stable on an annualised basis and has increased when the cumulative figures are considered. HP 2013 per 10 000 households 4 000

3 920 HP (stock) per 10 000 households

3 500 2 915

3 000 2 500 2 142 2 000 1 406

1 500 1 000 565 500

572

674 447

418

259 142240 71 91 164 134 50 20 75 20 55 30 18

11 39 45 2 9

AT BE CH CZ DE DK EE ES FI FR HU IE

IT

349 281

284 116 58 22 19 40 5 15

31 55 8 9

Figure 5-10: Heat pump sales in 2013 and accumulated sales 1994 – 2013* per 10 000 households

LT NL NO PL PT SE SK UK

5.4 Market segmentation Heat pumps are an increasingly important sub-market in the much larger but stagnating market for heating, ventilation and air conditioning (HVAC). This market can be segmented according to new buildings and renovation, and in turn, further segmented into residential and non-residential building categories (see Table 5-4). The Market report survey does not take account of heat pump applications, and so an estimate of the shares of the various segments is provided based on the number of heat pumps sold in the different capacity ranges. All segments are characterised by quite different development states and potential: 1. The sub-segment for new residential one/two family houses is the best developed. Markets such as Sweden and Switzerland show a market penetration of 95% and 80% respectively. In developing markets like Austria, Finland, France, Germany or Norway heat pumps have reached a share greater than 35% and can be considered the standard solution.

* Historical data not always reaches back to 1994. Availability is as follows: from 1994: AT, DE, SE | from 2005: CH, CZ, FI, FR, IT, NO, PT, UK | from 2006: NL from 2007: DK, EE | from 2009: BE, HU, IE, LT, SK | from 2010: ES, PL

European heat pump market statistics

45

European Heat Pump Market and Statistics Report 2014

2. The sub-segment for renovation of one/two family houses is currently gaining importance and is perceived as the most promising in the long run, as approx. 80% of all residential buildings fall into this category. Heat pumps have reached a share of greater 10% compared to all heat generators sold in several EU markets, namely in Switzerland and in Sweden. Heat pumps have achieved notable market shares (but smaller 10%) in Austria, France, and Germany. An increasing number of heat pumps is now designed to provide up to 65 °C to provide an easy replacement for existing boilers. In parallel, hybrid systems combining air/water heat pumps with a new or existing boiler enable the use of heat pump technology in the building stock maintaining efficiency, integrating RES and providing a cost efficient solution. Using hybrid systems reduces the need for substantial renovation works as a precondition to heat pump use. 3. The sub-segment for residential multi-family residencies is only developing slowly. Approximately 10% of all heat pumps sold have a capacity of more then 20 kW, assuming them to be sold in this segment. 4. The sub-segment for non-residential buildings is characterized by individual projects and is gaining in importance. As large buildings often have a demand for both heating and cooling, heat pump systems are increasingly used in an optimized comfort design approach. As investors become increasingly interested in low total cost of ownership (cap-ex and op-ex) and gain a better understanding of the contribution potential of heat pumps, they are increasingly demanding this technology. This segment also includes industrial applications and the use of heat pump technology in district energy systems.

Table 5-3: Segmentation of heat pump markets

New building

Renovation

Residential: single/double family house

Mass market currently developing

Increasingly recognized market (France, Germany, Sweden, Switzerland), importance of domestic hot water units increasing

Residential: Multi-family residency

Small; market developing

Small, market developing

Non-residential (commercial)

Minority share in currently sold heat pumps. Several demonstration projects available, potential for heating and cooling projects by far not exploited. Industrial heat pumps a small yet promising application.

Increasingly important with investors that value low operating cost. Special application in sewage systems, subways and tunnels.

Within each sub-segment, heat pumps compete directly with established technologies. Depending on the required functionality (heating, cooling, domestic hot water), competitors include gas and coal fired burners, direct electric heaters, or biomass burners. District heating is often perceived as a competitor in densely populated areas - however as many district heating systems are using heat pumps as an energy source, they should rather be seen as complementary. Solar thermal collectors are increasingly often offered as part of a heat pump based combipackage. The next trend here is the combination of heat pumps optimized to use the maximum of electricity produced on site by solar PV or small scale wind collectors. In markets requiring cooling functionality heat pumps also compete with electric air-conditioning and cooling devices. However in these markets a clear distinction between heat pumps used for heating and air-conditioning devices that also use heat pump technology, but are optimized for cooling, is less and less appropriate, as reversible air/air units are optimized for a broader temperature range to

46

European heat pump market statistics

efficiently provide both functions. In cases where reversible heat pumps are connected to local PV installations, and cooling is also needed, the congruency of cooling demand and electricity supply allows for a largely decentralised and RES based production of cooling - with sanitary hot water as an available by-product. Exhaust air/heat recovery heat pumps complement additional heat sources by providing an efficient way of heat recovery to reduce energy losses to the building’s ventilation system thus increasing overall energy efficiency. This type of application becomes more and more important as a result of ever more insulated, air-tight building envelopes. The general development path for most countries follows an early adoption of the technology in the new residential single-family housing segment, followed by the renovation segment for the same housing type. Part of the reason for this development comes from the fact that it is easier to convince individual investors of the benefits of heat pumps than to convince project developers. This is changing now based on stricter building regulations that demand the integration of RES, and also due to an increasing interest in low total cost of ownership, especially in cases where a parallel demand for heating and cooling exists. The availability of suitable solutions for the renovation sector has now superseded the past situation whereby the integration of heat pump technology in an existing building often proved both too impractical and too expensive. With the energy savings obligations to be introduced in all European markets, the role of ESCOs in providing heating (and cooling) services is expected to increase over time. Their impact in the market may contribute to overcoming the current consumer dilemma of accepting high upfront investment costs with a promise of low future operating costs. A rough assignment of sales numbers to the above mentioned classes can be achieved by an evaluation of sales by installed capacity. The EHPA statistics distinguish between two capacity classes: above and below 20 kWth. The majority of markets still show a strong dominance of smaller heat pumps. The share of units sold in the 20 kWth+ segment is increasing. A larger share in this segment generally indicates the use of heat pumps in industrial applications or larger (residential) buildings. It would be expected, that a shift towards larger heat pumps is an indicator for a developing market. Figure 5-11 shows the shares for 16 countries. 100% 90% 80% 70% 60% 50% 40% 30% 20% units > 20kW 10%

units < 20kW

0% AT BE CH CZ DE DK EE ES FI FR HU IE

IT

Figure 5-11: Heat pump sales by capacity class

LT NL NO PL PT SE SK UK

European heat pump market statistics

47

European Heat Pump Market and Statistics Report 2014

5.5 An economic force and a provider of local labor: the European heat pump industry The European manufactures of heat pumps and components are world leaders in this technology. Not least because manufacturers are now offering integrated solutions equipped with interfaces, thus providing ever increased efficiency catering to nearly all application fields. Based on the average sales prices of the different systems provided by the national associations, the total value of the 2013 market volume exceeds 5.2 billion Euro (incl. VAT). Based on the different average costs per system, heat pumps connected to hydronic heating systems represent nearly 60% of this turnover, with reversible units accounting for roughly 40%. The remainder is split into sanitary hot water units (2%) and others (1%). Based on the national VAT rates, this indicates total VAT generated by heat pump sales of approx. 1.1 billion Euro. From an employment perspective, the heat pump sector employs a well educated work force in the areas of R&D, components and heat pump manufacturing, installers (including drillers) and service & maintenance. Based on the number of man-days needed to install the different types of heat pumps and based on expert estimates on turn-over per employee, the total number of employees in the European heat pump industry is estimated to exceed 41 600 persons, approx. 37% of these being active in heat pump manufacturing.

Service and maintenance 15%

Figure 5-12: Employment in the heat pump sector 2013 (in man years)

Installing of HP and heat source 30%

Component manufacturing 18%

Heat pump manufacturing 37%

5.6 Heat pumps enter the energy debate European policy makers increasingly recognize the weight of heating & cooling within our total energy consumption. It makes up almost half of the total energy consumption. This fact alone makes it a focus area for future policy action. The current discussion on supply security and affordability of fossil fuels in light of the Ukraine crisis adds momentum to this debate. A strong focus on energy efficiency in combination with putting heating and cooling on center stage of the debate could result in measures that lead to demand reduction comparable to the gas imports from Eastern Europe. Heat pumps can provide 100% of heating and cooling using air, water and ground. In doing so, they replace primary non-renewable sources by renewable ambient

48

European heat pump market statistics

energy thus leading to considerable savings of CO2-emissions. Savings are calculated by comparing the emissions from a heat pump to those of the best available replacement technology. Currently, a gas-condensing boiler is used, however actual savings are even bigger, as the stock of European heating systems also comprises of oil and gas non-condensing technology and even coal burners. The amount of the generated renewable energy depends a) on the climate in which a system is operating, and b) on the characteristics of the heat pump. The climate influences how long the heat pump has to run and how efficient it works. In colder climates with more heating days, more operating hours are needed; the temperature difference between source and destination affects the efficiency of a system. Different types of heat pumps use different heat sources and distribution systems - affecting overall output and efficiency. Although heat pumps can also provide efficient cooling, only the heating side is considered in the actual energy debate. This complicates calculations of relevant indicators for reversible air-to-air heat pumps, because their usage patterns are not clearly predictable. Reversible heat pumps can be used for both heating and cooling. While those units with water distribution are always (expected to be) used for heating that does not have to be the case for air-to-air heat pumps. In this chapter, we will first present the figures on the heat pumps’ contributions to the European climate targets. Subsequently, calculation methods of the past and present will be explained in detail. How much green energy did heat pumps provide in 2013? All heat pumps that were sold and installed in 2013 provided 8,26 TWh of renewable heat. The heat pump stock, which includes all units that were sold and installed in the last 20 years, contributed 77,81 TWh of green energy in 2013 (figure 5-13). This is more than Croatia’s final energy consumption in 2012 (68,6 TWh). [1] How much energy was saved in 2013 by using heat pumps? How much more energy would have been consumed, if instead of heat pumps, highly efficient gas boilers were installed? Data shows that all heat pumps sold in 2013 have saved 10,56 TWh of final and 4,83 TWh of primary energy. The stock of heat pump units in operation across Europe by 2013 saved 99,13 TWh of final and 47,12 TWh of primary energy (Figure 5-14). For comparison: in 2012, Germany produced 46 TWh of electricity from wind. [2] How many CO2 emissions were avoided in 2013? The comparison of the same scenarios as above yields the emission savings given the use of heat pumps. Generating energy from fossil fuels creates CO2 emissions. Hence, if heat pumps can save energy, they also save emissions. Based on the sales volume 2013, 2,12 Mt of CO2 emissions were avoided. The whole stock of installed heat pumps saved 20,04 Mt of CO2 emissions (Figure 5-15). This is almost the amount of CO2 emitted by Croatia in 2010 (20,9 Mt). [3]

Results in a nutshell Heat pumps are by now an established technology. Their contribution to the EUs climate and energy targets is undisputed. For ease of use, we have compiled the results of the different calculations in a short table. Trying to compare the values with those published in last years report is not possible, as we have used the commission method for this calculation. Due to the fact that it assumes different values for the useful hours as well as for the efficiency of heat pumps, the results differ widely.

European heat pump market statistics

49

European Heat Pump Market and Statistics Report 2014

2,5 Reversible air-air w/heating Reversible other Sanitary hot water 2,0

Exhaust air H-air/water H-ground/water

1,5

1,0

0,5

Figure 5-13: Renewable thermal energy provided per country, by type, 2013 (in TWh)

0,0 AT BE CH CZ DE DK EE ES

FI

FR HU IE

IT

LT NL NO PL PT SE SK UK

3,0 Final energy savings (in TWh) Primary energy savings (in TWh) 2,5

2,0

1,5

1,0

Figure 5-14: Final and primary energy savings from heat pumps based on sales 2013, per country (in TWh)

0,5

0,0 AT BE CH CZ DE DK EE ES

FI

FR HU IE

IT

LT NL NO PL PT SE SK UK

FI

FR HU IE

IT

LT NL NO PL PT SE SK UK

0,7 Reversible air-air w/heating 0,6

Reversible other Sanitary hot water

0,5

Exhaust air H-air/water

0,4

H-ground/water

0,3

0,2

Figure 5-15: Greenhouse-gas emission savings based on sales 2013, per country (in Mt)

0,1

0,0 AT BE CH CZ DE DK EE ES

50

European heat pump market statistics

Sales 2013 Installed capacity (TW) Qusable (TWh) RES integrated (TWh) in mio € GHG savings (Mt) in mio € Final energy savings (TWh) in mio € Primary energy savings (TWh)

Stock 2013

0,02

0,22

13,00

120,79

8,26

77,81

826

7 781

2,12

20,04

74

701

10,56

99,13

792

7 435

4,83

47,12

Table 5-4: Consolidated contribution of heat pumps in a nutshell: Energy production, RES share, primary and final energy savings as well as GHG emissions reduction

For the monetization of the results, the following assumptions were taken: For the value of the renewables contribution, a feed-in tariff of 0,1 € per kWh of heat was assumed. For the value of GHG emission saved, a value of 35 € per ton of CO2 assumed. In order to compare with fossil fuels, the cost per kWhthermal provided by a gas boiler was assumed to be 0,075 Euro.

Calculation method RES Heat pumps use renewable energy sources (RES). As they require an amount of auxiliary energy to operate the compressor, the useful energy provided (Qusable) is only 100% renewable, if also this auxiliary energy comes from renewable sources. In those cases, where auxiliary energy from fossil sources is used, a calculation method is needed to identify the renewable fraction of energy production. EHPA has been using a calculation methodology based on expert opinion and industry data on heating hours, heat pump efficiency and installed capacity. This year, however, the methodology has been adapted in response to developments in European energy policy. As a result of the introduction of the RES Directive, the Commission has presented its own approach on how to calculate the RES share of heat pumps**. This method is supposed to be used by the statistics offices of all Member States. It provides rather conservative factors for the calculation of the useful energy provided by heat pumps as well as for their seasonal efficiency. The Commission suggests that Member States develop more realistic values based on a robust national approach, whereby local conditions are taken into consideration. This section will concentrate on the explanation of the newly introduced Commission’s method. The former approach, the methodology change and its implications for the results are described in the following section. Formula (1) is used to calculate the share of renewable energy (ERES): ERES is obtained by diminishing the usable heat (Qusable) by a factor, which depends on the system’s performance (SPF). Qusable is the product of the operating hours (HHP) and the capacity (Prated) – see formula (2). (1) ERES = Qusable * (1 – 1/SPF) Figure 5-16: Simplified illustration of the energy flow of a working heat pump

(2) Qusable = HHP * Prated

* The assumed growth rates can be found in table 5-5 in Annex IV ** Commission decision 2013/114/EU (European Union 2014) European heat pump market statistics

51

European Heat Pump Market and Statistics Report 2014

Where: Qusable HHP Prated SPF

= = = =

the estimated total usable heat delivered by heat pumps, equivalent full load hours of operation, capacity of heat pumps installed, the estimated average seasonal performance factor.

The total capacity of installed heat pumps (Prated) is based on the number of units sold multiplied by a factor representing the capacity per unit. This parameter is not specified in the decision and thus, EHPA industry data and expert estimates are applied. The values are shown in Table 5-6 (in Annex IV). The Commission provides default values for HHP and SPF. Particularities of different heat pump types and climate zones are taken into account, so that there is one value for each combination (Table 5-7 and Table 5-8). These formulas are then applied to all heat pump categories and the respective results are aggregated to finally yield the total renewable contribution from heat pumps (ERES) per Member State of the European Union (MS). Not all heat pumps are considered in the calculations. Following systems are either completely excluded or corrected: ➔ Systems with an SPF below 2,53* are excluded; ➔ Exhaust air heat pumps are only partly considered (30%). ➔ Reversible air/air heat pumps in average and warm climates are only partly considered.

Exhaust air heat pumps Exhaust-air heat pumps use aerothermal energy. Part of the energy used comes form a re-use (via heat exchangers) of indoor air, part of it comes from outdoor air that is drawn into the building. Initial analysis shows that 30% to 50% of the energy used comes from outdoor air. In order to provide (yet again) a cautious estimate, the contribution from exhaust air heat pumps is generally weighted with a factor of 0,3*.

Reversible air/air heat pumps installed in warm climates As described earlier, a large number of reversible air-air heat pumps are installed in Europe. In Scandinavian and Baltic climates, their use for heating is simply assumed on the basis of the prevailing cold climate. For southern Europe a different approach has been taken. It is based on a study done for the Italian market to determine the type of heating systems used. This study has been used as guidance for the calculation of the share of heating provided by heat pumps in the EHPA methodology. It has now been translated in modified heating hours for the Mediterranean markets in the commission study. Operating hours (HHP) Air/water Water/water

Table 5-7: Operating hours (HHP) for different types of heat pumps, distinguished by climate zone. Source: Commission decision 2013/114/EU (European Union 2014)

Cold

Average

Warm

1 710

1 640

1 170

2 470

2 070

1 340

Brine/water

2 470

2 070

1 340

Dir. expansion/water or dir. condensation

2 470

2 070

1 340

Dir. exp./dir. cond.

2 470

2 070

1 340

600

660

760

Sanitary Hot Water HP (DHW)

1 710

1 640

1 170

Reversible HP – air/air

1 970

710

120

Reversible HP – air/water

1 710

660

120

Exhaust air HP

* modern heat pumps have better efficiencies, Ecodesign requirements coming into force in 2017 mandate a minimum efficiency of approx. 2,75 ** this is also reflected by the COM defaults for HHP

52

European heat pump market statistics

SPF values

Cold

Average

Warm

Air/water

2,5

2,6

2,7

Water/water

3,5

3,5

3,5

Brine/water

3,5

3,5

3,5

Dir. expansion/water or dir. condensation

3,5

3,5

3,5

Dir. exp./dir. cond.

3,2

3,2

3,2

Exhaust air HP

2,5

2,6

2,7

Sanitary Hot Water HP (DHW)

2,5

2,6

2,7

Reversible HP – air/air

2,5

2,6

2,7

Reversible HP – air/water

2,5

2,6

2,7

Table 5-8: Efficiency values (SPF) for different types of heat pumps, distinguished by climate zone. Source: Commission decision 2013/114/EU (European Union 2014)

Energy savings The energy consumption of the heating systems can be reported in terms of final or primary energy. While the former describes simply the amount of auxiliary energy needed to drive the system, the latter also accounts for the efforts undertaken to provide this energy. For instance, when electricity is used to power the heat pump, the final energy consumed by the heat pump is multiplied with the Primary Energy Factor (PEF) [see infobox]. The greener the electricity mix the smaller the PEF – the closer are the primary to the final energy savings.

Infobox The latest official value for this factor applies to the EU power mix in 2011. It was calculated by Eurostat to be approximately 2,21 (eta=0,453) Source: Eurostat.

Actual savings are calculated by comparing the final/primary energy consumption of a heat pump to that of a (replaced) gas-condensing boiler. For the heat pump, the aforementioned efficiency assumptions (SPF) are taken by category, for the gas boiler the efficiency is set at 85% (upper heating value).

Emission savings Similarly to the energy savings, the CO2-emission savings are calculated by comparing the emissions from a heat pump to those of a (replaced) gascondensing boiler. Parameters used are: eta for gas: 85%, emission value for gas: 242 g/kWhth and emission value for electricity: 334 g/kWh, a value that represents the EU-27 average for 2020 [4]. For heat pump seasonal efficiency, the values from table 5-8 were used. The results must be considered (again) as a cautious estimate, as in reality, not only gas but also oil boilers as well as coal boilers and direct electric heating systems are replaced. All of them have higher emissions than a gas boiler per kWh of thermal energy and thus the heat pump benefits calculated are lower than to be expected in reality. In addition, the replacement speed of oil boilers is most likely higher than that of gas boilers, as the cost advantage of heat pumps is higher, when oil boilers are replaced.

Methodology change – comparison of assumptions and results In the past, the EHPA calculation has used the same formulas, yet instead of using default values, it applied industry data based on surveys and expert opinion for HHP and SPF (see Tables 5-9 and 5-10 in Annex IV). The main differences concern: a) Sales: sales numbers build the basis for all further calculations. At this point the EHPA approach applied the correction for reversible air/air units. The COM method includes all units at this stage. b) Climate zones: The assumptions of both approaches are almost identical. There is one major difference, though: While in the former EHPA calculations France was regarded as a “warm” country, the Commission’s definition is based on Eurostat data – with France having an “average” climate.

European heat pump market statistics

53

European Heat Pump Market and Statistics Report 2014

c) Efficiency (SPF): EHPA assumptions are closer to reality, as they rely on industry data. The Commission default values are deliberately conservative. d) Operating hours (HHP): Here lies a crucial difference: the Commission’s correction for reversible and exhaust-air heat pumps takes place here. The Commission default values are deliberately conservative in order to trigger action on the Member State level. It is expected that Member States – once they realize that true efficiency of heat pumps is better than suggested by the Commission approach – take an effort to determine the average values of SPF and HHP in their country. Once proposed to and agreed by the Commission, the new values can be used for calculation. Comparing the SPF values in the EHPA approach with the Commission default values shows a general reduction in the Commission’s values with the difference

COLD

Figure 5-17: Difference between the SPF values used by EHPA and those suggested by the Commission | per technology and climate zone (source: EHPA)

Exhaust Exh hausst air air

H-air/water H -a air/water

AVERAGE A VERAGE

WARM W A M AR

H-ground/water H-g gro ound/water R Reversible evers rsible a ir/air R Reversible eve ersible a irr/ air/air air/ water wa w ater er

Sanitary Sa nit i ary yh ot hot water w wa te err

-5% -5% -5% % -5% -5 % -5

-10% -10%

-1 0% -10%

-1 -13% 3%

-17% -17%

-1 -13% 3%

-17% -17%

-1 -10% 0%

-1 -13% 3%

-17% -17%

-1 -10% 0%

-13% -13%

-17% -17%

-1 -10% 0%

-13% -13%

-17% -17%

being particularly large for the colder climate zone and for air source heat pumps (see Figure 5-17). Bearing in mind the positive impact towards improved heat pumps by legislation, in particular by the introduction of the Ecodesign requirements and the Energy label in 2014, the distance between default value and reality is expected to increase. Industry R&D in a growing market will further propel this development. The comparison of the values applied for operating hours (HHP) shows a different picture. It becomes obvious how the Commission approach uses this parameter to adjust for the use of reversible air/air units for cooling (– 88% in warm climate). As well, for all other categories but exhaust air, the applied value is consistently higher in warm and cold climates and lower in the average climate zone (see Figure 5-18).

How does the change of method influence the results? Calculating the RES contribution from heat pumps using both approaches has a number of effects on the technologies contribution towards the use of renewables. The approach suggested by the Commission leads to an increase of the amount of RES produced by heat pumps by 27% (compared to the EHPA method). The larger RES contribution is mainly caused by the integration of all heat pumps into the calculation. The effect is particularly positive for countries with average

54

European heat pump market statistics

COLD

AVERAGE A VERAGE V

WARM W A ARM 71% 64%

29% 17%

17%

17%

9%

H-air/water H -air/water

H-ground/water H -g grou ound/water

Reversible R everssible a ir/air air/air

Figure 5-18: Difference (in per cent) of EHPA vs. Commission approach on the assumption of average HHP values per climate zone (source: EHPA)

Reversible R e rssible a eve ir/water Sa Sanitary nitary yh ot w ater air/water hot water

-21% 1% -2 -32% -3 2%

-29% -29%

-32% -32% -53% -5 3%

-88% -88%

-56% -5 6%

-8 -88% 8%

and warm climate. The additional number of heat pumps outweighs the reduced values for HHP and SPF. The Commission approach is very conservative for countries in the cold climate zone (see Table 5-11 and Figures 5-19 and 5-20). COM

Sales 2013 EHPA

COM

Stock 2013 EHPA

AT

0.25

0.20

2.70

1.94

BE

0.23

0.08

1.06

0.32

CH

0.33

0.27

2.86

2.25

CZ

0.13

0.11

0.67

0.54

DE

0.95

0.81

9.70

7.48

DK

0.17

0.25

1.00

1.44

EE

0.12

0.17

0.65

0.93

ES

0.24

0.07

1.05

0.37

FI

0.53

0.75

3.99

5.71

FR

2.34

0.98

22.29

9.71

HU

0.02

0.01

0.07

0.07

IE

0.02

0.02

0.10

0.09

IT

0.86

0.39

9.09

3.46

LT

0.01

0.02

0.06

0.08

NL

0.23

0.12

1.90

1.25

NO

0.44

0.63

4.43

6.32

PL

0.15

0.11

0.54

0.40

PT

0.12

0.05

1.19

0.44

SE

0.82

1.18

12.88

SK

0.01

0.01

0.06

0.04

UK

0.28

0.26

1.54

1.34

Total

8.26

6.50

77.81

62.69

18.51

Table 5-11: Comparison of RES contribution (in TWh) of a) the heat pump sales in 2013, and b) the heat pump stock in 2013: Commission vs. EHPA | per country (source: EHPA)

Accordingly, in the Scandinavian and Baltic countries, where reversible heat pumps are used predominantly for heating, the conservative HHP values as suggested by the Commission have a strong negative impact (around – 30%) on the calculated amount of RES. In all other countries the RES contributions from the Commission calculation are higher in comparison to EHPA calculation – with relative differences ranging from 7% to 220%.

European heat pump market statistics

55

EHPA

Commission

2

1,5

1

0,5

Figure 5-19: RES contribution in TWh from heat pumps installed in 2013 | per country (source: EHPA)

0 AT BE CH CZ DE DK EE ES

FI

FR HU IE

IT

LT NL NO PL PT SE SK UK

220% 2 192%

153% 138% 121%

88% 68%

27%

DK D K

Total To tal

EE

SE

FI

NO

LT

IIE E

8% 7% UK U K

DE D E

19% 17%

CZ

27% 25%

AT

PL

SK

NL

HU

IT

FR

PT

BE

36% 32%

CH

Figure 5-20: Change in RES contribution in 2013 (in %) resulting from the Commission approach compared to the EHPA | per country (source: EHPA) ES

European Heat Pump Market and Statistics Report 2014

2,5

-30% -30%-3 - 0%-3 -30% -30% - 0%-3 - 0%-3 -30% - 1%-3 -31% -32% - 2%

Even though the Commission approach suggests a higher contribution towards the use of renewables by heat pumps, the aggregated values are still on the low side. This is caused by a general lack of data on the performance and running hours, but also by a lack of data, particularly on large and very large heat pumps (100 kW to 1 MW). These units have a different SPF and different operating hours than standard residential units. Industry estimates suggest that sales numbers of approx. 10 000 units per year have insufficient data on the total heating capacity provided and thus on their contribution to RES and energy efficiency. Yet due to their capacity, a single installation might provide the same contribution as some hundred individual installations. The structure of this market segment as well as the current approach towards collecting statistical data on heat pumps leads to a systematic underestimation of the considerable contribution of large-scale heat pumps. The same holds true for new solutions like hybrid heat pump systems, which integrate several energy sources, both thermal and electric into a heat pump

56

European heat pump market statistics

25,00 ommission Commission C EH EHPA PA Progress Reports Pro gress R eports 20,00

30,39

15,00

10,00

Figure 5-21: Comparison of RES contribution (in TWh) of the heat pump stock in 2012: Commission vs. EHPA vs. MS | per country (source: EHPA, Progress Reports according to Article 22 of the Renewable Energy Directive 2009/28/EC)

5,00

0,00 AT

BE

CZ

DK DK

FI

FR

IIE E

IT

NL

PL

SE

UK U K

system. The impact of those systems in terms of sales volume and RES is still small due to the early market stage. But it is foreseeable that this new range of heat pumps will grow and thus should be covered in heat pump statistics.

Benchmark with progress reports According to Article 22 of the Directive 2009/28/EC on Renewable Energy, the Member states are required to submit a report to the European Commission on progress in the promotion and use of energy from renewable sources. The latest reports (from 2012) include figures on renewable energy contributed by heat pumps. Therefore, they provide a good opportunity for a comparison with EHPA calculations. Although consistency regarding the methodology across the Member States is desirable from the Commission’s perspective, reporting practices may differ considerably from country to country. A first assessment of their progress reports reveals partly huge gaps: some Member states’ calculation leads to a reported contribution largely exceeding both the Commission and the EHPA approach, others seem not to count the contribution of heat pumps at all (see Figure 5-21). While those differences need further observation, it is noteworthy that for the majority of the observed countries the variations are moderate.

5.7 Outlook for 2014 Based on initial data from 2014, the heat pump industry is convinced that the turnaround has been accomplished. The first two quarters have shown positive growth over the same period in 2013. For the full year an increase of approximately 5% is expected (see Figure 5-15), which would represent sales slightly exceeding 800 000 units. The turnaround is good news – also against the backdrop of the challenging energy transition. The Renewable Energy Action Plans (NREAP) set out a target of 141 TWh of renewable energy to be provided by the European heat pump stock in 2020. Table 5-13 features the projection of the consolidated contributions for 2020. In order to estimate the forecast, future growth rates were assumed on the basis of expert knowledge (see Table 5-5 in Annex IV).

European heat pump market statistics

57

European Heat Pump Market and Statistics Report 2014

900 000 su sum m EU-14 EU-14 800 000

804 457 734 282

sum su m EU-21 EU-21

729 190

800 388

808 591

808 373 3 750 436

713 515 15

712 643 43

700 000

674 74 716 16

769 879 723 272 72

688 830 30

589 1 18 118

600 000 509 794 500 000

446 03 4 037

400 000

300 000

200 000

100 000

Figure 5-22: Sales outlook 2014 2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

2014e

Stock 2020 Installed capacity (TW)

Table 5-12: 2020 Projection of consolidated contributions of heat pumps: Energy production, RES share, primary and final energy savings as well as GHG emissions reduction

0,43

Qusable (TWh)

232,96

RES integrated (TWh)

148,81

in mio € GHG savings (Mt) in mio € Final energy savings (TWh) in mio € Primary energy savings (TWh)

14 881 38,22 1 338 189,93 14 244 88,10

With 148,81 TWh the projection for renewable energy lies just slightly above the NREAP’s target. Even though the expected fulfillment is a positive signal, two points have to be taken into consideration: First, the target can only be achieved if the – rather optimistic – growth assumptions prove to be true. Policies that conserve the status quo of the energy mix and unfavourable energy price ratios threaten to hamper the development of the European heat pump markets. Second, the NREAP target is not a particularly ambitious one. It might distract from the fact that there is still a vast untapped potential to be realised. Therefore, the most important message to policy makers must be re-stressed: a small growth (10% or less) is not sufficient to exploit the heat pump technologie’s full potential to contribute to a successful energy transition in Europe.

Sources [1] European Commission: EU Energy in figures - Statistical pocketbook 2014 [2] Obser’ER (2013): Worlwide elecricity production from renewable energy sources, www.energies-renouvelables.org/observ-er/html/inventaire/pdf/15e-inventaire-Chap02.pdf, p.9 [3] World Bank: World Development Indicators

58

European heat pump market statistics

Focus reports on selected European markets

6

Chapter 6 provides an in-depth coverage of selected markets in Europe. The individual country reports aim at giving the reader information on the framework conditions of the heating market in each country in general and on the developments in the market segment for heat pumps in particular. The focus reports have been provided by the national editors.

Focus reports on selected European markets | XXXXXXXXX

59

European Heat Pump Market and Statistics Report 2014

6.1 Austria Key facts Population [1]

8 429 991

Area

83 871 km2

GDP/capita [2]

33 200 €

Capital

Vienna

Number of single/two family houses

1 557 420

Number of dwelling in multi-dwelling buildings

203 547

Number of non-residential buildings

282 257

Rate of new construction of single/two family houses

5 dwellings / 1000 inhabitants in 2002

Average heat consumption for all residential buildings [3]

20 – 25 MWh/year

Share of RES in final consumption of energy (2012) [4]

32,1%

Binding target for the use of renewables [5]

34%

National emission factor (CO2/kWh electricity) (2011) [6]

215 g

Energy Mix gross electricity generation Fuel Solid Fuels Nuclear

TWh

Share

5,4

8,2%

4,4

6,1%

0,0

0,0%

0,0

0,0%

44,4

67,5%

55,1

75,9%

Gases

14,3

21,8%

11,5

15,9%

1,0

1,5%

0,7

1,0%

Other

0,6

0,9%

0,8

1,1%

Total

65,7

100%

72,6

100%

Energy Prices

€/kWh

Electricity

Table 6.1-2: Energy prices in Austria [8 – 11]

2012 Share

Renewables

Petroleum and Products Table 6.1-1: Electricity mix in Austria [7]

2011 TWh

0,21

Heat pumps (useful energy price)

0,07

Heating oil

0,09

Domestic gas

0,08

Pellets (sack delivery)

0,06

Pellets (bulk delivery)

0,05

District Heating

0,09

The total heat pumps sales increased from 2012 to 2013 by 1,2%. It amounted to a total of 21 744 units in 2013. The export increased by 15,8%. Domestic sales of the lower power class up to 10kW increased by 3,6%, while sales of the average power class 20 kW up to 50 kW increased by 57,7%. The domestic market for heat pumps showed a total of 14 350 units sold. So the trend is comparable to the previous year. A notable transfer is observed within the power classes. The winners are both the lowest power class until 10 kW and the power class starting by 20 kW. Last ranked is the power class bigger than 10 kW until 20 kW. The export market for heat pumps increased in 2013 compared to the previous year by 3,9%. 7 394 heat pumps were exported to foreign countries. In the export market, increases have been seen in the power class until 20 kW and in the bigger power classes, there was a small decline.

60

Focus reports on selected European markets | Austria

20 000 18 000

eating W ater h Water heating eating Space heating Sp ace h

16 000 14 000 12 000 10 000 8 000 6 000 4 000

Figure 6.1-1: Austrian heat pump market development 1989 – 2013

2 000

1991

1989

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011 2011

2013

The sale of industrial heating pumps had in 2013 a boost of 25,7% within domestic and export markets. A total of 44 project-specific made heating pumps were sold in 2013. The total turnover of sanitary water increased by 8,8%. 6 369 sanitary water heat pumps were sold in the year 2012. In the home market there was an increase of 6,3% and on the export market there was an increase of 15,8%. The total sales of heat pumps for housing space airing show a decrease of 14,3%. Compared to the previous year, there are still some data missing, but there is an expected total sale of 263 heat pumps. In summary, it can be stated that in the year 2013 there was a modest increase of total sale especially in the domestic market and export market. This results in a rise of the total sale of heat pumps, no matter which kind or power class, of 2,9%.

Progression of the home market sorted by performance class and types The domestic market of the represented types of heat pumps was constant in the year 2012. In 2013 there was a slight increase of only 0,1% in total. However the 250 000

W ater h Water heating eating Sp Space heating ace h eating

200 000

150 000

100 000

50 000

Figure 6.1-2: Heat Pumps in operation in Austria (installed since 1989) 1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011 2011

Focus reports on selected European markets | Austria

2013

61

European Heat Pump Market and Statistics Report 2014

20 000 18 000 16 000

Air/water

14 000 Water/water 12 000 Brine/water

10 000

Direct expansion

8 000 6 000

Exhaust air

4 000 Sanitary hot water

Figure 6.1-3: Austrian 2010 – 2013 market by type of heat pump

2 000

2010

2011

2012

2013

development of particular power classes differed a lot from each other. A remarkable decline of the power segment with the most units above 20 kW was compensated by the strong increase of the other power classes. Sales of the units with power class up to 10 kW (typically new-built one- and two-family houses as well as townhouses) increased by 4,0%, those in the power classes of above 20kW (mostly more-family houses or commercially used buildings) increased by 57,7% (>20kW until 50kW) and 61,3% (>50 kW). The long-term air/water heat pump trend went on in the year 2013. The number of the domestically sold air/water heat pumps increased to 8 500 units in 2013 from 8 009 units in 2012. Therefore, the relative share of this heat pump system went up to 58,5% in 2013 from 55,2% in 2012. As a result, air/water heat pumps were by far the most sold heat pump systems. Brine/water heat pumps only had a share of 30,7% of the domestic market, followed by water/water heat pumps with a share of 6,5%.

Table 6.1-3: Sales of heat pumps in Austria 2009–2013

Heat pump type

2009

2010

2011

2012

2013

2012/2013

Sanitary hot water

5 852

5 490

4 247

3 884

3 847

- 1,0%

Exhaust air

573

578

450

115

149

29,6%

Direct expansion

937

794

703

659

586

- 11,1%

Brine/water

5 083

4 577

4 899

4 724

4 441

- 6,0%

Water/water

1 192

1 111

988

1 029

915

- 11,1%

Air/water

4 501

4 412

5 399

7 083

8 506

20,1%

Other

33

Total units sold

18 138

16 962

16 686

17 494

18 477

5,6%

Incentives Heat pumps are supported under the Environmental Assistance in Austria (UFI) in a form of subsidy. Heat pumps < 400 kW ➔ Water heat pumps: € 85 per kWth (0 – 80 kWth), € 45 for each additional kWth (81 – 400 kWth) ➔ Air heat pumps: € 70 per kWth (0 – 80 kWth), € 35 for each additional kWth (81 – 400 kWth) ➔ max. 30% of investment costs

62

Focus reports on selected European markets | Austria

Heat pumps > 400 kW ➔ De minimis support: max. 15% ➔ Support over De minimis limit: max. 40% ➔ Environment-related investment costs: minimum € 10 000

National industry associations In Austria, the Heat Pump Sector is represented by several associations. ➔ National Heat-Pump Association Austria – Bundesverband Wärmepumpe Austria (BWP) ➔ The Austrian Heat Pump Association (LGWA) – Leistungsgemeinschaft Wärmepumpe Austria (LGWA) ➔ The Austrian Energy Agency

Energy performance requirements New buildings

Table 6.1-4: Energy performance requirements in Austria

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum energy demand

Maximum energy demand

Energy type if applicable

Useful energy

Useful energy

End uses considered

Heating (all building types) Cooling (non-residential)

Heating (all building types) Cooling (non-residential)

Units

kWh/m2 per year for residential kWh/m3 per year for non-residential

kWh/m2 per year for residential kWh/m3 per year for non-residential

Requirements in detail Single Family Houses

66.5 58.5 for buildings with ventilation system with heat recovery

87.5 79.5 for buildings with ventilation system with heat recovery

Apartment Blocks

66.5 58.5 for buildings with ventilation system with heat recovery

87.5 79.5 for buildings with ventilation system with heat recovery

Offices

22.75 20.75 for buildings with ventilation system with heat recovery 1 for cooling

30 28 for buildings with ventilation system with heat recovery 2 for cooling

Educational Buildings

22.75 20.75 for buildings with ventilation system with heat recovery 1 for cooling

30 28 for buildings with ventilation system with heat recovery 2 for cooling

Hospitals

22.75 20.75 for buildings with ventilation system with heat recovery 1 for cooling

30 28 for buildings with ventilation system with heat recovery 2 for cooling

Hotels & Restaurants

22.75 20.75 for buildings with ventilation system with heat recovery 1 for cooling

30 28 for buildings with ventilation system with heat recovery 2 for cooling

Sports facilities

22.75 20.75 for buildings with ventilation system with heat recovery 1 for cooling

30 28 for buildings with ventilation system with heat recovery 2 for cooling

Wholesale and retail trade

22.75 20.75 for buildings with ventilation system with heat recovery 1 for cooling

30 28 for buildings with ventilation system with heat recovery 2 for cooling

Focus reports on selected European markets | Austria

63

European Heat Pump Market and Statistics Report 2014

Policy recommendations The requirements regarding the seasonal performance factor being higher than 4 (>4) are too ambitious. With a reduction of the requirement by 10% the market share of heat pumps in the renovation sector could increase up to a share of 25%. Additionally, we recommend: ➔ adaption of the Austrian subsidy policy, ➔ expansion of the research and development grants, ➔ adaption of the conversion factor for electricity to the real Austrian electricity mix.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] Statistik Austria: Gebäude- und Wohnungszählung 2001, Wohnbautätigkeit 2002 [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [10] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [11] Verein proPellets Austria

64

Focus reports on selected European markets | Austria

6.2 Belgium Key facts Population [1]

11 128 246

Area

30 500 km2

GDP/capita [2]

30 500 €

Capital

Brussels

Number of single/two family houses

3 466 236

Number of multi-dwelling houses

165 986

Number of dwelling in multi-dwelling buildings

1 195 945

Number of non-residential buildings

782 264

Number of newly built non-residential buildings in 2012 [3]

4 522

Share of RES in final consumption of energy (2012) [4]

6,8%

Binding target for the use of renewables [5]

13%

National emission factor (CO2/kWh electricity) (2011) [6]

196 g

Energy Mix gross electricity generation Fuel Solid Fuels Nuclear

2012 TWh

2013 Share

TWh

Share

3,4

3,8%

3,4

4%

48,2

53,5%

40,3

49%

Renewables

9,6

10,6%

11,8

14%

Gases

27,4

30,4%

25,6

31%

Petroleum and Products

0,3

0,3%

0,1

0%

Other

1,2

1,4%

1,5

2%

90,2

100%

82,9

100%

Total Energy Prices

€/kWh

Electricity

0,22

Heat pumps (useful energy price)

0,08

Heating oil

0,08

Domestic gas

0,07

Table 6.2-1: Electricity mix in Belgium [7]

Table 6.2-2: Energy prices in Belgium 2013 [8-10]

It should be noted that Belgian consumers have the possibility to obtain reduced electricity prices during off-peak hours.

Present market situation Air/air heat pumps, mainly in non-residential buildings, dominate the Belgian market. The use of heat pumps for space heating in new residential buildings (ground coupled and air/water heat pumps) is becoming more and more popular even if the heat pump market share remains low (10%). Due to the more demanding EPBD targets every year, there is an increase in heat pump installations in new buildings, as it becomes more and more difficult to obtain the necessary “E-level*” levels without the use of renewable technologies. The renovation market is emerging as a promising sector, although market penetration still remains rather low. One of the reasons for that situation is the high connectivity to the gas grid.

(*) In 2006, the E-level was introduced. All new residential buildings, schools and offices had to had a maximum E-level of 100. Begin 2010 the requirement was adjusted : E80 for residential buildings. For new buildings with a building permission from 01/01/12, the level became E70, together with a new requirement for the general insulation level from K45 to K40. From 01/01/14 the requirement will be E60.

The main barrier, which hinders market development for heat pumps in Belgium, is the relatively high electricity prices and investment costs, the relatively

Focus reports on selected European markets | Belgium

65

European Heat Pump Market and Statistics Report 2014

10 000

eating Water h Water heating eating Sp ace h Space heating

9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000

Figure 6.2-1: Belgian heat pump market development 2009 – 2013

1 000

2009

2010

2011 2011

2012

2013

conservative behaviour on behalf of consumers and the lack of ongoing government support and promotion. The high electricity prices limit the potential economic gains for end users and as a consequence the market remains very sensitive to changing oil and gas price changes.

Market trends Heat pump type

Table 6.2-3: Sales of heat pumps in Belgium 2009 – 2013

2009

2010

2011

2012

2013

2012/2013

Sanitary hot water

600

1 011

1 678

2 757

3 955

43,5%

Brine/water

889

1 065

1 300

1 418

1 265

- 10,8%

Air/water

602

2 277

4 631

5 135

4 167

- 18,9%

95

40

2 186

4 393

Other Total units sold

71 7 609

9 310

9 458

1,6%

Please note “brine/water” contains all geothermal heat pumps (brine/water, Water/water and dx/water).

Costs Prices of heat pump units (for an average family house with heat losses around 10 kW): Table 6.2-4: Average heat pump unit prices (price for end user, installation costs included, heat distribution excluded)

Euro

Air/air

Air/water

Ground source

7 500

10 500

16 000 – 20 000

Distribution channels The main heat pump manufacturers have their own distribution facilities in Belgium. They generally offer education programmes for installers. Some brands are distributed to installers by HVAC systems wholesalers, while in some cases installers propose tailor-made solutions that are configured on site.

Industry infrastructure All the key heat pump actors are present in Belgium (heat pump producers, heat pump component manufacturers, distributors, engineering companies, installers, drillers). However, there is no indigenous Belgian heat pump brand. In some cases, collaboration between foreign heat pump producers and Belgian component manufacturers or exclusivity contracts lead to the creation of specific products or

66

Focus reports on selected European markets | Belgium

35 000

Water heating W ater h eating Space Sp heating ace h eating

30 000

25 000

20 000

15 000

10 000

5 000

Figure 6.2-2: Heat pumps in operation in Belgium (installed since 2009) 2009

2010

2011 2011

2012

2013

integrated services sold under a Belgian brand. Some installers also offer tailormade heat pump systems and solutions. Until now, there has been no test centre offering standard performance measurement and certification service. Some universities and high schools are involved in research activities and quality procedure settlements.

National industry associations For the Northern region of Belgium (Flanders), the heat pump sector is organised into ‘Warmtepomp Platform’ (WPP), which is also part of the regional Renewable Energy Association (ODE – Flanders). At this moment, no heat platform exists for the Southern (Walloon) region, but different actors in the heating and cooling sector are represented through other organisations. National working groups have been set up to deal with product quality and education matters. 10 000 9 000 8 000

Air/water

7 000 Water/water

6 000 5 000

Brine/water

4 000 Exhaust air

3 000 2 000

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec. europa.eu (dataset nama_gdp_c) [3] Statbel 2013 http://statbel.fgov.be/nl/ statistieken/cijfers/economie/ bouw_industrie/gebouwenpark/ [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/ pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/ freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/ observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec. europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/ observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Sanitary hot water

Figure 6.2-3: Belgian 2010 – 2013 market by type of heat pump

1 000

2010

2011

2012

2013

Focus reports on selected European markets | Belgium

67

European Heat Pump Market and Statistics Report 2014

Training and certification Education centres offer specific education programmes for heat pump installers and designers. The Federal Government, pushed by the 3 Regions, is setting up a training and certification scheme in order to comply to the RES-directive. The EUCert training and certification programme was proposed as the preferred scheme, and commenced in the autumn of 2013. As for shallow geothermal, Geotrainet will be proposed as the preferred scheme.

Incentive schemes

Table 6.2-5: Energy performance requirements in Belgium [11]

Heat pumps are supported by direct or indirect subsidies. In new buildings, the trend is to relate the subsidies to the building energy performance index (in terms of primary energy consumption). In existing buildings, the subsidies are related to the energy performance of the system (minimum Ecolabel criteria). Heat pump boilers are only subsidized in the Walloon Region.

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum Ew-value maximum specific consumtion level Espec

Energy type if applicable

Primary energy (Ew, Espec)

End uses considered

Heating, cooling, ventilation, DHW, lighting

Units

Ew ‘ dimensionless Espec ‘ kWh/m2 per year General information Requirements in detail

Single Family Houses

Ew 80 Espec 130

Apartment Blocks

Ew 80 Espec 130

Offices

Ew 80

Educational Buildings

Ew 80 Notes/specifications The lower the Ew-value is, the more energy efficient a building is

Notes/specifications

Performance-based requirements do not apply to any renovation activites

Requirements in detail Single Family Houses

E 70

Apartment Blocks

E 70

Offices

E 75

Educational buildings

E 75 Notes/specifications The lower the Ew-value is, the more energy efficient a building is. From 2015 onwards, the heating demand of new buildings will be 15 kWh/m2 per year

Notes/specifications

68

Performance-based requirements do not apply to any renovation activites

Focus reports on selected European markets | Belgium

6.3 Czech Republic Key facts Population [1]

10 510 785

Area

78 866 km2

GDP/capita [2]

20 600 €

Capital

Prague

Number of single/two family houses

1 424 191

Number of multi-dwelling houses

204 950

Number of dwelling in multi-dwelling buildings

2 170 047

Number of newly built non-residential buildings in 2007

2 459

Number of new dwellings finished in 2010

28 630

Average heat consumption for all residential buildings [3]

30 – 32 MWH/year

Share of RES in final consumption of energy (2012) [4]

11,2%

Binding target for the use of renewables [5]

13%

National emission factor (CO2/kWh electricity) (2011) [6]

591 g

Energy mix gross electricity generation Fuel

2011

2012

TWh

Share

TWh

Share

Solid Fuels

47,0

53,8%

44,5

51%

Nuclear

28,3

32,3%

30,3

35%

Renewables

8,0

9,1%

8,8

10%

Gases

4,1

4,6%

3,9

4%

Petroleum and Products

0,1

0,1%

0,1

0%

Other

0,1

0,1%

0,1

0%

Total

87,5

100%

87,6

100%

Table 6.3-1: Electricity mix in the Czech Republic [7]

Coal-fired power plants still provide the largest share of energy produced in Czech Republic with almost 50% share of production. An additional 35% of energy comes from two nuclear power plants. The significant percentage of renewable sources comes from hydroelectric plants and other RES consists today of 10,8% of the energy production. Energy prices

€/kWh

Electricity

0,15

Heat pumps (useful energy price)

0,05

Heating oil

0,10

Domestic gas

0,07

Pellets (sack delivery)

0,05

Pellets (bulk delivery)

0,05

District Heating

0,06

Table 6.3-2: Energy prices in the Czech Republic [8-10]

Special tariffs for heat pumps exist that reduce the price for electricity to approx. 0,062 Euro/kWh. The price of energy (kWh) decreased by approximately 5% in 2014. The outlook for 2015 suggests a maximal increase in energy prices of 5%.

Focus reports on selected European markets | Czech Republic

69

European Heat Pump Market and Statistics Report 2014

8 000

W ater h eating Water heating Sp ace h eating Space heating

7 000

6 000

5 000

4 000

3 000

2 000

1 000

Figure 6.3-1: Czech heat pump market development 2005 – 2013

2005

2006

2007

2008

2010

2009

2011 2011

2012

2013

Present market situation Heat pump installations are rising annually in the Czech Republic. The first modern day heat pumps were installed in 1990s, and reliable market information and data have been available since 2005. Although the Czech market is primarily based on other heating solutions, consumers in general are beginning to become more and more aware of the benefits of heat pump technology. Today they are installed primarily in family houses. Industry forecasts suggest that the number of heat pumps will grow in the coming years, with indicators suggesting a high market potential. New “unknown” brands entered the Czech market. These entrants are not very reliable and have exhibited quality and performance issues post installation. Mostly they are of Asian origin and are not suitable for the specific climatic conditions in Czech Republic. These products present an attractive commercial proposition to customers at the expense of quality and performance. Their level of sales is difficult to quantify, however despite their shortcomings, their volume is increasing annually.

Market trends Heat pump type

2009

2010

2011

2012

1 531

2 150

2 150

Exhaust air Brine/water Water/water Table 6.3-3: Sales of heat pumps in the Czech Republic 2005 – 2013

Table 6.3-4: Average heat pump unit prices including installation for an average family house with heat losses around 10 kW.

70

Air/water Other Total units sold

2013

2012/2013

118

508

330,5%

2 250

2 258

0,4%

68

74

74

70

82

17,1%

1 864

4 157

4 212

4 212

4 623

9,8%

159

65

20

12

57

375,0%

3 622

6 446

6 456

6 662

7 528

13,0%

Costs Euro

Air/air

Air/water

Brine/water

5 000

11 000

13 200 – 16 500

Focus reports on selected European markets | Czech Republic

45 000

W ater h eating Water heating Space heating Sp ace h eating

40 000 35 000 30 000 25 000 20 000 15 000 10 000

Figure 6.3-2: Heat Pumps in operation in Czech Republic (installed since 2005)

5 000

2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

Brand names The names listed below are the main players on the Czech market. The other “unknown” brands usually from Asia are not listed. Ground source heat pumps: IVT, Nibe, Stiebel-Eltron, Alpha-InnoTec, Dimplex, Viessmann, Vaillant, PZP HEATING, Mastertherm. Air/water heat pumps: PZP, Stiebel-Eltron, Dimplex, Alpha-InnoTec, Viessmann, Vaillant. Air/air heat pumps: Sharp, Toshiba, Daikin, LG, IVT.

Distribution channels Firms that specialise in the sale and installation of heat pumps generally distribute heat pumps. It is also possible to buy a heat pump from distributors, however they do not provide any installation or other support services. 8 000

7 000 Air/water Air/water 6 000 Water/water Water/water 5 000 Bri ne/water Brine/water 4 000 Exhaust air ai r Exhaust

3 000

Sanitary h ot w ater Sanitary hot water

2 000

R eversible (t otal h eat) Reversible (total heat)

1 000

2010

2011 2011

2012

Figure 6.3-3: Czech heat pump market, 2010 – 2013, by type of heat pump (statistics based on approx. 80% of the market)

2013

Focus reports on selected European markets | Czech Republic

71

European Heat Pump Market and Statistics Report 2014

Industry infrastructure The Czech Heat Pump association CHPA (Asociace pro využití tepeln´ych cˇerpadel AVTCˇ) was established in 2000 and includes 68 members comprising of institutions and companies dealing with production, installation, distribution, maintenance, and the import of heat pumps. The main goal of the CHPA is to maintain installation standards and quality and to ensure the technical expertise of its members. It also supports networking activities in the renewables sector and with industry.

Training and certification Two different types of courses are provided by CHPA. The first is tailored towards heating engineers as an introductory course for heat pump installation. The second is the EUCERT course, which takes place once a year, is more advanced and is geared towards heat pump installers. This course has been delivered since 2007. In addition, individual companies provide their own introductory and more advanced training courses and workshops for potential installers. All figures are based on an Exchange rate of 1 Euro = 27,50 CZK

Sources [1] Population 2012 - World Development Indicators database, World Bank [2] 2013 GDP - Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] The only available data dates from 2001 – last census. Data concerning the number of dwellings, especially family houses, are difficult to provide as the Czech Statistical Office does not gather such data every year, only once in ten years during census. [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures - Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202)

72

Focus reports on selected European markets | Czech Republic

6.4 Denmark Key facts Population [1]

5 591 572

Area

42 894 km2

GDP/capita [2]

32 100 €

Capital

Copenhagen

Number of single/two family houses

1 603 716

Number of dwelling in multi-dwelling buildings

1 062 036

Number of non-residential buildings

213 849

Rate of new construction of single/two family houses

13 709

Average heat consumption for all residential buildings

17 767 kWh/year

Average heat consumption in new residential buildings [3]

62 kWh/m2/year

Share of RES in final consumption of energy (2012) [4]

26%

Binding target for the use of renewables [5]

30%

National emission factor (CO2/kWh electricity) (2011) [6]

315 g

Energy mix gross electricity generation Fuel

TWh

Share

TWh

Share

Solid Fuels

2011

2012

14,0

39,7%

10,6

34%

Nuclear

0,0

0,0%

0,0

0%

Renewables

14,2

40,3%

14,8

48%

5,8

16,5%

4,2

14%

Gases Petroleum and Products

0,5

1,3%

0,4

1%

Other

0,8

2,2%

0,7

2%

Total

35,2

100%

30,7

100%

Energy prices

€/kWh

Electricity

0,30

Heat pumps (useful energy price)

0,12

Heating oil

0,15

Domestic gas

0,11

Table 6.4-1: Electricity mix in Denmark 2011 – 2012 [7]

Table 6.4-2: Energy prices in Denmark 2013 [8-10]

Present market situation Despite the fact that the politicians have made a number of initiatives to promote the implementation of heat pumps in Denmark, heat pump sales only marginally increased by 2,9% compared to the year 2012. It was expected that the electricity price reduction for heat pumps together with the grant for energy savings in buildings would initiate house owners to convert from oil boilers to heat pumps. But it does not seem to be the case. In areas where there are future plans for expansion of district heating system it is difficult to sell heat pumps. The most common heating system in Danish residential buildings is hydronic radiator or floor heating. The sale of air /water heat pumps increased, but the number of sold geothermal system is decreasing.

Market trends The government introduced a ban on the installation of oil and gas-fired boilers in new buildings last year, and a ban on installation of oil boilers in existing

Focus reports on selected European markets | Denmark

73

European Heat Pump Market and Statistics Report 2014

35 000

Water heating eating W ater h eating Space Sp ace h heating

30 000

25 000

20 000

15 000

10 000

5 000

Figure 6.4-1: Danish heat pump market development 2007 – 2013

2007

2008

2009

2010

2011 2011

2012

2013

buildings, which are in areas with gas- or district heating grid from 2016. Together with the reduced electrical price for heat pumps and electrical heaters it is expected that the market would grow fast. Especially for heat pumps used for hydronic heating systems. The 15% increase in sales of heat pumps for hydronic heating systems is mainly caused by the increase of air to water heat pumps sales. It’s expected that a lot of the 180 000 buildings with oil boilers which are outside the gas grid area will convert to heat pumps as an alternative to oil boilers. More stakeholders are present in the market than before, and heat pumps are a known technology among house owners and installers, and the competition is getting harder. The sale of split air to water systems is increasing. Heat pump type

2009

2010

2011

2012

2013

2012/2013

273

5 430

2 386

2 457

3 899

58,7%

Exhaust air

658

1 028

966

997

2 447

145,4%

Brine/water

3 475

4 137

4 172

3 072

2 681

- 12,7%

Sanitary hot water

Air/water Reversible (total heat)

Table 6.4-3: Sales of heat pumps in Denmark 2009 – 2013

1 123

1 325

1 597

2 113

3 429

62,3%

18 540

11 240

15 513

21 635

18 813

- 13,0%

24 069

23 160

24 634

30 393

31 269

2,9%

Other

119

Total units sold

Table 6.4-3: Average heat pump unit prices in Denmark

Euro

Air/air

Air/water

GSHP horizontal

GSHP vertical

Domestic hot water

2 000

13 333

18 666

24 000

5 333

Brand names Some of the most significant brand names active on the Danish Market are listed below in alphabetical order. Brine/water heat pumps: AlphaInnotech, Baxi, Bosch, CTC, Danfoss, Dimplex, DVI,EVI-Heat, IVT, Klimadan, Metro Therm, Nibe, Nilan, Stiebel Eltron, SVK, Thermia, Vaillant, Weishaupt, Viessmann Air/Water heat pumps: AlphaInnotech, Bosch, CTC, Daikin, Danfoss, Dimplex, DVI, Fujitsu, IVT, Metro Therm, Nibe, Nilan, Panasonic, Sanyo, Stiebel Eltron, SVK, Thermia, Toshiba, Vaillant, Weishaupt, Viessmann

74

Focus reports on selected European markets | Denmark

160 000

W Water heating ater h eating Sp Space heating ace h eating

140 000

120 000

100 000

80 000

60 000

40 000

20 000

Figure 6.4-2: Heat pumps in operation in Denmark (installed since 2007) 2007

2008

2009

2010

2011 2011

2012

2013

35 000

30 000 Air/water 25 000

Brine/water

20 000

Direct expansion

15 000

Exhaust air

10 000

Sanitary hot water

Reversible (total heat)

5 000

2010

2011

2012

Figure 6.4-3: Danish 2010– 2013 market by type of heat pump

2013

Air/Air heat pumps: Bosch, Daikin, Electrolux, Fujitsu, Haier, IVT, Mitsubishi Electric, Mitsubishi Heavy,Panasonic, Sanyo, Toshiba. Exhaust air heat pumps: Genvex, IVT, Nibe, Nilan, Vesttherm

Distribution channels The Danish heat pump market is dominated by dedicated retail network and sale through wholesalers. DIY-stores and web-stores are also offering heat pumps, mainly air to air heat pumps and air to water heat pump. Energy companies are also offering heat pumps.

National industry association The Danish heat pump manufacturers association (Varmepumpefabrikantforeningen or VPF) represents 30 members which are either manufacturers or main-distributers. Around 140 heat pump installation companies are members of and certified according to the Danish quality scheme for heat pump installers (Varmepumpeordningen or VPO).

Focus reports on selected European markets | Denmark

75

European Heat Pump Market and Statistics Report 2014

Training and certification Training according to the Danish quality scheme for heat pump installers (Varmepumpeordningen or VPO) is offered by VPO. The Danish quality scheme for heat pump installers was established in 1994 and has been developed since then. During the years, around 400 people have taken the course and passed the final examination.

Incentive schemes As the energy utilities are obliged by the government to find a certain amount of energy reductions every year, it is possible for house owners to sell their energy reduction from the first year to the energy utilities. This means that house owners are motivated to renovate their houses and to change it to a more efficient heating supply. The incentive scheme for the tax reduction that applies to renovation and extension works in private households is running in 2014. To support electricity as a primary heating source in buildings, the Danish government has reduced the taxes on electricity for buildings, which use electricity as their primary energy source. This means that the electrical power price is reduced from DKK 2,10/kWh to DKK 1,60/kWh for a power consumption above 4 000 kWh/year.

Smart heat pumps in Denmark Projects in Denmark concerning Smart grid and Heat Pumps: Project name

Period

Lead organisation

Website

Project description

Increased energy supply flexibility and efficiency by using decentralised heat pumps in CHP stations

2007 – 2010

Danish Technological Institute (DTU)

www.danskenergi.dk/ AndreSider/ Smart_Grid_O versigt/1004.aspx

The project is a continuation of the research results from EFP 2003 (j.no.: 1373/03-0007) and demonstrates the newly developed heat pump technology in full scale at two decentralised CHP stations. Furthermore a number of ideas concerning the integration of compression heat pumps in the energy system will be tested via simulation models and also in practice. Finally heat pumps will be investigated in connection with reduction of grid loss in district heating (20 – 40%) via ultra-cold district heating.

EcoGrid EU

2011 – 2014

Energinet.dk

www.eu-ecogrid.net

To build and demonstrate a complete prototype of the future power system with more than 50% renewable energy.

Trials with heat pumps on spot agreements

2010 – 2011

SydEnergi

www.danskenergi.dk/ AndreSider/ Smart_Grid_O versigt/2034.aspx

The objective of the project is to gain knowledge of the technical challenges of establishing a heat pump solution in private households in order to plan the heat pumps’ electricity consumption for when electricity production is highest/greenest

Intelligent Remote Control for Heat Pumps

2010 – 2011

Nordjysk Elhandel A/S

not available

The project will develop and demonstrate an intelligent remote control system for individual heating pumps by enabling the balance responsible party to plan consumption and deliver regulatory power and by internal balancing and possibly primary reserves.

Heat Pumps as an active tool in the energy

2010 – 2012

Danish Technological Institute.

not available

Heat pumps will provide flexibility due to the possibility to either increase, decrease or interrupt the power consumption. The project will deal with the ability of heat pumps to operate in so-called Virtual

76

Focus reports on selected European markets | Denmark

Project name

Period

Lead organisation

Website

Project description

Plug n’ play-koncept for intelligent indeklimastyring

2011 – 2013

Neogrid Technologies

not available

A concept for energy efficient control of air/air heat pumps and electric storage water heaters with focus on indoor climate. energy savings and demand response is developed

Smart neighbouring heat supply based on ground heat pumps

2011 – 2012

Solrød Municipality

not available

The proposed projects is to develop and demonstrate the concept of ‘neighbouring heating’ (i.e. heat supply to a cluster of 10-20 individual houses from a central plant) based on smart control of a heat pump in a combination with a hot water storage. Where the possibilities of ‘tapping’ cheap electricity from the grid in periods with low electricity demand or/and high wind production are analysed and demonstrated.

From wind power to heat pumps

2009 – 2011

Energinet.dk

www.energinet.dk /EN/FORSKNING/ Energinet-dksforskning-og-

The idea is to control 300 intelligent heat pumps as if they were one big energy storage facility capable of storing electricity as heat. The house owners will thus be involved in developing the intelligent power system of the future, using wind power to replace

DREAM – Danish Renewable Energy Aligned Marketsphase 1

2012 – 2013

Danish Technological Institute

not available

DREAM phase 1 provides the necessary analysis and design of end user solutions in order to make a reliable and financial accountable full scale demonstration in succeeding projects with large amount of heat pumps, electric vehicles and smart grid technology.

READY – Smart Grid ready VPP controller for heat pumps

2012 – 2014

Nordjysk Elhandel not available

The aim is analysing, developing and demonstrating a smart grid ready Virtual Power Plant controller that includes the complex challenges of large scale demonstration with demand flexibility, balancing possibilities, grid constraints, optimising across a pool of heat pumps, house models, user comfort, acceptability and business models.

Sources [1] Population 2012 - World Development Indicators database, World Bank [2] 2013 GDP - Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202)

Focus reports on selected European markets | Denmark

77

European Heat Pump Market and Statistics Report 2014

6.5 Estonia Key facts Population [1]

1 329 301

Area

45 227 km2

GDP/capita [2]

18 600 €

Capital

Tallinn

Number of single/two family houses

229 966

Number of multi-dwelling houses

25 118

Number of dwelling in multi-dwelling buildings

459 357

Number of non-residential buildings

413 780

Number of newly built non-residential buildings in 2010

2 449

Number of new dwellings finished in 2010 [3]

822

Share of RES in final consumption of energy (2012) [4]

25,8%

Binding target for the use of renewables [5]

25%

National emission factor (CO2/kWh electricity) (2011) [6]

1 086 g

Energy mix gross electricity generation Fuel

TWh

Share

Solid Fuels

11,0

85,3%

9,8

82%

Nuclear

0,0

0,0%

0,0

0%

1,2

9,2%

1,5

12%

Gases

0,7

5,3%

0,6

5%

Petroleum and Products

0,0

0,3%

0,1

1%

Other

0,0

0,0%

0,0

0%

Total

12,9

100%

12,0

100%

Energy Prices

Table 6.5-2: Energy prices in Estonia [8-10]

2012 Share

Renewables

Table 6.5-1: Electricity mix in Estonia [7]

2011 TWh

€/kWh

Electricity

0,14

Heat pumps (useful energy price)

0,05

Heating oil

0,10

Domestic gas

0,05

Pellets (bulk delivery)

0,05

District Heating

0,07

Present market situation Estonian heat pump market will continue to remain the preferential growth compared to the entire country's overall economic growth. While the new construction market as compared to the proportion of the total boom-time construction market is still small, the heat pump market is growing rapidly. Renovation building market has risen in recent years, and the market share of the heat pumps has increased in this segment of the construction market. Every third of the heating solutions of new or renovated building is done with heat pumps or in combination with other types of fuel. Spreading of heat pumps is influenced by the co-financing by the funds (KredEx, EIC, EAS, ARIB etc.), which have been aimed at favoring the use of pollution-free renewable energy. The rapid development of heat pump technology has increased the efficiency as well as expanding their use in apartment buildings and in

78

Focus reports on selected European markets | Estonia

16 000 Space Sp ace h heating eating 14 000

12 000

10 000

8 000

6 000

4 000

2 000

Figure 6.5-1: Estonian heat pump market development 2007 – 2013 2007

2008

2009

2010

2011 2011

2012

2013

complex solutions of large and complicated manufacturing and infrastructure facilities. But above all support funding from KredEx stimulate complex solutions – i.e. building insulation, efficient heating and ventilation together. The goal is not only fuel cost savings but also improved living environment. Support measures have been intended not only for large apartment buildings, but have been meant also for individual households. KredEx compensates partially renovation costs of apartment- and individual houses, according to the level of energy savings achieved by complex solutions. The total number of heat pumps installed in year 2013 compared to 2012 rose by 8,6%. The number of the ground source heat pumps rose as much as 16,7%, air exhaust heat pumps 9,1%, and the number of air-to-air heat pumps 8,3%.

Market trends In 2014 Estonia’s economic growth forecast is about 2%. Again, this number is relatively optimistic. Neighbors – Latvia's and Lithuania's economic growth will probably be higher, Finland’s GDP growth will remain below 1%. The European 90 000 Space heating ace h eating Sp 80 000 70 000 60 000 50 000 40 000 30 000 20 000

Figure 6.5-2: Heat pumps in operation in Estonia (installed since 2007)

10 000

2007

2008

2009

2010

2011 2011

2012

2013

Focus reports on selected European markets | Estonia

79

European Heat Pump Market and Statistics Report 2014

16 000

14 000 Air/water 12 000 Water/water

10 000

8 000

Brine/water

6 000 Exhaust air 4 000 Reversible (total heat)

2 000

Figure 6.5-3: Estonian 2010 – 2013 market by type of heat pump

2010

2011

2012

2013

Union as a whole begins to recover from the recession, although the outlook for economic growth is rather marginal. The influence of Ukrainian crisis onto the European economy as a whole is also unknown. Opening of electricity market (from 01.01.2013) did not lead into the downturn of the heat pump market. On the contrary – heat pumps continued, and will continue, to triumph in year 2014. Electricity is a natural bloodstream in the economy, which affects everyone, including, of course, competing ways of heating. The rise in fuel prices will continue in the near future, which is forcing consumers to seek effective solutions to reduce heating costs. Heat pumps are user friendly and the price gap between different heating solutions is decreasing. If ten years ago, the investment in heat pump was twice as high as the investment in the competing technologies, currently this difference is around 20 – 25%. Structurally the market of air-to-air heat pumps will remain high during the next few years, and the share of air-to-water as well as exhaust air heat pumps will increase. Re-organization of the heat pump market will go on. Although the number of new comers in the heat pump market is growing, the installation of heat pumps concentrates more and more in the hands of less and less number of firms. The same trend is also seen with the heat pump brand range – some ten products covering more than half of the market demand. Table 6.5-3 shows heat pumps sales in Estonia between 2009 – 2013 based on the estimation of ESPL. Heat pump type Exhaust air Brine/water Air/water Reversible (total heat)

Table 6.5-3: Sales of heat pumps in Estonia 2009 – 2013

2009

2010

2011

2012

25

21

26

55

60

9,1%

985

1 020

1 200

1 393

16,1%

510

360

710

790

800

1,3%

9 000

9 100

10 050

11 450

12 400

8,3%

10 215

10 466

11 806

13 495

14 660

7

Total units sold

80

2012/2013

680

Other

Table 6.5-4: Average end consumer prices in Estonia, 2013

2013

Costs Euro

Air/air

Air/water

Ground source

1 000 – 1 600

7 000 – 12 000

8 000 – 16 000

Focus reports on selected European markets | Estonia

8,6%

Brand names Some of the most common brand names available in the Estonian market are listed below. Ground source heat pumps: Thermia, NIBE, Junkers, Buderus, Vaillant, Viessmann, IVT, Lämpöässä, Carrier, Alpha-InnoTec, Timplex, Terra, Stiebel-Eltron, Nereus, WTT Ecodrive, OCHNER. Air/water heat pumps: Mitsubishi, NIBE, Sanyo, Alpha-InnoTec, Daikin, Viessmann, Carrier, IVT, Thermia, Vaillant, Atlantic, OCHNER. Air/air heat pumps: Mitsubishi, Sanyo, Fujitsu, LG, IVT, Daikin, Panasonic, Sharp, Toshiba, Midea. Exhaust air heat pumps: NIBE, IVT, Carrier, Buderus.

Distribution channels Wholesalers and larger companies dominate the heat pump market. The last number of years has seen heat pumps offered by construction material stores and web-stores. Promotional events.

National industry associations Estonian Heat Pump Union (Eesti Soojuspumba Liit or ESPL), formed in 2001 and is since 2002 a member of EHPA. At present, ESPL has 23 members. Members include importers, installers, distributors and others with interests in the heat pump sector. The Union serves as the official voice for the heat pump sector on a national level. This year ESPL is celebrating its 13th year in existence.

Training and certification Since 2008 ESPL is responsible for organizing training with the cooperation of Tallinn Tehnical University for the members of the Union and other heat pump sector actors throughout Estonia. Those who pass the training courses are awarded ESPL-s certificate.

Incentive schemes Heat pump technology is not supported in Estonia, but there are fonds where indirectly customers can request complex support for insulating houses, installing a ventilation and heating system. For example, Kredex partially reimburses the costs of renovating block- and individual houses, according to the degree of energy savings (in%) achieved by the complex solution. Local governments can apply for funding (KIK) to constructi or renovate its own infrastructure facilities (including the heating energy). They can also apply to the EU funds as well as to the Estonian local funds.

Focus reports on selected European markets | Estonia

81

European Heat Pump Market and Statistics Report 2014

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum energy performance

Maximum energy performance

Energy type if applicable

Supplied energy

Supplied energy

End uses considered

Heating, cooling, ventilation, DHW, lighting, electric use

Heating, cooling, ventilation, DHW, lighting, electric use

Units

kWh/m2 per year

kWh/m2 per year

Requirements in detail Single Family Houses

180

250

Apartment Blocks

150

200

Offices

220

290

Educational Buildings

300

390

Hospitals

400

520

Hotels & Restaurants

300

390

Sports facilities

800

1000

Wholesale and retail trade

300

390

Notes/specifications - The sport facilities category represents the requirements posed for swimming pools only - The wholesale & retail trade category represents the requirements posed for commercial buildings

Notes/specifications

Table 6.5-5: Energy performance requirements in Estonia [11]

82

- The sport facilities category represents the requirements posed for swimming pools only - The wholesale & retail trade category represents the requirements posed for commercial buildings

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP - Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Estonia

6.6 Finland Key facts Population [1]

5 413 971

Area

338 000 km2

GDP/capita [2]

28 700 €

Capital

Helsinki

Number of single/two family houses

1 190 000

Number of multi-dwelling houses

1 700 000

Number of non-residential buildings

200 000

Rate of new construction of single/two family houses

10 000

Average heat consumption for all residential buildings

150 – 200 kWh/m2/year

Average heat consumption in new residential buildings [3]

75 kWh/m2/year

Share of RES in final consumption of energy (2012) [4]

34,3%

Binding target for the use of renewables [5]

38%

National emission factor (CO2/kWh electricity) (2011) [6]

191 g

Energy mix gross electricity generation Fuel Solid Fuels

2010

2011

TWh

Share

TWh

Share

15,2

20,7%

10,8

15%

Nuclear

23,2

31,6%

23,0

33%

Renewables

24,2

32,9%

28,5

41%

Gases

10,0

13,6%

7,2

10%

0,4

0,6%

0,3

0%

Petroleum and Products Other

0,5

0,7%

0,2

0%

Total

73,5

100%

70,4

100%

Energy Prices

€/kWh

Electricity

0,16

Heat pumps (useful energy price)

0,06

Heating oil

0,11

Pellets (sack delivery)

0,06

Pellets (bulk delivery)

0,05

District Heating

0,08

Table 6.6-1: Electricity mix in Finland 2013 [7]

Table 6.6-2: Energy prices in Finland 2013 [8 – 10]

Energy year 2013 ELECTRICITY: Electricity consumption unchanged due to warm weather Year 2013 was characterised by the warmer than normal weather, which had a direct impact on electricity consumption. Although the production of the energyintensive process industry and, consequently, electricity usage showed some signs of picking up, total consumption fell by one and half per cent. Figures in the Finnish Energy Industries’ Energy Year 2013 show that electricity consumption adjusted for temperature fell by half per cent. Electricity consumption in industry increased by about one per cent last year, but in the other sectors consumption fell by 3,5%, mainly due to the weather conditions. In December, electricity consumption was down by almost 11% on the

Focus reports on selected European markets | Finland

83

European Heat Pump Market and Statistics Report 2014

previous year: this was due to the warm weather at the end of last year and colder than normal at the end of the previous year. Finland consumed 83,9 terawatt-hours (TWh) of electricity last year. Net electricity imports covered 18,7% and Finland’s own production covered 81,3% of consumption. Combined heat and power (CHP) generation covered 28%, nuclear power 27%, hydropower 15%, and coal and other condensing power just bellow 10% of consumption. The share of wind power was 1%. Industrial electricity consumption amounted to just under 40 TWh last year, 47% of total consumption. This is about 9 TWh less than in the peak year of 2007 when industry accounted for 53% of total consumption.

Net imports are still high – wind power production increased by over half Net electricity imports (15,7 TWh) accounted for almost one-fifth of total electricity Net electricity imports (15,7TWh) accounted for almost one-fifth of total electricity supply. This is still a very high figure, although the share of imports fell to 18,7% from the previous year’s 20,5%. Therefore, last year ranks among the biggest in terms of electricity imports. The sustained high level of net imports was boosted by the reasonably good water supply situation in the Nordic electricity market, which only deteriorated slightly at the end of the year. Finland imported the majority of electricity from Sweden whose electricity exports remained at a high level, although they were still only half of the previous year’s record figures. Electricity imports from Russia also grew slightly (7%) but, since the 59% fall last year, Russia is no longer the biggest country of imports for Finland: this position has now clearly been taken over by Sweden. The profitability of Russia’s own electricity exports diminished due to capacity fees, and now there is a possibility for Finland to export electricity to Russia, which is due to be launched already later this year. Finland exported 1,5 TWh of electricity to Estonia last year. This is just the same as in 2012. The second transmission connection from Finland to their southern neighbour was taken into test use already at the end of last year. Along with the connection, the transmission capacity to Estonia will more than double and Estonia’s connection to the rest of the Nordic electricity market area will become even closer. Wind power reached a one (0,9%) per cent share in practical terms in the electricity supply palette for 2013. Wind production increased to 777 GWh, growing by 57% on the previous year. The electricity consumption peak in 2013, 14 146 megawatts, took place midJanuary, at 8–9 on 18 January 2013, when almost all of the domestic electricity generation capacity was in use. At the time, electricity was imported at an output of just over 2 500 MW. The highest recorded peak output of the current winter to date, 14 221 megawatts, was reached at 8 am on Monday, 20 January 2014.

Carbon dioxide emissions increased on 2012 but remained below the 2011 level The emissions from power generation with coal, natural gas and peat totalled 11,2 million tonnes of carbon dioxide last year, 34% more than in the previous year of 2012. However, compared with 2011, carbon dioxide emissions were a good 12% lower. The increase in emissions was mainly due to the almost 25% fall in domestic hydropower generation, from 16,7 TWh to 12,7 TWh, and the resulting increase in separate electricity generation. The diminished net imports of electricity also played a part in the increased emissions. Last year, 69 % of electricity produced in Finland was greenhouse gas-free. Renewable energy sources accounted for 36% of electricity generation.

84

Focus reports on selected European markets | Finland

Small increase in market prices Wholesale electricity prices in the Nordic market remained at a fairly moderate level in 2013. However, they were somewhat higher than in 2012, but clearly lower than in 2011. The prices were kept in check by the low emission allowance prices and a fairly sluggish demand for electricity due to the economic situation. The average price of market electricity in Finland last year was 4,1 c/kWh, a good 12% higher than in 2012 on average. Finland’s area price on the Nord Pool Spot electricity exchange was occasionally clearly higher than the system price. The average Finland area price in 2013 exceeded the system price by more than 0,3 c/kWh. This was mainly due to the abundant hydropower production in Norway and Sweden and the impacts of the transmission capacity fees on electricity imports from Russia.

Energy prices Average end consumer prices including distribution and taxes during 2012: Electricity (Direct electricity heated house)

0,13 Euro/kWh

Heating oil

0,12 Euro/kWh

Pellets

0,05 Euro/kWh

District heating

0,08 Euro/kWh

Table 6.6-3: Energy prices in Finland 2013 *) including the fixed part of the household electricity price **) not including the efficiency of the boiler

Present market situation Growth in the heat pump industry despite slump in construction – now more than 600,000 heat pumps. The Finnish Heat Pump Association SULPU statistics of 2013 show that the heatpump industry experienced growth even though the construction of new houses as well as renovation building decreased considerably. The 600 000 heat pumps in Finland extract 5TWh/a of local heat – renewable energy – from around buildings, from ground rock, from the ground or from the air. Finns invested approximately 400 million Euros in heat pumps. A very profitable investment. The sales volume of air-to-water heat pumps grew by 30% last year, and the sales volume of air-source heat pumps also grew by a couple of per cent, even though the main market, renovation building, of these heat-pump types fell by dozens of per cents. It was also noteworthy that properties such as oil-heated and electricity90 000 eating Space Sp ace h heating 80 000 70 000 60 000 50 000 40 000 30 000 20 000

Figure 6.6-1: Finnish heat pump market development 2005 – 2013

10 000

2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

Focus reports on selected European markets | Finland

85

European Heat Pump Market and Statistics Report 2014

600 000 ace h eating Sp Space heating

500 000

400 000

300 000

200 000

100 000

Figure 6.6-2: Heat pumps in operation in Finland 2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

heated terraced houses and apartment buildings as well as industrial and commercial properties were fitted with up to more than 1 000 heat pumps. The construction volume of detached houses fell greatly last year. The sales volumes of ground-source heat pumps and exhaust-air heat pumps did not suffer from this too severely. Indeed, more than half of Finland’s builders choose a ground-source or an exhaust-air heat pump solution for their houses. Even though the decrease in the construction volume indicated a loss in the potential of 1 500 heat pumps, this was reflected as a decrease of only 2% in exhaust-air heat pump sales and a decrease of less than 5% in ground-source heat pumps. The market share of heat pumps amongst one-family house builders, in other words, grew significantly.

Market trends Heat pump type

2010

2011

2012

2013

2012/2013

Exhaust air

1 819

1 988

2 048

1 912

1 874

- 2,0%

Brine/water

6 137

8 091

13 941

12 953

12 341

- 4,7%

Air/water Reversible (total heat) Table 6.6-4: Finnish 2009 – 2013 market by type of heat pump

2009

1 819

1 150

992

979

1 278

30,5%

57 977

53 821

55 286

45 136

45 718

1,3%

6

14

67 752

65 060

72 267

60 986

61 225

Other

10

Total units sold

0,4%

Finns invest as much as 400 million Euros in heat pumps every year. The reason for this is clear. Most often, the return on this investment is more than 10% per year. With the current interest rates and energy prices, not making the decision to invest in a heat pump in our conditions are, actually, only due to lack of information. The effect of saved fuel on the Finnish trade balance is, already now, significant. Nevertheless, the greatest potential is only now opening up. Despite the excellent profitability of the investment, only 8 000 of the 220 000 users of oil heating or the 100 000 users of hydronic electricity heating changed their heating systems to a heat pump last year. SULPU had an independent survey conducted on the overall impact on the trade balance, on private, state and municipal economy, on employment as well as on CO2 emissions in the event that all of these oil and hydronic electricity-heating systems were changed to heat pumps. The 3 billion in savings, the 260-million impact on the trade balance as well as the other survey results can be read on www.sulpu.fi. 86

Focus reports on selected European markets | Finland

80 000

70 000

Air/water Air/water

60 000

50 000 Brine/water Brine/water 40 000

Exhaust air ai r Exhaust

30 000

20 000 Reversible (total heat) Reversible (t otal h eat)

Figure 6.6-3: Finnish 2010 – 2013 market by type of heat pump

10 000

2010

2011 2011

2012

2013

Heat pumps will have a very good competitive advantage in the upcoming, almost 0-energy construction, and they already currently do in the renovation of existing heating systems. They represent local energy from our immediate surroundings. With the same machinery, heat pumps also offer a cooling system for buildings and they reduce CO2 emissions. It is easy to predict years of strong growth for the industry. In 2020, Finland will have one million heat pumps that will be producing approximately 8 TWh/a of renewable energy, which will be the equivalent of 15% of Finland’s EU renewable-energy requirements. The increase in the number of heat pumps will, naturally, be reflected in the reduced use of oil. Furthermore, due to the extensive reduction of electricity heating in our country, the consumption of electricity that is used for heating will also decrease.

Costs The table below illustrates average end consumer prices, including VAT, for turnkey installations in single family houses. The turnkey solutions includes everything to commission the system, i.e. the heat pump, auxiliary equipment, material and labour costs. Euro

Air/air

Air/water

Exhaust air

Ground source

1 600

8 000

6 000

18 000 – 22 000

Table 6.6-5: Average heat pump unit prices

Brand names Some of the most significant brand names existing on the Finnish market are listed in alphabetical order below. Ground source heat pumps: Alpha-InnoTec, Bosch, Carrier, CTC, Gebwell, Danfoss, Dimplex, Innova, IVT, Jämä, Kauko, Lämpöässä, NIBE, Nilan, Oilon Home, Scanvarm, Stiebel-Eltron, Thermia, Vaillant, Viessmann, Wolf. Air/water heat pumps: Alpha-InnoTec, Carrier, CTC, Daikin, Danfoss, Dimplex, Fujitsu, Innova, IVT, Jämä, Mitsubishi, NIBE, Panasonic, Sanyo, Scanvarm, StiebelEltron, Thermia, Vaillant, Viessmann, Ultimate. Air/air heat pumps: Bosch, Daikin, Electrolux, Fujitsu, Gree, Hitachi, IVT, Jämä, LG, Mitsubishi, Panasonic, Sharp, Sanyo, Toshiba, Ultimate. Exhaust air heat pumps: ComfortZone, Enervent, Enermix, IVT, NIBE, Nilan, PILPIT, Scanvarm, Thereco.

Focus reports on selected European markets | Finland

87

European Heat Pump Market and Statistics Report 2014

Distribution channels Dedicated retail networks and wholesalers dominate the heat pump market. Nonetheless, during the last couple of years, air/air heat pumps have been offered at construction materials outlets, mail-order firms, and web-stores.

Industry infrastructure The following sections highlight some of the existing industry organisations and schemes that serve as part of the industry’s infrastructure.

National industry association The Finnish Heat Pump Association (Suomen Lämpöpumppuyhdistys ry or SULPU), founded in 1999, represents approximately 150 members. They comprise manufacturers and importers of heat pumps, installers and other companies with an interest in the industry. The Association serves as the official voice for the heat pump industry on a national level. It handles all proposals for new national regulation and legislation as well as international standards that are circulated for commenting. Training according to the European Certified Heat Pump Installer scheme EUCERT has been offered since 2009 by SULPU.

Table 6.6-6: Energy performance requirements in Finland [11]

Finland is a member of the EHPA Quality label programme and joined the IEA HP Program in 2009.

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

E-luku energy-weighted factor

Energy type if applicable

Anetto denotes the net heated area

Anetto denotes the net heated area

Units

kWh/m2 per year

kWh/m2 per year

Requirements in detail Detached Houses: - 204, for Anetto <120 m2 - 372 – 1.4 – Anetto, for 120 m2 < Anetto < 150 m2 - 173 – 0,07 – Anetto, for 150 m2 < Anetto < 600 m2 - 130, for Anetto > 600 m2

Single Family Houses

Row house: 150 Log house: - 229, for Anetto <120 m2 - 397 – 1.4 – Anetto, for 120 m2 < Anetto < 150 m2 - 198 – 0,07 – Anetto, for 150 m2 < Anetto < 600 m2 - 155, for Anetto > 600 m2

Apartment Blocks

130

Offices

170

Educational Buildings

170

Hospitals

450

Hotels & Restaurants

170

Sports facilities

170

Wholesale and retail trade

170

88

Focus reports on selected European markets | Finland

Incentive schemes Subsidy policy plays a role in, and makes a contribution to, the heat-pump industry. The industry has seen some good results during some subsidized years. Nevertheless, incentive schemes have also caused a lot of fluctuation and uncertainty in the market, and in the long run their impact can even be seen as questionable. The best results have been achieved from the tax-deduction scheme that applies to renovation and extension work that is done in private households. Based on this scheme, up to 45 – 60% of the labour costs related to renovation and extension work are tax-deductible for each owner of a private property. The maximum amount that may be deducted per each owner has been between 2 000 to 3 000 Euros. Furthermore, there was a subsidy programme in which a subsidy of up to 20% of the investment was available when oil and electric-heating systems were replaced by a heat pump, biomass or a district-heating system. This programme ended in 2012. Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Finland

89

European Heat Pump Market and Statistics Report 2014

6.7 France Key facts Population [1]

65 696 689

Area

551 000 km2

GDP/capita [2]

27 800 €

Capital

Paris

Number of single/two family houses

18 833 900

Number of multi-dwelling houses

14 266 100

Number of non-residential buildings

2 338 156

Rate of new construction of single/two family houses

1%/year

Average heat consumption for all residential buildings

240 kWh/m2/year

Average heat consumption in new residential buildings [3]

75 kWh/m2/year

Share of RES in final consumption of energy (2012) [4]

13,4%

Binding target for the use of renewables [5]

23%

National emission factor (CO2/kWh electricity) (2011) [6]

61 g

Energy mix gross electricity generation Fuel Solid Fuels

Table 6.7-2: Energy prices in France 2013 [8-10]

2012 Share

TWh

Share

15,1

2,7%

18,9

3%

442,4

78,7%

425,4

75%

Renewables

69,9

12,4%

88,2

16%

Gases

29,0

5,2%

24,5

4%

Petroleum and Products

3,5

0,6%

4,3

1%

Other

2,2

0,4%

2,2

0%

Total

562,0

100%

564,3

100%

Energy prices

€/kWh

Nuclear

Table 6.7-1: Electricity mix in France 2011-2012 [7]

2011 TWh

Electricity

0,15

Heat pumps (useful energy price)

0,06

Heating oil

0,09

Domestic gas

0,07

Pellets (sack delivery)

0,06

Pellets (bulk delivery)

0,05

District Heating

0,07

Present market situation In 2013, the total market showed an increase of sales with a total of 151 986 units sold. Considering the 2012 market with 140 586 units, this is a rise of 8%. With a total of 58 823 units sold, (29 227 in 2012) the segment of hydronic heat pumps resists quite well in 2013 despite a bad economic context in the building sector. This segment has remained at about the same level since 2010, balanced with an increase of air/water sector and a decrease of the geothermal sector. Only the sector of sanitary hot water heat pumps continues to increase, held by the new building sector. Air/water heat pumps (ca 94% of the market of hydronic heat pumps): after several years of decline since 2009, this market segment posted a measured increase of 2%, with almost 54 000 units. This market segment progressed mostly in the

90

Focus reports on selected European markets | France

segment of “5 to 10kW” heat pumps, mainly installed in new houses. High temperature heat pumps segment also progressed by 6%. Ground source heat pumps: with 2 924 units sold in 2013, this market segment dropped again by 24%. Sanitary hot water heat pumps: the market segment for SHW heat pumps showed again a high increase of 32% reaching 45 950 sales. This growth is brought up by new houses construction with low energy demand and the incentive rate of tax credit in existing houses. Air/air heat pumps: with almost 33 650 units for heating, this market segment raised by 6,1% in comparison to last year. After a year of decline in 2012, this segment recovers an increase in 2013. The market seems to have reached stabilization after three years. One can imagine and hope that it will now go on an increase trend between 2% and 9% each year.

250 000

Water heating ater h eating W Sp ace h eating Space heating

200 000

150 000

100 000

50 000

Figure 6.7-1: Sales of heat pumps in France 2005 – 2013 2005

1 400 000

2006

2007

2008

2009

2010

2011 2011

2012

2013

W ater h eating Water heating Sp ace h eating Space heating

1 200 000

1 000 000

800 000

600 000

400 000

200 000

Figure 6.7-2: Heat pumps in operation in France 2005

2006

2007

2008

2009

2010

2011 2011

2012

Focus reports on selected European markets | France

2013

91

European Heat Pump Market and Statistics Report 2014

Market trends In 2014 the economic situation remains difficult in the building sector, and thus for the heat pump sector. At the end of 2013, the French Government voted a programme of 500 000 housing refurbishments for 2013. We don’t see yet if this will give the push to the heat pump market that would be necessary for it to develop in the existing building sector. Moreover, tax credits have been modified at the beginning of 2014 and are focused now on global refurbishing with several works, at least two of them, combining envelope and heating systems. We don’t know yet what the impact will be on the heat pump sector. In new residential buildings, the new regulation RT2012 entered into force in January 2013. With it, renewable energy becomes mandatory for individual housing. Despite the decrease of the new buildings market, we can notice an increase of heat pumps share in new houses: it is of 31% instead of 12% in 2012. Last but not least, quality is continuing to develop in the French market. In 2013, there were 1933 certified heat pumps on the market. Concerning installers, the number of certified installers has also increased: there were 1850 Qualipac installers in 2013, with a growth of 6%. In the course of 2014, the French government will ask for certified equipment to be installed by certified installers to grant subsidies. This will help again the quality to develop. In the middle term, prices for fossil fuels and electricity will continue to increase and will tend to make heat pump investments more and more profitable for consumers.

A challenging target for 2020 With the target of 23% of RES in 2020, the transposition of the RES directive in France gives real opportunity for the heat pump market over the next 6 years. Indeed, the objective for France is to reach 2 million individual housings heated by heat pumps in 2020. Despite the crisis since 2009, the milestone for 2012 (which is 1 245 million individual heat pumps installed) was on the good trend, taking into account tertiary sector heat pumps. Thanks to financial support, the quality of the sector and continuing price growth of fossil and nuclear energies, the heat pump market has all the assets needed to reach the 2020 target. Heat pump type

2009

2010

2011

2012

2013

11 000

7 600

26 700

34 900

45 950

31,7%

1 219

454

507

658

585

- 11,1%

Brine/water

6 969

2 968

3 589

2 371

1 687

- 28,8%

Water/water

2 973

1 627

1 703

1 295

1 027

- 20,7%

106 543

28 370

30 508

23 854

35 024

46,8%

37 830

74 675

73 634

76 606

67 067

- 12,5%

30 115

34 597

34 279

31 709

33 650

6,1%

5 575

25 484

24 791

30 360

18 875

- 37,8%

2 063

634

1 222

979

- 19,9%

Sanitary hot water Direct expansion

Air/water Reversible (total heat) Air/air (with main heating function) Air/water Brine/water

Table 6.7-3: Sales of heat pumps in France 2009 – 2013

92

2012/2013

VRF

2 140

12 531

13 930

13 316

13 564

1,9%

Other

3 188

1 089

1 329

902

646

- 28,4%

169 722

116 783

137 970

140 586

151 986

8,1%

Total units sold

Focus reports on selected European markets | France

160 000

140 000 Air/water Ai r/water 120 000

Water/water W ater/water Bri ne/water Brine/water

100 000

Direct D irect expansion expansion 80 000

Sanitary hot water Sa nitary h ot w ater Air/air main Ai r/air (with (with ma in h heating eating ffunction) unction)

60 000

VRF VR F Reversible

40 000

Air/water Air/water 20 000

Brine/water Bri ne/water

2010

2011 2011

2012

Figure 6.7-3: French 2010 – 2013 market by type of heat pump

2013

Costs Average cost

Air/air (Multi-split)

Air/air (Ducted system)

Air/water

Euro

6 500

8 000

10 000

GSHP (Horizontal)

GSHP (Vertical)

Domestic hot water

14 000

18 000

3 000

Table 6.7-4: Typical heat pump end consumer prices for France

Brand names Airwell France, Airwell Residential, AjTech, Aldes, Alpha Innotec France, Atlantic PAC et Chaudières, Atlantic Climatisation et Ventilation, Auer, Bosch Thermotechnologie SAS, Carrier SCS, Chaffoteaux, Chappee, CIAT, Daikin, De Dietrich Thermique, Dimplex, Eurofred Groupe, France Air, France Géothermie, Geovia Industrie, Hitachi Air Conditioning Europe SAS, LG Electronics France, Midea France, Mitsubishi Electrics, Oertli, Saunier Duval, Panasonic France, Samsung, Saunier Duval, Sofath, Stiebel-Eltron, Technibel, Toshiba Climatisation, Viessmann, Wavin-Climasol, Weishaupt, Yack, Zaegel Held.

Distribution channels As in many other European countries, there are two principal distribution channels: ➔ direct sales by manufacturers to installers. ➔ indirect sales via wholesalers. Air/water heat pumps are sold in both channels ; ground source heat pumps tend to be more often sold via the direct channel.

National industry associations UNICLIMA is the French union for Heating, Ventilation, Air conditioning and Refrigeration industries. UNICLIMA, as the industry’s principal representative body, acts on behalf of its members with regard to French, European and International authorities. UNICLIMA is representing almost 90% of the French heat pump market. UNICLIMA is also a member of AFPAC, the French representative association for the heat pump sector, including manufacturers, installers, research organizations, and energy utilities.

Focus reports on selected European markets | France

93

European Heat Pump Market and Statistics Report 2014

Training and certification The Qualit’ENR Association, an accredited body, manages a certification for installers called Quali’PAC. Currently 1850 companies have the certification. To become Quali’PAC certified, an installer has to complete a training course and to pass an exam with theory and practical tests. The Quali’PAC installer is audited every three years.

Product label NF PAC is the French product certification for heat pumps, launched in 2007. This label was approved by AFNOR Certification and is managed by the French certification body Certita. This label sets a minimum COP level, with test conditions in accordance with EN 14511 (nominal and application conditions). Moreover, NF PAC specifies requirements regarding minimum quality insurance, with factory audits and random audits on products performed by an independent body. In 2013, NF PAC developed certification for heat pumps producing heating and sanitary hot water. During 2014, NF PAC will work on certification of seasonal performances.

Incentive schemes French government modified the subsidy scheme in the beginning of 2014. Tax credits are now focused on global refurbishment. That means that people have to invest in several categories of works, at least two of them, combining envelope and heating system. The rate of he credit tax is the same for all types of works: 25%. There is an exception for people with low income: they can still invest in heat pumps with a credit tax of 15%. In addition, Energy saving certificates, also called white certificates, managed by energy suppliers, are operative to financially support heat pump installations. They will be reviewed in 2015 and potentially reduced.

Policy recommendations A first recommendation from the French heat pump sector is the requirement of a minimum amount of renewable energy for new multifamily houses, as it is the case for individual ones with the amount of 5 kWh/m2/year. A second recommendation concerns new buildings: in the new building regulation, it is to count the renewable energy coming from heat pumps, as detailed in the RES directive. Currently this is not the case, which is unfavourable.

Smart grids Several projects were launched in France on the topic of smart grids and heat pumps. The oldest one called PREMIO took place in the south of France and concerned tertiary, residential and public lighting connected with a control unit through different distribution resources. Several renewable energy systems and, among them, air/water heat pumps combined with a thermal storage, were studied during 3 years in this demonstration project. The monitoring of six individual houses showed the capacities of load reduction and switch-off of the heat pump controlled by the grid demand. Other projects were developed after that, as ETERENICE, NICEGRID, SMART ELECTRIC LYON, to show that thermodynamic technologies are ready to be smart technologies, dealing with the management of the electricity grid congestion.

94

Focus reports on selected European markets | France

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Coefficient Cepmax expressing the maximum energy consumption of a building Coefficient Bbiomax expressing the maximum bioclimatic energy need of a building

Energy type if applicable

Primary energy (CEP)

End uses considered

Heating, cooling, DHW, lighting, auxiliary energy for HVAC minus electricity produced on site

Definitions of relevant parameters

Mctype: modulation coefficient depending on the type of building or part of a building and its CE1/CE2 category; Mcgéo: modulation coefficient according to the location; Mtion coefficient depending on the altitude; Mcsurf: for terraced houses or buildings and collective housing, modulation coefficient as the average size of dwellings in the building or part of a building; McGES: modulation coefficient as emissions of greenhouse energy used Bbiomaxmoyen: valeur moyenne du Bbiomax définie par type d’occupation du bâtiment ou de la partie de bâtiment et par catégorie CE1/CE2; Mbgéo: coefficient de modulation selon la localisation géographique; Mbalt: coefficient de modulation selon l’altitude

Units

kWhep/m2.aSHONRT

Mctype: modulation coefficient depending on the type of building or part of a building and its CE1/CE2 category; Mcgéo: modulation coefficient according to the location; Mcalt: modulation coefficient depending on the altitude; Mcsurf: for terraced houses or buildings and collective housing, modulation coefficient as the average size of dwellings in the building or part of a building; McGES: modulation coefficient as emissions of greenhouse energy used Bbiomaxmoyen: valeur moyenne du Bbiomax définie par type d’occupation du bâtiment ou de la partie de bâtiment et par catégorie CE1/CE2; Mbgéo: coefficient de modulation selon la localisation géographique; Mbalt: coefficient de modulation selon l’altitude kWhep/m2.aSHONRT

Requirements in detail Single Family Houses

Cepmax = 50 • Mctype • (Mcgéo + Mcalt + Mcsurf + McGES) Bbiomax = Bbio>maxmaxmoyen • (Mbgéo + Mbalt + Mbsurf)

Apartment Blocks

Cepmax = 50 • Mctype • (Mcgéo + Mcalt + Mcsurf + McGES) Bbiomax = Bbio>maxmaxmoyen • (Mbgéo + Mbalt + Mbsurf)

Offices

Cepmax = 50 • Mctype • (Mcgéo + Mcalt + Mcsurf + McGES) Bbiomax = Bbio>maxmaxmoyen • (Mbgéo + Mbalt + Mbsurf)

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | France

Table 6.7-5: Energy performance requirements in France [11]

95

European Heat Pump Market and Statistics Report 2014

6.8 Germany Key facts Population [1]

80 425 823

Area

357 112 km2

GDP/capita [2]

32 000 €

Capital

Berlin

Number of single/two family houses

15 118 290

Number of multi-dwelling houses

20 948 678

Rate of new construction of single/two family houses

89 058

Average heat consumption for all residential buildings [3]

20 MWh/year

Share of RES in final consumption of energy (2012) [4]

12,4%

Binding target for the use of renewables [5]

18%

National emission factor (CO2/kWh electricity) (2011) [6]

477 g

Energy mix gross electricity generation Fuel

TWh

Share

TWh

Solid Fuels

262,5

43,1%

277,1

Nuclear

108,0

17,7%

99,5

16%

Renewables

129,4

21,2%

149,6

24%

Gases

93,0

15,3%

87,5

14%

6,8

1,1%

7,6

1%

Petroleum and Products Table 6.8-1: Electricity mix in Germany 2011 – 2013 [7]

Table 6.8-2: Energy prices in Germany 2013 [8-10]

Other

2011

2012 Share 44%

9,2

1,5%

6,6

1%

Total

608,9

100%

629,8

100%

Energy prices

€/kWh

Electricity

0,29

Heat pumps (useful energy price)

0,11

Heating oil

0,09

Domestic gas

0,07

Pellets (bulk delivery)

0,05

District Heating

0,07

Present market situation The moderate growth of heat pump sales continued in 2013. The total amount of units sold is 72 100, which is by 2,6% higher than in 2012. This is a promising development, especially if one takes the European financial crisis and high electricity prices in Germany into account, which probably curbed the heat pumps sales. The reasons for the increasing sales volumes are various, but cannot be found in changed political or administrative circumstances. More likely it is based on a changed consciousness of German consumers: an increasing number of consumers ask for a cost-reducing and efficient renewable heating system, to be independent of fossil fuels. Especially air-to-water heat pumps for the use in new buildings become more and more popular, both because of their low installation costs and their increasing efficiency. Nearly every third new residential building uses a heat pump for space heating.

96

Focus reports on selected European markets | Germany

90 000

W ater h eating Water heating Sp ace h eating Space heating

80 000 70 000 60 000 50 000 40 000 30 000 20 000

Figure 6.8-1: German heat pump market development 1993 – 2013

10 000

1993

700 000

1995

1997

1999

2001

2003

2005

2007

2009

2011 2011

2013

W ater h eating Water heating Sp ace h eating Space heating

600 000

500 000

400 000

300 000

200 000

100 000

Figure 6.8-2: Heat pumps in operation in Germany in 2013 1993

1995

1997

1999

2001

2003

2005

2007

2009

2011 2011

2013

In August 2012, the Marktanreizprogramm (MAP), the most important incentive programme for renewable heating, introduced positive changes for heat pumps. However, the number of applications for these grants decreased in the case of heat pumps, which demonstrates the little significance of the Marktanreizprogramm (MAP) for sales volumes. The rise of the sales volume of heat pumps in 2013 is accompanied by an ongoing market change: the air to water heat pumps gained a market share of 53,9% and their sales volume increased by 4% compared to 2012. Hence, this successful development was responsible for the overall promising performance of the market, taking into account the decline of 7,7% in sales volumes of ground source heat pumps. The conditions for ground source heat pumps continue to be difficult – due to a lot of regional differences in administrative regulations and practices. The figure 6.8-1 illustrates the number of heat pumps installed in Germany.

Focus reports on selected European markets | Germany

97

European Heat Pump Market and Statistics Report 2014

Market trends The sales volume of heat pumps is expected to increase in the coming years. The market share of air-to-water heat pumps as well as heat pumps with an output of 50kW or higher is expected to increase. While air-to-water heat pumps become more popular every year – especially in newly built single or two-family houses, ground sourced heat pumps are more frequently used in big buildings, which also require cooling. Air-to-air heat pumps are frequently used in hotels or energy efficient stores. The market for gas heat pumps is increasing, but still on a low level. Besides gas heat pumps for high heating demands also heat pumps for mass applications have been brought to the market. Apart from the policy development concerning heat pumps, the key to an ongoing market growth is the expected improvement in efficiency (COP) due to developments in heat pump technologies and the widespread further training of heat pump installers and drillers. More and more buildings use heat pumps combined with photovoltaics in order to have an independent heating system. There are even some projects using wind energy combined with heat pumps. The combination of self-produced electricity and electrical heat pumps becomes more and more popular, not only to building owners, but even to politicians, planners and architects. When it comes to increasing the market share of heat pumps in the building stock, the new generation of hybrid heat pumps could have a deep impact. Another topic which attracts more and more attention, especially by municipal utilities, is heat contracting with heat pumps. The most important topic and barrier to an even higher market share of heat pumps is the development of the electricity prices, especially the increasing EEG (Renewable Energy Law) surcharge. Heat pump type

2009

2010

2011

2012

2013

2012/2013

Sanitary hot water

10 406

8 401

8 853

10 700

12 100

13,1%

Brine/water

24 563

19 525

19 089

16 800

15 500

- 7,7%

Water/water

3 782

2 834

2 758

2 800

2 700

- 3,6%

24 664

26 796

32 616

37 400

38 900

4,0%

3 381

5 192

2 557

2 600

2 900

11,5%

66 796

62 748

65 873

70 300

72 100

2,6%

Air/water

Table 6.8-3: Sales of heat pumps in Germany 2009 – 2013

Other Total units sold

Note: Because of a change in data acquisition in Germany in 2011 the sales volumes for reversible heat pumps are no longer recorded

The 2009 – 2012 domestic market segmentation by type of heat pump is shown in figure 6.8-3.

Costs

Table 6.8-4: Typical investment costs for heat pump systems in single family houses in Germany (2009)

Euro

Air/water

Water/water

Brine/water

16 000 – 18 000

18 000 – 24 000

22 000 – 26 000

Brand names The following brands are distributing heat pumps in Germany: Airwell, Alpha InnoTec, August Brötje, Bartl, Buderus, Cofely, DAIKIN, ELCO, ENERTECH/Giersch, Fujitsu General, Glen Dimplex, Gorenje, Hautec, Heliotherm, Hoval, IDM, Immosolar, ITEC, IWS, Junkers, LG, Max Weishaupt, MHG, Mitsubishi Electric, Neura, NIBE, Novelan, Ochsner, Panasonic, Remko, Rotex, Roth, Schüco, SmartHeat, SOLVIS, Stiebel Eltron, tecalor, Termo-Tehnika, Thermia, TRANE, Vaillant, Viessmann, Voß, Waterkotte, Wolf.

98

Focus reports on selected European markets | Germany

80 000

70 000 Air/water Air/water

60 000

50 000

Water/water Water/water

40 000

Brine/water Brine/water

30 000 Sa nitary h hot ot w water ater Sanitary 20 000 eversible (t otal h eat) R Reversible (total heat) 10 000

Figure 6.8-3: German 2010 – 2013 market by type of heat pump 2010

2011 2011

2012

2013

Distribution channels Depending on a company’s preferred strategy, various distribution channels apply at present in the German market. Major approaches are distribution via wholesalers (to retailer and final consumer), or via dedicated retail networks.

Industry infrastructure The German Heat Pump Association e. V. (Bundesverband Waermepumpe or BWP) is an inter-trade organization based in Berlin that covers the entire value chain. Its members comprise over 600 heat pump and component manufacturers, energy suppliers, installers, architects, planners and drilling companies that promote the use of efficient heat pumps. The German Heat Pump Association is member of the German Renewable Energy Federation BEE (Bundesverband Erneuerbare Energie e.V.). The BWP represents 95 % of the German heat pump industry, and its members account for approximately 5 000 employees and generate more than € 1,5 billion turnover.

Policy development and incentives schemes The main incentive programme for renewable heating systems is the Marktanreizprogramm (MAP), which has incorporated heat pumps since 2008. To access the funding it is mandatory to verify a minimum SPF: 3,5 for air to water and 3,8 for ground source heat pumps. These values are calculated in accordance with the norm VDI 4650. In addition, since January 2012 it is mandatory to verify the minimum COP-measures of the EU Ecolabel. This condition is regarded as fulfilled if the heat pump was certified with the EHPA Quality Label after 1 January 2011. A bonus subsidy is also available by combining heat pumps with solar heat and water storage tanks and through various other investments in energy efficiency. The public KfW bank promotes either with a grant or a loan the building or purchasing of energy-efficient homes – both in new build and the existing stock - if they consume less energy than the Energieeinsparverordnung (EnEV - Energy Conservation Ordinance) demands. If the costs and effort of a complete refurbishment would be too high, it is also possible to implement individual measures only. Since March 2013, financing is available for the renewal of the heating system with heat pumps.

Focus reports on selected European markets | Germany

99

European Heat Pump Market and Statistics Report 2014

Besides these financial incentives there are two different regulatory mandatory requirements for new homes and large renovations: EEWärmeG and EnEV. The EEWärmeG obliges house builders to use renewable heating systems for a proportion of the dwelling’s total requirements. In addition to this requirement, heat pumps have to reach a minimum SPF of between 3,3 and 4,0 as calculated in accordance with VDI 4650 (depending on heat source and whether domestic hot water is included). Alternatively, house builders can invest in various other energy efficient technologies. Following the example of Baden-Württemberg, Thüringen and Rheinland-Pfalz are planning to launch their own stricter regional laws. The regional laws additionally oblige house owners to invest in renewable heating in the building stock in the case of an exchange of the heating system (retrofit). The Energieeinsparverordnung (EnEV) is the German implementation of the European Energy Performance of Buildings Directive (EPBD), which regulates the maximum value of primary energy consumption (including losses of the heating system and heat demand, i.e. insulation) in new buildings. Required values can be reached by using either very good insulation or environmentally friendly and energy efficient technologies like heat pumps. The regulation was launched in 2001. The newly modified EnEV - which will probably come into force in 2014 foresees a downward adjustment of the primary energy factor of the electricity mix in 2014 (2,0) and 2016 (1,8). With these new primary energy factors heat pumps can easily achieve the requirements for KfW Efficiency Houses and thus access the offered grants or loans.

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum energy demand

Energy type if applicable

Primary energy

End uses consideres

Heating, cooling, ventilation, DHW, lighting Notes/specifications New buildings must not exceed a defined primary energy demand based on of a reference building of the same geometry, net floor space, alignment and utilisation. Lighting is only included in non-residential buildings

Notes/specifications

Table 6.8-5: Energy performance requirements in Germany [11]

Prescriptive requirements apply to renovation activities

Policy recommendations The main political demands are: ➔ The German Energiewende must no longer focus only on the electricity sector, but should take into consideration the heating sector. Only 20% of the heating systems in Germany conform to the latest state of the art. That’s why experts speak of the “sleeping giant” ➔ The legislature should use the steering effect of taxes and dues to trigger the use of renewable energy (nowadays gas heating has an unfair competitive advantage when compared to heat pumps) ➔ To make things easier for house owners, EnEV and EEWärmeG should be combined (the combined law should be formulated in a way so as not to give preference to certain technologies) ➔ The necessary financing of the main incentive programme MAP must be ensured. The stop-and-go policy over the past few years has upset investors.

100

Focus reports on selected European markets | Germany

Smart Grid Smart heat pumps have been introduced to the market at the beginning of 2013 and were firstly presented at the ISH trade fair. Consumers can recognize those models by the „SG Ready“ label that stands for a uniform interface and has been granted to 350 models from 20 manufacturers by the end of the first quarter of 2013. Detailed information on the requirements and a list of „SG Ready“ models can be found on www.waermepumpe.de/sg-ready. How heat pumps can be integrated in smart grids is being tested in several pilot projects run by utilities, for instance Lechwerke’s „Smart Operator“, a system for local balancing of consumption, production and storage. In 2013, the field test phase of the project will commence. RWE tries to harvest renewable surplus energy in its „Windheizung“ project, in which small consumers are aggregated to a virtual storage and their flexibility is being offered at the control energy market. An example for a different approach is VHP from Vattenfall, a standard for decentralised energy facilities that enables their incorporation into the utility‘s virtual power plant, currently comprising 150 000 households. Moreover, Fraunhofer ISE is planning to carry out a large-scale field test and is looking for potential cooperation partners. However, there are also several obstacles impeding the extensive use of smart heat pumps, for instance the relatively high and inflexible electricity prices or rigid standard load profiles. The BWP is tackling these issues by engaging with politicians, administrative bodies and other stakeholders.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Germany

101

European Heat Pump Market and Statistics Report 2014

6.9 Hungary Key facts Population [1]

9 920 362

Area

93 036 km2

GDP/capita [2]

17 200 €

Capital

Budapest

Number of single/two family houses

2 700 000

Number of dwelling in multi-dwelling buildings

800 000

Number of non-residential buildings

800 000

Rate of new construction of single/two family houses [3]

3 – 4%

Share of RES in final consumption of energy (2012) [4]

9,6%

Binding target for the use of renewables [5]

15%

National emission factor (CO2/kWh electricity) (2011) [6]

317 g

Energy mix gross electricity generation Fuel

TWh

Share

Solid Fuels

6,5

18,0%

6,3

18%

Nuclear

15,7

43,6%

15,8

46%

2,7

7,5%

2,7

8%

10,8

30,1%

9,5

27%

0,1

0,4%

0,2

1%

Gases Petroleum and Products Other

0,1

0,4%

0,1

0%

Total

36,0

100%

34,6

100%

Energy prices

Table 6.9-2: Energy prices in Hungary 2013 [8 – 10]

2012 Share

Renewables

Table 6.9-1: Electricity mix in Hungary 2013 [7]

2011 TWh

€/kWh

Electricity

0,15

Heat pumps (useful energy price)

0,07

Heating oil

0,15

Domestic gas

0,05

Pellets (sack delivery)

0,03

Pellets (bulk delivery)

0,02

District Heating

0,05

Present market situation and market trends The sales growth of 14% suggests that Hungarian heat pump market started recovering from the stagnation that has been present since 2010. A total of 783 units have been sold in Hungary in 2013. The main share belongs to air water units. They count for 29% of the total sales with 226 units. The total of 150 ground source heat pumps have been sold in Hungary in 201, which signalizes 37,6% growth in comparison to 2012. Detailed developments of the Hungarian market are illustrated in Figures 6.9-1 until 6.9-3.

102

Focus reports on selected European markets | Hungary

1 000 900

Water heating W ater h eating Sp ace h eating Space heating

800 700 600 500 400 300 200

Figure 6.9-1: Hungarian heat pump market development 2009 – 2013

100

2009

4 500

2010

2011 2011

2012

2013

W ater h eating Water heating Sp ace h eating Space heating

4 000 3 500 3 000 2 500 2 000 1 500 1 000

Figure 6.9-2: Heat pumps in operation in Hungary 2009 – 2013

500

2009

Heat pump type Sanitary hot water

2010

2011 2011

2012

2009

2010

2011

2012

14

24

22

11

2013

2013

2012/2013

Exhaust air

26

45

41

36

47

30,6%

Brine/water

190

175

158

109

150

37,6%

Water/water

69

86

78

54

23

- 57,4%

Air/water

58

106

97

65

226

247,7%

Reversible (total heat)

434

498

451

412

Air/water

148

138

125

112

Brine/water

213

165

150

130

73

195

176

170

VRF Other Total units sold

337 791

934

847

687

783

Focus reports on selected European markets | Hungary

14,0%

Table 6.9-3: Sales of heat pumps in Hungary 2009 – 2013

103

European Heat Pump Market and Statistics Report 2014

80 000

70 000 Air/water Air/water

60 000

50 000

Water/water Water/water

40 000

Brine/water Brine/water

30 000 Sa nitary h hot ot w water ater Sanitary 20 000 eversible (t otal h eat) R Reversible (total heat) 10 000

Figure 6.9-3: Hungarian 2010 – 2013 market by type of heat pump

2010

Table 6.9-4: Typical investment costs for heat pump systems in single family houses in Hungary

2011 2011

2012

2013

Costs Euro

Air/water

Water/water

Brine/water

7 100 – 8 000

12 000 – 14 000

13 000 – 15 000

Brand names The following companies are distributing heat pumps in Hungary and these companies are strong participants of the Hungarian heat pump market also: Aermec, Bosch, Vaillant, Stiebel-Eltron, Daikin, Viessmann, WILO, CIAT, Ochsner, NIBE, Dimplex, LG.

Distribution channels Depending on companies’ strategy, different distribution channels are present on the Hungarian market. Major approaches are distribution via wholesalers (to retailers and final consumers), or via dedicated retail networks, or via designing companies.

Industry infrastructure The Hungarian Heat Pump Association (HHPA) is an inter-trade organization based in Budapest that covers the whole value chain. Its members comprise approximately 60 designers as well as drilling companies, heat pump and component manufacturers and energy providers that promote the use of efficient heat pumps. The Hungarian Heat Pump Association organizes the training campaign “Heat pump – Education program” and hosts the “Heat Pump Forum” – an annual conference of the Hungarian heat pump market. It is a member of the Hungarian Association of Renewable Energy Sources.

Incentives schemes and heat pump related legislation The main incentive programmes for renewable heating systems for private individuals are the National Energy Saving Plan (NEP) since 2005 and Green Investment Scheme (ZBR) since 2009. To access the fund it is obligatory to verify a minimum SPF of 3,5. With regard to the climate bonus, which pays 27% more, buildings became 40% more energy efficient compared with the minimum requirement. SPFs are calculated in accordance with VDI 4 650.

104

Focus reports on selected European markets | Hungary

The incentive scheme was stopped in 2011 because of the economic crisis.

2006

Stock/renovation 2006 – 2009 after 2009

2006

New houses built 2006 – 2009 after 2009

1 900 €

3 800 €

1 900 €

3 800 €

5 200 €

5 200 €

Table 6.9-5: Former heat pump incentive scheme in Hungary (approximate maximum amounts)

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum energy demand

Maximum energy demand

Energy type if applicable

Primary energy

Primary energy

Definitions of relevant parameters

A/V is the surface over volume ratio

A/V is the surface over volume ratio

Units

kWh/m2 per year

kWh/m2 per year

Requirements in detail Single Family Houses

110, for A/V < 0.3 120 (A/V) + 74, for 0.3 < A / V < 1.3 230, for A/V > 1.3

110, for A/V < 0.3 120 (A/V) + 74, for 0.3 < A / V < 1.3 230, for A/V > 1.3

Apartment Blocks

110, for A/V < 0.3 120 (A/V) + 74, for 0.3 < A / V < 1.3 230, for A/V > 1.3

110, for A/V < 0.3 120 (A/V) + 74, for 0.3 < A / V < 1.3 230, for A/V > 1.3

Offices

132, for A/V < 0.3 128 (A/V) + 93.6, for 0.3 < A/V < 1.3 260, for A/V > 1.3

132, for A/V < 0.3 128 (A/V) + 93.6, for 0.3 < A/V < 1.3 260, for A/V > 1.3

Educational Buildings

90, for A/V < 0.3 164 (A/V) + 40.8, for 0.3 < A/V < 1.3 254, for A/V > 1.3

90, for A/V < 0.3 164 (A/V) + 40.8, for 0.3 < A/V < 1.3 254, for A/V > 1.3

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Hungary

Table 6.9-6: Energy performance requirements in Hungary [11]

105

European Heat Pump Market and Statistics Report 2014

6.10 Ireland Key facts Population [1]

4 586 897

Area

70 182 km2

GDP/capita [2]

32 500 €

Capital

Dublin

Number of single/two family houses

1 400 000

Number of multi-dwelling houses

148 623

Number of non-residential buildings

140 000

Rate of new construction of single/two family houses

14 495

Average heat consumption for all residential buildings

16 MWh/year

Average heat consumption in new residential buildings [3]

9 MWh/year

Share of RES in final consumption of energy (2012) [4]

7,2%

Binding target for the use of renewables [5]

16%

National emission factor (CO2/kWh electricity) (2011) [6]

427 g

Energy mix gross electricity generation Fuel

2012 Share

Solid Fuels

6,9

25,2%

8,1

29%

Nuclear

0,0

0,0%

0,0

0%

Renewables Gases

Table 6.10-1: Electricity mix in Ireland 2013 [7]

2011 TWh

TWh

Share

5,4

19,8%

5,5

20%

14,9

54,2%

13,7

50%

Petroleum and Products

0,2

0,9%

0,3

1%

Other

0,0

0,0%

0,1

0%

Total

27,5

100%

27,6

100%

Energy prices

€/kWh

Electricity

0,13

Heat pumps (useful energy price)

0,04

Heating oil

0,09

Domestic gas

0,05

Pellets (sack delivery) Table 6.10-2: Energy prices in Ireland 2013 [8-10]

Pellets (bulk delivery)

0,05

District Heating

0,09

Energy trends According to the 2011 Census in the residential market, oil remains the dominant fuel in Ireland, providing 44,4% of energy. Gas is the second most popular fuel with a 34,3% share, followed by electricity in third place with an 8,7% share. Other fuels include LPG with 0,6%, Coal with 4,9%, Peat with 4,8% and Wood with 1,3%. Electricity has seen a huge reduction in carbon intensity from 896 g CO2/kWh in 1990 to 458 g CO2/kWh in 2010, mainly due to the reduction in coal usage for generation, replaced by natural gas and zero carbon renewables. In December 2012 the electricity primary energy factor was updated from 2,58 to 2,42. Factors for other fuels (e.g. oil, gas, wood fuels) remain unchanged. Electricity generation efficiency was 47% in 2011, largely driven by the introduction of highly efficient gas fired CCGT stations. Ireland has one of the highest

106

Focus reports on selected European markets | Ireland

penetration rates for wind energy with the current grid curtailment at 50% is currently being considered to being lifted to 70% by Eirgrid under its DS3 program. This will further drive the carbon content on the grid to a lower level. Renewable energy in total grew by 24% during 2011 to 782 ktoe [1]. Since 1990, renewable energy has grown by 297% (7,5% per annum on average) in absolute terms. The target for Ireland in the European Renewable Energy Directive (2009/28/EC) is a 16% share of renewable energy in gross final consumption by 2020. The contribution from renewables in 1990 was 2,2%, rising to 6,7% in 2011 [3].

Heating trends Centralized boilers, either oil or gas, utilizing wet heat distribution systems combined with radiator heat emitters are the most prevalent type of heating system used in Ireland. Outside of the main cities and towns, where natural gas is unavailable, oil is still one of the major methods of heating with 44% of heating systems running on Kerosene. Solid fuels like turf/peat and coal still play an important role particularly in rural locations. A significant number of direct electric and electric storage heating systems are installed in both the domestic and commercial sectors in Ireland, although the new building regulations now make the deployment of these systems extremely difficult. Renewable alternatives such as biomass boilers (wood pellets), heat pumps and solar thermal became popular in the last ten years, assisted by government grants introduced to assist the installation costs and the introduction of building regulations requiring a minimum of 10 kWh/m2/year of Renewable heat or 4 kWh/m2/yr of renewable electricity. Heat pumps are providing a cost effective alternative to fossil fuel fired heating in the new build market. Although a slowdown in the sales of new technologies was seen from 2009 to 2011 a small continuous increase was seen since 2012 in case of heat pumps (figure 6.10-1).

1 600 Space Sp heating ace h eating 1 400

1 200

1 000

800

600

400

200

Figure 6.10-1: Irish heat pump market development 2009 – 2013 2009

2010

2011 2011

2012

2013

Focus reports on selected European markets | Ireland

107

European Heat Pump Market and Statistics Report 2014

Market trends The heat pump sector emerged in Ireland in the early to mid 2000s. After growing rapidly from a very low base, sales grew rapidly in the period up to 2008, peaking at just over 3 000 units in that year. For a number of reasons the sector has suffered a severe setback since that time, reflecting the national economic and financial crisis and construction sector slump. Unit sales fell significantly in the last number of years, with sales in 2013 totalling 1 515 units. The key factors that have caused the dramatic slowdown in the sector are as follows: ➔ The property crash and dramatic slowdown in the Irish construction sector as a whole. ➔ The recession that has gripped the Irish economy since 2008, and associated austerity measures introduced by the Irish Government in 2009 in an effort to curb spending and stabilise the economy. ➔ The phased reduction of subsidies and incentives for heat pumps from 2008, with the eventual complete withdrawal of financial supports for those products in 2011. The market has remained relatively static during 2011 and the first half of 2012 with a possible gradual recovery experienced in the second half of 2012. The heat pump market in Ireland is now stable and may be considered in growth again. The following table and figure illustrate the development of the sector between 2009 and 2013. Heat pump type

2009

Sanitary hot water Exhaust air

2011

3

2

90

2012

2013

2012/2013

5

3

- 40,0%

19

21

10,5%

Brine/water

747

478

524

462

298

- 35,5%

Water/water

39

15

24

17

7

- 58,8%

220

707

646

886

1 169

31,9%

144

32

1 437

1 228

Air/water Table 6.10-3: Sales of heat pump in Ireland 2009 – 2013

2010

Other Total units sold

1 006

17 1 389

1 515

9,1%

7 000 Space heating Sp ace h eating 6 000

5 000

4 000

3 000

2 000

Figure 6.10-2: Heat pumps in operation in Ireland (installed since 2009)

1 000

2009

108

2010

2011 2011

Focus reports on selected European markets | Ireland

2012

2013

1 600

1 400 Air/water

1 200

1 000

Water/water

800

Brine/water

600 Exhaust air 400 Sanitary hot water 200

Figure 6.10-3: Irish 2010 – 2013 market by type of heat pump 2010

2011

2012

2013

Heat pump market segments Ground source heat pumps emerged as the system of choice in Ireland in the early stages of market development. In recent years however, reflecting a similar trend in most other European markets, air source heat pumps have increased in popularity and in 2013 accounted for approximately 77,1% of overall sales (figure 6.10-3). In the initial stages of market development (pre 2008), heat pumps were mainly installed in new residential houses, standalone installations being the most common. As the renovation sector developed, particularly driven by air to water units, installations in these environments have usually taken the form of oil and gas boiler replacements, and in some cases have seen heat pumps installed together with the existing boilers. Most of the heat pumps deployed are for space heating and hot water production. More recent years have also seen the installation of heat pumps combined with other renewable solutions such as solar thermal collectors and on site micro electricity generation. Hybrid systems are also now becoming popular as in other markets, providing multi-energy solutions to consumers. Outside of the residential sector heat pumps have also achieved a level of acceptance in the light commercial sector in Ireland, with installations in environments such a hotels, guesthouses and retirement homes becoming popular. Commercial applications now account for approximately 15 – 20% of all installations.

Costs Average Installed Price per Unit

Exhaust air

Air/water

Ground source

Price in € and inclusive of VAT

8 000

9 000

14 000

Table 6.10-4: Average heat pump end user unit prices (incl. VAT)

Brand names Glen Dimplex is Irish owned and headquartered in Ireland with R&D and manufacturing in Ireland. It supplies products through its Irish subsidiary Dimplex Renewables. Marc Eire has made a considerable investment in Ireland in 2011 for a test facility at their plant in Cork. Most leading European and Asian manufacturers are represented in the Irish marketplace as follows:

Focus reports on selected European markets | Ireland

109

European Heat Pump Market and Statistics Report 2014

Ground source heat pumps: Alpha-Innotec, Danfoss, Dimplex, Geostar, Heliotherm, NIBE, Ochsner, Stiebel Eltron, Thermia, Viessmann, Waterfurnace, Waterkotte. Air/water heat pumps: Alpha-Innotec, Danfoss, Daikin, Dimplex, , Heliotherm, Hitachi, Kingspan (Aeromax), Mitsubishi, NIBE, Ochsner, Panasonic, Stiebel Eltron, Thermia, Toshiba, Viessmann, Waterfurnace, Waterkotte. Exhaust air heat pumps: Dimplex, NIBE.

National industry association 2011 saw the formation of the Heat Pump Association of Ireland (HPAI). Most major vendors and distributors are represented. The Association’s main objectives centre around the promotion and understanding of heat pump technology, supporting the growth and development of the sector, maintenance of quality standards, and training and accreditation of installers. The Geothermal Association of Ireland (GAI) was formed in January 1998 to promote the development of geothermal resources in Ireland. The GAI is a member of the European Geothermal Energy Council and of the International Geothermal Association.

Training and certification SEAI (Sustainable Energy Authority of Ireland) is currently reviewing the training of installers for heat pumps. No training is currently available. The heat pump association is requesting a minimum installer training standard for heat pumps in Ireland.

Incentive schemes In 2006 the Greener Homes Scheme was launched and provided financial support to grant aid for the installation of heat pumps in the residential sector. Administered by SEAI, the scheme provided financial incentives to support the installation of heat pumps (and other renewable heat technologies) initially in all buildings. This changed in 2009 when following changes to the building regulations the grant became eligible for existing buildings only (retrofit). An announcement in May 2011 has seen the end of the Greener Homes Scheme and an end to any direct financial support for the installation of heat pumps. There are currently no grants available for heat pumps in Ireland, while oil and gas boilers continue to receive support from SEAI.

Policy recommendations The Irish Government is constrained in terms of the financial assistance it can offer, however for the RES-H targets to be met the government will have to subsidise heat pump technology in some way, as the technology represents the best way to achieving this RES-H target in residential homes. Potential options currently being considered are “Pay as you save” models. However a finance mechanism alone will not be enough and it will need incentives such as Lower or Zero VAT rates or tax credits for people who make an investment in renewable heating technology. The obligated energy suppliers must also under the energy efficiency directive deliver energy savings. In Ireland each energy supplier is committing to deliver a targeted energy saving. The mechanism used is a standardised model for various measures. For example a solar system on a house will deliver 1600 kWh savings or 1600 energy credits. At the time of writing Heat pumps are about to be recognised by SEAI and this could provide another incentive for utilities to consider deployment of the technology. However this will be in the future as they currently

110

Focus reports on selected European markets | Ireland

focus on low cost energy credits such as attic insulation, as these measures are exhausted eventually the more expensive measures will need to be considered.

Smart grids The deployment of renewable energy sources has been increasing steadily in recent years and Ireland is committed to increasing the level of renewable electricity consumption to 40% by 2020. EirGrid is the system operator on the Island of Ireland and is leading this transition to a high level of renewable electricity penetration. In order to allow for the high level of renewable electricity Eirgrid have commenced a project called “Delivering a Secure Sustainable Electricity System (DS3)”. Eirgrid have embarked on a number of demonstration projects. In the development, trialling and proving of new concepts/solutions and technologies. Smart Grid concepts are the key area of interest for the System Operator in terms of demonstration projects and include demand side management concepts. Currently there are no projects embarked upon for heat pumps under the demand side management but electric heating in general will be considered in the future.

Energy performance requirements New buildings General information Quantity expressing energy performance

Maximum Permitted Energy Performance Coefficient (MPEPC) Maximum Permitted Carbon Performance Coefficient (MPCPC)

Units

Dimensionless Requirements in detail

Single Family Houses

MPEPC = 0,6 MPCPC = 0,69

Apartment Blocks

MPEPC = 0,6 MPCPC = 0,69

Offices

MPEPC = 1 MPCPC = 1

Educational Buildings

MPEPC = 1 MPCPC = 1

Table 6.10-6: Energy performance requirements in Ireland [11]

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, E urostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Ireland

111

European Heat Pump Market and Statistics Report 2014

6.11 Italy Key facts Population [1]

59 539 717

Area

301 338 km2

GDP/capita [2]

25 200 €

Capital

Rome

Number of single/two family houses

11 862 670

Number of dwelling in multi-dwelling buildings

18 322 230

Rate of new construction of single/two family houses

298 000

Average heat consumption for all residential buildings [3]

28 MWh/year

Share of RES in final consumption of energy (2012) [4]

13,5%

Binding target for the use of renewables [5]

17%

National emission factor (CO2/kWh electricity) (2011) [6]

402 g

Energy mix gross electricity generation Fuel

TWh

Share

TWh

Solid Fuels

44,7

14,8%

49,1

Nuclear

Table 6.11-2: Electricity prices in Italy 2013 [8 – 10]

2012 Share 16%

0,0

0,0%

0,0

0%

Renewables

84,9

28,1%

94,2

31%

Gases

150,0

49,6%

134,0

45%

19,9

6,6%

18,9

6%

Petroleum and Products Table 6.11-1: Electricity mix in Italy 2012 – 2013 [7]

2011

Other

3,1

1,0%

2,3

1%

Total

302,6

100%

299,3

100%

Energy prices

€/kWh

Electricity

0,23

Heat pumps (useful energy price)

0,08

Heating oil

0,14

Domestic gas

0,08

Pellets (sack delivery)

0,06

Pellets (bulk delivery)

0,05

District Heating

0,09

Present market situation 2013 saw a small decrease of 2,8% of air/air reversible heat pumps on the Italian market. Specifically sales of single split < 7 kW reached - 6%. This could be explained by cold summer season in 2013. Negative values also occurred in case of a single split air conditioners >7kW, systems usually applied in a small commercial sector (shops, small offices), amounting to - 13%. On the other hand, an encouraging sign came from the multisplit systems, which showed a positive performance (+9%). A decrease of 9% is observed in case of mini VRF units <16 kW, a type that is mainly used in the small business sector. The VRF units >16 kW that represented a growth segment until two years ago, is suffering from the economic stagnation of the construction industry for commercial use, in 2013 it decreased by 3%. Hydronic applications mark a significant increase of a 19% in case of chillers for aircooled machines and small decrease of 2% for water-cooled machines. Positive

112

Focus reports on selected European markets | Italy

180 000 Sp ace h eating Space heating 160 000 140 000 120 000 100 000 80 000 60 000 40 000

Figure 6.11-1: Italian heat pump market development 2005 – 2013

20 000

2005

2006

2007

2008

2009

2011 2011

2010

2012

2013

1 200 000 Space heating Sp ace h eating

1 000 000

800 000

600 000

400 000

200 000

Figure 6.11-2: Heat pumps in operation in Italy 2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

developments can be seen also in terms of energy efficiency of chillers (up to 100 kW) especially cooled air that are used primarily for residential and/or small business.

Market trends Heat pump type

2009

Brine/water Water/water Air/water Reversible (total heat)

2010

2011

2012

2013

2012/2013

178

409

403

382

- 5,3%

179

424

403

382

- 5,3%

323

150

379

345

327

- 5,2%

109 593

123 645

123 223

114 060

113 496

- 0,5%

Air/air (with main heating function)

82 185

94 734

93 630

88 399

85 906

- 2,8%

Air/water

11 062

11 862

13 913

12 451

14 921

19,8%

Brine/water VRF Other Total units sold

1 071

745

889

903

913

1,1%

15 276

16 304

14 791

12 307

11 756

- 4,5%

58

44

80

91

34

- 62,6%

109 974

124 196

124 515

115 302

114 620

- 0,6%

Focus reports on selected European markets | Italy

Table 6.11-3: Sales of heat pumps in Italy 2009–2013

113

European Heat Pump Market and Statistics Report 2014

140 000

120 000 Air/water Air/water 100 000

Water/water Water/water

80 000

Brine/water Brine/water

60 000

Ai r/air (with (with ma in Air/air main h eating ffunction) unction) heating VRF F VR

40 000 Reversible 20 000

Figure 6.11-3: Italian 2010 – 2013 market by type of heat pump

Air/water Air/water Brine/water Brine/water

2010

2011 2011

2012

2013

Anima/CoAer, the Italian association of HVAC manufacturers, with its Gruppo Italiano Pompe di Calore is continuing his struggle with the Italian Energy Authority for a revision of the electric power tariffs in order to improve utilization of HPs for primary heating. A proposal has been recently submitted to the Authority and there are indications of favourable reception. A power tariff rationalization is actually the major factor for a serious promotion of Heat Pump sales in the country, which suffers from one of the highest costs of electricity in Europe.

Brand names Aermec, Alfa Laval, Blue Box Group, Carrier Distribution Italy, Climaveneta, Clivet, Daikin Air Conditioning Italy, Ebm-Papst, Emerson Climate Technologies, Ferroli, Galletti, Haier A/C (Italy) Trading, Hidros, Hitachi Air Conditioning Europe - Branch Italy, Mitsubishi Electric Europe, Rhoss, Riello, Robur, Sabiana, Sanyo Argo Clima, Sic, Siemens Building Technologies, Tecnoclima, Termal Hot Wave, Tonon Forty, Viessmann, Vortice Elettrosociali.

Distribution channels Retail chains and distributor/installer enterprises are specifically dedicated to the sale of residential and light commercial heat pumps – namely single and multiple split systems. Larger heat pumps follow the traditional channel: direct manufacturer promotion, consulting companies’ specifications, and contractors’ bids.

National industry association Assoclima is the national association of air treatment equipment manufacturers. The association is federated in Anima, the federation of miscellaneous mechanical manufacturers. Within Co.Aer a special group of manufacturers has established “Gruppo Italiano Pompe di Calore” for the promotion of heat pump technology and developments for the user. This group, consisting mainly of manufacturers, is very active in the preparation and dissemination of heat pump information, organising exhibitions and seminars etc. A specific Commission of the Group is currently engaged with the area of training courses.

114

Focus reports on selected European markets | Italy

Incentive schemes Until June 2013 there were incentives for operations to replace winter heating systems with systems equipped with high energy efficiency heat pumps, including low temperature geothermal installations, in the form of a deduction from personal income tax (IRPEF) and corporate income tax (IRES) obligations of 55% of the costs incurred for these operations. The total deduction is divided into 10 equal instalments and deducted annually from tax obligations. This tax relief only applies to operations carried out on existing buildings; it was extended to June 2013 by the Italian Financial Law of 2012, called “Decreto Sviluppo” – Law no 83/2012; this is available for high efficiency heat pumps. In January 2013, the Ministerial Decree on the promotion of the production of thermal energy from renewable sources and energy efficiency measures has been adopted. For heat pumps the decree has introduced an incentive system based on feed-in tariff mechanism and addressed to both public and private. The measure will be implemented in the coming months but in the case of heat pumps it is feared that this measure will not be efficient because it’s not profitable if compared with the investment cost of the plant.

Electricity rates for Heat-Pump heating The resolution 607/2013/R/eel of AEEG (authority for electricity and gas energy) of 2013-12-19 introduces, as test, the D1 “flat” rate for the heat pumps as from 201407-01 up to 2015-12-31 (as from 2015-01-01 the fares should be reviewed). Actually the domestic fares (D2 and D3) are increasing when the electricity consumes increase. Restrictions: ➔ Heat pumps as sole ambient heating system ➔ Only for individual main dwelling ➔ Not for condominiums, offices, commercial or industrial room ➔ Minimum COP and EER required (to be fixed) Within 2014-04-30 the Authority will issue detailed criteria to require and get the D1 rate. The D1 fare will be valid both for heat pumps and all the other electricity consumptions. Actually, on the contrary, should be possible (without any difficulty) to have two electric power-meter, one for the heat pump and one for the rest.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202)

Focus reports on selected European markets | Italy

115

European Heat Pump Market and Statistics Report 2014

6.12 Lithuania Key facts Population [1]

2 987 773

Area

65 200 km2

GDP/capita [2]

18 300 €

Capital

Vilnius

Number of single/two family houses

408 740

Rate of new construction of single/two family houses

3 342

Average heat consumption in all residential buildings [3]

16 – 27 MWh/year

Share of RES in final consumption of energy (2012) [4]

21,7%

Binding target for the use of renewables [5]

23%

National emission factor (CO2/kWh electricity) (2011) [6]

0g

Electricity production gross electricity generation Fuel

Table 6.12-1: Electricity mix in Lithuania 2011 – 2012 [7]

2011

2012

TWh

Share

TWh

Share

Solid Fuels

0,0

0,0%

0,0

0%

Nuclear

0,0

0,0%

0,0

0%

Renewables

1,7

35,1%

1,7

34%

Gases

2,7

55,4%

2,9

57%

Petroleum and Products

0,2

4,4%

0,2

5%

Other

0,3

5,4%

0,0

0%

Total

4,8

100%

5,0

100%

Energy prices

€/kWh

Electricity

0,13

Heat pumps (useful energy price)

0,04

Heating oil

0,09

Domestic gas

0,05

Pellets (sack delivery) Table 6.12-2: Energy prices in Lithuania 2013 [8 – 10]

Pellets (bulk delivery)

0,05

District Heating

0,09

Market trends Heat pump sales in Lithuania have grown since 2009. Annual growth 2012/2013 has reached 11,6%, amounting to a total of 720 units. The largest share of the market is constituted by brine/water systems with a total of 460 units in 2013 (see Table 6.12-1). Heat pump type

2009

2010

2011

2012

Exhaust air Direct expansion Brine/water Water/water Air/water

Table 6.12-3: Sales of heat pumps in Lithuania 2009 – 2013

2012/2013

120 6

3

4

399

340

385

5 445

460

3,4%

8

13

15

5

5

0,0%

141

161

193

195

110

- 43,6%

554

517

597

645

720

Other

20

Total units sold

116

2013

Focus reports on selected European markets | Lithuania

11,6%

800 Sp ace h eating Space heating 700

600

500

400

300

200

100

Figure 6.12-1: Lithuanian heat pump market development 2009– 2013 2009

2010

2011 2011

2012

2013

3 500 Sp ace h eating Space heating 3 000

2 500

2 000

1 500

1 000

500

Figure 6.12-2: Heat pumps in operation in Lithuania 2009 – 2013 2009

2010

2011 2011

2012

2013

Costs Prices for heat pump units including everything to take the installation in operation, i.e. the heat pump, auxiliary equipment, material and labor costs (for an average family house with heat losses around 10 kW): Euro

Air/water

GSHP

6 500 – 12 000

8 000 – 11 000

Table 6.12-4: Average heat pump unit prices in Lithuania

Brand names Some of the most significant brand names existing in Lithuania’s market are listed below: Ground-source heat pumps: Aermec, Alpha-Innotec, Buderus, CTC, Dimplex, ECOLogic, IVT, Lämpoässä, Junkers, Nibe, Ochsner, Stiebel-Eltron, SVEO, Thermia, Vaillant, Viessmann, Waterkotte

Focus reports on selected European markets | Lithuania

117

European Heat Pump Market and Statistics Report 2014

800

700 Air/water

600

500

Water/water

400 Brine/water 300 Direct expansion 200 Exhaust air

100

Figure 6.12-3: Lithuanian 2010 – 2013 market by type of heat pump

2010

2011

2012

2013

Air/water heat pumps: Aermec, Airpac, Alpha-Innotec, Buderus, CTC, Daikin, Dimplex, ECOLogic, IVT, Junkers, Mitsubishi, Nibe, Ochsner, Octopus, Sanyo, StiebelEltron, SVEO, Thermia, Viessmann, LG, Pionnier, Atlantic Air/air heat pumps: Atlantic, Carrier, Daikin, Fujitsu, Haier, IVT, LG, Midea, Mitsubishi, Panasonic, Sharp, Sanyo, Toshiba

Distribution channels Like in the other countries, distribution channels are: ➔ from manufacturers to installers ➔ direct sales via wholesalers ➔ by web-stores

National industry associations The Lithuanian Heat Pump Association, founded in 2009, consists of manufacturers and importers of heat pumps as well as installers and other companies that expressed interest in the heat pump industry.

Incentive schemes A renewable energy law has been in force since 2011 and was last amended in 2013. It transposes EU acquis communautaire on the energy sector embodied in the following Directives: 2009/28/EC, 2009/72/EC and 2009/73/EC. The Law introduces renewable heat obligations for all new buildings and existing buildings undergoing major renovations. Obligations will enter into force on 31st December 2014. [11] Article 47 sets the requirements for individual installation of heat pumps in order to be eligible for the support schemes. The Lithuanian Environmental Investment Fund (LEIF) supports projects aiming to reduce environmental damage in the long term. This definition also covers the conversion of heating plants in order to change from solid fuels to liquid biomass and geothermal resources. Projects are supported in the form of subsidies. [12]

Smart grids The Electricity Directive states that, in countries where smart metering roll-out is assessed positively, “at least 80% of consumers shall be equipped with intelligent metering systems by 2020.” [13]

118

Focus reports on selected European markets | Lithuania

A cost-benefit analysis of the roll-out of smart metering system in Lithuania was carried out by Ernst &Young in 2012.[14] This study showed that the smart metering roll-out is not economically viable in Lithuania since none of the studied scenarios generate a positive return. Nevertheless these results can of course change in cases of modifications in factors such as the economic, political or social situation. All scenarios were the most sensitive to the electricity consumption efficiency variable and the smart metering equipment costs. “Mass rolling-out of the smart metering system should thus be performed only when smart meters will pay themselves off, that is, when their installation savings will cover the installation costs. Otherwise, the rolling-out of the smart metering system will increase consumer costs rather than reducing them.” Smart metering would only be financially interesting for the commercial group of consumers. Therefore it was advised to continue installing smart metering for major commercial consumers.

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum energy demand

Maximum energy demand

Definitions of relevant parameters

A denotes the floor area of the building

A denotes the floor area of the building

Units

kWh/m2 per year

kWh/m2 per year

Requirements in detail Single Family Houses

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Apartment Blocks

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Offices

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Educational Buildings

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Hospitals

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Hotels & Restaurants

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Wholesale and retail trade

80 for A>3 000 m2 100 for 501< A < 3 000 m2 115 for A< 500 m2

110 for A> 3 000 m2 130 for 501< A < 3 000 m2 145 for A< 500 m2

Notes/specifications Notes/specifications

New buildings must comply with at least class C in the energy scale of the Lithuanian EPC

Renovated buildings must comply with at least class C in the energy scale of the Lithuanian EPC. For buildings with useful area over 1000 m2 which undergo major renovation only.

Table 6.12-5: Energy performance requirements in Lithuania [15]

Focus reports on selected European markets | Lithuania

119

European Heat Pump Market and Statistics Report 2014

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/ energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] IEA, www.iea.org/policiesandmeasures/pams/lithuania/name-38709-en.php [12] RES Legal Europe, www.res-legal.eu/ search-by-country/lithuania/tools-list/c/ lithuania/s/res-hc/t/promotion/sum/160/lpid/159/ [13] CEER, Status Review of Regulatory aspects of Smart Metering, 2013, p6 [14] Ernst&Young, Cost-benefit analysis of the roll-out of smart electricity metering grid in Lithuania, 2012, p.80 [15] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub”

120

Focus reports on selected European markets | Lithuania

6.13 The Netherlands Key facts Population [1]

16 754 962

Area

41 544 km2

GDP/capita [2]

32 600 €

Capital

Amsterdam

Number of single/two family houses

5 305 708

Number of dwelling in multi-dwelling buildings

1 962 385

Number of non-residential buildings

437 000

Average heat consumption for all residential buildings

1 600 m3 gas

Average heat consumption in new residential buildings [3]

1 200 m3 gas

Share of RES in final consumption of energy (2012) [4]

4,5%

Binding target for the use of renewables [5]

14%

National emission factor (CO2/kWh electricity) (2011) [6]

404 g

Electricity production gross electricity generation Fuel Solid Fuels

2011

2012

TWh

Share

TWh

Share

21,4

18,9%

24,2

24%

Nuclear

4,1

3,7%

3,9

4%

Renewables

12,3

10,9%

12,5

12%

Gases

71,8

63,5%

58,8

57%

Petroleum and Products

1,5

1,3%

1,1

1%

Other

1,9

1,7%

1,8

2%

Total

113,0

100%

102,5

100%

Fuel

kWh

%

Natural gas

54,06

52,74

Coal

24,22

23,63

Table 6.13-1: Electricity mix in the Netherlands 2011 – 2012 [7]

Fossil

Oil

0,03

0,03

Fossil otherwise

82,57

4,15

Subtotal fossil

82,57

80,55

3,91

3,82

Solar energy

0,25

0,25

Hydro

0,10

0,10

Wind

4,98

4,86

Nuclear Renewable

Biomass Subtotal Renewable Total

7,20

7,03

12,54

12,24

102,51

100,00

Focus reports on selected European markets | The Netherlands

121

European Heat Pump Market and Statistics Report 2014

Energy prices Energy prices

Table 6.13-2: Energy prices in the Netherlands 2013 [8 – 10]

€/kWh

Electricity

0,19

Heat pumps (useful energy price)

0,07

Heating oil

0,10

Domestic gas

0,08

Electricity

0,23 €/kWh

Consumers, all taxes included

Gas

0,0665 €/kWh

Consumers, all taxes included

District heating

Often same price per kWh as gas, after correction for gas boiler efficiency

Type of heating

Number

%

Collective heating Block heating

435 978 72 663

6%

Third party heat delivery

District heating

290 652

1%

Subtotal collective heating

799 292

4%

Individual heating Room heating

Table 6.13-3: Housing park by type of heating product, 2012 [11]

217 989

Central heating

6 249 014

3%

Subtotal Individual heating

6 467 003

86%

Total

7 266 295

New dwellings

48 492

0,76%

Table 6.13-3 gives an overview of the housing stock, and heating systems applied therein. Individual gas fired central heating is predominant in the Netherlands. Data related to installed heat pumps is available up to and including 2013 (source Central Bureau of Statistics [1]). (Housing numbers are updated based on RVO reports.) In Table 6.13-4 the development of the total number of heat pumps installed in the time period 1995 – 2012 (all types and sectors) is illustrated, including their impact on fossil fuel consumption and CO2-emission reduction. From 2010 to 2011 a steep rise in heat pump numbers is visible. This can be partly explained by the fact that until 2010 reversible (air/air) heat pumps <10 kW were excluded, because they were supposed to be used for cooling only. In the discussion of the update of the national Protocol Monitoring Renewable Energy it was agreed in 2010 to include these smaller units, because they are reversible systems that can be used for heating quite well. Because the actual use for heating is very uncertain it was decided to use a 50% reduced number of full load hours. Also, since 2011 ambient air based heat pumps are only included it they fulfill certain criteria for the COP. If they do not fulfill the criteria it is assumed that they are not used for heating, but for cooling only. The much smaller increase in installed capacity is in line with the above. NB: In Table 6.13-4, the Installed number of heat pumps in any year(i) is calculated as [installed number in year(i-1)] + [added number in year(i)] – [installed number year(i-15)].

122

Focus reports on selected European markets | The Netherlands

10 000 9 000

Water W ater heating heating Space heating Sp ace h eating

8 000 7 000 6 000 5 000 4 000 3 000 2 000

Figure 6.13-1: Dutch heat pump market developments 2006 – 2013 (excl. a/a units)

1 000

2006

Year

2007

2008

Added number Installed capacity

2009

2010

2011 2011

Added capacity Avoided fossil use

2012

2013

Installed number CO2-emissions avoided

[-]

[MW]

[-]

[MW]

[TJ]

[kton]

553

10

8 470

128

254

11

2000

2 412

38

16 054

224

589

20

2001

2 321

33

17 923

250

650

20

2002

4 897

42

22 366

284

772

24

2003

5 430

74

27 338

352

970

26

1995

2004

7 676

119

35 060

471

1 365

38

2005

7 603

145

42 330

613

1 830

48

2006

11 788

222

53 784

831

2 566

74

2007

15 361

301

67 403

1 111

3 446

91

2008

18 251

382

85 082

1 491

4 622

127

2009

18 918

346

103 600

1 828

5 668

156

2010

16 970

351

120 017

2 170

6 726

185

2011

37 783

385

157 070

2 545

7 888

217

2012

36 635

342

192 405

2 876

8 914

245

2013

32 142

333

222 777

3 197

9 909

272

70 000

Table 6.13-4: Number of heat pumps installed

W ater h eating Water heating Space heating Sp ace h eating

60 000

50 000

40 000

30 000

20 000

10 000

Figure 6.13-2: Heat pumps in operation in The Netherlands 2006

2007

2008

2009

2010

2011 2011

2012

2013

Focus reports on selected European markets | The Netherlands

123

European Heat Pump Market and Statistics Report 2014

10 000 9 000 8 000

Air/water Air/water

7 000 Water/water Water/water 6 000 Brine/water Brine/water 5 000 air Exhaust Exhaust air

4 000 3 000

Sanitary h ot w ater Sanitary hot water

2 000 Reversible (t otal h eat) Reversible (total heat)

Figure 6.13-3: Dutch 2010 – 2013 market by type of heat pump

1 000

2010

2011 2011

2012

2013

Market trends Heat pump type Sanitary hot water

Table 6.13-5: Dutch 2009 – 2013 market by type of heat pump

2009

2010

2011

2012

2013

2012/2013

682

567

456

270

297

10,0%

Brine/water

2 481

2 547

3 945

3 936

1 980

- 49,7%

Water/water

2 572

2 918

1 527

1 324

942

- 28,9%

Air/water

2 613

1 887

3 016

2 954

4 277

44,8%

483

578

386

526

132

- 74,9%

8 831

8 497

9 330

9 010

7 628

- 15,3%

Other Total units sold

Developments Policy recommendations on a national level - National Energy Agreement In the period 2000 – 2010, The Netherlands degraded from a front-running country with advanced energy efficiency to a straggler. Eventually, the Minister of Economic Affairs asked for advice to the SER (Social Economic Council in the Netherlands). At this moment the SER, in cooperation with all market parties involved, is executing a strategic sustainable energy plan, called National Energy Agreement (in Dutch: Energie Akkoord). The ambition is to reach 14% renewables in 2020. The plan is important for heat pumps: 1. Heat pumps get more and more recognition as the primary choice for renewable energy solutions, emission reduction and energy saving in the built environment, and also in the industry. 2. It is expected that the energy tax ratio between gas and electricity, which turns out disastrous for electric heat pump pay-back times, might be dealt with. This could provide for heat pumps the economic level playing field that the technology needs for comparison with conventional energy solutions. As member of the “Renewable Energy Umbrella” (Duurzame Energie Koepel), the foundation which bundles all renewable energy initiatives on macro level and forms the major counterpart for our government on renewable energy issues, DHPA contributes to monitoring and maintaining of the National Energy Agreement.

124

Focus reports on selected European markets | The Netherlands

Heat Pumps and Smart Grids Due to the growing production of renewable electricity (solar, wind), the increasing penetration of heat pumps and the introduction of e-mobility (to mention a few), the dynamic load of the electric grid is changing. The introduction of smartness in the grid is required, to handle the randomness of solar and wind energy. A shift from supply management to demand management is foreseen. Together with the utility grid operators, electricity suppliers and the national government, the DHPA has established a continuous attention to the various issues, which arise in the process of optimising the contribution of heat pumps in smart grids. In the same perspective, DHPA is a member of the Advisory Board of the Dutch knowledge cluster ‘TKI2Smart Grids’, a high grade knowledge development cluster initiated by the Dutch government. In 2013 the DHPA published a positioning paper ‘Heat pumps in Smart grids’. A positioning paper ‘Heat Pumps and Economy’ saw the light in the third quarter of 2013 and became a broadly recognised reference document in short time. Internationally, DHPA is connected to the International Energy Agency (IEA) by means of Annex 42 ‘Heat Pumps in Smart Grids’, which is a 3 year running knowledge dissemination project under the IEA Heat Pump Program, with participants from 10 countries from all over the world. An Annex about hybrid heat pumps is in the preparation stage. EHPA Working Group Gas Heat Pumps (WGTHP) The WG GHP under EHPA should offer clout on a Pan European scale and level to the gas heat pump technology. The bundled forces of companies and institutes such as the gas related national and international acting organizations, component suppliers, manufacturers of gas heat pumps, knowledge institutes etc. etc. should be able to offer a comprehensive approach of all issues which relate to the further roll out gas heat pumps throughout Europe. The startup phase of this Dutch initiative has been completed, and a working programme is now under execution with the participating companies and institutes.

Heat pump related associations In the Netherlands three associations are active in the field of heat pumps: 1. Dutch Heat Pump Association (DHPA), 2. Smart Cooling Foundation (SCF), 3. Association of Suppliers of Air Conditioning Equipment (VERAC). 1. DHPA covers heat pump applications in the domestic market. In the new build segment the most popular heat pumps are brine-to-water (ground coupled) and water-to-water. In most cases these heat pumps are monovalent, sometimes with an electric back-up heating system. Additionally sanitary hot water heat pumps that utilise exhaust air are quite popular in new houses. The retrofit segment is a growing one in the Netherlands. The most popular heat pump system in this sector tends to be a bivalent electric air-to-water heat pump coupled with an (existing) gas boiler (“air” includes both outside air and or ventilation (exhaust) air). The auxiliary heating is provided by the (existing) gasfired boiler. These systems are also referred to as “hybrids” referring to the fact that the bivalent system uses two energy sources: electricity and natural gas. A specific Dutch strength are the exhaust air heat pumps, which are based on frontrunner technology, and find their way to our market in increasing numbers. 2. SCF deals with gas fired heat pumps, both absorption and gas engine driven, both for the domestic and utility market.

Focus reports on selected European markets | The Netherlands

125

European Heat Pump Market and Statistics Report 2014

3. VERAC is primarily focused on air conditioning. As far as AC-equipment is reversible, it is included in heat pump statistics (referred to as “reversible” in the tables above). Since air conditioning is more and more a heat pump, which can also provide cooling, the market of DHPA and VERAC seem to approach each other more and more. An investigation of a more close cooperation between these 2 cooperation’s is running.

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Energy performance coefficient, EPN

Units

Dimensionless Requirements in detail

Single Family Houses

EPN = 0,6

EPN = 0,6

Apartment Blocks

EPN = 0,6

EPN = 0,6

Offices

EPN = 1,1

EPN = 1,1

Educational Buildings

EPN = 1,3

EPN = 1,3

Hospitals

EPN = 2,6

EPN = 2,6

Hotels & Restaurants

EPN = 1,8

EPN = 1,8

Sports facilities

EPN = 1,8

EPN = 1,8

Wholesale and retail trade

EPN = 2,6

EPN = 2,6

Notes/specifications Notes/specifications

The energy performance requirements are expressed in terms of the EPN coefficient factor. In 2015, the EPN requirements will be tightned further (e.g. EPN= 0,4 for residential buildings).

Table 6.13-6: Energy performance requirements in The Netherlands [12]

126

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] Volkshuisvesting informatiesysteem (VOIS) (Ministry of Infrastructure and Environment, The Netherlands). http://vois.datawonen.nl [12] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | The Netherlands

6.14 Norway Key facts Population [1]

5 018 573

Area

385 000 km2

GDP/capita [2]

49 200 €

Capital

Oslo

Number of single/two family houses

1 600 000

Rate of new construction of single/two family houses

10 000

Average heat consumption for all residential buildings [3]

15 – 20 MWh/year

Share of RES in final consumption of energy (2012) [4]

64,5%

National emission factor (CO2/kWh electricity) (2011) [5]

13 g

Electricity mix gross electricity generation Fuel

TWh

Share

TWh

Share

Hydropower stations

121,55

95,2%

142,81

96,7%

Thermal power stations

4,8

3,8%

3,36

2,3%

Wind power stations

1,28

1,0%

1,55

1,0%

Total

127,63

100,0%

147,72

100,0%

Energy prices

€/kWh

Electricity

10,18

2011

Gas

0,03

Pellets

0,03

District Heating

0,07

2012

Table 6.14-1: Electricity mix in Norway 2013 [6]

Table 6.14-2: Energy prices in Norway [7]

Present market situation Like for many other European countries the heat pump market in Norway developed after the first oil crisis in the 1970s. The 1980s saw a government-funded programme to support the introduction of heat pumps. The main emphasis was on commercial heat pumps and industrial heat pumps. Many of these heat pumps are still working properly after many years of operations. The households in Norway are mainly heated with direct electricity and electricity prices have been very low in Norway during the post war period up to the 2000s. There were just a few pioneers who installed heat pumps in private homes during the 1980s and 1990s. The production of hydropower in Norway varies from 90 to 150 TWh per year, depending on weather conditions. Normal consumption is about 120 TWh. Electricity supply in Norway, with indigenous production being dependent on weather conditions, benefits from connections to countries having power generation based on nuclear power, natural gas, coal or oil. The disadvantage for Norwegian consumers is that electricity prices rise significantly when it is necessary to import electricity. The market for heat pumps decreased in 2013 by 7,2% from 2012 to 62 496 units (table 6.14-3). Most households in Norway have no hydronic heat distribution system. The most obvious and popular type of heat pump is therefore air-to-air heat pumps. These heat pumps have an installation cost of about 2 500 Euro and save 5 000 – 8 000kWh a year. In recent years installations with low temperature output have become more popular, and most houses that install this technology choose a heat pump as heat source. More than 30% of single-family houses in Norway have a heat pump.

Focus reports on selected European markets | Norway

127

European Heat Pump Market and Statistics Report 2014

100 000 ace h eating Sp Space heating 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000

Figure 6.14-1: Norwegian heat pump market development 2005–2013

10 000

2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

In 2013 the total heat pump sales in Norway were 62 496 units where 56 290 units were air-to-air heat pumps, 2 733 units were air-to-water heat pumps and 2 977 units were brine-to-water heat pumps (figure 6.14-3). In addition there is a small market for ventilation air heat pumps and VRF/VRV heat pumps. For the future we expect a higher penetration of heat pumps in larger buildings, where more insulation is reducing the need for heating and increasing the need for cooling.

Market trends Heat pump type

2009

2010

2011

2012

2013

2012/2013

724

227

473

316

496

57,0%

Brine/water

3 532

2 863

3 677

3 211

2 977

- 7,3%

Air/water

4 154

3 530

2 914

2 806

2 733

- 2,6%

Exhaust air

Table 6.14-2: Sales of heat pumps in Norway 2009 – 2013

Reversible (total heat)

75 626

87 222

76 394

61 041

56 290

- 7,8%

Total units sold

84 036

93 842

83 458

67 374

62 496

- 7,2%

700 000 Space heating Sp ace h eating 600 000

500 000

400 000

300 000

200 000

Figure 6.14-2: Heat Pumps in operation in Norway (installed since 2005)

100 000

2005

128

2006

2007

2008

2009

Focus reports on selected European markets | Norway

2010

2011 2011

2012

2013

100 000 90 000 80 000 Air/water Ai r/water 70 000 60 000

Bri ne/water Brine/water

50 000 40 000

Exh aust air ai r Exhaust

30 000 20 000

R eversible (t otal h eat) Reversible (total heat)

Figure 6.14-3: Norwegian 2010 – 2013 market by type of heat pump

10 000

2010

2011 2011

2012

2013

Brand names Some of the most significant brand names in the Norwegian market are listed in alphabetical order below. Ground source – water/water heat pumps: CTC, Glen Dimplex, IVT, NIBE, Thermia, Vaillant, Qvantum. Air/water heat pumps: CTC, Daikin, Glen Dimplex, Fujitsu, IVT, LG, Mitsubishi Electric, NIBE, Panasonic, Sanyo, Qvantum, Thermia, Vaillant. Air/air heat pumps: Daikin, Carrier, Fujitsu, IVT, Toshiba, LG, Mitsubishi Electric, Mitsubishi Heavy Industry, Panasonic, Sanyo. Exhaust air heat pumps: IVT, NIBE, NILAN.

Distribution channels Wholesalers and retailers.

National industry associations Industry is represented by the Norwegian heat pump association (Norsk Varmepumpeforening or NOVAP), which was established in 1991 by distributors and installers. Today, the Association has two employees and is working on training and education, public information and the creation of a political framework for the heat pump industry.

Institutional and financial support The Norwegian Government has established a public company Enova SF to support renewable energy and energy efficiency in Norway. Enova gives a subsidy of 1 100 Euro for private households who install a ground source or air-to-water heat pump system in houses with a hydronic distribution system. If you remove an oil burner in a household and replace it with a heat pump you receive about 3 000 Euro in subsidy. There are no subsidies for air-to-air heat pumps. For commercial buildings and industrial heat pumps you can receive a financial support with a limitation on return on investment, which means that not all heat pumps get financial support. In new buildings larger than 500 square meters it is required that more than 60% of heat demand comes from a renewable heat source.

Focus reports on selected European markets | Norway

129

European Heat Pump Market and Statistics Report 2014

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum energy demand

Maximum energy demand

Energy type if applicable

Useful energy

Useful energy

Units

kWh/m2 per year

kWh/m2 per year

Requirements in detail Single Family Houses

120 + 1600/A for single family houses apply to small houses, included holiday homes with 150 m2 heated floor area or more, where A is heated floor area

120 + 1600/A for single family houses apply to small houses, included holiday homes with 150 m2 heated floor area or more, where A is heated floor area

Apartment Blocks

115 140 for day nurseries

115 140 for day nurseries

Offices

150

150

Educational Buildings

120 for schools

120 for schools

160 for universities

160 for universities

300 for hospitals

300 for hospitals

330 for hospitals (when the heat recovery of ventilation air may rise concerns on spreading contaninants/infections)

330 for hospitals (when the heat recovery of ventilation air may rise concerns on spreading contaninants/infections)

Hospitals

215 for nursing homes

215 for nursing homes

250 for nursing homes (when the heat recovery of ventilation air may rise concerns on spreading contaninants/infections)

250 for nursing homes (when the heat recovery of ventilation air may rise concerns on spreading contaninants/infections)

Hotels & Restaurants

220 for hotels only

220 for hotels only

Sports facilities

170

170

Wholesale and retail trade

210 for commercial buildings

210 for commercial buildings

Notes/specifications Notes/specifications

Only when the purpose or use of the building is changed, or when retrofitting by the municipal authorities is considered to be so extensive that the building is fundamentally renewed (main reconstruction)

Table 6.14-4: Energy performance requirements Norway [8]

130

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP - Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [6] Production of electric energy - Statistics Norway: www.ssb.no/en [7] Electricity prices, Q1 2014, taxes included - Statistics Norway: www.ssb.no/en [8] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Norway

6.15 Poland Key facts Population [1]

38 535 873

Area

312 600 km2

GDP/capita [2]

17 500 €

Capital

Warsaw

Number of single/two family houses

6 000 000

Average heat consumption for all residential buildings

25 – 35 MWh/year

Average heat consumption in new residential buildings [3]

15 – 20 MWh/year

Share of RES in final consumption of energy (2012) [4]

11,0%

Binding target for the use of renewables [5]

15%

National emission factor (CO2/kWh electricity) (2011) [6]

780 g

Electricity mix gross electricity generation Fuel

TWh

Share

TWh

Share

Solid Fuels

2011

2012

139,9

85,5%

134,7

83%

Nuclear

0,0

0,0%

0,0

0%

Renewables

13,6

8,3%

17,3

11%

7,4

4,5%

8,1

5%

Gases Petroleum and Products

2,5

1,5%

2,1

1%

Other

0,3

0,2%

0,1

0%

Total

163,6

100%

162,1

100%

Energy prices

€/kWh

Electricity

0,15

Heat pumps (useful energy price)

0,05

Heating oil

0,09

Domestic gas

0,05

Pellets (sack delivery)

0,07

Pellets (bulk delivery)

0,06

District Heating

0,08

Table 6.15-1: Electricity mix in Poland 2013 [7]

Table 6.15-2: Energy prices in Poland 2013 [8 – 10]

Present market situation The heat pump market in Poland has been continuously growing in recent years as well as in 2013 according to the market research carried out by PORT PC. Despite a lack of support for heat pumps in 2013 there was over 15 000 units of all types sold in Poland what gives approximately 20% growth in comparison with 2012. The current penetration of heat pumps in Polish single-family houses is still at the low level because of several barriers. The biggest challenge is the recognition and acceptance of heat pumps amongst the general public and especially authorities. In 2013 there was no national incentives for heat pumps. The lack of clear recognition of heat pumps as devices using renewable energy was an obstacle and major barrier in seeking support from policymakers. The situation can change from 2014 as in April this year the Polish Ministry of Economy published a Decision on the method of calculating final gross energy consumption from renewable sources and the amount of electricity and heat from such sources. This Decision is the first unambiguous document in Polish law,

Focus reports on selected European markets | Poland

131

European Heat Pump Market and Statistics Report 2014

16 000

ater h eating Water heating W ace h eating Space Sp heating

14 000

12 000

10 000

8 000

6 000

4 000

Figure 6.15-1: Polish heat pump market development 2010–2013

2 000

2010

2011 2011

2012

2013

according to which a substantial part of heat provided by heat pumps is derived from renewable sources. In 2013 half of the total amount of heat pumps sold are units dedicated for sanitary hot water (7 800 sanitary hot water heat pumps sold). This result seems to be nothing unusual, as this type of heat pumps became quite popular in recent years mainly because of competitive price. Ground source heat pumps are still an important part of the market. Its sales level remained almost the same as in 2012 (4 640 units sold in 2013). In third place, in terms of sales on the Polish heat pump market in 2013, we can find air source heat pumps with approximately 2 119 units sold. In recent years an increasing trend can be observed in air source heat pumps mainly due to lower initial costs and technology development.

Market trends As can be noticed in the table 6.15-3, the total market showed an increase of sales in 2013 with over 15 000 units sold. This gives a rise of the market by almost 20% comparing to previous year. It was one of the best results in European markets however it should be noted that the size of the market is much smaller in comparison with other developed heat pump markets. Definitely it has big potential and it is supposed to grow systematically in next years. The most significant trend visible in given numbers is strong growth of sanitary hot water heat pumps, which constitute approximately half of the total number of units sold. SHW heat pumps noted not only the highest number of units, but also the largest percentage increase in 2013 (+39,3%). Low price and simplicity of installation seem to be the main reasons for that. Ground source heat pumps are still one of the most popular types of heat pump for building heating because of its high efficiency. 4 640 units sold in 2013 is slightly higher number in comparison to 2012. Air/water heat pumps, both monobloc and split systems, become more popular especially in new single-family houses. Those buildings are very often located in cities or suburbs where there is no possibility for installing ground collector because of the lack of space. Over 26% increase in 2013 of that heat pump type clearly shows growing trend, which should remain similar in next years. Most of the heat pumps sold in Poland are units with low capacity (6 – 12 kW), however it has been observed that there is more interest in large capacity units used for offices, multi-family buildings, religious and industrial objects.

132

Focus reports on selected European markets | Poland

50 000

W ater h eating Water heating Space heating Sp ace h eating

45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000

Figure 6.15-2: Heat pumps in operation in Poland 2010

2011 2011

2012

2013

Introducing in the Spring of 2014 in Polish law the document which states that heat pumps are using renewable energy should have a positive impact on the heat pumps market in 2014. According to that the predictions are that Polish heat pump market will note an increase in 2014 as well. Heat pump type Sanitary hot water

2010

2011

2012

2013

2012/2013

2 060

4 500

5 600

7 800

39,3%

95

105

155

Exhaust air Direct expansion Brine/water Water/water Air/water

620

220

342

366

7,0%

3 050

3 825

4 100

4 115

0,4%

450

250

145

136

-6,2%

1 200

940

1 280

1 705

33,2%

Reversible (total heat)

770

770

934

939

0,5%

Air/water

300

300

400

414

3,5%

Brine/water

470

470

534

525

-1,7%

30

12

10 640

12 568

15 061

19,8%

Other Total units sold

8 245

Table 6.15-3: Sales of heat pumps in Poland 2010 – 2013

16 000

14 000 Air/water Air/water 12 000 Water/water Water/water 10 000

Brine/water Brine/water Direct expansion expansion Direct

8 000

Exhaust air air Exhaust

6 000

ot w ater Sanitary Sanitary h hot water 4 000 Air/water Air/water Reversible

2 000

Brine/water Brine/water

2010

2011 2011

2012

Figure 6.15-3: Polish 2010–2013 market by type of heat pump

2013

Focus reports on selected European markets | Poland

133

European Heat Pump Market and Statistics Report 2014

Costs Table 6.15-4: Typical heat pump end consumer prices for Poland

Average cost

Air/air

Air/water

GSHP (Horizontal)

GSHP (Vertical)

Domestic hot water

Euro

5 000 – 9 000

8 000 – 12 000

10 000 – 15 000 12 000– 18 000 2 000–3 000

Brand names Most significant brand names present on the Polish market are listed in alphabetical order below. Ground source heat pumps: Alpha InnoTec, Buderus, Danfoss, De Dietrich, Dimplex, Fonko, Hibernatus, Hoval, IVT, Junkers, Nateo, Ochsner, NIBE, Sofath, Stiebel-Eltron, Vaillant, Vatra, Viessmann. Air/water heat pumps: Alpha-InnoTec, Danfoss, Daikin, De Dietrich, Euronom, Fonko, Fujitsu, Hewalex, IVT, LG, Mitsubishi, NIBE, Panasonic, Rotex, Sanyo, StiebelEltron, Vaillant, Viessmann. Air/air heat pumps: Daikin, IVT, LG, Mitsubishi Exhaust air heat pumps: Buderus, Dimplex, Hewalex, NIBE, Viessmann

Distribution channels Distribution in Polish heat pump market is dominated by wholesalers and dedicated retail networks. Additionally, air to air heat pumps are offered at construction material stores and online stores.

National industry associations There are two national heat pump associations in Poland: Polish Organization of Heat Pump Technology Development (Polska Organizacja Rozwoju Technologii Pomp Ciepła, PORT PC) was formed in 2011, has approximately 50 members representing the vast majority oft he market in Poland. In 2012 PORT PC became a member of the European Heat Pump Association EHPA. PORT PC members are representatives of heat pump and component manufacturers, universities and other institutions with an interest in heat pump industry. The Polish Heat Pump Association (Polskie Stowarzyszenie Pomp Ciepła, PSPC) was formed in 2002, has approximately 30 members and has been a member of European Heat Pump Association since 2006. The members comprise scientists, designers, and installers.

Training and certification Polish Organization of Heat Pump Technology Development (PORT PC) has established EUCERT trainings in Poland. Trainings for installers are available from spring 2014. It is planned to train and certify approximately 120 installers every year. Additionally, manufacturers carry out internal trainings for heat pump installers.

Product label It is planned to establish EHPA Quality Label for heat pumps in the end of 2014 in Poland.

134

Focus reports on selected European markets | Poland

Incentive schemes The European Union subsidies As Poland is a member of the European Union, Polish traders, institutes, farmers etc. may benefit from subsidies for heat systems based on RES (including heat pump systems). All of the investments should be connected with their trading, economic, enterprise activity. PROSUMENT Programme – The National Fund for Environmental Protection and Water Management The National Fund has been operating since 1st July 1989 and was established on the basis of an amended Act concerning environmental protection – enacted on 27 April 1989. Recently it introduced a subsidies programme called PROSUMENT which includes support for micro and small installations (up to 300 kW for heat and up to 40 kW for electricity production). According to latest regulations of the programme, in order to receive a subsidy a requirement is to produce electricity. It means that one can still receive support for heat pump, but in combination with e.g. PV system. In this form the programme supports mainly photovoltaics industry. In the PROSUMENT programme there will be support in form of subsidized loan with 1% interest rate and subsidy of 20/40% of qualified costs (15/30% from 2016). The programme launches in 2014. Environmental Protection Bank (Bank Ochrony S´rodowiska S.A. – BOS) The Environmental Protection Bank (BOS) is a universal, commercial bank specializing in financing activities connected with environmental protection and water management. Soft loans are provided for projects with real environmental benefit, including utilization of renewable sources of energy and heat (geothermal, solar, photovoltaic, heat pumps and the usage of waste).

Policy recommendations Polish heat pump industry recommendation is to implement the RES Directive by Poland as the deadline expired at the end of 2010. Not only heat pump industry but whole renewable energy sector is looking forward for the implementation of the Directive in Polish law.

Smart grids Polish authorities currently do not see the connection between heat pump technology and smart grid systems. There are no big projects regarding that topic.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] Central Statistical Office Poland, www.stat.gov.pl [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202)

Focus reports on selected European markets | Poland

135

European Heat Pump Market and Statistics Report 2014

6.16 Portugal Key facts Population [1]

10 514 844

Area

92 090 km2

GDP/capita [2]

19 400 €

Capital

Lisbon

Number of single/two family houses and dwellings in multi-dwelling buildings (2011)

5 865 390

Number of non-residential buildings

24 907

Rate of new construction of single/two family houses [3]

56%

Share of RES in final consumption of energy (2012) [4]

24,6%

Binding target for the use of renewables [5]

31%

National emission factor (CO2/kWh electricity) (2011) [6]

303 g

Electricity mix gross electricity generation Fuel

Table 6.16-1: Electricity mix in Portugal 2013 [7]

2012 Share

TWh

Solid Fuels

9,9

18,8%

13,1

28%

Nuclear

0,0

0,0%

0,0

0%

Share

Renewables

24,7

47,1%

20,4

44%

Gases

14,9

28,4%

10,7

23%

Petroleum and Products

2,7

5,1%

2,2

5%

Other

0,3

0,6%

0,3

1%

Total

52,5

100%

46,6

100%

Energy prices

Table 6.16-2: Energy prices in Portugal 2013 [8 – 10]

2011 TWh

€/kWh

Electricity

0,20

Heat pumps (useful energy price)

0,07

Heating oil

0,13

Domestic gas

0,07

Pellets (bulk delivery)

0,08

Present market situation and market trends Sales in Portugal have been decreasing since 2010. However in 2013 we can see a growth of 16,3%, which indicates market stabilization. The main share of heat pump sales take reversible units that counts for 91,7% of the total heat pump sales, amounting in a total of 9 222 units. Sales of reversible units increased by 17,5% overall, this growth is mainly triggered by increased sales of air/air units amounting to 6 817 units. Sanitary hot water units also faced an increase with a growth of 29,5% and a total of 593 units. Developments on the Portuguese heat pump market are to be found in Figures 6.16-1 to 6.16-3.

136

Focus reports on selected European markets | Portugal

20 000 18 000

W ater h eating Water heating Sp ace h eating Space heating

16 000 14 000 12 000 10 000 8 000 6 000 4 000

Figure 6.16-1: Portuguese heat pump market developments 2005 – 2012

2 000

2005

90 000

2006

2007

2008

2009

2010

2011 2011

2012

2013

Water heating W ater h eating Space heating Sp ace h eating

80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000

Figure 6.16-2: Heat pumps in operation in Portugal 2005

2006

Heat pump type Sanitary hot water

2007

2009

2008

2009

2010

2010

2011

2011 2011

2012

2012

2013

2013

2012/2013

53

374

475

458

593

29,5%

Reversible (total heat)

11 607

17 934

13 404

7 845

9 222

17,5%

Air/air (with main heating function)

8 365

12 534

10 235

5 247

6 817

29,9%

Air/water Brine/water VRF Other Total units sold

223

748

376

519

437

-15,8%

2 474

405

24

39

24

-38,5%

545

4 247

2 768

2 040

1 943

-4,8%

7

71

271

338

234

72,1%

11 667

18 379

14 150

8 641

10 049

16,3%

Focus reports on selected European markets | Portugal

Table 6.16-3: Sales of heat pumps in Portugal 2009 – 2013

137

European Heat Pump Market and Statistics Report 2014

20 000 18 000 Air/water Air/water

16 000 14 000

Sanitary h ot w ater Sanitary hot water

12 000 Air/air (with (with ma in Air/air main heating ffunction) unction) heating

10 000

VR VRF F

8 000 6 000

Reversible

Air/water Ai r/water

4 000 Brine/water ne/water Bri

Figure 6.16-3: Portugal 2010 – 2013 market by type of heat pump

2 000

2010

2011 2011

2012

2013

Brand names Many European heat pump manufacturers have established their presence in the Portuguese market in recent years; the market however is quite fragmented without one dominant player.

Distribution channels The principal routes to market are through distributors and installers, with only a very small percentage of sales through direct channels, online, web stores and specialized outlets, etc.

Incentive schemes and heat pump related legislation Concerning heat pumps for space heating and cooling, there are no benefits or incentives at national level. However, some discussions are currently underway, which may change this situation by recognizing and rewarding the renewable energy contribution of heat pump technology.

Energy performance requirements See next page.

Sources [1] Population 2012 –- World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] QUERCUS: www.quercus.pt/comunicados/2013/janeiro/ 782-apren-e-quercus-analisam-dados-da-producao-de-eletricidade-em-2012; INE: www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_main [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures - Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub

138

Focus reports on selected European markets | Portugal

New buildings General information Quantity expressing energy performance

Maximum energy demand

Energy type if applicable Useful energy End uses considered

Heating, cooling, ventilation

Definitions of relevant parameters

GD denotes the degree days FF a ratio between the sum of the areas of the outer envelope (Aext) and inner (Aint) of the building or building unit with thermal requirements and its interior volume (V).

Units

kWh/m2 per year Requirements in detail

Single Family Houses

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Apartment Blocks

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Offices

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Educational Buildings

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Hospitals

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Hotels & Restaurants

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Sports facilities

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5

Wholesale and retail trade

Ni = 4,5 + 0,0395 GD for FF < 0,5 Ni = 4,5 + (0,021 + 0,037 FF) GD for 0,5 < FF < 1 Ni = [4,5 + (0,021 + 0,037 FF) GD] (1,2 – 0,2 FF) for 1 ‹ FF < 1,5 Ni = 4,05 + 0,068 85 GD for FF › 1,5 New buildings

Notes/specifications

For a small building the following values apply: 52 – 117 for heating 18 for cooling 38,9 for DHW

Focus reports on selected European markets | Portugal

Table 6.16-4: Energy performance requirements Portugal [11]

139

European Heat Pump Market and Statistics Report 2014

6.17 Slovakia Key facts Population [1]

5 407 579

Area

49 000 km2

GDP/capita [2]

19 600 €

Capital

Bratislava

Number of single/two family houses

900 000

Number of dwelling in multi-dwelling buildings

1 000 000

Number of non-residential buildings

14 525

Rate of new construction of single/two family houses

7 300

Average heat consumption single/two family house [3]

18 – 22 MWh/year

Share of RES in final consumption of energy (2012) [4]

10,4%

Binding target for the use of renewables [5]

14%

National emission factor (CO2/kWh electricity) (2011) [6]

200 g

Energy mix gross electricity generation Fuel

TWh

Share

3,6

12,4%

3,4

12%

15,4

53,8%

15,5

54%

5,4

18,7%

5,8

20%

Gases

3,6

12,7%

3,3

12%

Petroleum and Products

0,6

2,1%

0,5

2%

Nuclear Renewables

Other

0,1

0,3%

0,0

0%

Total

28,7

100%

28,7

100%

Energy prices

Table 6.17-2: Energy prices in Slovakia 2013 [8 – 11]

2012 Share

Solid Fuels

Table 6.17-1: Electricity mix in Slovakia 2011 – 2012 [7]

2011 TWh

€/kWh

Electricity

0,17

Heat pumps (useful energy price)

0,06

Domestic gas

0,05

Pellets (sack delivery)

0,04

Pellets (bulk delivery)

0,04

District Heating

0,07

Present market situation The market for domestic heat pumps in Slovakia is quite limited primarily due to the existence of a dense gas network. The technology is however slowly reaching a level of recognition and acceptance amongst the general public. Heat pumps present an interesting alternative in the new build sector, but are less attractive in the retrofit segment. As with many other markets, the general economic downturn adversely affected the rate of new construction in the building sector in recent times, and so the Slovak heat pump market has stagnated since 2011. Currently, there is no support scheme in order to stimulate heat pump sales. A new incentive scheme for small energy sources, where heat pumps are included, is in preparation. The current challenge for the Slovak heat pump market is to overcome the barriers set by the economic situation and a general resistance to any changes in heating

140

Focus reports on selected European markets | Slovakia

900

heating Water W ater heating ace h eating Space heating Sp

800 700 600 500 400 300 200 100

Figure 6.17-1: Slovakian heat pump market development 2009 – 2013 2009

4 000

2010

2011 2011

2012

2013

W ater h eating Water heating Space heating Sp ace h eating

3 500

3 000

2 500

2 000

1 500

1 000

500

Figure 6.17-2: Slovakian 2009 – 2013 market by type of heat pump 2009

2010

2011 2011

2012

2013

systems. The economically profitable investments are multi-dwelling buildings after disconnecting to central heat supply, supermarkets and aqua parks.

Market trends The figure on heat pump market development shows a peak in the year 2010 and a decline in the year 2011, caused by higher purchase of Heat Pumps in the year 2010, which were installed later in the year 2011. Taking into account later installations, the overall trend that can be observed is that heat pumps sale continued to grow, but after 2010 the growth was slower. It was caused by economic situation. People were more careful with higher investments, getting them to deficit budget. In 2013 we are facing a growth of 22,3% amounting into 861 units, which is comparable to sales in 2010. It is reasonable to forecast a growing share mainly of air/water, and then brine/water, and water/water systems in the new construction sector, based on favorable climatic conditions in many locations in Slovakia. The market growth is expected also in 2014.

Focus reports on selected European markets | Slovakia

141

European Heat Pump Market and Statistics Report 2014

20 000 18 000 Air/water Air/water

16 000 14 000

Sanitary h ot w ater Sanitary hot water

12 000 Air/air (with (with ma in Air/air main heating ffunction) unction) heating

10 000

VR VRF F

8 000 6 000

Reversible

Air/water Ai r/water

4 000 Brine/water ne/water Bri

Figure 6.17-3: Slovakian 2010 – 2013 market by type of heat pump

2 000

2010

2011 2011

Heat pump type

2012

2013

2009

2010

Exhaust air

30

41

Brine/water

140

220

Water/water

50

90

270

380

55

114 100

Sanitary hot water

Air/water Reversible (total heat) Air/water

Table 6.17-3: Sales of heat pumps in Slovakia 2009 – 2013

2011

2012

2013

2012/2013

11

11

11

0,0%

4

11

19

72,7%

147

145

143

-1,4%

72

100

90

-10,0%

226

136

216

58,8%

50

290

361

24,5%

41

256

300

17,2%

20

20

0,0%

Brine/water

10

VRF

45

14

9

14

41

200,0%

Other

10

14

19

11

21

90,9%

555

859

529

704

861

22,3%

Total units sold

Air/water heat pumps are installed in new houses with limited space and are generally replacing or complementing electric or gas boilers. The ground source segment is completely dominated by horizontal indirect systems. Vertical systems do exist but are restricted in use due to the significant higher cost demands and legislation requirements. It is expected that skewed vertical systems for drilling up to 30m will become more prevalent. Water/water heat pump systems are more successful in environments where a combination with air-conditioning systems is required.

Costs Table 6.17-4: Typical end consumer prices for turnkey solutions in Slovakia

Euro

Air/air

Air/water

GSHP – horizontal

GSHP – vertical

Domestic hot water

6 000 – 9 000

9 000

11 000

14 000

2 900

Average end consumer prices, including VAT, for a turnkey installation in single family houses are in the range of € 6 000 to € 15 000 depending on the type and capacity of the heat pump. The turnkey solutions include everything to fully commission the installation – i.e. the heat pump, auxiliary equipment, material and labor costs.

142

Focus reports on selected European markets | Slovakia

Brand names Domestic producers of heat pumps: Fiving s.r.o. Liptovsk´y Mikuláš, Wamak s.r.o. Banská Štiavnica, Tatramat a.s. Poprad, Al Trade s.r.o. Trstena, Jares Zlaté Moravce Some of the most significant brand names existing on the Slovak market are listed in alphabetical order below. Ground source heat pumps: IVT, Mygren, NIBE, Stiebel-Eltron, Wamak, Viessmann Water/water heat pumps: Dimplex, IVT, Mach, Mygren, Stiebel Eltron, Viessmann, Wamak Air/water heat pumps: Carrier, Daikin, Dimplex, Fiving, IVT, Mach, Mygren, NIBE, Panasonic, PZP, Samsung, Toschiba, Viessmann, Wamak Exhaust air heat pumps: Fiving, Tatramat

Distribution channels Dedicated retail networks and wholesalers dominate the heat pump market. Nonetheless, for the last couple of years, air/air heat pumps have been offered by construction material stores, mail-order firms and web-stores.

Industry infrastructure There are five small manufactures, more than 20 distributors of heat pumps, more than sixty certified heat pump installers and ca 20 certified companies in Slovakia. Map of installed heat pumps is on www.szchkt.org

National industry associations The Slovak Association for Cooling and Air-conditioning Technology (Slovensk´y zväz pre chladiacu a klimatizacˇnú techniku or SZ CHKT), formed in 1993, has approximately 690 members. The members consist of manufacturers and importers, installers, and other companies with an interest in the RAC and heat pump industry. The association serves as the official voice for the heat pump industry at national level together with the Slovak Technical University in Bratislava.

Training and certification of installers and companies Training according to the European Certified Heat Pump Installer scheme, accredited by Ministry of Education is already in place comprising the electronic certification of companies via the www.szchkt.org.

Incentive schemes Currently there is no incentive scheme for heat pump installations in Slovakia. New incentive scheme for small energy sources, where heat pumps are included, is in preparation. It is supposed to start by the end of 2014.

Smart grid There are three projects aimed to electricity production using RES. Heat pumps are mentioned in these projects, but they have not been assigned an important role so far.

Focus reports on selected European markets | Slovakia

143

European Heat Pump Market and Statistics Report 2014

Energy performance requirements New buildings

Existing/renovated buildings

General information Units

- Dimensionless

- Dimensionless

- kWh/m2 per year

- kWh/m2 per year

Requirements in detail Single Family Houses

-B - 160

-B - 160

Apartment Blocks

-B - 126

-B - 126

Offices

B

B

Educational Buildings

B

B

Hospitals

B

B

Hotels & Restaurants

B

B

Sports facilities

B

B

Wholesale and retail trade

B

B

Notes/specifications Notes/specifications

Table 6.17-5: Energy performance requirements Slovakia [12]

For major renovated, the requirements apply only if it is technically, functionally and economically possible.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] Data from SZ CHKT [12] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

144

Focus reports on selected European markets | Slovakia

6.18 Spain Key facts Population [1]

46 761 264

Area

505 963 km2

GDP/capita [2]

24 500 €

Capital

Madrid

Number of single/two family houses

1 500 000

Number of dwelling in multi-dwelling buildings [3]

24 000 000

Share of RES in final consumption of energy (2012) [4]

14,3%

Binding target for the use of renewables [5]

20%

National emission factor (CO2/kWh electricity) (2011) [6]

291 g

Energy mix gross electricity generation Fuel Solid Fuels

2011

2012

TWh

Share

TWh

43,8

15,0%

55,1

Share 19%

Nuclear

57,7

19,8%

61,5

21%

Renewables

88,5

30,3%

90,6

30%

Gases

85,7

29,4%

74,2

25%

Petroleum and Products

15,2

5,2%

15,3

5%

Other Total Energy prices

0,9

0,3%

0,7

0%

291,8

100%

297,6

100%

Table 6.18-1: Electricity mix in Spain 2011 – 2012 [7]

€/kWh

Electricity

0,22

Heat pumps (useful energy price)

0,08

Heating oil

0,09

Domestic gas

0,07

Table 6.18-2: Energy prices in Spain 2013 [8 – 10]

Present market situation The evolution of Spanish market for compressor driven machines, chillers and reversible units, in comparison to the preceding year is shown in the following table. Heat pump type

2010

2011

2012

2013

2012/2013

Sanitary hot water

257

282

667

136,5%

Water/water

387

511

246

-51,9%

Air/water

2 090

Reversible (total heat)

70 489

71 765

49 625

51 738

4,3%

Air/air (with main heating function)

57 082

58 587

48 251

49 274

2,1%

1 374

2 464

79,3%

Air/water VRF Total units sold

3 259

5 136

10 148

8 042

70 489

74 499

50 418

52 651

4,4%

Table 6.18–3: Spanish heat pump 2010 – 2013 market

In the commercial sector in Spain, heat pumps are the primary source for heating, whilst residential/domestic dwellings are generally equipped with small gas boilers for single family houses, and central heating systems for larger buildings. The use of air/air reversible heat pumps for heating applications is still quite limited.

Focus reports on selected European markets | Spain

145

European Heat Pump Market and Statistics Report 2014

80 000

eating Water heating W ater h eating Space Sp ace h heating

70 000

60 000

50 000

40 000

30 000

20 000

Figure 6.18-1: Spanish heat pump market development 2010 – 2013

10 000

2010

300 000

2011 2011

2012

2013

2011 2011

2012

2013

W Water heating ater h eating Space heating Sp ace h eating

250 000

200 000

150 000

100 000

50 000

Figure 6.18-2: Heat pumps in operation in Spain 2010

On the total sales the percentage of reversible units sold in the residential/ domestic sector is in excess of 95 %. In the commercial sector this figure is approximately 75% (up to 100 kW). For capacity ranges from 100 up to 700 kW, the percentage declines to about 50%. In the South and on the Mediterranean coast however, air/air heat pumps are used extensively as the primary source of heating and cooling, often combined with electric heaters. Ground source heat pump applications are expanding, however the cost is still very high and the return of investment period is too long to be afforded by ordinary consumers.

Brand names Airlan, Airwell, Carrier, Ciat, Clivet España, Daikin, Daitsu, Eurofred, Fagor, Férroli, Frigicoll, Haier, Hitachi, Hitecsa, Hiyasu, Johnson Controls, Lennox Refac, LG, Lumelco, Mcquay, Mitsubishi Electric, Olimpia, Panasonic, Samsung, Saunier Duval, Schako, Sedical, Sharp, Tecnivel, Tecnosakura, Termoven, Top Clima, Toshiba, Trane Aire Acondicionado.

146

Focus reports on selected European markets | Spain

80 000

70 000 Air/water Air/water 60 000 Water/water Water/water 50 000 Sanitary h ot w ater Sanitary hot water 40 000 in Ai Air/air r/air (with (with ma main unction) h heating eating ffunction)

30 000 Reversible

20 000

VR F VRF

Ai r/water Air/water

10 000

2010

2011 2011

2012

Figure 6.18-3: Spanish 2010 – 2013 market by type of heat pump

2013

Distribution channels Residential and domestic: 27% of the market is covered by installers, 46% by distributors and 30% by commercial centers, department stores, specialized shops, etc. Commercial and tertiary: Mainly through installers.

Industry infrastructure Ciat, Fagor, Férroli, Hitachi, Hitecsa, Johnson Controls, Lennox Refac, Tecnivel and Termoven among others have manufacturing facilities, of different sizes and types of production in Spain. Some other well known companies like: Airwell, Carrier, Daikin, Haier, LG, Mitsubishi, Samsung, Sharp, Toshiba, etc. are directly involved in the Spanish market with their own commercial infrastructure and sales team.

National industry association AFEC, Air Conditioning Equipment Manufacturers Association of Spain, is a nonfor-profit association, constituted in the year 1977, to represent and defend the professional interests of the manufacturers of the air conditioning sector.

Incentives schemes and heat pump related legislation There are some incentives schemes in the planning phase to assist in the promotion of ground source heat pumps. So far, nothing is foreseen at national level for air source heat pumps.

Energy performance requirements New buildings Notes/specifications Notes/specifications

No requirements in terms of energy performance exist. Instead there are requirements on - Limiting energy demand (maximum thermal transmittance, condensation control and air permeability of the windows and doors) - Performance of heating/cooling systems - Performance of lighting systems - Renewables (solar water heater, PVs)

Focus reports on selected European markets | Spain

Table 6.18-4: Energy performance requirements Spain [11]

147

European Heat Pump Market and Statistics Report 2014

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

148

Focus reports on selected European markets | Spain

6.19 Sweden Key facts Population [1]

9 519 374

Area

450 000 km2

GDP/capita [2]

32 700 €

Capital

Stockholm

Number of single/two family houses

1 896 000

Number of dwelling in multi-dwelling buildings

2 502 000

Number of non-residential buildings

58 400

Rate of new construction of single/two family houses

6 500

Average heat consumption single/two family house [3]

20 – 25 MWh/year

Share of RES in final consumption of energy (2012) [4]

51,0%

Binding target for the use of renewables [5]

49%

National emission factor (CO2/kWh electricity) (2011) [6]

17 g

Energy mix gross electricity generation Fuel Solid Fuels

2011

2012

TWh

Share

TWh

Share

1,3

0,8%

0,9

1%

Nuclear

60,5

40,2%

64,0

38%

Renewables

84,2

56,0%

98,4

59%

Gases

2,3

1,5%

1,3

1%

Petroleum and Products

0,8

0,5%

0,7

0%

Other Total

1,4

0,9%

1,3

1%

150,4

100%

166,6

100%

Energy prices

€/kWh

Electricity

0,21

Heat pumps (useful energy price)

0,08

Heating oil

0,14

Domestic gas

0,12

Pellets (sack delivery)

0,07

Pellets (bulk delivery)

0,07

District Heating

0,10

Table 6.19-1: Electricity mix in Sweden 2011 – 2012 [7]

Table 6.19-2: Energy prices in Sweden 2013 [8-10]

Present market situation The market for domestic heat pumps in Sweden is mature, the technology having reached full recognition and acceptance amongst the general public over many years. Heat pumps are now the preferred choice in new construction as well as for retrofitting the existing building stock. As a consequence of the high sales figures during the last decade, heat pumps are now in use in more than 50% of Swedish single-family homes. The market is now focused on sales to the late majority and slow down. Whilst sales in the market segment for single-family houses are levelling out, the interest in heat pumps for multifamily homes and commercial buildings is increasing. District heating dominates the segment for multi-family dwellings and commercial buildings in densely populated areas. District heating companies, which to a large extent are owned by municipalities, sometimes attempt to put

Focus reports on selected European markets | Sweden

149

European Heat Pump Market and Statistics Report 2014

160 000 eating Space h Space heating 140 000

120 000

100 000

80 000

60 000

40 000

Figure 6.19-1: Swedish heat pump market developments 1994 – 2013

20 000

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

barriers in place regarding the use of heat pumps. As district heating companies are in possession of the production facilities as well as the distribution grid, they tend to hold monopoly positions at a local level. For this reason consumers generally tend to be placed in a weak position in negotiations with district heating companies. This has led to calls for third party access to the grid to encourage competition. Combined with high price increases for district heating in recent years, this has created a window of opportunity for heat pumps with increasing numbers of real estate owners favouring heat pumps above district heating schemes. However, as a counter balance, the prevailing energy policy is promoting the use of biomass and trying to limit the use of electricity for heating. This has impacted strongly on decision makers and energy advisers, who tend to promote biomass-based district heating and pellet systems rather than heat pumps. The market for pellet burners, typically replacing the oil burner in an existing boiler, has dropped by more than 80% since it peaked in 2006. The reason behind the 2006 peak was the promotion of and accompanying subsidy scheme for replacing oil heating at that time. Since then, the subsidy scheme has ended and the price of pellets has increased. In many cases, the installations have failed to meet expectations, mainly due to malfunctioning or underperforming systems. An increasing number of these pellet systems that were installed in recent years are now being replaced by heat pumps. According to a survey of the members of the Swedish Heat Pump Association, SVEP, 8% of all heat pump installations made in 2012 were replacement systems for pellet systems. The table below illustrate the type of heating systems heat pumps installed in 2012 replaced or complemented. The market is completely dominated by retrofit installations in single-family houses and cottages. Less than 5% of all heat pumps sold in 2012 were installed in new buildings.

Table 6.19-3: Type of heating system replaced by heat pump installation [11]

150

Direct electricity

21%

Electric boiler

22%

Oil boiler

18%

District heating

4%

Firewood boiler

11%

Pellets

8%

Old heat pump (replacement)

12%

New construction

4%

Gas boiler

1%

Focus reports on selected European markets | Sweden

160 000 Space Sp ace h eating heating 140 000

120 000

100 000

80 000

60 000

40 000

20 000

Figure 6.19-2: Heat Pumps in operation in Sweden (installed since 1994) 1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Market trends In 2013 sales grew by 1,5%, leading to 96 550 units sold. Comparing to 2012 sale volumes seems rather stable. However the 2010 values have not been recovered. The main share of the market (56,9%) belongs to reversible air/air units. The second largest share (25,7%) have ground source units, these grew by 8,8% in comparison to 2012. Heat pump type

2009

2010

2011

2012

2013

2012/2013

Exhaust air

13 415

12 500

11 433

9 203

10 015

8,8%

Brine/water

27 544

31 954

31 384

24 502

24 891

1,6%

Air/water

15 941

13 120

8 958

6 384

6 635

3,9%

60 000

70 000

55 000

55 000

55 000

0,0%

18

9

95 107

96 550

Reversible (total heat) Other Total units sold

116 900

127 574

106 775

1,5%

Table 6.19-4: Sales of heat pumps in Sweden 2009 – 2013

As the general knowledge of heat pump technology has reached a high level in Sweden, customers have become much more aware of options and choices available to them. Features such as remote control, capacity control and online connections through the Internet are gaining interest. Significant for Sweden is that the availability of gas is very limited, thus gas boilers have a negligible market share in the heating sector. As Sweden has historically benefitted from relatively low prices of electricity, direct electricity heating is in use to a large extent. Direct electricity

3%

Air/air heat pumps*

19%

Electric boilers

4%

Exhaust air heat pumps

10%

Oil boilers

1%

Combi boilers elec/bio

21%

District heating

13%

Brine/water heat pumps

23%

Air/water heat pumps

6%

Table 6.19-5: Estimated shares for different types of heating in single and two family houses [12]

* This figure mainly represents houses heated by direct electricity heating complemented by an air/air HP.

Focus reports on selected European markets | Sweden

151

European Heat Pump Market and Statistics Report 2014

140 000

120 000 Air/water 100 000 Water/water 80 000 Brine/water 60 000 Exhaust air 40 000 Reversible (total heat)

20 000

Figure 6.19-3: Swedish 2010 – 2013 market by type of heat pump

2010

2011

District heating

Table 6.19-6: Estimated shares for different types of heating in multifamily dwellings [13]

2012

2013

82%

Heating oil

1%

Electricity

3%

Other combinations

6%

Combinations with heat pumps

8%

Costs The table below illustrates the average end consumer prices, including VAT, for a turnkey installation in single-family houses. The solution cost includes everything to fully commission the system – i.e. the heat pump, auxiliary equipment, material and labour costs. Table 6.19-7: Average end consumer prices for turnkey solutions in Sweden

Euro

Air/air

Air/water

Ground source

700 – 2 900

10 000 – 13 000

16 000 – 19 000

Air/air heat pumps are predominantly installed in existing houses using direct electric heating, being the most cost effective solution for these types of dwellings. A recent trend is to install air-air heat pumps in holiday homes. Several products offer new features enabling frost protection or maintenance heating during wintertime and remote monitoring and control systems via GSM-modem. Air-air heat pumps are often used to complement direct electric heating. As ducted air systems for heating are very rare in Sweden, almost all air/air heat pumps in the residential market are of single split type in the single family houses. Additionally, air-air heat pumps are used in small shops, offices and restaurants. The larger ducted air-air systems are used in hotels and office buildings. Air/water heat pumps are generally replacing boilers and for climatic reasons more common in the southern part of Sweden. Due to strict limitations relating to electric peak power demand set down by the new building regulations, air/water heat pumps may only be deployed in the southern part of Sweden in the case of new build. They may however be installed without restriction throughout the country in the case of retrofit. Ground source heat pumps are completely dominated by vertical indirect systems. Horizontal systems do exist but are restricted in use due to the significant space requirements. The main reasons that vertical systems have become so prevalent in Sweden are:

152

Focus reports on selected European markets | Sweden

➔ Liberal regulations regarding drilling, ➔ Favourable crystalline bedrock of high thermal conductivity, ➔ Reasonable costs for drilling (25-28 euro/meter including VAT). Ground water heat pumps are mainly used in areas where the bedrock is covered by a thick layer of soil (> 15 m) and thus would result in high costs for a normal vertical indirect system. Such areas are however quite often enriched with large quantities of ground water and consequently enable the use of ground water heat pumps.

Brand names Some of the most significant brand names active in the Swedish market are listed in alphabetical order below. Brine/water heat pumps: Bosch, CTC, Danfoss, Euronom, EVI, IVT, NIBE, Thermia, Vaillant, Viessmann, Qvantum. Air/water heat pumps: Aermec, Bosch, CTC, Daikin, Euronom, IVT, Mecaterm, Mitsubishi, NIBE, Panasonic, Thermia, Toshiba, Vaillant, Viessmann, Qvantum. Air/air heat pumps: Bosch (Sharp), Daikin, Electrolux (Sharp), Foma, Fujitsu, IVT (Sharp), LG, Mitsubishi, Panasonic, Sharp, Toshiba. Exhaust air heat pumps: Euronom, IVT, NIBE, ComfortZone.

Distribution channels Wholesalers and dedicated retail networks dominate the Swedish heat pump market. Nonetheless, during the last couple of years, air-air heat pumps have been offered through DIY-stores, mail-order firms and web-stores.

Industry infrastructure The following sections highlight some of the existing industry support organisations and schemes that serve as part of the industry’s infrastructure.

National industry associations The Swedish Heat Pump Association (Svenska Värmepumpföreningen or SVEP), founded in 1981, represents approximately 600 members. The members comprise manufacturers and importers of heat pumps (15), installers, and other organisations with an interest in the industry. The Association serves as the official voice for the heat pump industry at a national level. It handles all proposals for new national regulation and legislation as well as international standards that are sent for circulation. SVEP serves as a coordinator for common research activities within the national research programmes for the refrigeration and heat pump industry.

Training and certification Training according to the European Certified Heat Pump Installer scheme is offered by Mid Sweden University, IVT, Thermia and NIBE. Third party certification is voluntary and available according to the European Certified Heat Pump Installer scheme.

Consumer complaints board Since 1989, SVEP administers a consumer complaints board for heat pump installations. The board was initiated by SVEP and the Swedish Association for HVAC Installers on request by the Swedish National Board for Consumer Complaints as the national board lacked the technical competence and resources

Focus reports on selected European markets | Sweden

153

European Heat Pump Market and Statistics Report 2014

New buildings General information Quantity expressing energy performance

Maximum energy demand

Energy type if applicable Final energy kWh/m2 per year

Units

Requirements in detail Single Family Houses

For electric heated buildings - 55 for climatic zone 1 - 75 for climate zone 2 - 95 for climate zone 3 For non-electric heated buildings - 110 - 130 - 150

Apartment Blocks

For electric heated buildings - 55 for climatic zone 1 - 75 for climate zone 2 - 95 for climate zone 3 For non-electric heated buildings - 110 - 130 - 150

Offices

For electric heated buildings - 55 for climatic zone 1 - 75 for climate zone 2 - 95 for climate zone 3 For non-electric heated buildings - 100 - 120 - 140

Educational Buildings

For electric heated buildings - 55 for climatic zone 1 - 75 for climate zone 2 - 95 for climate zone 3 For non-electric heated buildings - 100 - 120 - 140

Hospitals

Table 6.19-8: Energy performance requirements Sweden [14]

For electric heated buildings - 55 for climatic zone 1 - 75 for climate zone 2 - 95 for climate zone 3 For non-electric heated buildings - 100 - 120 - 140

to handle complaints related to heat pump installations. The board is composed of representatives of the installers and manufacturers. SVEP administers and prepares the documentation for the board, but does not take part in the final decision of the board. The board’s ruling in these cases has no legal status, but serves as a strong recommendation, and members of SVEP are bound by the statutes to obey the recommendations handed down by the board. Since the start, the board has dealt with more than 500 complaints and presently about 40 cases are handled per year.

154

Focus reports on selected European markets | Sweden

Product labels Existing product labels covering heat pumps are: ➔ EHPA Quality Label – Sweden is a full member of the EHPA Quality Label scheme. The national quality commission is chaired by SVEP. ➔ P-Mark, issued by the Swedish Testing and Research Institute, SP. ➔ Nordic Swan – Ecolabelling scheme administrated by SIS-Miljömärkning.

Incentive schemes Since 8 December 2008, heat pump installations qualify for the tax reduction scheme that applies to renovation and extension works in private households. According to the scheme, up to 50% of the labour costs related to retrofit works may be offset against tax for each owner of a private property. The maximum amount that may be deducted is 50 000 SEK (approximately € 5 000).

Energy performance requirements See Table 6.18-7 on page 154

Smart grids Smart grids are generally discussed at energy conferences and in the media. There are however still very little realised. There is some project driven development for heat pumps.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion – highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] Member questionnaire Swedish Heat Pump Association 2013 [12] Rough estimation from SVEP, based on several existing and Swedish Energy Agency [13] Swedish Energy Agency [14] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | Sweden

155

European Heat Pump Market and Statistics Report 2014

6.20 Switzerland Key facts Population [1]

7 954 662

Area

41 290 km2

GDP/capita [2]

40 700 €

Capital

Berne

Share of RES in final consumption of energy (2012) [3]

20,8%

National emission factor (CO2/kWh electricity) (2011) [4]

30 g

gross electricity generation Fuel

Table 6.20-1: Electricity mix for Switzerland 2009 – 2010 [5]

Table 6.20-2: Energy prices in Switzerland 2010 [6]

2009

2010

TWh

Share

TWh

Share

Water power stations

37,1

55,9%

37,5

56,5%

Nuclear power stations

26,1

39,3%

25,2

38,0%

Thermal power stations

2,8

4,2%

3,1

4,7%

Renewable sources

0,4

0,6%

0,5

0,7%

66,4

100%

66,3

100%

Total Energy prices

€/kWh

Electricity

0,14

Present market situation and market trends The Swiss building market is running at full speed. Planners and installers are working at capacity and new employees are urgently needed. Heat pumps have now reached and are maintaining a dominant market share in new construction and a significant market share in the renovation segment. Heat pump type Sanitary hot water Brine/water Water/water Table 6.20-3: Sales of heat pumps in Switzerland 2009 – 2013

Air/water

2009

2010

2011

2012

2013

443

618

8 507

7 595

1 320

2 097

3 260

55,5%

7 114

7 900

6 873

-13,0%

600

614

538

400

381

-4,8%

11 464

11 773

11 252

11 100

12 025

8,3%

21 014

20 662

20 224

21 497

22 610

Other

62

Total units sold

2012/2013

71 5,2%

The sales grew by 5,2% in comparison to 2012. The main increase faced sanitary hot water units that increased by 55,5% reaching the total of 3 260 units installed in 2013. Air water units representing over 53% of the Swiss heat pump market grew by 8,3%, amounting to 12 025 units. However, a decrease in sales can be observed in case of ground source units. They decreased by 13%, summing to 6 873 units. A slight decrease of 4,8% was observed also in case of water/water units. This system creates 1,6% of total sales and counts for 381 units.

Industry infrastructure The Swiss Heat Pump Association (Fördergemeinschaft Wärmepumpen Schweiz or FWS) represents the industry in Switzerland.

156

Focus reports on selected European markets | Switzerland

25 000

Water heating eating W ater h eating Sp Space ace h heating

20 000

15 000

10 000

5 000

Figure 6.20-1: Swiss heat pump market development 2005 – 2013 2005

200 000

2006

2007

2008

2009

2010

2011 2011

2012

2013

ater h eating Water heating W ace h eating Sp Space heating

180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000

Figure 6.20-2: Heat Pumps in operation in Switzerland (installed since 2005)

20 000

2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

25 000

20 000

Air/water

Water/water

15 000

Brine/water 10 000 Exhaust air

5 000

Sanitary hot water

Figure 6.20-3: Swiss 2010 – 2013 market by type of heat pump 2010

2011

2012

2013

Focus reports on selected European markets | Switzerland

157

European Heat Pump Market and Statistics Report 2014

Of central importance is the cooperation with the various organisations and associations in the sector, specifically ”suissetec”, which is the body representing heating companies, and SWKI, the association representing building technology engineers. Other Groups also assist in furthering the development of the renewable energy sector such as Swissolar, Holzenergie Schweiz (Wood Energy), Biomasse Schweiz, the District Heating Association and the representative body for Infrastructure Installations.

Energy performance requirements New buildings

Existing/renovated buildings

General information Quantity expressing energy performance

Maximum space heating demand

Maximum space heating demand

Energy type if applicable

Effective energy

Effective energy

End uses considered

Heating

Heating

Units

Litres of oil equivalent per m2 in a year kWh/m2 per year

Litres of oil equivalent per m2 in a year kWh/m2 per year

Requirements in detail Single Family Houses

4,8 54

6 68

Apartment Blocks

4,8 42

6 53

Offices

4,8 46

6 58

Educational Buildings

4,8 43

6 54

Hospitals

4,8 44

6 55

Hotels & Restaurants

4,8 58

6 73

Sports facilities

4,8 40

6 50

Wholesale and retail trade

4,8 36

6 45

Notes/specifications Notes/specifications

Table 6.20-4: Energy performance requirements Switzerland [7]

The first values represent the oil equivalent requirement and the second values represent example values in a typical building shape of each building type.

According to MuKEn 2008, a renovated building should not use more than 125% of the space heating limit of new buildings. These represent example values in a typical building shape of each building type.

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [4] European Commission: http://ec.europa.eu/europe2020/ pdf/themes/16_energy_and_ghg.pdf [5] CO2 emissions from fuel combustion – highlights, Ed. 2012, IEA Statistics: www.iea.org/publications/freepublications/publication/ [6] Office fédéral de l'énergie OFEN, Swiss statistics on electricity. [7] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

158

Focus reports on selected European markets | Switzerland

6.21 United Kingdom Key facts Population [1]

63 612 729

Area

241 590 km2

GDP/capita [2]

27 200 €

Capital

London

Number of single/two family houses

22 311 550

Rate of new construction of single/two family houses

89 300

Average heat consumption for all residential buildings [3]

2 Toe

Share of RES in final consumption of energy (2012) [4]

4,2%

Binding target for the use of renewables [5]

15%

National emission factor (CO2/kWh electricity) (2011) [6]

441 g

Energy mix gross electricity generation Fuel

TWh

Share

TWh

Share

Solid Fuels

108,6

29,5%

143,2

39%

69,0

18,8%

70,4

19%

37,3

10,1%

44,2

12%

2011

Nuclear Renewables Gases

2012

148,0

40,2%

101,1

28%

Petroleum and Products

3,7

1,0%

3,1

1%

Other

1,3

0,4%

1,9

1%

367,8

100%

363,8

100%

Total Energy prices

Table 6.21-1: Energy mix in the United Kingdom 2011 – 2012 [7]

€/kWh

Electricity

0,17

Heat pumps (useful energy price)

0,07

Heating oil

0,08

Domestic gas

0,05

Pellets (sack delivery)

0,05

Pellets (bulk delivery)

0,04

Table 6.21-2: Energy prices in the United Kingdom 2013 [8 – 10]

Present market situation The UK economy has been steadily coming out of a recession, which has had a major impact on housebuilding and construction generally. Growth in GDP was around 1,4% in 2013 having been at 0% in 2012. 2013 was a very good year for boiler sales due to Government incentives for boiler replacements linked to the flailing Green Deal policy. No such incentive was in place for heat pumps at the domestic level except for the Renewable Heat Premium Payment, which had a low take up as the market waited for the Renewable Heat Incentive. This has resulted in the UK market for heat pumps being constrained despite significant heat sales generally. Overall the heat pump market grew in volume terms by 5% compared to 10% a year earlier. The picture varies by heat pump type: in the UK, the market is dominated by air source technology, some 88 – 89% share of c. 17 600 heat pumps sold (excluding exhaust air). The market for air source grew by 8% whilst ground source fell by 14% from 2012 to 2013. There is a growing interest in sanitary water heat pumps in the UK and the

Focus reports on selected European markets | United Kingdom

159

European Heat Pump Market and Statistics Report 2014

20 000 Space Sp heating ace h eating 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000

Figure 6.21-1: UK heat pump market development 2005–2012

2 000

2005

2006

2007

2008

2009

2010

2011 2011

2012

2013

2010

2011 2011

2012

2013

120 000 Space heating Sp ace h eating

100 000

80 000

60 000

40 000

20 000

Figure 6.21-2: Heat pumps in operation in the UK (installed since 2005) 2005

2006

2007

2008

2009

Microgeneration Certification Scheme has developed an assessment standard for products and installers that is consistent with Eco-design requirements and the RESd.

Market trends The UK construction market has been experiencing steady recovery and we expect 3,4% growth in 2014 with a further 5,2% in 2015 (source: Construction Products Association). Most of the growth will be in private housing followed by commercial; public sector construction will remain flat. With the launch of the Domestic Renewable Heat Incentive and the expansion of the non-domestic into air source technology, the UK market is expected to maintain a growth trajectory in the coming years. This growth is expected mainly in the air/water segment, whereas ground source units are forecasted to exhibit only moderate growth over time (although we are seeing an increase in ground source with communal ground array). Political support for renewable energy systems is now providing a positive impetus for further growth and development.

160

Focus reports on selected European markets | United Kingdom

It is widely accepted that heat pumps will play an important part in future efforts in the UK to improve the energy efficiency of buildings and reduce CO2 footprint. The market in the UK has been heavily influenced by ever tightening building regulations, and incentives will play an important role in the future growth prospects. The future of building regulations in the UK is currently uncertain because despite continued political will to promote zero carbon buildings, the actual method of achieving this aim may be watered down by off site options to prove carbon reduction. The following table shows how the UK market has developed in recent years. Heat pump type

2009

2010

2011

2012

Exhaust air

4 150

3 050

3 480

1 050

Brine/water

3 980

3 850

2 255

Air/water

8 325

11 840

12 765

Other

2013

2012/2013

2 294

1 976

-13,9%

14 455

15 656

8,3%

70

Total units sold

16 455

18 740

18 500

17 869

17 632

-1,3%

Table 6.21-3: Sales of heat pumps in the UK 2009 – 2013

20 000 18 000 16 000 Air/water 14 000 12 000

Brine/water

10 000 8 000

Exhaust air

6 000 4 000

Sanitary hot water

2 000

Figure 6.21-3: UK 2010 – 2013 market by type of heat pump 2010

2011

2012

2013

Costs Even in a relatively small market such as the UK there is a wide variety of heat pumps sold. Products vary significantly according to energy source, capacity, system architecture, and technical specification. As a result there are quite disparate costs – including installation costs. Ground source heat pumps sold in the UK are on average higher priced than air source heat pumps. The reason for this is that ground source heat pumps span higher capacity (kW) ranges than air/water heat pumps. Installation of a ground source heat pump is markedly more expensive than an air source pump. The price of the heat pump itself is just one part of total investment that may comprise boreholes, excavation and the cost of installation. There may be local differences in the costs of drilling or excavation depending for instance on local conditions, the type of soil, the surface or the year the property was built. Additionally, the companies who sell heat pumps are independent organisations (installers or distributors) and are free to set their own prices.

Focus reports on selected European markets | United Kingdom

161

European Heat Pump Market and Statistics Report 2014

Table 6.21-4: Typical cost for an installed heat pump in the UK

Manufacturer selling price

Exhaust air/water

Air/water split/monobloc systems

Ground-water/ water

Euro

6 200

4 000

14 000

Specifically regarding ground source heat pumps, the estimated cost of an installed system ranges from Euro 7 500 to 25 000. The selling prices of the pump vary from about Euro 950 to 1 500 per kW of peak heat output. The installation costs, represent an additional and major part of the investment. The figure presently used in the UK is 10 metres of horizontal slinky trench for every 1 kW of heat delivered from the heat pump. For vertical systems, one 80-metre borehole should deliver between 3 and 5 kW of heat delivered from the heat pump. A vertical loop installation costs around Euro 18 000 while a horizontal loop installation costs around Euro 11 000. Air/source heat pumps also vary considerably in price. Units sold by Japanese, Korean or Chinese suppliers are generally lower priced than many European-made products. The reason for this is lower production costs or higher unit production and economy of scale effects. A typical 6 kW air source heat pump installed in a detached house costs in the range of Euro 8 800 to Euro 12 000 in the UK today. An exhaust air system including a heat cylinder costs in the region of Euro 4 000. This type of system is best suited for flats and apartments.

Brand names Ground source heat pumps: IVT, Worcester, Calorex, Nibe, Kensa, Danfoss, Nutherm, Dimplex, Viessmann, Stiebel Eltron, BDR Thermea, Vaillant. Air/water heat pumps: Mitsubishi Electric, Daikin, HeatKing, Calorex, IVT, Nibe, Kingspan, Dimplex, Danfoss, Stiebel Eltron, BDR Thermea, Vaillant. Exhaust air heat pumps: mainly Nibe.

Distribution channels Most manufacturers sell to wholesalers and to installers, installers being the most important route to the market. There are some manufacturers, such as Worcester, that sell exclusively to merchants. As heat pumps enter the mainstream in the UK it is likely the 2 step merchant distribution process will be the common channel.

National industry association The Heat Pump Association (HPA) and BEAMA Domestic Heat Pump Association are the UK's leading authorities on the use and benefits of heat pump technology. They represent many of the country's leading manufacturers of heat pumps, components and associated equipment with BEAMA providing the dedicated domestic market focus.

Training and certification In order to educate the still nascent market, manufacturers run regular training programs for installers. The primary route for competency and certification in the UK is the Microgeneration Certification Scheme and up to Spring 2014 the take up of the installer scheme was as follows: Ground source – 732 Air source – 883 These numbers need to significantly increase to support the RHI but it is believed that the scheme will generate interest from existing boiler installers.

162

Focus reports on selected European markets | United Kingdom

Incentive schemes The Renewable Heat Incentive (RHI) is a payment system for the generation of heat from renewable energy sources and was introduced in the United Kingdom in July 2011. The RHI replaces the Low Carbon Building Programme, which closed in 2010. The RHI operates in a similar manner to the existing Feed-in Tariff system, and was introduced under the same legislation – the Energy Act 2008. In the first phase of the RHI, cash payments will be eligible to owners who install renewable heat generation equipment in non-domestic buildings. Until 2014 the RHI is limited to commercial and industrial scale applications and supports only ground source heat pumps. Since launch, the poor calibration of tariffs has left ground source very under utilised in the scheme with most take up allocated to biomass. This situation will change as ground source heat pump tariffs are due to be increased alongside the introduction of air to water heat pumps tariffs for the first time.

Energy performance requirements New buildings General information Quantity expressing energy performance

Building Emission Rate (BER)

Units

kgCO2/m2 per year Requirements in detail

Single Family Houses

17 – 20

Apartment Blocks

16 – 18

Table 6.21-5: Energy performance requirements United Kingdom [11]

Sources [1] Population 2012 – World Development Indicators database, World Bank [2] 2013 GDP – Purchasing Power Standard per inhabitant, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nama_gdp_c) [3] BPIE – June 2013: http://www.buildingsdata.eu/bpie-data-hub [4] 2012 Share of renewable energy in gross final energy consumption, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_ind_335a) [5] European Commission: http://ec.europa.eu/europe2020/pdf/themes/16_energy_and_ghg.pdf [6] CO2 emissions from fuel combustion - highlights, Ed. 2013, IEA Statistics: www.iea.org/publications/freepublications/publication/ [7] EU Energy in figures – Statistical pocketbook 2014: http://ec.europa.eu/energy/observatory/statistics/statistics_en.htm [8] 2013 Electricity prices for domestic consumers, band DC, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_204) [9] 2013 Heating oil prices, taxes included, Oil Bulletin, European Commission: http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm [10] 2013 Gas prices for domestic consumers, band D2, all taxes and levies included, Eurostat: www.epp.eurostat.ec.europa.eu (dataset nrg_pc_202) [11] BPIE – June 2013: www.buildingsdata.eu/bpie-data-hub

Focus reports on selected European markets | United Kingdom

163

7

Focus reports on selected markets

7.1 Bulgaria Heat pumps in Bulgaria – best practice The development of Bulgarian heat pumps market began in 2001 with the first ground source heat pump, constructed and installed by Geosolar V-63 Ltd. The main challenge was to create affordable heat pumps for the Bulgarian market that were still reliable and easy to use. Initial designs proofed successful with a special focus on a ground water heat exchanger. Due to the relative high ground water temperature of 13 – 15o °C a very good COP was achieved. Until today about 700 heat pumps are produced and installed by Geosolar in the range 9 kW to 120 kW heating capacity. 50% of them are reversible units used for both heating and cooling. The large part of the machines about 70% are for groundwater and the other 30% closed loop – mainly direct evaporation. Some of the large buildings with heat pumps are: ➔ Vanto trade office building 120 kW, Polimerinject building 120 kW, Water supply office building 120 kW, “345” food supply 100 kW, Omniac tires 60 kW, Bioprogram tea manufacturer 80 kW, Bulfire 100 kW, two block of flats each 60 kW in Sofia ➔ Hospital “Gaidarski”, hotel” FantyG” 10 kW and FantyG complex in Vidin ➔ Jagodovo autoservice 100 kW, Manole milk supply 60 kW, block of flats 50 kW, building materials store 50 kW, “Radikom” food manufacturer 100 kW in Plovdiv district ➔ RudiAn furniture producer in Varna ➔ Hotel Fea Spa 50 kW in Trojan ➔ Hotel Prespa 40 kW in Varshetz ➔ Vega star foods 40 kW in Bjala Slatina ➔ holiday houses 40 kW in Batak ➔ Linex café 40 kW in Svistov ➔ and many private houses from 9 to 40 kW There are also four other small manufacturers of ground source heat pumps with approximately 600 installations. Most of them use compressor “Made in China”.

Focus reports on selected European markets | Bulgaria

165

European Heat Pump Market and Statistics Report 2014

7.2 China Key Facts

Table 7.2-1: Electricity mix in China

Population (2013)

1 360 720 000

Area

9 596 960 km2

Capital

Beijing

Number of households (2010 census)

417 722 698

Share of energy from renewable sources in final energy consumption, 2012

10,3%

Binding target for the use of renewable 2020

15%

Total Number of Flat of Residential Buildings Sold in 2012

9 446 424

National emission factor 2012 (data based on coal fired power plant only) g CO2/kWh electricity

798 g

National emission factor 2012 (data based on coal fired power plant only) g of standard coal equivalent / kWh electricity

325 g

Energy mix gross electricity generation Fuel

TWh

Nuclear

2011

2012 Share

TWh

Share

1,84%

87

1,97%

98

Hydro

14,12%

668

17,16%

856

Wind

1,56%

74

2,07%

103

Gas

2,3%

109

2,19%

109

Coal

78,12%

3696

74,39%

3,710

Others

2,05%

97

2,23%

111

Total

100%

4731

100%

4,987

Energy prices (approximate figures for 2013, 1 Euro =8,5 CNY)

Table 7.2-2: Energy prices in China

Electricity

0,073 Euro/kWh

City gas / Natural gas

0,294 Euro/m3

District heating (Four months from Nov 15 2013 to Mar 15 2014)

2,82 Euro/m2

Present market situation In 2013, China economy grew by 7,7% over 2012. The real estate market rebound quickly. China governments also began to give subsidy to heat pump water heater and heat pump space heating system. These factors all help heat pump industry achieving a good growth in China. Air to air heat pump are widely used in China. Around 90% of room air conditioner (RAC) sold in China is reversible with cooling and heating function. In the area without district heating facilities, normally in the south of Yangtze River, the RAC are the most popular way for residential space heating due to short of pipe gas supply. In 2012, China changes the national energy efficiency standard for inverter room air conditioner, and began to use APF (Annual Performance Factor), instead of SEER (Seasonal Energy Efficiency Ratio) to evaluate inverter air con efficiency. This change push manufactures to improve the heating efficiency further. Inverter air con market share also increased from 42,3% to 45,6%. In 2013 the domestic room air conditioner sales grew to 62,35 million units. The average heating function operation time for each room air conditioner in China is around 300 hours.

166

Focus reports on selected European markets | China

The VRF (Variable Refrigerant Flow) heat pump also grows fast in China. In 2013, the annual sale increased from 899 930 units in 2012 to 1 034 919 units in 2013. Daikin holds the biggest market share in China VRF market. The sales of air source heat pump water heater (AHPWH) increased to 872 000 units in 2013. The national energy efficiency rating and labeling standard was published in this year. The minimum COP requirement is 3,4. The China national government began to give subsidy to AHPWH. The subsidy is around 10,% of the retail price. Geo thermal heat pump in China is mainly for commercial buildings and also develops fast since 2001 in cold region with strong support from central and local government. But the growth rate is slowed down a lot after 2011. In 2013, around 250 million M2 building are installed with geo thermal heat pump. According to China Refrigeration and Air conditioning Industry Association (CRAA), water source heat pump production and sales data in 2013 is as below, Product

Production (Units)

Sales (Units)

Water source heat pump, (water to air)

63 669

63 470

Water source heat pump, (water to water)

23 703

23 294

Table 7.2-3: Sales of water source heat pumps in China 2013

* Data source, China Refrigeration and Air conditioning Industry Association

Market trends Heat pumps for space heating have big potentials to grow, especially in north of China. China government is seeking ways to solve the air pollution problem. Heat pump could be an alternative to replace coal fired boilers, and reduce the energy consumption. As response to this market demand, low temperature heat pump technologies and multi energy sources hot water systems are under development in several China manufacturers. Heat pumps also have potential in industry application. China is a world manufacturing center with huge number of factories, that also need solutions to cut energy bill. Heat pumps are already used in food, tobacco, and even fireworks production processes. Ground source heat pumps, as renewable energy, will continue to get support from the government. According to the 12th five year plan of China central government, at the end of 2015, the annual building application with geo source heat pump will be more than 250 million square meters, which is 2,5 times than 2010. Heat pump type Heating only

14 788

Brine/water

3 248

Water/water

7 840

Air/water Reversible (total heat) Air/air (with main heating function) Air/water VRF Water/water Sanitary hot water Heat pump water heaters Exhaust air Sorption heat pumps Total units sold

3 700 57 922 435 56 641 312 82 654 1 169 909 28 560 868 600 868 300 300 4 253 58 810 076

Table 7.2-4: Sales of heat pumps in China 2013

Focus reports on selected European markets | China

167

European Heat Pump Market and Statistics Report 2014

Costs

Table 7.2-5: Average heat pump unit prices (price for end-user, installation costs included, heat distribution excluded)

The table below shows the average cost for a household reversible air/air room air conditioner and an air source heat pump water heater including the installation cost and the consumption tax. (1 Euro = 8,5 CNY) Product

Air/air (Mini-split), 3,5 KW heating capacity

Air/water heat pump Hot water

Air/water heat pump Space heating

Price (Euro)

350

550

3 500

Brand names Ground source heat pumps: Fuerda, Climaveneta, Trane, Beijing Yongyuan, Yantai Landoc, Tsinghua Tongfang Air/water heat pumps: Midea, Gree, New Energy, Outes, Daikin, AO Smith, Jinjiang, Tianshu, Chigo Water to water heat pump: Gree, Midea, Carrier, Mcquay, York, Trane, Tico, Tsinghua Tongfang, Yantai Lande Air/air heat pumps: Gree, Midea, Haier, Chigo, Hisense, Aux, Daikin, Mitsubishi, LG, Sumsang

National industry associations China Energy Conservation Association (CECA) and International Copper Association (ICA) set up the China Heat Pump Alliance (CHPA) in 2009. The CHPA aims to push forward the heat pump industry development, especially for air-to-water heat pump. China Association of Building Energy Efficiency (CABEE) set up a ground source heat pump committee in 2013, and focus on geo thermal heat pump technology training and promotion. China Refrigeration and Air conditioning Industry Association (CRAA) has a long history. Their members are getting more and more involved into the heat pump business. They provide annual statistics for heat pump products, and also have technical testing capability.

Product Labels CRAA Certification, (since 2003) CRAA provide quality, energy saving, safety certification for several products including air/water heat pump water heater, and chillers.

Energy Efficiency Rating Labeling Program (since: 2004) The Energy Conservation Labeling Program has been widely used for many kinds of appliance and lighting. Consumers prefer to buy products with high efficiency rating. The efficiency standard and label for air/water heat pump water heater is under working, and expected to be finished by the end of 2012.

Incentive schemes Up to now, the air source heat pump is not recognized as renewable energy in China. In 2013, the central government started to give subsidy for air source heat pump water heater. The subsidy is from 300 RMB to 600 RMB according to different rated heating capacity and COP value, which is around 10% of the total retail price. Subsidy to air source heat pump water heater

168

Focus reports on selected European markets | China

COP

Rated heating capacity (W)

Subsidy

3,4 ≤ COP< 4,0

≤4 500

300

> 4 500

350

COP ≤ 4,0

≤4 500

500

> 4 500

550

Table 7.2-6: Heat pump subsidies in China, by efficiency

As one kind of renewable energy, geo thermal utilization can get subsidy from central and local government. For example, since 2009, the GSHP application in rural area can get 60 CNY subsidies per M2from central government. In Beijing, the GSHP can get 50 CNY subsidies per M2from local government. Many other subsidies also are put into heat pump industry through ESCO companies to which government give lots of support.

Sources [1] Statistical Communiqué of the People's Republic of China on the 2013 National Economic and Social Development [2] China Statistical Yearbook 2013 [3] China Electric Power Yearbook 2013

Focus reports on selected European markets | China

169

Glossary

Air-source (monobloc) Heat pump unit with the refrigeration cycle contained within one unit 'monobloc' which is then connected by piping to the heat distribution system. No refrigerant flows outside of the monobloc casing – just water, making installation possible by a plumber. Air source (bi-bloc or split) Heat pump unit with the entire refrigeration cycle being 'split' between separate outdoor and indoor units – which are connected using piping filled with refrigerant. Installation requires a refrigerant engineer. Air-based distribution system The heat distribution system using air to distribute the heat/cooling in the house – blown or forced air through ducts or grilles or wall hung a/c units. Fixed speed compressor A compressor that can only run with one speed and thus constant capacity. To vary the capacity over time, the compressor is switched on or off (on-off operation). Hydronic (Water Based) distribution system The heat distribution system is water based – e.g. the heat pump is connected to radiators, underfloor heating, fan convectors/fan coils. Variable (modulating) speed compressor The compressor speed can be controlled (varied) to change the heating capacity of the system. The main types used are inverter compressors, digital scroll compressors and multiple compressors: Inverter compressors control the speed by changing the frequency of the power input. Digital Scroll compressor technology operates on the principle of loading and unloading of scrolls i.e. the scrolls are engaged and disengaged periodically to get durations of “full capacity” and “no capacity”. Time averaging of the loading and unloading state results in variable capacity output to vary the compressor speed. Multiple compressors can be used in to provide extended variable output. A step-wise capacity variation can be achieved by starting/stopping additional compressors.

170

Glossary

Ground-to-x heat pump, geothermal heat pump (GSHP, closed loop) Uses heat from the ground, either via drillings (vertical) or via horizontal collector. Either pure water or brine (water-glycol mixture) is circulated in the heat exchanger. Naming variation depend on the medium used for energy dissemination including ground-to-water, or ground-to-air heat pumps. Direct expansion systems (DX) circulate a refrigerant in the collector. Direct expansion-water units use a hydronic heat distribution system. Thermally driven heat pump Heat pumps that come in different variations using gas as auxiliary energy. They can either use gas to run a gas motor (gas motor driven) and operate as conventional compression unit. They can also use a thermal process (adsorbtion or absorbtion) as an alternative to mechanical compression. Water-to-water heat pump (WSHP, open loop) Uses heat from a water source such as a well. Typically water is pumped from the source in an open system through the heat exchanger and returned to the source. In case of water-to-water heat pumps, they are often monobloc units with hydronic distribution. In case of waterto-air heat pumps, air is used as the heat distribution medium. Air-to-water heat pump (ASHP) Uses heat from the ambient air, they may be monobloc units or split. Air/water systems are always connected to a hydronic heat distribution by definition. Air-to-air / Reversible (AAHP) Air-to-air heat pumps use air for both the heat source and the heat sink. They are either developed from traditional airconditioners extended to provide also heating functionality or they are optimized for heating and can then also be used for cooling. They are always split systems with a separate outdoor and indoor unit connected by pipes containing refrigerant. Generally these systems have to be installed by qualified refrigeration engineers and are sold through a cooling/ refrigeration channel.

Exhaust air heat pump Exhaust air heat pumps use energy from indoor air to provide heating, sanitary hot water. They can either use indoor air or be connected to a forced ventilation system. Most often, these systems are used for sanitary hot water preparation, not heating, due to limited heating capacity, but increasingly being marketed as a heating solution. Sanitary hot water heat pump (SHW) Sanitary hot water heat pumps use mostly air to produce hot water (up to 65 °C). They can use indoor or outdoor air to achieve this purpose. They are either built as compact units with an integrated tank or they are connected to an external hot water tank. Alternative name: Domestic hot water unit VRF systems (multi-split) Air conditioning heating and cooling technology. One outdoor unit (condenser) connected to multiple indoor units, all of which may operate independently, i.e. providing heating and/or cooling at the same time. VRF systems are a more sophisticated version of the minisplit HVAC system used throughout the world. They distribute the refrigerant instead of piping hot water and chilled water to each fan coil unit (FCU) or air handling unit (AHU). By supplying different amounts of refrigerant to evaporators, the systems may provide simultaneous heating and cooling.

ANNEX I EHPA sales data acquisition and processing methodology The Outlook 2014 presents data on heat pumps providing heating, heating & cooling and/or sanitary hot water, as well as on those contributing process heat. Units sold are collected via a standardized questionnaire (cf annex II) from national heat pump associations, statistics bureaus and research facilities alike (cf page 2). Deviations between totals presented in chapter 1 and chapter 5 and national markets presented in chapter 6 result from: ➔ the availability of detailed longitudinal data. Aggregated numbers were not used for data accumulation but were only listed in the national chapters. ➔ a lack of transparency for numbers provide in the category “other”. Units sold were integrated in total sales, but not used in the calculation for RES use, energy efficiency and GHG savings. ➔ the numbers on industrial heat pumps. They are shown in table 5-3, but not in national chapters. Their contribution to RES use, energy efficiency and GHG savings is not yet counted. Details on the calculation of energy savings, the use of RES and CO2 savings can be found directly in chapter 5.6.

Accounting for sales of reversible heat pumps The report maintains a focus on heat pumps providing a heating function and/or sanitary hot water in line with the requirements of the RES Directive (see. ch. 3). To ensure this focus, the following corrections have been applied:

Air/air units ➔ The use of air/air heat pumps predominantly for heating is assumed for countries in cold climates (Estonia, Denmark, Finland, Lithuania, Norway). The number of units reported results from total sales adjusted by a correction factor (around 10 %) aiming to exclude AC-only units. It is applied by the national heat pump associations. In the case of Sweden, where air/air sales data is not collected by the national association any longer, the number of air/air units has been estimated by EHPA based on the sales for 2011. ➔ Air/air units sold in the average climate zone have not been counted, due to a lack of reliable information on their use for heating or cooling. ➔ For countries in the warm climate zone (France, Italy, Portugal and Spain) only a share of the total sales number has been included in the report. A study of the Italian market comes to the conclusion that in 9,5 % of all dwellings, reversible air/air heat pumps were the only heat generator installed. This value is used for Italy with a similar assumption being taken for Portugal, Spain and southern France (see table 5-8 for more details). ➔ For information purposes, the total sales number of air/air units is shown in table 5-3 (shaded).

Air/water & brine/water units ➔ Reversible heat pumps connected to hydronic systems are always counted, as their primary use as heating system can be assumed.

ANNEX I

171

VRF units ➔ VRF systems are counted, as they are specifically designed for heating and cooling. 90 % of the reported sales numbers are included in the EHPA statistics in order to allow for deviations from declared use (i.e. used for cooling only). AT

BE

CH

CZ

DE

DK

EE

ES

EU-14

yes

yes

yes

yes

yes

yes

yes

EU-21

yes

yes

yes

yes

yes

yes

yes

yes

Reversible air/air counted?

no

no

no

no

no

yes

yes

yes

FI

FR

HU

IE

IT

yes

yes

yes

yes

yes

yes

yes

yes

no

no

(90 %) (90 %) (9,5%) (90 %) (9,5%)

Annex I table: Countries covered in the different scopes of the EHPA Outlook

172

Annex I

LT

NL yes

yes

yes

yes

yes

yes

yes

no

yes

(9,5%)

NO

PL

PT yes

yes

yes

yes

yes

yes

no

yes

(90%)

SE

SK

UK

yes

yes

yes

yes

no

no

(9,5%) (90%)

yes

Annex II EHPA heat pump statistics: questionnaire used General remarks for completing this form: Please:

Country: 1.

Fill in the coloured fields only. Attach as much additional information and comments explaining the given sales figures as necessary and available. Indicate any problems arising from the completion of this form. Notes/comments:

(insert your country)

EHPA Heat Pump Statistics, Sales figures 2012

Space heating (residential and tertiary sector)

<20 kWth1

>20 kWth1

Total

1.1 Heating only 2 1.1.1 Hydronic distribution system air / water water / water brine / water direct expansion / water others5 Subtotal 1.1.1 1.1.2 Exhaust air air / air 3 air / air + HX 4 air / water3 air / water + HX4 others 5 Sutotal 1.1.2 Subtotal heating only 1.2 Reversible (heating and/or cooling) 6 air / air 7 air / water brine / water VRF / VRV 8 others5 Subtotal reversible Total space heating

2 Hot tap water can be provided by the same heat pump (or not).

2. Sanitary hot water 2.1 Heat pump water heaters 2.2 Exhaust air Subtotal tap water

3 Small heat pumps for heat recovery from domestic exhaust air.

3.

District Heating 9

4.

Industrial Heat Pumps

5.

Thermically driven Heat Pumps

1 Heating Capacity

Sales Figures 2012

4 HP with heat exchanger 5 Please specify 6 Must be able to provide heating in winter (able to work below – 7°C external temperature). 7 In Scandinavian countries primarily used for heating purposes. 8 Variable Refrigerant Flow / Variable Refrigerant Volume 9 Heating capacity >500 kW, smaller central heat pumps for heating several buildings have to be included under point 1.

Total heat pumps

Country: Completed by: Date: Number of inhabitants:

Annex II

173

kW installed 2012 <20 kWth1

>20 kWth1

Total

ANNEX III Consolidated sales of heat pump units 2005 – 2013 AT 14 448

BE 5 503

CH 19 279

CZ 8 440

DE 60 000

DK 6 110

EE 2 200

ES 246

FI 13 619

FR 38 969

HU 736

8 506 915 4 441 586 0 149 0

4 167 71 1 265 0 0 0 0

12 025 381 6 873 0 0 71 0

5 907 76 2 425 0 32 454 0

38 900 2700 15 500 0 2 900 0 18 813

3 429 0 2 681 0 0 2 447 12 400

800 7 1 393 0 0 60 51 738

0 246 0 0 0 0 45 718

1 278 0 12 341 0 0 1 874 67 067

35 024 1 027 1 687 585 646 0 0

226 23 150 0 337 47 0

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2013

0 0 0 0 3 847 0 33 18 477

0 0 0 0 3 955 0 0 9 458

0 0 0 0 3 260 0 0 22 610

0 0 0 0 0 0 0 8 894

0 0 0 0 12 100 0 0 72 100

18 813 0 0 0 3 899 0 0 31 269

12 400 0 0 0 0 0 0 14 660

49 274 0 2 464 0 667 0 0 52 651

45 718 0 0 0 0 2 12 61 225

33 650 13 564 18 875 979 45 950 0 0 151 986

0 0 0 0 0 0 0 783

2012 Heating only HP

AT 13 495

BE 6 553

CH 19 400

CZ 6 544

DE 59 600

DK 5 304

EE 1 990

ES 511

FI 13 932

FR 29 080

HU 228

7 083 1 029 4 724 659 0 115 0

5 135 0 1 418 0 0 0 0

11 100 400 7 900 0 0 0 0

4 212 70 2 250 0 12 118 0

37 400 2 800 16 800 0 2 600 0 0

2113 0 3 072 119 0 997 21 635

790 0 1 200 0 0 55 11 450

0 511 0 0 0 0 49 625

979 0 12 953 0 0 1 912 45 136

23 854 1 295 2 371 658 902 0 76 606

65 54 109 0 0 36 412

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2012

0 0 0 0 3 884 0 0 17 494

0 0 0 0 2 757 0 0 9 310

0 0 0 0 2 097 0 0 21 497

0 0 0 0 0 0 0 6 662

0 0 0 0 10 700 0 0 70 300

21 635 0 0 0 2 457 0 0 30 393

11 450 0 0 0 0 0 0 13 495

48 251 0 1 374 0 282 0 0 50 418

44 956 180 0 0 0 1 5 60 986

31 709 13 316 30 360 1 222 34 900 0 0 140 586

0 170 112 130 11 0 0 687

2011 Heating only HP

AT 11 989

BE 5 931

CH 18 904

CZ 6 446

DE 57 020

DK 5 769

EE 1 730

ES 2 477

FI 14 933

FR 37 636

HU 333

5 399 988 4 899 703 0 450 0

4 631 0 1 300 0 0 0 0

11 252 538 7 114 0 0 0 0

4 212 74 2 150 0 10 0 0

32 616 2 758 19 089 0 2 557 0 0

1 597 0 4 172 0 0 966 15 513

710 0 1 020 0 0 26 10 050

2 090 387 0 0 0 0 71 765

992 0 13 941 0 0 2 048 55 286

30 508 1 703 3 589 507 1 329 0 73 634

97 78 158 0 0 41 451

0 0 0 0 4 247 0 0 16 686

0 0 0 0 1 678 0 0 7 609

0 0 0 0 1 320 0 0 20 224

0 0 0 0 10 0 0 6 456

0 0 0 0 8 853 0 0 65 873

15 513 0 0 0 2 386 0 0 24 634

10 050 0 0 0 0 0 0 11 806

58 587 8 042 5 136 0 257 0 0 74 499

55 286 0 0 0 0 0 0 72 267

34 279 13 930 24 791 634 26 700 0 0 137 970

0 176 125 150 22 0 0 847

2013 Heating only HP Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2011

174

Annex III

IE 1 474

IT 1 090

LT 580

NL 7331

NO 5 710

PL 6 322

PT 0

SE 31 535

SK 449

UK 17 632

Subtotals 241 673

1 169 7 298 0 0 21 113 496

327 382 382 0 0 0 0

110 5 460 5 0 120 0

4 277 942 1 980 0 132 0 56 290

2 733 0 2 977 0 0 496 939

1 705 136 4115 366 0 0 9 222

0 0 0 0 0 0 55 000

6 635 9 24 891 0 0 10 015 361

216 90 143 0 0 19 0

15 656 0 1 976 0 0 0 431 044

143 090 7 017 85 978 1 542 4 047 15 773

0 0 0 0 3 0 0 1 498

85 906 11 756 14 921 913 0 34 0 114 620

0 0 0 0 0 0 20 720

0 0 0 0 297 0 0 7 628

56 290 0 0 0 0 0 0 62 496

0 0 414 525 7 800 0 0 15 061

6 817 1 943 437 24 593 0 234 10 049

55 000 0 0 0 0 0 0 96 550

0 41 300 20 11 2 15 857

0 0 0 0 0 0 0 17 632

363 868 27 303 37 411 2 461 82 382 38 314 771 224

IE 1 365

IT 1 151

LT 645

NL 8 740

NO 6 017

PL 5 867

PT 202

SE 30 904

SK 381

UK 16 749

Subtotals 228 658

886 17 462 0 0 19 0

345 403 403 0 0 0 114 060

195 5 445 0 0 0 0

2 954 1324 3 936 0 526 0 0

2 806 0 3 211 0 0 316 61 041

1 280 145 4 100 342 0 155 934

202 0 0 0 0 0 7 845

6 384 18 24 502 0 0 9 203 55 000

136 100 145 0 0 11 290

14 455 0 2 294 0 0 1 050 0

122 374 8 171 92 295 1 778 4 040 13 987 444 033

-1 % -8 % -11 % 24 % -7 % -26 % -10 %

0 0 0 0 5 0 0 1 389

88 399 12 307 12 451 903 0 91 0 115 302

0 0 0 0 0 0 0 645

0 0 0 0 270 0 0 9 010

60 959 82 0 0 0 0 0 67 374

0 0 400 534 5 600 0 0 12 556

5 247 2 040 519 39 458 0 136 8 641

55 000 0 0 0 0 0 0 95 107

0 14 256 20 11 0 9 702

0 0 0 0 70 0 0 17 869

367 605 28 108 45 472 2 848 63 502 92 150 750 422

-10 % -29 % 2% 31 % 25 % 15 % -42 % -7 %

IE 1 194

IT 1 212

LT 597

NL 8 874

NO 6 591

PL 5 235

PT 54

SE 40 342

SK 449

UK 15 020

Subtotals 242 736

646 24 524 0 0 0 0

379 424 409 0 0 0 123 223

193 15 385 4 0 0 0

3 016 1 527 3 945 0 386 0 0

2 914 0 3 677 0 0 473 76 394

940 250 3 825 220 0 105 770

0 0 0 0 54 0 13 404

8 958 0 31 384 0 0 11 433 55 000

226 72 147 4 0 4 50

12 765 0 2 255 0 0 3 480 0

124 141 8 838 103 983 1 438 4 336 19 026 495 538

9% -12 % 7% -23 % 46 % -5 % -5 %

0 0 0 0 2 0 32 1 228

93 630 14 791 13 913 889 0 80 0 124 515

0 0 0 0 0 0 0 597

0 0 0 0 456 0 0 9 330

76 394 0 0 0 0 0 0 83 458

0 0 300 470 4 500 0 0 10 610

10 235 2 768 376 24 475 0 217 14 150

55 000 0 0 0 0 0 0 10 6775

0 9 41 0 11 0 10 524

0 0 0 0 0 0 0 18 500

408 974 3 9715 44 682 2 167 50 917 80 259 808 556

-5 % -9 % -1 % -49 % 61 % 82 % 10 % 1%

Annex III

175

Growth by type -6 %

Growth by type 8%

AT 10 894

BE 3 342

CH 19 982

CZ 6 381

DE 51 034

DK 5 462

EE 1 345

ES 0

FI 9 241

FR 34 508

HU 367

4 412 1 111 4 577 794 0 578 0

2 277 0 1 065 0 0 40 0

11 773 614 7 595 0 0 62 0

4 157 74 2 150 0 0 0 55

26 796 2 834 19 525 0 1 879 0 3 313

1 325 0 4 137 0 0 1 028 11 240

360 0 985 0 0 21 9 100

0 0 0 0 0 0 70 489

1 150 0 8 091 0 0 1 988 53 821

28 370 1 627 2 968 454 1 089 0 74 675

106 86 175 0 0 45 498

0 air/air with heating function 0 VRF 0 air/water 0 brine/water Sanitary hot water HP 5 490 District heating HP 0 Industrial HP 0 Total 2010 16 962

0 0 0 0 1 011 0 0 4 393

0 0 0 0 618 0 0 20 662

0 0 55 0 10 0 0 6 446

0 0 2 982 331 8 401 0 0 62 748

11 240 0 0 0 5 430 0 0 23 160

9 100 0 0 0 0 0 0 10 466

57 082 10 148 3 259 0 0 0 0 70 489

53 821 0 0 0 0 0 10 65 060

34 597 1 2531 25 484 2 063 7 600 0 0 116 783

0 195 138 165 24 0 0 934

2009 Heating only HP

AT 11 713

BE 1 491

CH 20 571

CZ 3 622

DE 55 018

DK 4 598

EE 1 190

0

FI 7 956

FR 120 892

HU 317

4 501 1 192 5 083 937 0 573 0

602 0 889 0 0 95 0

11 464 600 8 507 0 0 0 0

18 64 68 1 531 0 159 0 0

24 664 3 782 24 563 1 026 983 0 1 372

1 123 0 3 475 0 0 658 18 540

510 0 680 0 0 25 9 000

0 0 0 0 0 0 0

1 819 0 6 137 0 0 1 819 57 977

106 543 2 973 6 969 1 219 3 188 0 37 830

58 69 190 0 0 26 434

0 0 0 0 5 852 0 0 18 138

0 0 0 0 600 0 0 2 186

0 0 0 0 443 0 0 21 014

0 0 0 0 0 0 0 3 622

0 1 372 0 0 10 406 0 0 66 796

18 540 0 0 0 273 0 0 24 069

9 000 0 0 0 0 0 0 10 215

0 0 0 0 0 0 0 0

57 977 0 0 0 0 0 0 67 752

30 115 2 140 5 575 0 11 000 0 0 169 722

0 73 148 213 14 0 0 791

2010 Heating only HP Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

ES

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2009

2008 Heating only HP

DE

DK

EE

FI

FR

12 645

AT

BE 0

20 520

CH

2 582

CZ

64 549

5 498

1 410

ES 0

10 006

152 510

HU 0

4 292 1 494 5 678 1 181 0 488 0

0 0 0 0 0 0 0

11 802 653 8 065 0 0 250 0

1 150 51 1 381 0 0 0 0

28 002 4 457 29 993 1 064 1 033 0 0

1 377 0 4 121 0 0 1 292 7 969

440 0 970 0 0 50 10 050

0 0 0 0 0 0 0

2 500 0 7 506 0 0 2 500 67 300

133 080 4 500 7 030 7 900 0 0 34 618

0 0 0 0 0 0 0

0 0 0 0 5 572 0 0 18 705

0 0 0 0 0 0 0 0

0 0 0 0 426 0 0 21 196

0 0 0 0 0 0 0 2 582

0 0 0 0 15 861 0 0 80 410

7 969 0 0 0 310 0 0 15 069

10 050 0 0 0 0 0 0 11 510

0 0 0 0 0 0 0 0

67 300 0 0 0 0 0 0 79 806

34 618 0 0 0 5 400 0 0 192 528

0 0 0 0 0 0 0 0

176

Annex III

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2008

IE 1 200

IT 507

LT 517

NL 7 352

NO 6 393

PL 5 320

PT 0

SE 45 074

SK 690

UK 15 690

Subtotals 225 299

707 15 478 0 0 90 0

150 179 178 0 0 0 123 645

161 13 340 3 0 0 0

1 887 2 918 2 547 0 0 325 253

3 530 0 2 863 0 0 227 87 222

1 200 450 3 050 620 0 95 770

0 0 0 0 0 0 17 934

13 120 0 31 954 0 0 12 500 70 000

380 90 220 0 0 41 114

11 840 0 3 850 0 0 3 050 0

113 701 10 011 96 748 1 871 2 968 20 090 523 128

-39 % -12 % 0% -41 % -31 % -8 % 37 %

0 0 0 0 3 0 144 1 437

94 734 16 304 11 862 745 0 44 0 124 196

0 0 0 0 0 0 0 517

0 0 150 103 567 0 0 8 497

87 222 0 0 0 0 0 0 93 842

0 0 300 470 2 060 0 0 8 245

12 534 4 247 748 405 374 0 71 18 379

70 000 0 0 0 0 0 0 127 574

0 14 100 0 0 0 10 855

0 0 0 0 0 0 0 18 740

430 330 43 439 45 078 4 282 31 588 44 235 800 384

26 % 122 % 163 % 14 % 8% -30 % 1 859 % 9%

IE 1 006

IT 323

LT 554

NL 7 666

NO 7 686

PT

220 39 747 0 0 0 0

323 0 0 0 0 0 109 593

141 8 399 6 0 0 0

2 613 2 572 2 481 0 0 244 239

0 0 0 0 0 0 0 1 006

82 185 15 276 11 062 1 071 0 58 0 109 974

0 0 0 0 0 0 0 554

0 131 108 0 682 0 0 8 831

IE

IT

LT

PL

Growth by type -25 %

0

0

SE 43 485

SK 460

UK 12 305

Subtotals 300 853

4 154 0 3 532 0 0 724 75 626

0 0 0 0 0 0 0

0 0 0 0 0 0 11 607

15 941 0 27 544 0 0 13 415 60 000

270 50 140 0 0 30 55

8 325 0 3 980 0 0 4 150 0

185 135 11 353 96 847 3 188 4 330 21 759 382 272

-12 % -16 % -2 % -69 % 319 % -7 % -9 %

75 626 0 0 0 0 0 0 84 036

0 0 0 0 0 0 0 0

8 365 545 223 2 474 53 0 7 11 667

60 000 0 0 0 0 0 0 116 900

0 45 0 10 0 5 5 555

0 0 0 0 0 0 0 16 455

341 807 19 581 17 116 3 767 29 323 63 12 734 282

-13 % 44 % 53 % 298 % 3% 34 %

PL

PT

SE

SK

Growth by type -10 %

-9 %

NL

NO

UK

Subtotals

0

767

0

6 038

7 205

0

0

41 923

0

7 260

332 913

61 %

0 0 0 0 0 0 0

767 0 0 0 0 0 140 672

0 0 0 0 0 0 0

2 172 2 415 1 451 0 0 353 0

3 985 0 3 220 0 0 650 76 830

0 0 0 0 0 0 0

0 0 0 0 0 0 7 198

16 785 0 25 138 0 0 16 460 75 000

0 0 0 0 0 0 0

3 280 0 3 980 0 0 1 300 0

209 632 13 570 98 533 10 145 1 033 23 343 419 636

106 % 51 % 17 % -15 % 26 % 4% 21 %

0 0 0 0 0 0 0 0

114 899 13 644 11 183 946 0 47 0 141 486

0 0 0 0 0 0 0 0

0 0 0 0 949 0 0 7 340

76 830 0 0 0 0 0 0 84 685

0 0 0 0 0 0 0 0

7 198 0 0 0 0 0 0 7 198

75 000 0 0 0 0 0 0 133 383

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 8 560

393 863 13 644 11 183 946 28 518 47 0 804 457

23 % 10 % -10 % 8% 106 %

Annex III

177

Growth by type

37 %

0

CH 16 622

CZ 2 677

DE 44 649

DK 2 196

EE 1 310

2 110 1 413 5 601 1 274 0 486 0

0 0 0 0 0 0 0

9 181 344 7 097 0 0 100 0

1 210 51 1 413 0 3 0 0

17 762 3 350 21 672 1 051 814 0 0

401 0 1 795 0 0 1 246 4 414

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2007

0 0 0 0 4 264 0 0 15 148

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 16 722

0 0 0 0 0 0 0 2 677

0 0 0 0 7 354 0 0 52 003

2006 Heating only HP

AT 8 853

0

CH 15 740

CZ 2 027

DE 40 511

1 618 945 4 714 1 576 0 723 0

0 0 0 0 0 0 0

8 610 301 6 829 0 0 66 0

797 71 1 159 0 0 0 0

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2006

0 0 0 0 3 942 0 0 13 518

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 15 806

2005 Heating only HP

AT 6 100

0

867 720 3 174 1 339 0 349 0 0 0 0 0 3 253 0 0 9 702

2007 Heating only HP

AT 10 398

BE

ES 0

FI 5 750

FR 69 600

HU

210 0 1 100 0 0 80 6 170

0 0 0 0 0 0 0

450 0 5 300 0 0 2 500 47 250

51 000 2 500 6 500 9 600 0 0 43 130

0 0 0 0 0 0 0

4 414 0 0 0 567 0 0 8 423

6 170 0 0 0 0 0 0 7 560

0 0 0 0 0 0 0 0

47 250 0 0 0 0 0 0 55 500

43 130 0 0 0 0 0 0 112 730

0 0 0 0 0 0 0 0

DK

EE

0

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

BE

0

0

ES 0

FI 4 900

FR 48 080

HU

13 292 4 401 21 544 1 069 205 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

400 0 4 500 0 0 2 000 39 750

35 060 540 3 850 8 630 0 0 34 485

0 0 0 0 0 0 0

0 0 0 0 0 0 0 2 027

0 0 0 0 10 604 0 0 5 1115

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

39 750 0 0 0 0 0 0 46 650

34 485 0 0 0 5 000 0 0 87 565

0 0 0 0 0 0 0 0

CH 11 877

CZ 1 363

DE 17 281

0 0 0 0 0 0 0

6 749 292 4 836 0 0 0 0

546 43 755 0 19 0 0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 11 877

0 0 0 0 0 0 0 1 363

178

Annex III

0

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

BE

DK 0

EE 0

ES 0

FI 3 407

FR 25 200

HU

4 529 1 972 9 319 908 553 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

7 0 3 400 0 0 1 900 31 850

12 000 1 700 2 000 9 500 0 0 25 935

0 0 0 0 0 0 0

0 0 0 0 8 000 0 0 25 281

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

31 850 0 0 0 0 0 0 37 157

25 935 0 0 0 0 0 0 51 135

0 0 0 0 0 0 0 0

0

Hydronic distribution system

air/water water/water brine/water direct exchange others Exhaust air HP Reversible HP (heating and/or cooling)

air/air with heating function VRF air/water brine/water Sanitary hot water HP District heating HP Industrial HP Total 2005

0

IT 0

0

NL 3 349

NO 5 500

0 0 0 0 0 0 0

0 0 0 0 0 0 137 798

0 0 0 0 0 0 0

1 205 1 339 805 0 0 0 0

0 0 0 0 0 0 0 0

112 391 12 378 12 151 878 0 0 0 137 798

0 0 0 0 0 0 0 0

IE

IE

LT

IT

0

SE 41 643

3 200 0 2 300 0 0 800 64 000

0 0 0 0 0 0 0

0 0 0 0 0 0 7 703

0 0 0 0 1 655 0 0 5 004

64 000 0 0 0 0 0 0 70 300

0 0 0 0 0 0 0 0

7 492 0 211 0 0 0 0 7 703

0

0

NL 3 318

NO 4 500

0 0 0 0 0 0 0

0 0 0 0 0 0 102 796

0 0 0 0 0 0 0

1 194 1 327 797 0 0 0 0

0 0 0 0 0 0 0 0

90 656 0 12 140 0 0 0 0 102 796

0 0 0 0 0 0 0 0

IE

LT

0

0

IT

LT

PL

PT

UK 3 600

Subtotals 207 294

13 705 0 27 938 0 0 17 107 35 000

0 0 0 0 0 0 0

1 200 0 2 400 0 0 200 0

101 634 8 997 83 921 11 925 817 22 519 345 465

30% 19% -4% 6% 299% 4% 22%

35 000 0 0 0 0 0 0 93 750

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 3 800

319 847 12 378 12 362 878 13 840 0 0 589 118

19%

0

UK 1 800

Subtotals 184 503

0% -36%

16%

SE 54 774

2 000 0 2 500 0 0 1 000 50 000

0 0 0 0 0 0 0

0 0 0 0 0 0 5 108

14 757 0 40 017 0 0 17 699 50 000

0 0 0 0 0 0 0

500 0 1 300 0 0 70 0

78 228 7 585 87 210 11 275 205 21 558 282 139

113% 60% 45% -4% -64% 16% -7%

0 0 0 0 2 048 0 0 5 366

50 000 0 0 0 0 0 0 55 500

0 0 0 0 0 0 0 0

4 926 0 182 0 0 0 0 5 108

50 000 0 0 0 0 0 0 12 2473

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 1 870

269 817 0 12 322 0 21 594 0 0 509 794

-11%

NL

PT

0

UK 750

Subtotals 113 950

0

0

NO 3 000

0 0 0 0 0 0 0

0 0 0 0 0 0 162 735

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

162 735 0 0 0 0 0 0 162 735

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

PL

SK

Growth by type 12%

0

0

PT

0

0

0

PL

SK

0

0

SE 44 972

SK

1 500 0 1 500 0 0 0 37 000

0 0 0 0 0 0 0

0 0 0 0 0 0 4 708

10 409 0 34 563 0 0 16 357 40 000

0 0 0 0 0 0 0

100 0 650 0 0 0 0

36 707 4 727 6 0197 11 747 572 18 606 302 228

37 000 0 0 0 0 0 0 40 000

0 0 0 0 0 0 0 0

4 362 0 346 0 0 0 0 4 708

40 000 0 0 0 0 0 0 101 329

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 750

301 882 0 346 0 11 253 0 0 446 037

Annex III

179

Growth by type 62%

3461% 92%

14% Growth by type

ANNEX IV Tables

Table 4-1: Standard components and improvement potential

Standard component

Highly efficient/ improved component

Compressor

Standard compressor

Optimized compressor for heat pump application

Valves

Mechanical expansion valve

Electronic expansion valve

Heat exchanger: evaporator

Standard brazed plate HE

Micro-channel HE large evaporator surface

Heat exchanger: condenser

(Brazed) plate heat exchanger

Micro-channel heat exchanger

Circulators (“pumps”)

Standard pump

High efficiency pump

Controls

Simple controls

Adaptive controls, connection to house grid, Internet

Fans and motors

Standard fan

Optimized blade, high efficiency motor

Refrigerant

R410a, R407c dominate

Reduced refrigerant charge, low GWP refrigerant (parallel work on efficiency improvements necessary)

Storage tank (External to the unit, but equally important)

Storage tank optimized for the heating demand of the building, different solutions for insulation

Optimized insulation, storage solutions optimized for larger share of RES integration in smart grids

Heat distribution

Floor/wall heating, fan coil units, standard radiators

Low temperature heating radiators, mini-hydronic heating with fan coils, more energy efficient fan coil units

HFC

Refrigerant physical properties Cond. Press. MPa

ODP

GWP (IPCC4)

Life Year

Flamm -ability

Toxicity

R410A

Azeotrope

2.72

0

2090

5-29

No

Low

R407C

Zeotrope

1.86

0

1770

5-29

No

Low

R32

Single

2.80

0

675

5

Low*

Low

HFO1234ze

Single

0.88

0

6

11 days

Low*

Low***

HFO1234yf

Single

1.16

0

4

7 days

Low*

Non-HFC

HFO mixture

Under investigation

Low*** Low

Propane (R290)

Single

1.53

0

<3

Some days

High

Low

CO2 (R744)

Single

10.0

0

1

120

No

Low**

Ammonia (R717)

Single

1.78

0

0

0

Low

High

* According to ISO817 draft ** Practical limit is 0.1 kg/m3 according to EN378 *** Based on currently available data

Table 4-2: Properties of different refrigerant options

180

Annex IV

2014

2015

2016

2017

2018

2019

2020

AT

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

BE

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

CH

2,0%

1,8%

1,6%

1,5%

1,3%

1,2%

1,1%

CZ

15,0%

13,5%

12,2%

10,9%

9,8%

8,9%

8,0%

DE

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

DK

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

EE

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

ES

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

FI

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

FR

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

HU

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

IE

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

IT

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

LT

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

NL

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

NO

5,0%

4,5%

4,1%

3,6%

3,3%

3,0%

2,7%

PL

15,0%

13,5%

12,2%

10,9%

9,8%

8,9%

8,0%

PT

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

SE

0,0%

0,0%

0,0%

0,0%

0,0%

0,0%

0,0%

SK

15,0%

13,5%

12,2%

10,9%

9,8%

8,9%

8,0%

UK

10,0%

9,0%

8,1%

7,3%

6,6%

5,9%

5,3%

Table 5-5: Estimated future growth rates

Installed capacity

AT

BE

CH

CZ

DE

DK

EE

ES

FI

FR

HU

IE

IT

LT

NL

NO

PL

PT

SE

SK

UK

Air/water

12

12

12

12

12

8

13

12

12

11

18

13

15

14

10

10

12

15

9

10

15

Water/water

10

13

10

26

10

8

0

18

0

15

22

14

20

17

48

0

14

12

0

13

12

Brine/water

14

13

14

13

14

10

13

0

13

14

26

13

19

12

12

15

14

12

11

16

12

Dir. expansion/water or dir. condensation

10

13

10

0

10

8

0

0

0

11

0

0

0

10

0

0

12

12

0

10

12

Dir. exp./dir. cond.

10

13

10

2

10

8

0

0

0

10

0

0

0

0

8

0

0

12

0

0

12

Exhaust air HP

2

2

2

2

2

0

2

2

2

2

2

2

2

2

2

2

2

2

2

2

2

Sanitary Hot Water HP (DHW)

3

3

3

2

3

3

3

8

3

3

12

3

3

3

1

3

2

3

3

10

3

Reversible HP

4

10

4

5

4

4

5

6

4

10

18

0

12

4

8

5

12

22

4

12

8

Table 5-6: Average installed capacities per type of heat pump and country

Annex IV

181

Operating hours

Table 5-9: Operating hours (HHP) for different types of heat pumps, distinguished by climate zone. Source: EHPA

182

Average

Warm

Heating only HP - air/water

2500

1500

1000

Heating only HP - brine/water

3500

1600

1150

Heating only HP - direct expansion

3500

1600

1150

Heating only HP - water/water

3500

1600

1150

Exhaust air HP

0

0

0

Sanitary hot water HP

1000

1000

1000

Reversible HP

2500

1500

1000

SPF

Table 5-10: Efficiency values (SPF) for different types of heat pumps, distinguished by climate zone. Source: EHPA

Cold

Cold

Average

Warm

Heating only HP - air/water

3

3

3

Heating only HP - brine/water

3,7

3,7

3,7

Heating only HP - direct expansion

3,7

3,7

3,7

Heating only HP - water/water

3,5

3,5

3,5

Exhaust air HP

3

3

3

Sanitary hot water HP

3

3

3

Reversible HP

3

3

3

Annex IV

List of tables

Table 1-1: Table 2-1:

Heat pumps in Europe – sales and stock, 2005–2013 Primary energy consumption in the EU 27 forecasts

Table 6.9-3: Table 6.9-4:

Table 4-1: Table 4-2:

Standard components and improvement potential Properties of different refrigerant options

Table 6.9-5:

Table 5-1:

Energy prices for selected countries 2013 (average end consumer prices including VAT and distribution) Heat pump sales in EU-21 countries (Air/air data adjusted according to EHPA methodology, cf. Annex I Segmentation of heat pump markets Consolidated contribution of heat pumps in a nutshell: Energy production, RES share, primary and final energy savings as well as GHG emissions reduction Estimated future growth rates Average installed capacities per type of heat pump and country Operating hours (HHP) for different types of heat pumps, distinguished by climate zone. Source: Commission decision 2013/114/EU (European Union 2014) Efficiency values (SPF) for different types of heat pumps, distinguished by climate zone. Source: Commission decision 2013/114/EU (European Union 2014) Operating hours (HHP) for different types of heat pumps, distinguished by climate zone. Source: EHPA Efficiency values (SPF) for different types of heat pumps, distinguished by climate zone. Source: EHPA Comparison of RES contribution (in TWh) of a) the heat pump sales in 2013, and b) the heat pump stock in 2013: Commission vs. EHPA | per country (source: EHPA) 2020 Projection of consolidated contributions of heat pumps: Energy production, RES share, primary and final energy savings as well as GHG emissions reduction

Table 5-2: Table 5-3: Table 5-4:

Table 5-5: Table 5-6: Table 5-7:

Table 5-8:

Table 5-9: Table 5-10: Table 5-11:

Table 5-12:

Table 6.1-1: Table 6.1-2: Table 6.1-3: Table 6.1-4: Table 6.2-1: Table 6.2-2: Table 6.2-3: Table 6.2-4:

Electricity mix in Austria [7] Energy prices in Austria [8–11] Sales of heat pumps in Austria 2009–2013 Energy performance requirements in Austria Electricity mix in Belgium. [7] Energy prices in Belgium 2013 [8-10] Sales of heat pumps in Belgium 2009–2013 Average heat pump unit prices (price for end user, installation costs included, heat distribution excluded) Table 6.2-5: Energy performance requirements in Belgium [11] Table 6.3-1: Electricity mix in the Czech Republic [7] Table 6.3-2: Energy prices in the Czech Republic [8-10] Table 6.3-3: Sales of heat pumps in the Czech Republic 2005 – 2013 Table 6.3-4: Average heat pump unit prices including installation for an average family house with heat losses around 10 kW Table 6.4-1: Electricity mix in Denmark 2011–2012 [7] Table 6.4-2: Energy prices in Denmark 2013 [8-10] Table 6.4-3: Average heat pump unit prices in Denmark Table 6.5-1: Electricity mix in Estonia [7] Table 6.5-2: Energy prices in Estonia [8-10] Table 6.5-3: Sales of heat pumps in Estonia 2009–2013 Table 6.5-4: Average end consumer prices in Estonia, 2013 Table 6.5-5: Energy performance requirements in Estonia [11 ] Table 6.6-1: Electricity mix in Finland 2013 [7] Table 6.6-2: Energy prices in Finland 2013 [8-10] Table 6.6-3: Energy prices in Finland 2013 Table 6.6-4: Finnish 2009–2013 market by type of heat pump Table 6.6-5: Average heat pump unit prices Table 6.6-6: Energy performance requirements in Finland [11] Table 6.7-1: Electricity mix in France 2011-2012 [7] Table 6.7-2: Energy prices in France 2013 [8-10] Table 6.7-3: Sales of heat pumps in France 2009 – 2013 Table 6.7-4: Typical heat pump end consumer prices for France Table 6.7-5: Energy performance requirements in France [11] Table 6.8-1: Electricity mix in Germany 2011–2013 [7] Table 6.8-2: Energy prices in Germany 2013 [8-10] Table 6.8-3: Sales of heat pumps in Germany 2009–2013 Table 6.8-4: Typical investment costs for heat pump systems in single family houses in Germany (2009) Table 6.8-5: Energy performance requirements in Germany [11] Table 6.9-1: Electricity mix in Hungary 2013 [7] Table 6.9-2: Energy prices in Hungary 2013 [8-10]

Table 6.19-8: Table 6.20-1: Table 6.20-2: Table 6.20-3: Table 6.20-4: Table 6.21-1: Table 6.21-2: Table 6.21-3: Table 6.21-4: Table 6.21-5:

Sales of heat pumps in Hungary 2009–2013 Typical investment costs for heat pump systems in single family houses in Hungary Former heat pump incentive scheme in Hungary (approximate maximum amounts) Energy performance requirements in Hungary [11] Electricity mix in Ireland 2013 [7] Energy prices in Ireland 2013 [8-10] Sales of heat pump in Ireland 2009–2013 Electricity mix in Italy 2012–2013 [7] Electricity prices in Italy 2013 [8-10] Sales of heat pumps in Italy 2009–2013 Average heat pump end user unit prices (incl. VAT) Energy performance requirements in Ireland [11] Electricity mix in Lithuania 2011–2012 [7] Energy prices in Lithuania 2013 [8-10] Sales of heat pumps in Lithuania 2009–2013 Average heat pump unit prices in Lithuania Energy performance requirements in Lithuania [15] Electricity mix in the Netherlands 2011–2012 [7] Energy prices in the Netherlands 2013 [8-10] Housing park by type of heating product, 2012 [11] Number of heat pumps installed Dutch 2009–2013 market by type of heat pump Energy performance requirements in The Netherlands [12] Electricity mix in Norway 2013 [6] Energy prices in Norway [7] Sales of heat pumps in Norway 2009–2013 Energy performance requirements Norway [8] Electricity mix in Poland 2013 [7] Energy prices in Poland 2013 [8-10] Sales of heat pumps in Poland 2010–2013 Typical heat pump end consumer prices for Poland Electricity mix in Portugal 2013 [7] Energy prices in Portugal 2013 [8-10] Sales of heat pumps in Portugal 2009–2013 Energy performance requirements Portugal [11] Electricity mix in Slovakia 2011–2012 [7] Energy prices in Slovakia 2013 [8-11] Sales of heat pumps in Slovakia 2009–2013 Typical end consumer prices for turnkey solutions in Slovakia Energy performance requirements Slovakia [12] Electricity mix in Spain 2011–2012 [7] Energy prices in Spain 2013 [8-10] Spanish heat pump 2010–2013 market Energy performance requirements Spain [11] Electricity mix in Sweden 2011-2012 [7] Energy prices in Sweden 2013 [8-10] Type of heating system replaced by heat pump installation [11] Sales of heat pumps in Sweden 2009–2013 Estimated shares for different types of heating in single and two family houses [12] Estimated shares for different types of heating in multifamily dwellings [13] Average end consumer prices for turnkey solutions in Sweden Energy performance requirements Sweden [14] Electricity mix for Switzerland 2009–2010 [5] Energy prices in Switzerland 2010 [6] Sales of heat pumps in Switzerland 2009–2013 Energy performance requirements Switzerland [7] Energy mix in the United Kingdom 2011–2012 [7] Energy prices in the United Kingdom 2013 [8-10] Sales of heat pumps in the UK 2009–2013 Typical cost for an installed heat pump in the UK Energy performance requirements United Kingdom [11]

Table 7.2-1: Table 7.2-2: Table 7.2-3: Table 7.2-4:

Electricity mix in China Energy prices in China Sales of water source heat pumps in China 2013 Sales of heat pumps in China 2013

Table 6.9-6: Table 6.10-1: Table 6.10-2: Table 6.10-3: Table 6.11-1: Table 6.11-2: Table 6.11-3: Table 6.11-4: Table 6.11-6: Table 6.12-1: Table 6.12-2: Table 6.12-3: Table 6.12-4: Table 6.12-5: Table 6.13-1: Table 6.13-2: Table 6.13-3: Table 6.13-4: Table 6.13-5: Table 6.13-6: Table 6.14-1: Table 6.14-2: Table 6.14-3: Table 6.14-4: Table 6.15-1: Table 6.15-2: Table 6.15-3: Table 6.15-4: Table 6.16-1: Table 6.16-2: Table 6.16-3: Table 6.16-4: Table 6.17-1: Table 6.17-2: Table 6.17-3: Table 6.17-4: Table 6.17-5: Table 6.18-1: Table 6.18-2: Table 6.18–3: Table 6.18-4: Table 6.19-1: Table 6.19-2: Table 6.19-3: Table 6.19-4: Table 6.19-5: Table 6.19-6: Table 6.19-7:

List of tables

183

List of figures

Figure 1-1: Figure 1-2: Figure 1-3: Figure 1-4:

Figure 2-1: Figure 2-2: Figure 2-3: Figure 2-4:

Figure 3-1: Figure 3-2: Figure 3-3: Figure 3-4: Figure 3-5: Figure 4-1: Figure 4-2:

Figure 5-1: Figure 5-2:

Figure 5-3: Figure 5-4: Figure 5-5: Figure 5-6:

Figure 5-7: Figure 5-8: Figure 5-9:

Figure 5-10: Figure 5-11: Figure 5-12: Figure 5-13: Figure 5-14: Figure 5-15: Figure 5-16: Figure 5-17:

Figure 5-18:

Figure 5-19: Figure 5-20:

Development of heat pump sales in Europe 2005–2013, by category Development of heat pumps sales in 21 European countries – growth rates 2011–12 and 2012–13 RES from 2013 heat pump stock, by country (in TWh) Greenhouse gas emissions saved by 2013 heat pump stock, by country (in Mt) Total CO2-eq emissions for all countries [11] EU energy dependence. (Source: European Commission, 2014) [12] EU-20 shares of renewable energy (Source: Eurostat, 2013) [13] EU-27 heating and cooling targets (Source: Progress reports, 2013) Planned (blue) versus estimated (red-dotted) trend in EU renewable energy [2] Implementing measures to the ErP Directive with relevance to heat pumps [4] Energylabel for a heat pump combi-heater from 2019 onwards Energylabel for a heat pump water heater from 2017 onwards Ecolabel Heat Pump Applications in proportion to scale and temperature (Source: HPTCJ) Schematic illustration of combining photovoltaic cells and a (sanitary hot water) heat pump (Source: Stiebel-Eltron) Energy price ratios for heat pumps vs. oil, gas, pellet and district heating systems in 2013 European heat pump market development in 14 and 21 countries from 2005 to 2013 (* Value for 2009 includes 19 European countries). Total accumulated sales: 6 742 617 units Sales of heat pumps in 2013 | by country Annual change of heat pump sales in 21 countries | sorted by size of change 2012/2013 Change of growth of heat pump sales in 21 countries over the past two years | sorted by growth 2012/2013 Split of sales by product category in EU-21, 2013 (Includes sales of reversible air/air heat pumps; “H-” indicates primary heating function) Development of sales by category, 2005–2013 (EU-21) Share of energy used per country, 2013 Development of sanitary hot water heat pump sales, 2005–2013. Total accumulated sales: 332 917 units or 5% of the heat pump stock Heat pump sales in 2013 and accumulated sales 1994 – 2013* per 10 000 households Heat pump sales by capacity class Employment in the heat pump sector 2013 (in man years) Renewable thermal energy provided per country, by type, 2013 (in TWh) Final and primary energy savings from heat pumps based on sales 2013, per country (in TWh) Greenhouse-gas emission savings based on sales 2013, per country (in Mt) Simplified illustration of the energy flow of a working heat pump Difference between the SPF values used by EHPA and those suggested by the Commission | per technology and climate zone (source: EHPA) Difference (in per cent) of EHPA vs. Commission approach on the assumption of average HHP values per climate zone (source: EHPA) RES contribution in TWh from heat pumps installed in 2013 | per country (source: EHPA) Change in RES contribution in 2013 (in %) resulting from the Commission approach compared to the EHPA | per country (source: EHPA)

184

List of figures

Figure 5-21:

Figure 5-22: Figure 6.1-1: Figure 6.1-2: Figure 6.1-3: Figure 6.2-1: Figure 6.2-2: Figure 6.2-3: Figure 6.3-1: Figure 6.3-2:

Comparison of RES contribution (in TWh) of the heat pump stock in 2012: Commission vs. EHPA vs. MS | per country (source: EHPA, Progress Reports according to Article 22 of the Renewable Energy Directive 2009/28/EC) Sales outlook 2014

Austrian heat pump market development 1989–2013 Heat Pumps in operation in Austria (installed since 1989) Austrian 2010–2013 market by type of heat pump Belgian heat pump market development 2009–2013 Heat pumps in operation in Belgium (installed since 2009) Belgian 2010 – 2013 market by type of heat pump Czech heat pump market development 2005–2013 Heat Pumps in operation in Czech Republic (installed since 2005) Figure 6.3-3: Czech heat pump market, 2010–2013, by type of heat pump (statistics based on approx. 80% of the market) Figure 6.4-1: Danish heat pump market development 2007–2013 Figure 6.4-2: Heat pumps in operation in Denmark (installed since 2007) Figure 6.4-3: Danish 2010–2013 market by type of heat pump Figure 6.5-1: Estonian heat pump market development 2007–2013 Figure 6.5-2: Heat pumps in operation in Estonia (installed since 2007) Figure 6.5-3: Estonian 2010–2013 market by type of heat pump Figure 6.6-1: Finnish heat pump market development 2005– 2013 Figure 6.6-2: Heat pumps in operation in Finland Figure 6.6-3: Finnish 2010–2013 market by type of heat pump Figure 6.7-1: Sales of heat pumps in France 2005–2013 Figure 6.7-2: Heat pumps in operation in France Figure 6.7-3: French 2010–2013 market by type of heat pump Figure 6.8-1: German heat pump market development 1993–2013 Figure 6.8-2: Heat pumps in operation in Germany in 2013 Figure 6.8-3: German 2010–2013 market by type of heat pump Figure 6.9-1: Hungarian heat pump market development 2009–2013 Figure 6.9-2: Heat pumps in operation in Hungary 2009–2013 Figure 6.9-3: Hungarian 2010–2013 market by type of heat pump Figure 6.10-1: Irish heat pump market development 2009–2013 Figure 6.10-2: Heat pumps in operation in Ireland (installed since 2009) Figure 6.10-3: Irish 2010–2013 market by type of heat pump Figure 6.11-1: Italian heat pump market development 2005–2013 Figure 6.11-2: Heat pumps in operation in Italy Figure 6.11-3: Italian 2010–2013 market by type of heat pump Figure 6.12-1: Lithuanian heat pump market development 2009–2013 Figure 6.12-2: Heat pumps in operation in Lithuania 2009–2013 Figure 6.12-3: Lithuanian 2010–2013 market by type of heat pump Figure 6.13-1: Dutch heat pump market developments 2006–2013 (excl. a/a units) Figure 6.13-2: Heat pumps in operation in The Netherlands Figure 6.13-3: Dutch 2010–2013 market by type of heat pump Figure 6.14-1: Norwegian heat pump market development 2005–2013 Figure 6.14-2: Heat Pumps in operation in Norway (installed since 2005) Figure 6.14-3: Norwegian 2010–2013 market by type of heat pump Figure 6.15-1: Polish heat pump market development 2010–2013 Figure 6.15-2: Heat pumps in operation in Poland Figure 6.15-3: Polish 2010–2013 market by type of heat pump Figure 6.16-1: Portuguese heat pump market developments 2005–2012 Figure 6.16-1: Portuguese heat pump market developments 2005–2012 Figure 6.16-2: Heat pumps in operation in Portugal Figure 6.16-3: Portugal 2010–2013 market by type of heat pump Figure 6.17-1: Slovakian heat pump market development 2009–2013 Figure 6.17-2: Slovakian 2009–2013 market by type of heat pump Figure 6.17-3: Slovakian 2010–2013 market by type of heat pump Figure 6.18-1: Spanish heat pump market development 2010–2013 Figure 6.18-2: Heat pumps in operation in Spain Figure 6.18-3: Spanish 2010–2013 market by type of heat pump Figure 6.19-1: Swedish heat pump market developments 1994–2013 Figure 6.19-2: Heat Pumps in operation in Sweden (installed since 1994) Figure 6.19-3: Swedish 2010–2013 market by type of heat pump Figure 6.20-1: Swiss heat pump market development 2005–2013 Figure 6.20-2: Heat Pumps in operation in Switzerland (installed since 2005) Figure 6.20-3: Swiss 2010–2013 market by type of heat pump Figure 6.21-1: UK heat pump market development 2005–2012 Figure 6.21-2: Heat pumps in operation in the UK (installed since 2005) Figure 6.21-3: UK 2010–2013 market by type of heat pump

EHPA members 2014

A ssociation FFrançaise rançaise p our Association pour lles es P ompes A C haleur Pompes Chaleur

Bulgarian Heat Pump Association

wpp wpp w warmtepomp armtepomp p platform latform

EHPA was established in the year 2000 as a European Economic Interest Group to promote awareness and proper deployment of heat pump technology in the European market place for residential, commercial and industrial applications. EHPA aims to provide technical and economic input to European, national and local authorities in legislative, regulatory and energy efficiency matters. All activities are aimed at overcoming market barriers and dissemination of information in order to speed up market development of heat pumps for heating, cooling and hot water production. More information can be found at www.ehpa.org The full report can be purchased from the European Heat Pump Association.

The European Heat Pump Assocation Renewable Energy House Rue d’Arlon 63-67 B-1040 Brussels phone +32 24 00 10 17 fax +32 24 00 10 18 e-mail [email protected]