France’s battle plan to produce one million heat pumps a year

The French Minister of Economy and Energy, Bruno Le Maire, unveiled on Monday (15 April) the government’s plan to revive its heat pump industry, which comes amidst a slump in European heat pump manufacturing.

President Emmanuel Macron announced in September 2023 that France must produce one million heat pumps before the end of 2027. Le Maire and his Minister Delegate in charge of Energy and Industry, Roland Lescure, revealed on Monday the government’s plan to deliver this.

In France, the largest market and manufacturer of heat pumps in Europe, heat represents 45% of final energy consumption and almost two thirds of this heating is generated from fossil fuels.

Heat pumps are a key solution to reduce heating-related emissions. Depending on local environments, they typically consume around three times less energy than gas boilers or electric radiators. The technology can heat homes but also industrial processes where water below 200°C is needed.

Industry support

France already boasts 27 heat pump factories, and the government is ultimately aiming for one million new heat pumps a year to be manufactured in France by 2027.

The plan unveiled by Le Maire has two key elements:

Firstly to drive demand, the regulatory and administrative process for installing heat pumps on roofs will be simplified, in line with the government’s wider focus on cutting red tape.

The various schemes to help consumers purchase heat pumps will be continued, such as ‘MaPrimeRénov’, and energy saving certificates.

Secondly, the government will provide direct support to manufacturers, building on Europe’s new openness to support strategic green industries.

The French scheme will support the building of factories via tax credits, which could reach up to €200 million per factory in investment aid.

Ultimately, “we will begin redirecting public aid towards French and European heat pumps from 2025,” declared Le Maire, citing the adoption at the beginning of February of the Net Zero Industry Act, (NZIA), which is pushing greater European production of clean technologies, including heat pumps.

EU agrees law to boost green industry at home

The European Parliament and national governments have agreed to boost domestic production of green technologies, such as solar modules and wind turbines, expanding the list to include nuclear power but shying away from excluding Chinese manufacturers for most public subsidies.

European industry is struggling

While the government intervention should boost French heat pump manufacturers, across Europe, the sector is struggling.

Some 3,000 jobs have been suspended in 2023, while sales data from 14 European countries shows a 5% decrease in sales between 2022 and 2023. 

In addition, in certain member states like Germany, political opposition has undermined attempts to establish a clear timeline for the phase-out of fossil fuel boilers.

The industry also points to high interest rates and lower gas prices as impediments to growth.

Ultimately, the sector’s health will depend heavily on the number of building renovations. France has cut its ambitions in this respect – the original target of 200,000 complete energy renovations targeted in 2024 has been cut to 140,000.

The outlook is more positive at the European level. The EU is aiming for 10 million heat pump installations between 2023 and 2027.

Member states have also just agreed on the energy performance building directive (EPBD), which should also boost the deployment of heat pumps. The Directive requires each country to prepare a ‘national plan’ which should include a path to phase out fossil fuels boilers by 2040.

[Edited by Donagh Cagney/Zoran Radosavljevic]

Plans to ban fossil fuel heaters spark outrage in Germany

A draft law to ban the installation of new oil and gas heaters from next year has sparked outrage in Germany, adding fuel to continued government infighting in Berlin between the Greens and the Liberals.

Read more with Euractiv

Europe is not meeting its cross-border grid connection goals, watchdog warns

As EU energy ministers meet in Brussels to discuss grid expansion, the EU electricity market watchdog ACER warned on Friday (12 April) that Europe's key grid connections are not sufficiently dedicated to electricity trading between neighbouring countries.