Germany: Heat pump debates

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

In Germany, which is looking towards a future without fossil fuels, a kind of big white box is provoking a heated debate: heat pumps, which are supposed to replace gas and oil-fired boilers.

Growing demand for heat pumps boosts industry in Germany.

While gas remains the most common means of heating German homes, heat pumps have gained in popularity, in the midst of the transition to more environmentally-friendly heating and against a backdrop of soaring energy prices caused by the invasion of Ukraine. These appliances, which emit less CO2 than fossil-fired boilers, are generating considerable investment in Europe’s leading economy, which is aiming for carbon neutrality by 2045.

Order books are filling up, and the phenomenon is set to accelerate even further: a bill currently before parliament will gradually require individual heating systems to be powered by at least 65% renewable energy. The market for these pumps has already seen “significant growth in recent years, like never before”, Jan Brockmann, CEO of the Bosch Home Comfort Group, told AFP.

“In the long term, we believe that Germany could be the largest market in Europe”. – High-tech puzzles – To meet demand, the Bosch Home Comfort Group plant in the central German town of Eibelshausen began manufacturing this future-oriented technology this year. On the site’s production lines, whose industrial history goes back more than four centuries, the piping and electronics of future heat pumps are inserted into the bowels of the system.

The fight for new heat pump regulations in Germany

The equipment is tested before being placed in a large crate. The principle is similar to that of air conditioners and refrigerators, extracting heat from the ground, the outside air or a water source. For ecologist Robert Habeck, Vice-Chancellor and Minister of Economic Affairs, this device is quite simply the “technology of the future”.

In recent weeks, however, the Minister’s promotion of these pumps has sparked an outcry, with doubts expressed about their real contribution to the fight against global warming, and criticism levelled at their cost, deemed too high for many households. Supporters of the reform, on the other hand, point to the substantial government subsidies on offer and the many options available to buyers, including the possibility of upgrading to less expensive hybrid systems.

They see these pumps as one of the few realistic options for reducing emissions from the building sector, which accounted for around 15% of Germany’s carbon dioxide emissions in 2022. While a political compromise had been reached on the timetable for the new rules to come into force, after weeks of governmental crisis, a judicial setback has prevented the law from being passed in parliament as planned this week.

Political wrangling in Germany delays the adoption of heat pumps.

The Constitutional Court, seized by the conservative opposition, ruled that the time reserved for MPs to examine the final version of the text was too short. The vote is postponed until September. This conflict leaves its mark and diminishes the interest of potential customers, deplore the professionals. Mr. Brockmann describes the political quarrel as “very regrettable”. – Competition – Despite the turmoil, Bosch Home Comfort remains optimistic and plans to invest a billion euros in its European network by the end of the decade.

In addition to Germany, the company has plants in Sweden and Portugal, and is currently building one in Poland. However, the market is crowded, with competition from other German manufacturers such as Vaillant and Viessmann, which recently decided to sell its core business to an American group, a sign of the appetite for heat pumps.

While controversy rages around these devices, many remain convinced that they are essential to the fight against climate change. Peter Klafka, whose company, Klafka & Hinz, produces computer systems used in the energy sector, considers criticism of the cost and effort involved in installing these pumps to be “exaggerated”. “Some people say you have to completely renovate your house, but that’s not true,” he assures AFP. For him, “heat pumps are essential to the energy transition”.

The United States has threatened economic sanctions against International Maritime Organization members who approve a global carbon tax on international shipping emissions.
Global progress on electricity access slowed in 2024, with only 11 million new connections, despite targeted efforts in parts of Africa and Asia.
A parliamentary report questions the 2026 electricity pricing reform, warning of increased market exposure for households and a redistribution mechanism lacking clarity.
The US Senate has confirmed two new commissioners to the Federal Energy Regulatory Commission, creating a Republican majority that could reshape the regulatory approach to national energy infrastructure.
The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.
A report reveals the economic impact of renewable energy losses in Chile, indicating that a 1% drop in curtailments could generate $15mn in annual savings.
Faced with growing threats to its infrastructure, Denmark raises its energy alert level in response to a series of unidentified drone flyovers and ongoing geopolitical tensions.
The Prime Minister dismissed rumours of a moratorium on renewables, as the upcoming energy roadmap triggers tensions within the sector.
Kuwait plans to develop 14.05 GW of new power capacity by 2031 to meet growing demand and reduce scheduled outages, driven by extreme temperatures and maintenance delays.
The partnership with the World Bank-funded Pro Energia+ programme aims to expand electricity access in Mozambique by targeting rural communities through a results-based financing mechanism.
The European Commission strengthens ACER’s funding through a new fee structure applied to reporting entities, aimed at supporting increased surveillance of wholesale energy market transactions.
France’s Court of Auditors is urging clarity on EDF’s financing structure, as the public utility confronts a €460bn investment programme through 2040 to support its new nuclear reactor rollout.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.