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Heating applications in the range up to 200 degrees are responsible for over three quarters of Germany‘s fossil gas consumption and over a quarter of its greenhouse gas emissions.
Currently, fossil fuels dominate the heat supply in industrial processes, buildings and district heating systems. In order to achieve the climate targets and reduce fossil gas consumption, it is therefore crucial to switch to climate-neutral options based on renewable energy sources.
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The entire heat demand in Germany up to 200 degrees can technically be covered by heat pumps.
As part of this, large-scale heat pumps can exploit considerable potentials offered by geothermal energy, water bodies and waste heat. By 2045, large-scale heat pumps could provide 70 percent of the district heating supply and thus replace a very large proportion of the fossil gas used.
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Large-scale heat pumps are a proven technology that has considerable market potential in Germany.
However, there were only 60 megawatts of installed capacity in Germany in 2023. Complex planning and approval procedures are slowing down the market ramp-up. In addition, the existing financial support system under the Combined Heat and Power Act (KWKG) and the higher tax burden on electricity compared to fossil gas have so far favoured gas-based heating options – these perverse incentives must be eliminated.
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A rapid ramp-up of large-scale heat pumps requires a cleverly coordinated mix of instruments.
Of overriding importance is a clear overall goal, combined with energy prices that are in line with the transformation and a reform of the network use charges. Manufacturers should use the resulting planning certainty to drive innovation and reduce manufacturing costs. A revised framework of financial support and measures to speed up large-scale heat pump projects in district heating systems can then stimulate demand.
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