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REGULATORY ASSISTANCE PROJECT THE PERFECT FIT | 49 • Pricing: French energy bills contain a carbon tax element which does not cover electricity,71 helping to balance energy prices in favour of electricity. French electricity retail prices (18p/kWh for 2020) were below the EU average whereas gas prices (8p/kWh for 2019) were higher than the average.72 These price differentials imply a running cost benefit associated with switching from gas to electricity for heating. Domestic heating oil costs in France during 2020 were around €0.9/litre,73 equating to a similar cost to gas per kWh. • Regulatory policies: France has a goal of removing all oil heating by 2030, and central to this is the ban on the installation of fossil-fuel heating in new buildings74 and the upcoming ban on replacement oil systems which has been delayed until July 2022.75 5.2 Pompa di calore: heat pumps in Italy In 2020, Italy was the second biggest market for heat pumps in Europe, and the Italian National Energy and Climate Plan foresees the vast majority of growth in renewable heat to 2030 being met by heat pumps.76 While currently roughly 60% of residential heat used in Italy comes from gas, over 35% of homes are not on the grid and have lower barriers to heat pump adoption. Italy’s main heat pump-specific policy has been in the form of financial support. Through the ‘Conto Termico’ or ‘Thermal account’ policy, the Italian government covers up to 65% of the capital cost of heat pump systems.77 Moreover, a ‘superbonus’ tax deduction scheme was introduced as part of the Italian government’s Covid-19 response package, which allows building owners to claim back up to 110% of building and heating renovation costs, including heat pumps.78 With regards to regulatory policies, the Italian government has no explicit plans for the phaseout of fossil fuels from heating in either new or existing buildings, despite growing calls79 and some action on oil boilers at local government levels.80 71 Hanafi, O., Jousseaume, M., Menner, M., Reichert, G. & Schwind, S. (2019). Carbon Pricing in France & Germany: Differences, Similarities and Perspectives. CEPInput. https://www.cep.eu/fileadmin/user_upload/cep.eu/Studien/cepInput_Carbon_Pricing_in_France___Germany.pdf 72 European Commission. (2020f). Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Energy prices and costs in Europe. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0951&from=EN 73 Ministère de la Transition Écologique. (2022b). Prix des produits pétroliers. https://www.ecologie.gouv.fr/prix-des-produits-petroliers 74 Connexion journalist. (2021). New-builds in France from mid-2021 must not have gas heating. Connexion. https://www.connexionfrance.com/Practical/ Property/New-builds-in-France-from-mid-2021-must-not-have-gas-heating 75 Lacas, F. (2021). L’interdiction des chaudières au fioul reportée de six mois. Batiactu. https://www.batiactu.com/edito/interdiction-chaudieres-au-fioul-neuf- reportee-six-62018.php 76 European Commission. (2020g). Integrated National Energy and Climate Plan—Italy. https://ec.europa.eu/energy/sites/default/files/documents/it_final_ necp_main_en.pdf 77 Gestore Servizi Energetici. Conto Termico [website]. https://www.gse.it/servizi-per-te/efficienza-energetica/conto-termico/conto-termico-per-la-pa 78 Lowes, R., Rosenow, J., Qadrdan, M. & Wu, J. (2020). Hot stuff: Research and policy principles for heat decarbonisation through smart electrification. Energy Research & Social Science, Volume 70, December 2020, 101735. https://www.sciencedirect.com/science/article/pii/S2214629620303108 79 Legambiente. (2021). Recovery plan, stop ai finanziamenti alle caldaie fossili se la normativa non cambia. https://www.legambiente.it/comunicati-stampa/ recovery-plan-stop-ai-finanziamenti-alle-caldaie-fossili-se-la-normativa-non-cambia/ 80 Milano Today. (2020). Milano, stop caldaie a gasolio anticipato ad autunno 2022: è ufficiale. Milano Today. https://www.milanotoday.it/attualita/caldaie- gasolio-stop-2022.htmlPDF Image | RAP Perfect Fit Heat Pump
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