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54 | THE PERFECT FIT REGULATORY ASSISTANCE PROJECT • The recast Directive on Energy Efficiency should go further on required primary energy demand reductions and ensure only truly sustainable heat networks are supported. • The revisions to the Renewable Energy Directive need to ensure the use of biomass for heat is limited through caps. • The proposed revisions in the Energy Performance of Buildings Directive should go further for all building types, not just to support heat pumps, but to support reductions in gas use and the overall energy transition. The Fit for 55 package is not expected to become law until at least 2023, and most likely 2024. In the interim period Member States should encourage heat pump uptake in advance in preparation for the full implementation of the Fit for 55 proposals. As explained in the paper, the uptake of heat pumps depends on the availability of competing heat infrastructures, relative costs of electricity compared to fossil fuels, and the regulatory requirements currently in place. To reach maximum deployment levels, a combined package of policy and regulatory measures will be required. Member States can also take steps to pre-empt the expected policy changes associated with the Fit for 55 package, drive early decarbonisation, and reduce the impacts of fossil fuel price rises. Specifically: • Progress on energy efficiency will be needed in all Member States; taking early, targeted action on the worst-performing buildings and the homes of the vulnerable and energy-poor would directly drive decarbonisation and make some headway on ETS 2 requirements. • While fossil gas prices may already have reduced gas/electricity cost differentials, there is nothing to stop Member States from reforming prices to support electrification. • Member State-level heat pump targets may have value in providing foresight to heating market actors and encouraging investment in supply chains and skills. • Bio-energy caps for heating could be introduced to reduce biodiversity risks and also to drive greater levels of heat pump uptake. • Member States deploying heat networks should ensure that low-carbon heat sources, including heat pumps, are used from the outset. • Energy-efficiency policies should be reformed to eliminate support offered to fossil-fuel heating systems. • Member States can set their own minimum energy performance standards to increase energy efficiency, or define a complete buildings pathway which includes heat pumps. While Member States can press ahead, heat pumps are a decarbonisation and energy security necessity across the EU. The Fit for 55 package provides an important window of opportunity to ensure that this system-critical technology is appropriately supported across the Union.PDF Image | RAP Perfect Fit Heat Pump
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