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ECB and cheap gas to blame for heat pump slump, says lobby group

(EurActiv, 15 Apr 2024) The Brussels lobby group for heat pumps has blamed a 5% slump in 2023 sales on higher interest rates and cheap natural gas, based on a 16-country analysis.

European sales of heat pumps – a key technology to decarbonise the heating sector – saw a 5% slump in 2023, a first for the industry that had previously experienced non-stop growth for more than a decade.

In an analysis covering the biggest European markets, the Brussels representation of the sector – the European Heat Pump Association (EHPA) – found that “cheap gas and expensive bank loans” were the main culprits.

Amid record inflation in the past two years, the European Central Bank has repeatedly hiked interest rates.

Alongside several national particularities – Italy suspended grants, while power prices in Poland and Slovakia spiked – the market had to slump, the lobby group argues.

“It’s not rocket science: if you mess with the policy, it’ll mess with the market,” commented Jozefien Vanbecelaere, head of EU affairs at EHPA.

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EurActiv, 15 Apr 2024: ECB and cheap gas to blame for heat pump slump, says lobby group

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