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Raising the temperature of the UK heat pump market: Learning lessons from Finland

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  • Hannon, Matthew J.

Abstract

Heat pumps play a central role in decarbonising the UK's buildings sector as part of the Committee on Climate Change's (CCC) updated abatement scenario for meeting the UK's fourth carbon budget. However, the UK has one of the least developed heat pump markets in Europe and renewable heat output from heat pumps will need to increase by a factor of 50 over the next 15 years to be in line with the scenario. Therefore, this paper explores what lessons the UK might learn from Finland to achieve this aim considering that its current level of heat pump penetration is comparable with that outlined in the CCC scenario for 2030. Despite the two countries’ characteristic differences we argue they share sufficient similarities for the UK to usefully draw some policy-based lessons from Finland including: stimulating new-build construction and renovation of existing stock; incorporating renewable heat solutions in building energy performance standards; and bringing the cost of heat pumps in-line with gas fired heating via a combination of subsidies, taxes and energy RD&D. Finally, preliminary efforts to grow the heat pump market could usefully focus on properties unconnected to the gas-grid, considering these are typically heated by relatively expensive oil or electric heating technologies.

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  • Hannon, Matthew J., 2015. "Raising the temperature of the UK heat pump market: Learning lessons from Finland," Energy Policy, Elsevier, vol. 85(C), pages 369-375.
    • Handle: RePEc:eee:enepol:v:85:y:2015:i:c:p:369-375
    DOI: 10.1016/j.enpol.2015.06.016
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    References listed on IDEAS

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    1. Eyre, Nick & Baruah, Pranab, 2015. "Uncertainties in future energy demand in UK residential heating," Energy Policy, Elsevier, vol. 87(C), pages 641-653.
    2. Hannon, Matthew J. & Foxon, Timothy J. & Gale, William F., 2013. "The co-evolutionary relationship between Energy Service Companies and the UK energy system: Implications for a low-carbon transition," Energy Policy, Elsevier, vol. 61(C), pages 1031-1045.
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    Citations

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    Cited by:

    1. Sanghamitra Mukherjee & Séin Healy & Tensay Meles & L. (Lisa B.) Ryan & Robert Mooney & Lindsay Sharpe & Paul Hayes, 2020. "Renewable Energy Technology Uptake: Public Preferences and Policy Design in Early Adoption," Working Papers 202004, School of Economics, University College Dublin.
    2. Qadrdan, Meysam & Fazeli, Reza & Jenkins, Nick & Strbac, Goran & Sansom, Robert, 2019. "Gas and electricity supply implications of decarbonising heat sector in GB," Energy, Elsevier, vol. 169(C), pages 50-60.
    3. Thomaßen, Georg & Kavvadias, Konstantinos & Jiménez Navarro, Juan Pablo, 2021. "The decarbonisation of the EU heating sector through electrification: A parametric analysis," Energy Policy, Elsevier, vol. 148(PA).
    4. Eom, Yong Hwan & Chung, Yoong & Park, Minsu & Hong, Sung Bin & Kim, Min Soo, 2021. "Deep learning-based prediction method on performance change of air source heat pump system under frosting conditions," Energy, Elsevier, vol. 228(C).
    5. Meles, Tensay Hadush & Ryan, Lisa, 2022. "Adoption of renewable home heating systems: An agent-based model of heat pumps in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    6. Khosravi, Fatemeh & Lowes, Richard & Ugalde-Loo, Carlos E., 2023. "Cooling is hotting up in the UK," Energy Policy, Elsevier, vol. 174(C).
    7. Jan Rosenow & Duncan Gibb & Thomas Nowak & Richard Lowes, 2022. "Heating up the global heat pump market," Nature Energy, Nature, vol. 7(10), pages 901-904, October.
    8. Eggimann, Sven & Usher, Will & Eyre, Nick & Hall, Jim W., 2020. "How weather affects energy demand variability in the transition towards sustainable heating," Energy, Elsevier, vol. 195(C).
    9. Sovacool, Benjamin K. & Lipson, Matthew M. & Chard, Rose, 2019. "Temporality, vulnerability, and energy justice in household low carbon innovations," Energy Policy, Elsevier, vol. 128(C), pages 495-504.
    10. Eggimann, Sven & Hall, Jim W. & Eyre, Nick, 2019. "A high-resolution spatio-temporal energy demand simulation to explore the potential of heating demand side management with large-scale heat pump diffusion," Applied Energy, Elsevier, vol. 236(C), pages 997-1010.
    11. Xingchi Shen & Yueming Lucy Qiu & Pengfei Liu & Anand Patwardhan, 2022. "The Effect of Rebate and Loan Incentives on Residential Heat Pump Adoption: Evidence from North Carolina," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 741-789, July.
    12. Heiskanen, Eva & Matschoss, Kaisa, 2017. "Understanding the uneven diffusion of building-scale renewable energy systems: A review of household, local and country level factors in diverse European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 580-591.

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    Keywords

    Heat pumps; UK; Finland;
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