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Call key data
Accelerating deployment and affordability of heat pumps through collective purchase actions and procurement
Funding Program
LIFE - sub-programme “Clean Energy Transition”
Call number
LIFE-2022-CET-HEATPUMPS
deadlines
Opening
17.05.2022
Deadline
16.11.2022 17:00
Funding rate
95 %
Call budget
€ 6,000,000.00
Link to the call
Link to the submission
Call content
short description
Call objectives
Electrification is expected to play a central role in buildings, in particular through the rollout of heat pumps for space heating, cooling and domestic hot water production. In the residential sector, the share of electricity in heating demand should grow to 40% by 2030 and to 50-70% by 2050. Heat pumps are one of the key technologies to meet this demand, contributing to the EU’s 2030 and 2050 climate and energy targets. Although these technologies and the quality of installations have been improving, the upscaling of existing and the development of new supply chains are not rapid enough to prevent bottlenecks and ensure competitive pricing throughout the supply chain. As part of the REPowerEU plan to phase out EU dependence on fossil fuels imports, the European Commission has called for doubling the EU’s yearly pace of deployment of heat pumps and reaching 10 million heat pumps installed in the next five years across EU Member States.
In order to achieve these objectives, various barriers to the deployment and installation of heat pumps need to be tackled, such as:
- high upfront costs and perceived complexity of design and installation;
- lack of awareness on the available technologies and confidence in the quality of installations; lack of awareness on how targeted changes in existing buildings and their heat distribution systems may often enable efficient heat pump deployment even without or prior to large scale renovations;
- distress purchase decisions (i.e. repairing or replacing an existing heating system following breakdown);
- technical barriers, such as physical space for setting up the new equipment (outdoor and indoor unit, buffer tank and DHW accumulator, etc.); the potential need to increase the electrical power of the building (modification of the electrical installation); the potential need to increase building insulation and/or to adapt the emitter system.
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Expected effects and impacts
The proposed actions should set up and/or support collective purchase and procurement actions aiming at reducing significantly the product and/or installation prices by creating large-scale demand for well-specified (ranges of) heat pump products. The focus of the proposed actions should be at least on space (and water) heating for households; however, this does not preclude targeting non-residential buildings in addition. Synergies of heat pumps with self-consumption installations (PV) and hybrid renewable heating and cooling systems could also be promoted.
The proposed actions should cover the following:
- Coordinate calls for interest on the purchase and installation of heat pumps, and undertake negotiations with related economic operators (e.g. manufacturers, installer associations, energy companies or other potential service providers, including of optional financing elements). Operation related aspects, such as longer guarantee periods and post purchase maintenance or other customer services for products bought under these schemes, could be included in concluded agreements. Solutions including full or partial financing of upfront investment could also be considered.
- Ensure simplification of the offer/demand (e.g. by basing such schemes on a limited number of products and capacities, satisfying essential criteria to increase volumes of specific production series and deliver quality installations); ensure building suitability and readiness (e.g. thermal insulation, heat distribution system) for heat pump installation prior to any purchase, and proper building heating needs and heat pump size evaluation (various methods can be used possibly in combination such as, short term temperature measurements, building and energy system simulation tools, assessment by qualified technicians).
- Support the preparation (e.g. organisational, technical, access to financial support) and execution of such projects. Moreover, identify, simplify access to and seek synergies with relevant national, regional or local financing opportunities (e.g. loans, subsidies, tax incentives).
- Undertake other initiatives along the value chain (e.g. ensuring quality installation procedures, training on offered products and promotion of related certification schemes, further developing innovative propositions/ services e.g. heating as a service) that would lead to lowering the installation price.
- Engage in promotional and awareness raising activities, including on related installation training schemes, targeting specific consumer groups and other relevant stakeholders (e.g. SMEs, young people).
All relevant stakeholders necessary for the successful implementation of the action should be involved, including relevant public and/or private entities (e.g. public authorities, consumer organisations, private companies, housing associations, large building owners); if not directly involved, their support should be demonstrated in the proposal. The purchased heat pumps should be installed by installers with relevant training and certification. Organisations should demonstrate independence from commercial technology providers and justify their capacity to select best value for money. For public procurement actors, green/ circular public procurement criteria (including under the Energy Efficiency Directive) should be taken into account.
The proposed actions are invited to build on experiences and lessons learned in other relevant projects and programmes.
The Commission considers that proposals requesting a contribution from the EU of up to EUR 2 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.
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Expected results
Proposals should result in an increased deployment of heat pumps through collective purchase and procurement actions, and demonstrate the effectiveness and replicability of the proposed actions for accelerating the deployment and affordability of heat pumps.
Proposals should quantify their impacts using the indicators listed below, where relevant, as well as other project-specific performance indicators:
- Number of installations triggered by the action, including a performance guarantee for the end user.
- Number of collective purchase and/or procurement actions setup and/or supported by the action (local, regional or national; public or private; residential or non-residential).
- Number of actors with increased skills (public authorities, installers, consumers and other relevant actors).
- Primary energy savings triggered by the project (in GWh/year).
- Renewable energy generation triggered by the project (in GWh/year).
- Investments in sustainable energy renovation triggered by the project (cumulative, in million Euro).
The impacts of the proposals should be demonstrated during the project and within 5 years after the project lifetime.
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Eligibility Criteria
Regions / countries for funding
Albania (Shqipëria), Andorra, Faeroes (Føroyar / Færøerne), Iceland (Ísland), Israel (ישראל / إِسْرَائِيل), North Macedonia (Северна Македонија), Türkiye, Ukraine (Україна)
eligible entities
Education and training institution, International organization, Non-Profit Organisation (NPO) / Non-Governmental Organisation (NGO), Other, Private institution, incl. private company (private for profit), Public Body (national, regional and local; incl. EGTCs), Research Institution incl. University, Small and medium-sized enterprise (SME)
Mandatory partnership
Yes
Project Partnership
Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.
In order to be eligible, the applicants (beneficiaries and affiliated entities) must:
- be legal entities (public or private bodies)
- be established in one of the eligible countries, i.e.:
- EU Member States (including overseas countries and territories (OCTs))
- non-EU countries:
- please see the List of Participating Countries in LIFE for an up-to-date list of countries with which the association agreements have started to produce legal effects (either through provisional application or their entry into force).
- the coordinator must be established in an eligible country
Natural persons are NOT eligible (with the exception of self-employed persons, i.e. sole traders, where the company does not have legal personality separate from that of the natural person).
International organisations are eligible. The rules on eligible countries do not apply to them.
Additional information
Topics
UN Sustainable Development Goals (UN-SDGs)
Additional Information
Proposal page limits and layout:
Proposals must be complete and contain all the requested information and all required annexes and supporting documents:
- Application Form Part A — contains administrative information about the participants and the summarised budget for the project
- Application Form Part B — contains the technical description of the project
- Part C containing additional project data
- mandatory annexes and supporting documents:
- detailed budget table
- participant information
- optional annexes: letters of support
Page limit - Part B: 65 pages
Call documents
Call document LIFE-2022-CETCall document LIFE-2022-CET(1043kB)
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