Low carbon equipment powered by clean electricity like heat pumps is far more cost-effective than fossil fuel-based technology, says a major new report from the International Energy Agency (IEA).
The IEA’s Strategies for Affordable Energy Transitions
According to the report, Strategies for Affordable and Fair Clean Energy Transitions, putting the world on track to meet net zero emissions by 2050 will require additional investment, but will also reduce the operating costs of the global energy system by more than half over the next decade compared with a trajectory based on today’s policy settings. The outcome, it concludes, is a more affordable and fairer energy system for consumers.
Clean Energy and the Global Energy Crisis
As Dr Fatih Birol, executive director of the IEA, points out: “The global energy crisis that escalated in early 2022 was not caused by clean energy. Since the early days of the crisis, I have been speaking regularly with energy policy makers from around the world. None of them have complained of relying too much on clean energy.
The Benefits of Investing in Clean Energy
“On the contrary, they wish they had more, because the result of investing in these technologies today is a more affordable energy system for consumers tomorrow – as well as less severe impacts from climate change, major improvements in air quality, and greater energy security.”
Heating and Cooling Efficiency
The IEA report emphasises that heat pumps can also provide space cooling which, when deployed as a combined heating and cooling solution in mild and warm climates, makes them less expensive than gas boilers and air conditioners deployed separately. It also makes the point that heat pumps are more efficient than gas-fired boilers.
One of the barriers that impede the adoption of clean energy technologies such as heat pumps is a lack of familiarity. The report points out: “Many of the changes required to move to a net zero emissions system require active buy-in from households.
“Upgrading the energy performance of buildings and appliances, electrifying end uses where possible, and investing in rooftop solar, electric mobility and technologies such as heat pumps will not be possible without broad public support. It will also not be possible without upfront spending.”
Heat Pump Advantages
That makes it beholden upon people who market and supply this equipment to educate the market about its advantages. These are manifold and include:
- Impressive energy efficiency.
- Reduced carbon emissions compared with fossil fuels
- Lower running costs than the alternatives.
- Safer operation (because there is no combustion involved in their use).
- Less maintenance (and therefore lower service costs) than a combustion-based heating system.
- Save spacing since there are no fuel storage requirements.
- A long lifespan.
- All-in-one heating and cooling system for both summer and winter comfort.
The Costs and Benefits of Heat Pumps
The IEA report acknowledges that drawbacks of heat pumps include higher upfront costs, admitting that, under current policies, the lifetime cost of heat pumps is 14% higher than that of gas boilers. However, it adds: “The vast majority of governments in advanced economies have introduced subsidies far exceeding this additional cost.”
Since it is powered by electricity, the technology is also susceptible to power outages although a robust power network or uninterruptible power supply neutralises this threat.
Heat pumps’ downsides are largely offset by other advantages or simple mitigation measures. On balance, therefore, heat pumps clearly represent a smart investment.
The Importance of Acting Now
But it is important to act now. The IEA’s Mr Birol, warns the data in his organisation’s report makes it clear that the quicker you move on clean energy transitions, the more cost effective it is for governments, businesses and households: “If policy makers and industry leaders put off action and spending today, we will all end up paying more tomorrow.”
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