Electrification of heating for households and businesses
Cost-competitive heat pumps in buildings are a positive step, but this electrification will only be truly CO2-emission-free if the electricity itself is clean.
Electrification of new and retrofitted residential and commercial buildings is progressing, supported by cost-competitive heat pumps (for both heating and cooling)[1], electric stoves, water heaters, and, in some cases, regulatory requirements.[2]
Existing buildings, however, remain more hesitant to replace natural-gas appliances before the end of their life cycle because of the upfront cost of the equipment, whether borne directly by owners or passed on to consumers.
Alleviating the need for additional power plants
Buildings can improve the energy efficiency of their premises, thereby reducing the amount of clean power generation capacity required to achieve fully CO2-free operation.
Households and businesses have several options to reduce their energy demand on the electrical grid:
Producing their own electricity with rooftop solar panels, despite the challenges:
• The return on investment for solar panels may take several years to materialize.
• Smart meters, which enable the sale of excess electricity back to the grid, can reduce the overall cost if permitted by the local utility.
• Solar panels generate peak electricity around noon, which does not align with peak consumption during the coldest evening hours.
• Apartment owners must coordinate shared installations on common rooftops.
• Renters can only invest in solar panels on nearby shared properties if permitted, and only where smart meters are available on the public grid.
Improving energy efficiency through two key measures:
• Enhancing insulation in walls and windows.
• Replacing existing electrical devices with energy-efficient alternatives, such as low-energy LED bulbs and time-controlled power-off systems.