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Media release: New report finds Australia can unlock huge bill & emissions savings with heat pumps

A new report from the Energy Efficiency Council (EEC) and the Australian Alliance for Energy Productivity (A2EP) has found that heat pumps – a cornerstone of electrification policies in Europe and the US – could cut Australian energy bills and deliver a massive 747 million tonnes of carbon dioxide equivalent (Mt CO2-e) of emissions reductions between now and 2050.

Heat pumps are a super-efficient technology for heating and cooling that can be powered by renewable electricity. Some types of heat pumps are common in Australia; such as fridges and reverse cycle air conditioners. But across the globe, efforts to decarbonise buildings and industry are seeing this trusty technology deployed for a much wider range of applications, from domestic hot water to industrial heating processes.

The report – the first that estimates the energy and emissions savings that could be delivered in Australia through rapid adoption of heat pump technology – finds the combined emissions reduction potential of heat pumps in buildings and industry over the next three decades is 747 Mt CO2-e, or about one and a half years of Australia’s total current emissions.

Off the back of this research, the EEC and A2EP are calling on governments to take a range of actions to accelerate heat pump adoption, including:

  • Supporting vulnerable households to cut their energy bills by switching to high efficiency heat pumps; and

  • Funding a major new ARENA program to pilot and demonstrate heat pump retrofit projects in manufacturers, food processors and large commercial buildings.

“Because they are super-efficient and can be powered directly by renewable electricity, heat pumps are being embraced right around the world. They are the perfect partner for Australia’s plentiful renewable energy resources – we have ground to make up, but we can realise their full potential if we act now”, said Energy Efficiency Council CEO Luke Menzel.

“Industry now has a clear signal to decarbonise its emissions. Heat pumps can make a significant contribution to this enormous task, particularly with further efforts in research and development”, said Australian Alliance for Energy Productivity CEO Jarrod Leak.

EEC Contact

0414 893 313

A2EP Contact

0421 099 876


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