Space and combination heaters

Ecodesign and Energy Labelling

Review Study

Task 2

Market Analysis

FINAL REPORT

Review study of Commission Regulation (EU) No. 813/2013 [Ecodesign] and Commission Delegated Regulation No. (EU) No. 811/2013 (Energy Label)

Prepared by VHK, Delft (NL), in collaboration with BRG Building Solutions, London (UK) for the European Commission, Brussels (BE)

July 2019

The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Commission.

Prepared by

Study team: Van Holsteijn en Kemna B.V. (VHK), The Netherlands, in collaboration with BRG Building Solutions, London (UK)

Authors: René Kemna, Martijn van Elburg (both VHK), Andrea Corso (BRG subcontract)

Study team contact: René Kemna ([email protected])

Contract manager: Jan Viegand, Viegand Maagøe

Project website: www.ecoboiler-review.eu

Specific contract: no. ENER/C3/SER/FV 2016-537/08/FWC 2015-619 LOT2/02/SI2.753930 Title: Review Study existing ecodesign & energy labelling SPACE HEATERS & COMBINATION HEATERS Contract date: 9.6.2017

Consortium: Viegand Maagøe, VHK, Wuppertal Institute, Armines, Oakdene Hollins

Cover: Gas-fired central heating boiler [picture VHK 2016-2017]

This study was ordered and paid for by the European Commission, Directorate-General for Energy.

The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein.

This report has been prepared by the authors to the best of their ability and knowledge. The authors do not assume liability for any damage, material or immaterial, that may arise from the use of the report or the information contained therein.

© , July 2019.

Reproduction is authorised provided the source is acknowledged.

More information on the European Union is available on the internet (https://europa.eu).

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EXECUTIVE SUMMARY

This is the Task 2 report of the preparatory review study on the Ecodesign Commission Regulation (EU) No. 813/2013 and Energy Label Commission Delegated Regulation (EU) No. 811/2013 for central heating boilers. Task 2 not only serves as an update of market figures for the subsequent Tasks, following the MEErP methodology, but also reviews specific aspects mentioned in Article 7 of the regulations and evaluates the effectiveness of the current regulations in as much as can be derived from market data. Most raw stock and sales data were produced by subcontractor BRG Building Solution. VHK was responsible for analysis/presentation of data from BRG and other sources such as Eurostat and industry associations.

Generic economic data In 2016 and according to Eurostat, the EU production of central heating boilers in the scope of the boiler regulations, plus solid fuel boilers, amounted to 6.9 million units at a value of €6.9 bn in manufacturer selling prices (msp). This included over 6.44 million gas/oil boilers at €5.1 bn and 0.44 million hydronic heat pumps at €1.6 bn.

Approximately 93% of EU-production takes place in only 7 countries (IT, UK, DE, NL, FR, PL, SK).

In 2016 and according to BRG data, the sales of products in the scope of the boiler regulations amounted to 5.9 million units at €4.9bn. This included over 5.4 million gas/oil boilers at €3.6bn and 0.37 million hydronic heat pumps at €1.3 bn.

In 2004 and according to BRG data, the reference year for the 2006-2007 preparatory Ecodesign study, production of boilers in scope was approximately 7 million gas/oil boilers plus 0.12 million hydronic heat pumps, at a total nominal value of approximately €5 bn (in euros 2004). Corrected for inflation over the period, this comes down to €6.2 bn (in euros 2016). Historically, unit production grew to a peak in 2006 and then declined to the current level over the 2007-2009 period.

Average nominal manufacturer selling price for fossil fuel fired boilers increased 13% from €643 in 2004 to €724 in 2016. Corrected for inflation the price decreased by 9% over that period. The average msp for heat pomp boilers in 2016 was €3600/unit; in 2004 it was nominally twice as high, also due to a relatively higher share of ground- source versus air-source heat pump boilers.

Fossil fuel fired boiler exports amounted to €0.74 billion in 2016, decreasing 9% annually since 2013 mainly due to a decrease in exports to Russia. China has now become the largest export-destination.

Imports were €0.36 bn, increasing 9% year-on-year mainly due to an increase in boilers from Turkey. The overall EU trade balance, €0.38 bn in 2016, is positive.

The accuracy of Eurostat figures above should not be overestimated.

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Stock The EU has 245 million residential dwellings EU (2014, incl. BU, CR, RO), of which 215 million primary dwellings (households) and almost 30 million secondary dwellings (weekend- and vacant houses).

Of this, 120 million residential individual central heating boiler systems are installed (2014), of which 113 million in the scope of the boiler regulations (i.e. excluding solid fuel boilers) and 30 million dwellings with collective heating, i.e. heated by approx. 5 million boiler installations (single boilers with or without back-up or cascades).

Furthermore, 14 million boiler-installations are installed in the tertiary sector, including at least 1.7 million gas/oil boilers <400 kW in ‘dry’ air conditioning systems to supply the heating, while dedicated chillers supply the cooling side.

Compared to the residential market 10 years before (2004), the stock of gas-fired individual central heating systems in 2014 increased from 70% to 77.25%, the oil-fired equivalent decreased from 22 to 15%, heat pump boilers increased from 0.4 to 1.2%. The number of dwellings with collective heating decreased from 14 to 12% and those with individual ‘dry’ systems increased from 6 to 7%. Dwellings with no or only local heaters decreased from 22 to 21%.

Sales In 2016 and according to BRG data, almost 6 million gas/oil/heat-pump boilers were sold in the EU (2016), of which 5.2 million were gas-fired, 0.37 million heat pump, 0.3 million oil-fired and <0.1 million electric boilers.

Of this 6 million,

− 4.9 million are condensing gas/oil (gas 4.75 & oil 0.15) with average declared

seasonal space heating efficiency ηs 91-93%,

− 0.6 million non-condensing gas/oil with ηs 75%,

− 0.26 million are air-to-water heat pumps with ηs 145%,

− 0.06 million are ground-source heat pumps with ηs 158% and

− 0.07 million electric boilers with ηs 35%.

The average seasonal space heating efficiency ηs in 2016, one year after implementation of the Ecodesign and Energy Label boiler regulations, was 91-93%. In 2014, one year before implementation ηs was 90%. In 2004, when boilers were first mentioned in plans for the new Ecodesign Directive, ηs was 80.5%.

Industry association EHI supplied more detailed sales data for 2016, in particular for the top-7 EU markets (UK, IT, DE, FR, NL, ES, BE), as well as 2015 stock data at EU level. They confirm that, although the transition to condensing boilers is successful, in 2016 still 10% of the market consists of non-condensing boilers. These are either boilers from wholesale/industry stock or exemptions for B1-types. In EHI-data the share of non- condensing versus condensing oil boilers is very high, at 40%. This could be due to old stock, but if it persists it might point at an unintended use of the B1-exemption or –as EHI believes—that oil-fired non-condensing floor standing boilers can actually reach the minimum seasonal energy efficiency of 86%. In addition, these low temperature oil boilers have been recertified with Low NOx burners to meet the 2018 Ecodesign requirements.

IV

In 2014, 78% of boiler sales went to boiler replacement (in 2004 it was 60%), where the absolute sales number even increased from 4.35 million in 2004 to 4.9 million in 2014. The sales to new houses, 0.85 million or 14% (2014), were almost half of those in 2004 (1.6 million). Most dramatic was the reduction in sales to people that did not have central heating before, the so-called 1st time users, that bought over 1 million boilers in 2004 and in 2014 only 0.28 million.

Technically, the room-sealed, gas-fired condensing combi boiler with a fan-assisted premix burner type, electronic ignition (no pilot flame) and steel or aluminium heat exchanger became the dominant type, representing 60-70% of all sales. Especially the from conventional (59% in 2004) to fan-assisted premix and low NOx burners (78% of total in 2014) means that emission control will have improved. Around 93% of all oil/gas boilers now have hot water functionality, either as combi or with an external cylinder.

The average power of oil/gas boilers has not changed over the last 10 years and has stayed at 27 kW. For heat pump boilers the average output is in the range of 10-11 kW.

As regards innovative boiler types, the sales of microCHP (<50 kW electric output) have stayed at a modest level of just over 3000 units in 2014. For integrated ‘hybrids’, an innovative integration of e.g. condensing gas-boiler and electric heat pump in one compact device, sales are still low (6600 units in 2014). But the concept that could only be properly rated on energy efficiency through Ecodesign and Energy Label metrics, is promising --considering that it has been on the market only for a few years. The same can be said for the PFHRD, a tertiary heat exchanger extracting more heat from the flue gases for water heating in a combi-boiler, saving up to 31% on water heating energy consumption.

The unit sales (in m²) of solar thermal collectors are 64% higher in 2014 than in 2004 but have been declining since 2013, most recently at a rate of −6.6% (2015-2014 YOY). In 2014 only around 0.1m solar assisted combinations with combi-boilers (1.5% of boiler sales) were brought on the market.

No specific sales data on thermostats (and similar), mounting kits, flue gas sets and spare parts could be identified. The preliminary estimates from the few data that are available indicate that these items constitute a significant and growing part of the boiler business.

The average product life for boilers in the EU was assessed, from stock and sales data in this chapter, at 24 years. Due to national policy actions to replace boilers older than 30 years, the future average product life might become 1 or 2 years lower.

Prices and rates Through fierce price competition induced by the financial crisis, production shift to countries with low labour costs (Eastern Europe, Turkey, China), high volume of condensing boilers and more integrated product design, the nominal prices of oil/gas boilers stayed almost the same as a decade ago. In real (inflation corrected) terms this means they decreased by 20%, despite the switch from non-condensing to condensing boilers.

Over the same period, the market share of the more expensive heat pump boilers increased threefold, driving the average boiler price up. The end result is an EU average

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boiler price (all types, including heat pumps and microCHP) of €1825/unit in 2014-2016. In real terms this is the same as the €1500 boiler price in 2004.

Installation costs over the last 10-12 years increased because of extra work on chimneys/flue gas ducts due to the switch from to condensing gas/oil boilers and due to the higher installation costs of heat pump boilers. It is difficult to put an exact number on the increase, because the review study included more elements, but it will be in the range of 20-30% (inflation corrected). Current installation costs are estimated at over €2000/unit. The total acquisition cost of the average boiler is €3850/unit, which is probably 15% more than a decade ago in real terms.

The total annual acquisition cost for all boilers in the EU is around €23 bn, of which €11 bn in strict boiler costs and €12 bn in labour and auxiliary materials for installation.

Repair and maintenance costs have hardly changed over the years. Maintenance cost is €120 per year for a residential boiler and €16 bn annually for all EU boilers. Average annual repair costs are estimated at €60/unit and €7.2 bn for all EU boilers. Together, boiler repair and maintenance will cost the consumer €23.2 bn (incl. VAT).

The average EU electricity price in 2016 was around €0.20/kWh for households and €0.114/kWh for non-households. Corrected for inflation, this means an increase of 14% for households and 5% for non-households over the last 10 years. The average EU gas price in 2016 was around €0.064/kWh for households and €0.030/kWh for non-households. Corrected for inflation, this means a decrease of 2% for households and 15% for non-households over the last 10 years.

For gas heating oil, the October 2017 price was €729/1000 litre (€0.069/kWh GCV). This is 8.6% higher than the price in 2009.

Overall, energy prices increased considerably less than was expected in the 2011 MEErP methodology. This means that the more comprehensive Life Cycle Cost calculation method will have to be used in future Tasks. The applicable discount rate will be 4% as indicated in the Better Regulation Toolbox.

Market actors The EU boiler industry is dominated by a dozen multi-nationals making up 90% of turnover and employment in the sector. Names are Bosch, Vaillant, Viessmann, BDR Thermea, Atlantic, Ariston, etc.. Most of these multi-nationals deliver the full package of HVAC solutions, mainly boilers in the scope of the regulation but also water heaters, ventilation units, air conditioning, etc.. Heat pump boiler manufacturers like NIBE, Daikin Europe and Stiebel are now significant players in (heat pump) boiler manufacturing. The remainder of the boiler industry is made up by another dozen of medium-large companies (non-SME, i.e. >250 jobs) that focus on a country/region and/or a specific technology as well as a mix of 40-50 importers and SMEs.

Accumulated turnover of these two dozen companies is in the order of €16 bn and their employment amounts to 73 000 jobs. Around 80% will relate to boilers in scope.

Independent SMEs with their own boiler-brand are rare and do not make a significant contribution to these figures.

The OEM-industry also consists mainly of large multi-nationals that are supplying components to the boiler industry as one of their activities. Names are Grundfos, WILO,

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Ebm-papst, Honeywell, Danfoss, , etc.. Apart from those there are also medium- large specialist companies where boiler components are the only business.

Wholesale is under pressure from not only the financial crisis but also e-commerce. Every country has national wholesalers for plumbing products. International wholesalers are Ferguson plc (UK), Saint Gobain (FR) and the GC Group (DE).

Installers, typically SME companies, have suffered less from the financial crisis than the construction industry as a whole. According to Eurostat their nominal turnover has grown by 37% over the 2004-2015 period. Corrected for inflation this is still an aggregated real growth rate of 1% per year. The extra work related to condensing boilers and heat pumps may be one of the growth-factors. More frequent inspection/maintenance, following EPB rules, may be another influence. The boiler-related work is estimated to create a €40 bn turnover, retaining 450 000 installer jobs. Some 60% of this is boiler installation work and 40% is in boiler repair and maintenance.

Other boiler-related market actors are test laboratories/notified bodies, building/boiler inspectors that are not installers, over 15 industry/NGO associations and the organisers of two international (ISH, Mostra Convegno) and dozens of national trade fairs.

Last but not least, there are the customers buying and owning the boilers: 120 million households owning individual boilers, 5 million owners of collective residential boilers, 14 million owners of boilers in the tertiary sector and the 6-7 million prospective purchasers of new boilers every year. Directly or indirectly involved actors these are private builders, (social) housing corporations, specifiers, real estate developers and investors. They spend an estimated €48 bn in boiler acquisition, installation, repair and maintenance. The energy costs will be calculated in Task 5.

Evaluation Over the last decade, the space heating energy efficiency of boilers in the scope of the regulation increased by 14% at the expense of 15% higher acquisition costs (mainly installation costs).

Twelve years ago, when the Ecodesign and Energy Label regulations were prepared, it was expected that energy saving in 2016 would be double (28%-points) and that the acquisition costs would be 80% higher.

The main reason that this optimistic scenario was not realised in practice is the 2007 financial crisis with subsequent construction slump, drastically reducing new housing and 1st time installations where the most efficient boiler solutions could be applied. Also, austerity policy, resulting in severe reduction of financial incentives for e.g. solar assistance and micro-CHP play a role. Only in the last two to three years the heat pump boiler sales recovered to the same level they reached in 2006. Condensing boiler sales continued, thanks to fierce price competition in a smaller market, but the switch from non-condensing to condensing boilers was not enough to meet projections.

Yet, at least as far as market parameters are concerned, the accelerator-effect of Ecodesign and Energy Label effect has been effective and there have been no 'significant negative impacts'. On the contrary, instead of continuing to go down a path of ever cheaper Asian imports, the EU-industry has been given a handle to show higher quality- price ratio of its products to the end-consumers.

VII

GLOSSARY

See Task 1 report

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Table of Contents

EXECUTIVE SUMMARY ...... III

GLOSSARY ...... VIII

1 INTRODUCTION ...... 1 1.1 Update (MEErP)...... 1 1.2 Review (Art. 7) ...... 2 1.3 Evaluate ...... 3

2 GENERIC ECONOMIC DATA...... 4 2.1 Introduction...... 4 2.2 Fossil fuel fired boilers ...... 4 2.2.1 Production ...... 4 2.2.2 EU production, trade and apparent consumption ...... 5 2.2.3 Manufacturer selling price ...... 6 2.2.4 Trade by origin ...... 8 2.3 Eurostat data for other products in the scope ...... 10 2.4 Consolidation and comparison ...... 11 2.4.1 Production ...... 11 2.4.2 Trade and EU consumption...... 12

3 MARKET AND STOCK DATA ...... 13 3.1 Introduction...... 13 3.2 EU Boiler stock ...... 13 3.2.1 Residential sector ...... 13 3.2.2 Non-residential sector ...... 15 3.3 Sales overall and for fossil-fuel fired boilers ...... 16 3.3.1 Total EU ...... 16 3.3.2 Sales per type ...... 17 3.3.3 Sales by end-use ...... 20 3.3.4 Technical market segmentation ...... 23 3.3.5 Sales by power class ...... 25 3.3.6 Efficiency of sales (EHI data) ...... 27 3.4 Sales heat pumps, mCHP, hybrids, solar thermal, PFHRD and miscellaneous.. 30 3.4.1 Heat pumps ...... 30 3.4.2 Micro-CHP ...... 32 3.4.3 Hybrids ...... 33 3.4.4 Solar thermal ...... 34 3.4.5 Passive Flue Heat Recovery Device (PFHRD) ...... 37 3.4.6 Heating controls ...... 39 3.4.7 Mounting kits and flue gas sets ...... 39 3.4.8 Spare parts ...... 40 3.5 Average age and product life ...... 41

4 PRICES AND RATES ...... 44 4.1 Introduction...... 44

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4.2 Boiler prices ...... 44 4.2.1 Gas-fired boilers ...... 44 4.2.2 Heat pump boilers and hybrids ...... 46 4.2.3 Other technologies ...... 46 4.2.4 Price differentiation per country ...... 47 4.2.5 Summary ...... 48 4.3 Installation costs ...... 49 4.4 Repair and maintenance costs ...... 54 4.4.1 Maintenance ...... 54 4.4.2 Repairs and spare parts ...... 54 4.5 Other costs ...... 55 4.5.1 Disposal costs ...... 55 4.5.2 Consumables ...... 55 4.6 Energy prices ...... 55 4.6.1 Electricity ...... 55 4.6.2 Natural gas ...... 58 4.6.3 Heating Oil ...... 61 4.6.4 Other petroleum products: HFO and LPG ...... 62 4.7 Financial parameters ...... 63 4.7.1 Life Cycle Cost formula ...... 63 4.7.2 Discount and inflation rate ...... 63

5 INDUSTRY, DISTRIBUTION AND COSTS ...... 66 5.1 Manufacturers ...... 66 5.1.1 Introduction ...... 66 5.1.2 Overview ...... 66 5.1.3 Global markets ...... 69 5.1.4 Preliminary observations ...... 69 5.2 Suppliers (OEMs) ...... 70 5.2.1 Overview ...... 70 5.2.2 Preliminary observations ...... 75 5.3 Distribution ...... 76 5.3.1 Wholesale ...... 76 5.3.2 E-commerce ...... 77 5.3.3 Rentals ...... 77 5.4 Installers ...... 78 5.4.1 Statistics ...... 78 5.5 Other stakeholders ...... 79 5.5.1 Test laboratories, notified bodies and standardisation ...... 79 5.5.2 Building inspection and EPB-certification ...... 82 5.5.3 Trade fairs ...... 82 5.6 Customers ...... 82 5.7 Associations ...... 83

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6 EVALUATION AND OUTLOOK ...... 88

ANNEX I: DETAILED STATISTICS ...... 89

ANNEX II: EEA EFTA COUNTRIES ...... 102

ANNEX III: REFERENCES...... 106

LIST OF TABLES Page

Table 1. Value (in million euros) of EU28 exports, imports, production and apparent consumption 2005-2010-2015-2016 ...... 6 Table 2. Heat pumps other than air conditioning machines of HS 8415, years 2010-2015- 2016 ...... 11 Table 3. EU Domestic Heating STOCK, in '000 dwellings ...... 14 Table 4. EU-28 BOILER SALES - Units ...... 16 Table 5. EU-28* BOILER SALES 2014 per country, in '000 Units ...... 18 Table 6. EU - BOILER SEGMENTATION BY END-USE 2014 ...... 23 Table 7. EU - EU BOILER SEGMENTATION BY END-USE 2004* ...... 23 Table 8. EU 28 - BOILERS - TECHNICAL SEGMENTATION SALES 2014 (in ‘000 units) ....24 Table 9. Technical segmentation comparison 2004 and 2014, unit sales and % ...... 24 Table 10. EU - HEAT EXCHANGER, IGNITION AND FUEL SEGMENTATIONS - 2014, TOTAL in 000 units ...... 25 Table 11. EU28 - Boiler capacity, below and above 70 kW (or nearest value), per country and EU total, 2014 ...... 26 Table 12. Typical combi-boiler related water heating efficiencies by capacity ...... 27 Table 13. Boiler sales in top 7 EU-boiler markets ...... 28 Table 14. Installed stock of hydronic space heaters (<400 kW) in the EU Member States in 2015 ...... 29 Table 15. EU - HEAT PUMP BOILER UNIT SALES 2014 - Per Member State and Output power class ...... 30 Table 16. Norway 2014 heat pump unit sales and 2016 stock, based on statistics from the Norwegian heat pump association (NOVAP) ...... 31 Table 17. EU Heat Pump sales Exhaust Air-Water 2004 and 2014 ...... 31 Table 18. Comparison 2004-2014 of sales of ground/air source heat pumps-to-water ...32 Table 19. EU sales of solar thermal collectors in 2014, per type and MS, 2004 and 2014, in 1000 m² ...... 34 Table 20. EU sales solar panels 2013-2015 (source: SOLAR HEAT EUROPE) ...... 36

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Table 21. Number of >15 old boilers expected to be labelled ...... 43 Table 22. Average EU Boiler (street) price incl. VAT, excl. installation and kit, EU, 2014- 2017 ...... 48 Table 23. UK Boiler & installation costs (incl. VAT) ...... 50 Table 24. Estimated boiler installation costs in UK ...... 51 Table 25. Boiler acquisition costs, split-up ...... 54 Table 26. Electricity prices private households incl. VAT and taxes per Member State ....56 Table 27. Electricity prices for non-household consumers per 1 July (from 2007 onwards) Band IC : 500 MWh < Consumption < 2 000 MWh, excl. VAT and recoverable taxes .....57 Table 28. Gas prices for EU* per 1.7.2016, in Euro and PPS per kWh, for bands D2 and D3 (households) and I3 (industry) ...... 59 Table 29. Consumer prices of petroleum products inclusive of duties and taxes, per 9.10.2017 ...... 61 Table 30. Inflation Rate 2006-2016 and comparative price level 2015 EU28 & others ....64 Table 31. EU Boiler manufacturers, >250 jobs (illustrative) ...... 67 Table 32. Selected suppliers of EU boiler-industry with EU manufacturing ...... 71 Table 33. European gas and oil control manufacturers (Members of AFECOR) ...... 73 Table 34. Solar thermal industry, SOLAR HEAT EUROPE Industry Members (2017) ...... 73 Table 35. Heat pump manufacturers and suppliers (EHPA Members per Oct. 2017) ...... 74 Table 36. Economic activities in the building installation sector ...... 78 Table 37. Boiler laboratories and notified bodies, participating in the ECOTEST project ..80 Table 38. European consumer associations (BEUC Members 2017) ...... 85 Table 39. GCP Europe, Member organisations 2017 ...... 86 Table 40. EU- BOILER SALES 1991, 2004 and 2014 per Member State/ EU, 2016 for EU only (in 000 units) ...... 90 Table 41.EU- boiler sales segmentation by end-use per Member State 2014 ...... 91 Table 42. EU– BOILER SALES 2014 - TECHNICAL SEGMENTATION ...... 93 Table 43.EU - HEAT EXCHANGER, IGNITION AND FUEL SEGMENTATIONS - 2014, TOTAL EU (in 000 units) ...... 94 Table 44. BOILER SALES 2004 and 2014, 'OTHER PRODUCTS' (in 000 units) ...... 95 Table 45. EU25 - HEAT PUMP BOILER UNIT SALES 2014 - Per Member State and Output power class ...... 96 Table 46. EU25 BOILER SALES 2014 – TECHNICAL SEGMENTATION BY POWER CLASS (in 000 units sales, average power in kW, total power in MW) ...... 97 Table 47. Norway, avg. energy use per household ...... 102

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LIST OF FIGURES

Figure 1. EU28 CH-Boiler production 2004-2016 ...... 5 Figure 2. EU28 average boiler manufacturing selling price msp 2004-2016 ...... 7 Figure 3. Fossil fuel fired boiler msp for selected countries 2004-2016 ...... 7 Figure 4. EU28 Fossil fuel fired CH-Boiler Exports, in million euros ...... 8 Figure 5. EU28 Fossil fuel fired CH-Boiler Imports, in million euros ...... 9 Figure 6. EU28 Fossil fuel fired CH-Boiler Trade Balance, in million euros ...... 9 Figure 7. EU28 Boiler unit sales 2004-2016 ...... 16 Figure 8. EU28 Boiler unit sales trends by type 2004-2016 ...... 17 Figure 9. EU Boiler unit sales trends by type 2004-2016 ...... 19 Figure 10. Relative increase/decrease boiler sales per Member State in % ...... 19 Figure 11. Absolute increase/decrease boiler sales per Member State in 000 units ...... 20 Figure 12. Share of boiler sales to new housing, non-housing, 1st time users and replacement, per Member State in % ...... 21 Figure 13. EU Boiler Sales 2014 by End-Use, in ‘000 units sold ...... 22 Figure 14. Energy label rating 2016 for gas & oil boilers FR, DE, IT, ES ...... 29 Figure 15. Integrated hybrid ...... 33 Figure 16. Estimated split-up of EU solar system sales 2014 ...... 35 Figure 17. Future PFGRH sales scenarios ...... 38 Figure 18. Boiler consumer price, built-up ...... 45 Figure 19. Installation cost multipliers ...... 52 Figure 20. Electricity prices households & industrial 2007-2016, nominal and inflation corrected in EUR/kWh ...... 58 Figure 21. Natural gas prices households & industrial 2007-2016, nominal and inflation corrected in EUR/kWh ...... 60 Figure 22. Heating oil prices households 2009-2016, nominal and inflation corrected (‘real’) in EUR/kWh ...... 62 Figure 23. Gas-fired boiler main components and OEMs ...... 72 Figure 24. Component cost shares in gas-fired condensing boiler ...... 76 Figure 25. Turnover in the EU plumbing sector for 4 country-clusters and EU+Norway ..79 Figure 26. Norway electricity tariffs 2007-2016 in Euro/kWh ...... 104

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1 INTRODUCTION

This is the draft Task 2 report of the preparatory review study on the Ecodesign Commission Regulation (EU) No. 813/2013 and Energy Label Commission Delegated Regulation (EU) No. 811/2013 for central heating boilers.

Task 2 not only serves as an update of market figures for the subsequent Tasks, following the MEErP methodology, but also reviews specific aspects mentioned in Article 7 of the regulations and evaluates the effectiveness of the current regulations in as much as can be derived from market data.

Most raw stock and sales data were produced by subcontractor BRG Building Solution. Other data and the elaboration of BRG data was done by VHK.

1.1 Update (MEErP) According to the MEErP methodology Task 2 entails the following subtasks (numbering from MEErP):

2.1 Generic economic data

Identify and report a. EU Production; b. Extra-EU Trade; c. Intra-EU Trade; d. EU sales and trade = production + import - export.

Data should relate to the latest full year for which at least half of the Member States have reported to Eurostat. Preferably data should be in physical volume (e.g. units) and in money units and split up per Member State.

Information for this subtask should be derived from official EU statistics to be coherent with official data used in EU industry and trade policy.

2.2 Market and stock data

In physical units, for EU-27, for each of the categories as defined in 1.1 and for reference years a. 1990 (Carbon emission reference year) and/or 2005 (reference year for EU energy policy 2020-’30 b. 2004 (reference year for previous preparatory study) c. 2014 and/or ‘16 (most recent real data); d. 2020-2030-2050 (forecast, years in which all new ecodesigns of today will be absorbed by the market).

The following parameters are to be identified:

a. Installed base (‘stock’) and penetration rate; b. Annual sales growth rate (% or physical units); c. Average Product Life (in years), in service, and indication of the spread; d. Total sales/ real EU-consumption, (also in €, when available); e. Replacement sales (derived);

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 1

f. New sales (derived).

2.3 Market trends

2.3.1. General market trends (growth/ decline, if applicable per segment), trends in product-design and product-features.

2.3.2 Market channels and production structure; identification of the major players (associations, large companies, share SMEs, employment);

2.3.3 Trends in product design/ features (valuable, but not necessarily fully representative of the diversity of products put on the market);

2.4 Consumer expenditure base data

For each of the categories defined in subtask 1.1, determine:

a. Average EU consumer prices, incl. VAT (for consumer prices; street price)/ excl. VAT (for B2B products), in Euro. b. Consumer prices of consumables (detergent, toner, paper, etc.) (€/kg or €/piece); c. Repair and Maintenance costs (€/product life); d. Installation costs (for installed appliances only); e. Disposal tariffs/ taxes (€/product);

For electricity, fossil fuel, water, interest, inflation and discount rates use values for Jan. 2011 in MEErP Chapter 2, including the average annual price increases mentioned there.

For regional differentiation of consumer prices (for sensitivity analysis) also see Chapter 2

2.5 Recommendations

Make recommendations on

2.5.1 refined product scope from the economical/ commercial perspective (e.g. exclude niche markets) 2.5.2 barriers and opportunities for Ecodesign from the economical/ commercial perspective

This report will follow the MEErP structure, meaning that each subtask will be discussed in one chapter and in the order mentioned above. Note that the MEErP methodology was conceived to investigate new products. For review studies there can be shortcuts where subjects were already treated in the original 2007 preparatory study.

1.2 Review (Art. 7) The Article 7 (‘Review’) mentions several specific topics that need to be investigated in the review: For the Ecodesign regulation this involves in particular the assessment of:

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 2

. the appropriateness of setting ecodesign requirements for greenhouse gas emissions related to refrigerants, emissions of carbon monoxide, hydrocarbons and particulate matter; . The appropriateness of setting stricter ecodesign requirements for energy efficiency, sound power level and emissions of nitrogen oxides; . The appropriateness of setting requirements for products working on gaseous and liquid fuels from biomass; . The validity of the primary energy factor (PEF); . The appropriateness of 3rd party certification. For the Energy labelling regulation, this involves in particular the assessment of: . An evaluation of the significant changes in market shares; . The appropriateness of the package labels and fiches; . the appropriateness of having other heating efficiency than the standardised heating season; . the inclusion of passive flue heat recovery devices.

At the 2nd stakeholder meeting reminded the study team that Article 7(2) in regulation 814/2013 is also valid for combi-boilers in regulation 813/2013 and that there was still the promise from the 2016 Special Review study that the full review study would take a closer look at the matter of ‘the appropriateness of setting separate ecodesign requirements for different types of water heaters.

1.3 Evaluate Following the Better Regulation Toolbox it is important for a review of existing regulations to evaluate whether the regulation did/does what it was supposed to do and whether there was no significant negative impact as intended in Article 15 of the Ecodesign Directive. In this respect Task 2 is particularly important, because it gives vital ingredients regarding the efficacy of the regulations and shows whether there were no significant impacts of competitiveness and affordability of the existing measure. It is also important to realise that Task 2 cannot give a full evaluation of the existing regulations because other ingredients, such as the energy savings and emission reductions, will be part of subsequent tasks. It is important to realise that Ecodesign measures and Energy Labelling were implemented only in September 2015 and that the most recent market data refer to 2016. This is very short to see an impact of the measures. On the other hand, the preparatory study for the current regulations started in January 2006, using market data from 2004. Already from the start of that process it was clear that the new measures would entail an increased or exclusive use of condensing boilers. From February 2010 the outlines of the current regulations were known and in 2013 the regulations entered into force.

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2 GENERIC ECONOMIC DATA

2.1 Introduction This section presents production, import, export and apparent consumption1 data as extracted from the Eurostat PRODCOM/Europroms database, using CN8 product code 25.22.12.00, and the COMEXT database for trade, using HS codes 84031010 (cast iron boilers) and 84031090 (non-cast-iron boilers), PRODCOM categorisation. Both PRODCOM and COMEXT codes relate to ‘Boilers for central heating other than those of HS 8402’.

Data for fossil-fuel fired boilers also include sales of solid-fuel boilers, which are not in the scope of the boiler regulations. Eurostat databases do no longer show a split-up by fuel type. Already in 2004, when there were still separate categories for gas-fired, oil- fired and ‘other’ types these data-sets were almost empty, except for a few countries.

The extracted tables contain many blank cells. A considerable number of data-fields are confidential and are suppressed. Furthermore, import and export data are given only in monetary values

In the MEErP Methodology Report (VHK 2010) reservations about the reliability of the PRODCOM data were already expressed. The main value of presenting these data here is that they represent the official data that is currently used by the European Union.

2.2 Fossil fuel fired boilers 2.2.1 Production Figure 1 provides unit sales (in ‘000 units) for the EU28 production of boilers in PRODCOM CN8-code 25.11.12.00 ‘Boilers for central heating other than those of HS 8402’.

In 2016 EU28 production of fossil-fuel fired boilers, including solid fuel boilers, amounted to 6.8 million units. This is 5% lower than in the previous year 2015, but in line with the fairly constant trend over the period 2009-2014. It is 25% lower than the production in 2006, i.e. before the 2007-2008 financial crisis.

Approximately 93% of current EU-production takes place in only 7 countries: Italy, United Kingdom, , the Netherlands, France, Poland and Slovakia.

Italian boiler production showed the largest negative impact from the financial and construction sector crisis with production almost halved since the peak year 2006. At a somewhat smaller scale, the same goes for France.

Germany follows the general trend, with unit sales in 2016 some 25% lower than at the 2006 peak, but still at a higher level than e.g. in 2004. In the UK and Poland the production has remained rather stable over the past decade. The Slovakian production has significantly grown in recent years according to Eurostat data.

1 Apparent consumption is import+production minus exports. No stock effects are given.

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10000 EU28 CH-Boiler Production 2004-2016 (in '000 units), source: Eurostat 9117 9000 8474 8042 156 7859 8000 439 7599 Cyprus 156 Croatia 156 399 7203 Slovenia 1274 6959 6845 7000 156 355 268 6761 6848 6808 Bulgaria 6554 315 459 6565 Romania 1242 538 Hungary 1210 362 392 Czech Republic 6000 1027 180 490 515 1203 164 502 Lituania 467 485 516 447 423 470 496 Latvia 479 Estonia 5000 Malta 1157 1150 1346 3553 1119 1080 Austria 1259 1563 3109 Finland 3436 1340 2985 Sweden 4000 2470 Luxemburg Belgium 1701 1977 2011 1973 2135 Spain 1728 3000 1886 Portugal 1640 Greece 1249 Denmark 1047 1272 2000 954 Ireland 834 1194 1092 1158 Slovakia 1125 1091 1021 1056 986 Poland 618 621 735 686 594 United Kingdom 1000 594 638 612 584 586 Italy 407 548 616 1034 Germany 1011 944 877 907 719 605 580 571 568 553 574 476 Netherlands 0 France 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(Source: Eurostat Europroms) Figure 1. EU28 CH-Boiler production 2004-2016

Tabular values behind Figure 1 are given in Annex I.

2.2.2 EU production, trade and apparent consumption Table 1 gives the value (in million euros) of production, imports and exports as well as the calculated apparent consumption (production + imports - exports) of fossil fuel fired CH boilers, including solid-fuel fired boilers, in the EU28. Import and export data relate to both intra-EU and extra-EU trade. The last row of the table singles out the extra-EU trade. Note that there are some differences between the PRODCOM and COMEXT data as regards the trade data.

According to Eurostat data, the EU28-industry boiler production amounted to €5.08 bn in 2016. Extra-EU imports were €0.36 bn, giving a total of €5.44 bn available for sales, of which the imports were only 7%. The extra-EU exports in that year were €0.74 bn, almost 14%, which leaves around €4.7 bn of sales for the EU-market.

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Table 1. Value (in million euros) of EU28 exports, imports, production and apparent consumption 2005-2010-2015-2016 (source: Eurostat 2017, CN8-code 25211200) EXPORT IMPORTS PRODUCTION APP. CONSUMPTION 200 201 201 201 200 201 201 201 200 201 201 201 200 201 201 201 Country 5 0 5 6 5 0 5 6 5 0 5 6 5 0 5 6 Austria 147 250 346 316 90 88 104 90 175 202 300 252 117 40 58 26 Belgium 18 42 36 35 120 203 186 178 32 31 31 31 134 192 182 174 Bulgaria 0 0 2 3 10 7 8 8 2 2 7 7 12 8 13 12 Croatia 7 11 16 17 24 18 12 11 10 14 14 14 27 21 11 8 Cyprus 0 2 0 0 2 2 1 1 0 0 0 0 2 0 1 1 Czech Rep. 76 81 74 62 33 54 62 64 71 118 102 104 29 90 89 106 Denmark 26 18 17 18 39 36 31 30 44 18 42 81 56 36 55 93 Estonia 0 1 1 1 4 2 3 3 1 0 3 3 5 1 6 5 Finland 10 10 4 6 1 4 4 4 30 36 19 18 21 30 19 17 France 200 163 166 156 220 235 282 257 791 560 550 502 811 632 667 602 Germany 923 1061 954 963 309 331 414 469 849 832 800 782 236 102 259 288 Greece 3 1 1 1 31 19 13 13 11 5 3 3 38 24 15 14 Hungary 24 18 23 18 61 32 41 45 7 24 23 22 44 38 41 49 Ireland 26 39 65 58 33 16 27 26 34 50 47 47 42 27 8 15 Italy 629 537 488 459 221 240 223 224 1499 1096 990 946 1091 799 724 711 Latvia 11 10 9 8 16 11 16 13 2 3 2 2 7 4 10 7 Lithuania 3 14 14 11 9 20 21 17 6 5 8 5 11 11 15 11 Luxemburg 2 1 1 1 10 11 12 13 0 0 0 0 8 10 11 12 Malta 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Netherlands 203 253 192 198 76 87 31 21 449 577 430 476 322 412 269 299 Poland 77 148 164 155 80 99 98 101 149 223 273 271 153 173 207 217 Portugal 36 23 38 33 29 17 8 7 46 56 49 40 40 50 19 14 Romania 14 12 11 13 106 100 128 103 5 12 8 9 97 100 126 98 Slovakia 79 144 249 226 31 34 58 64 92 105 222 180 43 -5 31 19 Slovenia 6 8 8 8 14 16 12 12 2 8 8 5 9 16 12 10 Spain 51 36 15 12 201 173 154 131 66 58 51 46 216 195 191 165 Sweden 22 21 25 27 22 21 15 12 0 0 11 15 0 0 0 0 UK 61 38 65 108 354 288 438 402 856 663 975 1234 1150 913 1348 1529 265 294 298 291 214 216 240 231 522 469 495 508 472 392 438 450 EU28 3 2 4 2 3 2 3 7 9 7 8 1 1 0 8 1 o/w EU28 565 796 775 741 152 231 342 360 extra

2.2.3 Manufacturer selling price The average manufacturer selling price (msp) of fossil fuel fired central heating boilers produced in the EU, calculated from production volume and money values, is €724 per unit. In 2004 this was €643/unit2. In nominal euros this is an increase of 13%, but corrected for inflation it is a decrease of 9%.

2 In the 2007 preparatory study a value of €656/unit was found. In the meanwhile that value has been corrected to €643/unit by Eurostat in later statistics.

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Eurostat Boiler average boiler msp (euros/unit) 2004-2016 800 € 698 700 € 643 € 724 € 611 600 € 585 500 400 Actual (3-point average) 300 200 Inflation corrected 100 0

Figure 2. EU28 average boiler manufacturing selling price msp 2004-2016

It needs to be considered that the solid fuel boilers —not in scope of the regulation and much more expensive than e.g. gas and oil boilers— are also part of the Eurostat sales figures. Without it, the msp could be up to 10% lower. At country level, the fuel mix of the boilers certainly will play a role. Figure 3 gives the trends in nominal (not inflation corrected) prices for the seven countries that are responsible for 93% of production.

CH-boiler uncorrected prices 2004-2016 (in euros/unit) for selected countries, from Eurostat data 1200 1100 France 1043 1055 1000 Germany 900 United Kingdom 737 800 790 Netherlands 700 686 Poland 600 606 590 Italy 500 502 Slovakia 400 472 460 300 382 200

Figure 3. Fossil fuel fired boiler msp for selected countries 2004-2016

Figure 3 shows price increases of +43% and +59% for boilers from France and Poland and -24% and -22% for German and Slovakian boilers over the period 2004-2016. Unit prices in 2016 vary between €460 and €1055, i.e. more than a factor two differences.

Possibly it means that only high-end, e.g. solid fuel and jet burner, boiler-production has remained in France, while Germany has moved away from the high-end production towards lower priced gas boilers. The Polish prices might reflect the overall growth of the Polish economy, with the higher prices and wages that go with it. Slovakia, on the other

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hand, seems to have become the preferred country for low-cost production. Only the Dutch (+15%) and British (+33%) boiler price increases seem to make sense against the aggregate EU28-inflation of 24-25% over the period, possibly because both countries produce almost exclusively gas boilers. The msp in 2016 of just below €800 might be representative for gas boilers from Western-Europe. The modest price increase of the Italian boilers over the past twelve years (+6%) can be explained from the tough competition following the collapse of the Italian construction sector. A price of around €500 might be representative for the msp of the average low-end gas boiler, typically from Southern and Eastern Europe. Assuming equal sales for both the higher- and the lower end gas boilers, this would mean an average msp of €650/unit for gas boilers.

Pricing will be revisited in the next chapters.

2.2.4 Trade by origin The Figure 4 below shows the Eurostat PRODCOM data on imports and exports of fossil fuel fired CH boilers of the EU28 with countries outside the EU for the period 2010-2016. Data are only available in million euros and relate to the sum of HS codes 84031010 (cast iron boilers) and 84031090 (non-cast-iron boilers), central heating boilers excluding HS 8402. The share of cast iron boilers in extra-EU trade is relatively small, 15% of exports and 2% of imports and constant over the period.

EU28 CH-Boiler Exports (in million Euros)

Turkey 1 007 986 Switzerland 924 897 137 159 Norway 797 98 159 80 775 74 73 741 Bosnia & H. 120 105 74 97 Belarus 68 64 58 Canada 186 168 163 151 Ukraine 66 72 147 65 160 163 60 OTHER 61 73 64 272 United States 313 309 273 148 132 223 Russia 128 133 148 China 51 58 73 97 2010 2011 2012 2013 2014 2015 2016 (Source: Eurostat 2017) Figure 4. EU28 Fossil fuel fired CH-Boiler Exports, in million euros

Figure 4 above shows that extra-EU exports amounted to €742m in 2016, down 26% from exports of over 1 billion euros in the peak year 2013. The most important countries to which the EU exported its boilers in 2016 are China (€148m), Russia (€132m), the United States (€64m), Switzerland (€58m) and Turkey (€97m). These countries make up 90% of the total export value. Eurostat does not give the physical export volume, but it is estimated from the average prices of production that it will amount to over 1 million boilers exported. According to Eurostat, the reason for the drop-in exports over the most recent years is mainly due to the reduced imports from Russia and Ukraine. The export to China has been growing and that country is now the largest export-destination of EU- boilers.

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Figure 5 below shows that the imports in 2016 amounted to €360m, roughly half of the exports. Three-quarters of imports come from Turkey, probably originating from EU- subsidiaries in that country producing for the EU market. After Turkey, Switzerland is the largest importer into the EU.

The EU28 trade balance for boilers shows a surplus of €382m in 2016. Only with Turkey the imports exceed the exports. Overall, it is estimated that the export surplus means that over 0.5 billion boiler units were exported outside the EU in 2016.

Turkey Switzerland Norway EU28 CH-Boiler Imports (in million Euros) Bosnia & H. Belarus Canada Ukraine 342 360 285 289 297 296 OTHER 231 United States 261 269 199 202 213 212 153 Russia 45 49 50 52 53 49 52 China

2010 2011 2012 2013 2014 2015 2016

(Source: Eurostat 2017) Eurostat) Figure 5. EU28 Fossil fuel fired CH-Boiler Imports, in million euros

EU28 CH-Boiler Trade Balance (in million Euros) Turkey 710 697 628 Switzerland 612 Norway 566 63 55 433 69 382 Bosnia & H. 60 163 143 138 52 35 26 Belarus 123 66 72 120 65 134 134 60 Canada 61 72 63 272 Ukraine 312 309 272 148 132 222 OTHER 127 131 146 United States 50 57 69 95 -40 -44 -33 -77 -114 Russia -156 -171 China

2010 2011 2012 2013 2014 2015 2016

(Source: Eurostat 2017) Figure 6. EU28 Fossil fuel fired CH-Boiler Trade Balance, in million euros

Eurostat statistics also give a split between cast-iron and non-cast-iron boilers, but this is of limited value because the share of cast iron boilers in extra-EU trade is relatively small –15% of the value of exports and 2% of the value of imports. It is interesting that 40- 50% of cast-iron boiler imports go to Romania, meaning that there is probably a significant market for solid fuel and/or jet-burner (oil) boilers.

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In the past, Eurostat also showed figures —for a few countries—split up into gas, oil and other boilers, but in the most recent years no data are given for these sub-categories.

2.3 Eurostat data for other products in the scope Apart from the gas- and oil-fired (combi-) boilers discussed in the previous paragraphs, there are also other space heaters in scope such as

. electric heat pumps air/water/ground source for a water-based central heating system3, . electric resistance (‘Joule effect’) central space heating boilers, . cogeneration central space heaters with a capacity below 50 kW (‘micro-CHP’), . solar thermal panels used for space heating assistance.

For the latter three product groups Eurostat does not give any specific data in the ProdCom, COMEXT or International Trade databases. Electric resistance space heaters are probably a (small) part of the electric immersion heaters, which for the most part consists of electric dedicated water heaters (not in scope here). For solar thermal panels, not to be confused with solar photovoltaic panels, there is no indication in which cluster they could be placed. The same goes for micro-CHP space heaters.

Air-source heat pumps, mostly for air cooling and heating but also for water-based systems, are all classified as ‘air conditioning’ in HS-group 8415 or NACE Rev. 2 group 2825. In that highly aggregated form they are not relevant for the scope of this study.

For water- and ground source heat pumps, usually intended for water-based central heating, Eurostat PRODCOM prccode 2851380 ‘Heat pumps other than air conditioning machines of HS 8415’ might be useful. However, the dataset suffers from missing data and inconsistencies, such as a negative apparent consumption. Furthermore, for data before 2009 there have probably been ambiguities in the definition, allowing also air- source ‘heat pumps’ to be reported under this prccode.

Table 2 gives the Eurostat data for 2010-2015-2016 for prccode 2851380. In 2016, the exports value (in msp) amounted to €1.3 bn and imports were €0.9 bn. These are totals of intra- and extra-EU deliveries. The extra-EU trade showed a surplus of €0.2 bn, resulting from €0.3 bn exports and €0.1 bn imports.

The production value in 2016 amounted to €1.64 bn for a production of 456 000 units. This implies an average manufacturing selling price of almost €3600 per unit. Largest producers are Germany, Sweden and —if the estimated values are correct— France.

The apparent EU consumption in 2016 amounted to €1.14 bn. At the above-mentioned average price this implies that 320 000 units were sold in the EU in 2016.

Where data were missing or apparent consumption became negative, the study team has made (minimal) corrections in Table 2. Still a considerable number of results, e.g. the zero consumption of heat pumps in France, are not plausible and overall the reliability of this dataset should not be overrated.

3 According to Article 2 of Ecodesign Regulation a ‘space heater’ means a device that provides heat to a water- based central heating system in order to reach and maintain at a desired level the indoor temperature of an enclosed space such as a building, a dwelling or a room and is equipped with one or more heat generators.

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Table 2. Heat pumps other than air conditioning machines of HS 8415, years 2010-2015-2016 (Source: Eurostat PRODCOM prccode 2851380; extract Oct. 2017) Export, import, production, apparent consumption value (in million euros), production volume in ‘000 units Export Import Production value App. Consumption Production (million €) (million €) (million €) (million €) volume Country ('000 units) 2010 2015 2016 2010 2015 2016 2010 2015 2016 2010 2015 2016 2010 2015 2016 Austria 32 47 49 32 59 65 21 28 26 22 40 41 7 6 6 Belgium 10 13 12 28 33 31 33 33 33 51 53 53 0 0 0 Bulgaria 0 1 0 3 4 3 2 1 2 4 4 5 0 0 0 Croatia 0 1 2 2 4 5 0 0 0 2 3 3 0 0 0 Cyprus 0 0 0 1 1 1 0 0 0 1 1 1 0 0 0 Czech Republic 7 23 28 26 35 39 4 4 6 24 15 17 1 1 2 Denmark 40 34 35 25 36 45 57 43 52 41 46 63 27 40 31 Estonia 0 1 1 4 7 6 0 0 0 3 6 6 0 0 0 Finland 3 11 5 43 38 36 13 9 11 53 36 43 1 4 0 France 371 484 485 92 124 112 279 361 373 0 0 0 46 108 68 Germany 210 238 233 93 136 169 366 385 445 249 284 381 94 116 143 Greece 2 1 2 12 11 9 10 10 7 Hungary 0 0 0 6 7 7 43 51 51 49 58 58 40 29 27 Iceland 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ireland 211 46 29 4 7 9 207 39 20 0 0 0 Italy 143 178 171 49 54 61 94 124 109 0 0 0 25 5 5 Latvia 1 3 2 1 3 2 0 0 0 1 1 0 Lithuania 2 2 4 3 7 8 1 0 0 1 5 5 0 0 0 Luxemburg 0 1 1 2 3 4 0 0 0 2 2 3 0 0 0 Malta 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Netherlands 8 9 14 26 36 31 14 43 17 31 69 33 5 7 5 Norway 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Poland 2 11 11 35 49 48 2 2 2 35 40 39 0 0 0 Portugal 1 3 3 12 10 8 3 4 14 12 6 1 1 1 Romania 0 0 0 5 8 8 0 0 0 5 8 8 0 0 0 Slovakia 15 30 36 4 6 9 11 24 27 0 0 0 2 6 7 Slovenia 2 6 7 7 12 12 0 0 13 4 7 18 2 6 7 Spain 31 21 34 29 69 67 46 56 69 44 105 102 15 21 23 Sweden 115 122 130 39 28 26 314 354 363 237 260 260 117 118 121 United Kingdom 7 9 11 98 103 101 26 32 22 117 125 113 11 10 8 EU28 1217 1294 1303 681 891 924 1537 1593 1641 980 1018 1142 396 479 456 o/w EU28 extra 294 311 313 92 116 120 -202 -195 -192 Values in red italic are study team estimates for missing values and minimum values to avoid negative apparent consumption

2.4 Consolidation and comparison 2.4.1 Production Assuming that they are correct or at least give an order of magnitude of the numbers, the total EU 2016 production of products in the scope of the regulation that is captured by Eurostat amounts to

. 6.8 million fossil-fuel fired boilers units at a value of €5.1 bn plus . 0.45 million heat pumps for hydronic central heating at a value of €1.6 bn resulting in 7.25 million units at a value of €6.7 bn.

From this, the share of solid fuel boilers (0.36 million units, approx. €1 bn) needs to be deducted. The share of products in scope that are not captured by the Eurostat statistics numbers, i.e. solar collectors contributing to space heating, mini-/micro-CHP, thermostats & outdoor sensors, etc. need to be added. It is estimated that the value of these products will partly compensate for the deduction of the solid fuel boilers.

All in all, the preliminary estimate is that in 2016 the EU produced almost 7.3 million products in scope at a value (manufacturer selling price) of approximately €6.8-7 bn.

This is almost half of the accumulated revenue of end-product manufacturers, presented in Chapter 5. The other half could be explained by products and services that are not in

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scope of the boiler regulations like dedicated water heaters, external cylinders (in the scope of water heater regulations), ventilation units (in scope of the ventilation regulations), auxiliary materials for mounting boiler installations (valves, pipes, extra circulators, Wi-Fi and building extensions for controls, etc.), parts of the heat emitter system, design/installation/maintenance for larger installations, etc.. And many manufacturers mentioned in Chapter 5 also produce solid fuel boilers.

In 2004, the EU-25 production of fossil fuel fired boiler amounted to 7.3 million units at a value of €4.8 bn (including solid fuel boilers). Heat pumps for hydronic systems were not specified because of a modest production of 0.12 million units. At that time most heat pumps for hydronic systems were horizontal or vertical ground source heat pumps that were twice as expensive as the current mix of ground source and air source heat pumps (VH estimate). Thus, they are estimated at a value of €0.8 bn. The EU production amounted to 7.4 million units at a nominal value of €5.6 bn for products captured by Eurostat.

From this the solid fuel boilers (0.27 million units, €0.6 bn estimated value) had to be deducted. In 2004 the markets for solar, microCHP, sophisticated thermostats, etc. was less developed, but for the sake of simplicity this preliminary assessment will also assume that their turnover is enough to compensate for the deduction of the solid fuel boilers.

All in all, the preliminary estimate is that in 2004 the EU produced 7.4 million products in scope at a nominal value (manufacturer selling price) of approximately €5.6 bn. Corrected for inflation over the 2004-2016 period (23%) the latter amounts to €6.9 bn in euros 2016.

The preliminary conclusion is that in 2016 the production numbers and value of the EU28 production are similar to those for the EU25 in 2004.

Bulgaria, Romania and Croatia constitute around 0.23 million units and €0.16 bn in value (excl. solid fuel and negligible share of heat pumps) to the 2016 sales. This is 3% of the 2016 total and —given the error margin of at least ±10%— does not fundamentally change the conclusion.

2.4.2 Trade and EU consumption As regards the value of extra-EU trade, the Eurostat import-figures in 2016 amounted to €0.48 bn (€0.36 bn fossil fuel boilers + €0.12 bn heat pumps) and export-figures amounted to €1.05 bn (€0.74 bn + €0.31 bn) or 15% of production. EU export surplus is thus €0.57 bn.

The value of the apparent EU consumption of boilers, i.e. the size of the EU market, amounts to €5.6 bn (€4.5 bn plus €1.1 bn). This is 85% of production.

In 2004 the nominal value EU25 imports of fossil fuel fired boilers4 amounted to €0.30 bn and EU25 exports in that year amounted to €0.84 bn. In comparison to 2016, corrected for inflation, this means that imports have increased by 30% and exports have remained more or less the same. Note that imports are still modest in absolute numbers (8.5% of EU market) and the increase is probably mostly due to higher imports of heat pumps.

4 Trade values of heat pumps in 2004 were not known.

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3 MARKET AND STOCK DATA

3.1 Introduction Data on market and stock (‘park’) were supplied by BRG Building Solutions (BRG), formerly BRG Consult, acting as a subcontractor to VHK in the underlying study. BRG is the leading market research consultant in the European boiler sector and has made available sales data and time series from a >25 year research experience. Much of the data is presented ‘as is’ with a reference to the above-mentioned wider study. BRG was also the subcontractor for the market analysis in the preparatory study in 2006-2007 and in some instances a time series is presented.

Please note that whenever EU28* data and totals are discussed Malta, Cyprus and Luxembourg were not included, as BRG did not have data for these countries. However, given these countries constitute less than 1% of the total and the use of central heating boilers in Cyprus and Malta is very low, the amount of error is deemed acceptable.

The stock data refers to types of boilers / heating systems in dwellings5, the market data refers to unit sales only. Full BRG data and segmentation relates to the period 2004- 2014. For 2015 and 2016 only EU-totals are available.

Where available, the BRG data will be compared to market data from industry associations, i.e. in the case of heat pumps (EHPA) and solar thermal panels (Solar Heating Europe, previously ESTIF).

3.2 EU Boiler stock 3.2.1 Residential sector Based on its time-series of sales data BRG has built a stock model. The stock model serves to produce a consistent overview of the central heating boilers installed in the reference year. Table 3 gives an overview of the outcome of the BRG stock model for the year 2014. The data for 1990 and 2004 are derived from previous stock models, used in the preparatory study, and are adapted by VHK for the EU286, instead of the EU25, to make them comparable to the new 2014 model.7

For 2014 BRG reports a total EU-stock of 244.6 million dwellings, including primary, secondary and vacant dwellings. This is +10% higher than in 2004, implying an average growth rate of 1% per year.

5 Dwellings includes primary, secundary and vacant dwellings. Excludes commercial/tertiary sector premises 6 BRG data exclude Luxembourg, Malta and Cyprus, so the EU28 only relates to 25 Member States and the EU25 relates to 22 Member States. The error in excluding these small markets is believed to be less than 1% of the total and thus acceptable. 7 Bulgaria has 3.92 million dwellings for a population of 2.8 million households (7.3 million people). In Romania there are 8.3 million dwellings for 7.5 million households (19 million people). Croatia (4.3 million inhabitants) has 1.5 million households and 2.2 million dwellings. All data relate to 2013-2014. The population has been shrinking by up to 10% in all these countries since 1990. Romania had a high share of district heating in 1990s (>60%), which was drastically reduced already in 2004 and even further reduced in 2014. Wood stoves and reduced consumption largely replaced district heating. The number of gas boilers remained more or less constant over the 1990-2014 period in all 3 countries. Coal-fired heating was largely abandoned.

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The total stock of dwellings equipped with some form of ‘wet’ (water-based) central heating rose by 13%, from 156 million (2004) to 177 million (2014).

Table 3. EU Domestic Heating STOCK, in '000 dwellings (Source: VHK on basis of BRG 2006-2017) 1990 2004 2014 STOCK '000 % % % % '000 % % Individual wet system

GAS Wall Hung non-condensing 21 880 34% 48 562 48% 46 759 39% GAS Wall Hung condensing 446 1% 6 649 7% 35 408 29% GAS Floor Standing non-condensing 13 043 20% 15 062 15% 7 620 6% GAS Floor Standing condensing 0 0% 0 0% 1 114 1% OIL/GAS Jet burner (85-90% oil) 19 224 30% 22 165 22% 18 321 15% ELECTRIC CH boilers 937 1% 1 165 1% 976 1% ELECTRIC HEAT PUMP CH boilers 129 0% 928 1% 2 998 2% SOLID fuel boilers 8 914 14% 6 402 6% 6 912 6% Individual wet systems (total) 64 573 100% 36% 100 100 47% 120 100 49% 933 % 108 %

District 25 738 13% 25 022 11% 27 437 11%

Collective 25 704 13% 30 525 14% 29 741 12%

Individual dry gas/electric 11 300 6% 13 725 6% 17 135 7%

No CH (local heating + no heating) 67 340 35% 49 388 22% 50 148 21%

Total dwellings 194 659 100% 222 589 100% 244 569 100%

Of which total 'wet' (ind.+DH+coll.) 116 015 60% 156 480 72% 177 286 72%

The individual wet systems, excluding solid fuel boilers, and collective systems (up to 400 kW capacity) are in the scope of the current boiler regulation (EU) No 813/2013. In 2014 the individual wet systems represent a stock of 113 million individual boilers and approximately 5 million collective residential heating boilers, serving 30 million apartments, that are in scope.8 The table shows that over the past 10 years the overall fraction of wet systems (72%) has hardly changed; individual wet systems have gained some grounds, going from 47% to 49%, at the expense of collective heating systems.

Of the individual products in the scope, 83% are gas-fired (71% in 2004) with a growing share of condensing boilers (30% of the total in 2014, 7% in 2004). Around 14% of boilers are oil-fired (20% in 2004). Electric systems, heat pumps (2.5%) and resistance heating (0.9%), make up the rest.

When interpreting the stock data, it is important to take into account that the BRG stock relates to the number of dwellings. This includes secondary homes such as holiday/weekend homes and vacant houses (for sale or abandoned). Taking the number of private households as a measure, 193 million in 2004 and 215 million in 2014, the number of secondary homes can be estimated at 29 million or almost 12% of the total number of dwellings. Space heating in these secondary homes will be used much more sparingly than in a primary dwelling or not at all. It can be expected that a higher share of these secondary homes will be equipped with ‘individual dry systems’, like room air conditioners, and/or local space heating (wood stoves, electric radiators or convectors, open fire places) or —mainly because they are abandoned— no heating at all. In that

8 No data is available but it is assumed that more than 90% of stand-alone single boilers and boilers in cascades will have a capacity below 400 kW and are driven by gas, oil or electricity. As indicated in the 2007 preparatory study, one boiler in a collective heating system, single boiler or boiler in a cascade, is assumed to supply heat to almost 5 appartments.

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context it is relevant that in several of the most recent Member States like Romania and Bulgaria the population has been shrinking for many years and there is a considerable number of vacant houses (see Task 3).

3.2.2 Non-residential sector Assessment of the stock of non-residential boilers is difficult for a number of reasons:

. Technically the base product is practically same as residential boilers, so at the point where a boiler leaves a factory or crosses a border a statistical office (e.g. Eurostat) cannot tell the difference. . The commercial boiler market is much smaller in numbers than the residential market and application areas are more heterogeneous. This makes it a relatively unattractive subject for a market research institute. . In contrast to the residential market there is no uniform accounting unit like ‘dwellings’ that might serve to set natural boundaries to at least the total number of non-residential boilers in stock. There are Eurostat or national statistics on the number of enterprises in NACE classes9, but a large ‘enterprise’ may comprise a large number of buildings (with each a heating system), whereas many small enterprises are sharing the heating boiler, not only with each other (e.g. in an office building) but also with residential customers (e.g. shop or bar in the ground floor of an apartment building).

In the 2007 preparatory study it was estimated that some 8% of residential boiler unit sales, to be discussed in the next chapter, were in fact sold to commercial sector. In a publication by the FFE in 200910, a segmentation for the commercial sector (GHD, Gewerbe, Handel und Dienstleistung) was made, estimating that indeed some 8-9% of the boilers below 50 kW are installed in that sector. Commercial boilers above 50 kW represent a number of a little over 4.2% of the boilers installed in the residential stock.

Given a stock of 113 million individual plus 5 million collective residential boilers installed in the residential sector in 2014, this means that 12% or close to 14 million boilers were installed in the tertiary sector in 2014. These are not just boilers for wet systems, but at least 1.7 million boilers <400 kW are also used in dry (‘air conditioning’) systems as the heating counterpart of the (non-reversible) electric chillers that take care of the cooling.

Following the FFE estimates, the average capacity of tertiary sector boilers will be in the range of 60-70 kW. In total, this means a total EU capacity of at least 840 GW.

In comparison, FFE estimated the average capacity of a German residential boiler at 28 kW. This implies that the total capacity of the 113 million individual residential boilers amounts to 3164 GW. For collective residential boilers, the FFE data suggest that an average capacity of 100 kW/unit is plausible. This would add an extra 500 GW to the residential capacity, bringing the total to 3664 GW.

When taking into account that a much larger share of the space heating in the tertiary sector comes from electric reversible air conditioners, the above figures are plausible in terms of the building heat load for both sectors, to be discussed in the Task 3, and in terms of the space heating energy use for both sectors, to be discussed in Task 5 and 7.

9 Over 25 million enterprises in the EU25 in 2004. 10 Source

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Having said that, the uncertainty as regards these numbers is still high, i.e. in the range of ±20%.

3.3 Sales overall and for fossil-fuel fired boilers 3.3.1 Total EU Figure 7 shows unit sales of boilers in the scope for the period 2004-2016 reported by BRG. In line with the production trend in Eurostat production data, the total boiler sales have dropped by 1.1% per year and have arrived at 5.9 million in 2016 (from 7 million units in 2004). The year 2015 was an exceptionally good year with 5% higher sales than in the preceding and in the following year.

8000 Boiler unit sales EU28 2004-2016 (source BRG 2017) ED & EL implemented 6977 7170 1 Sept. 2015 7002 7000 6765 6624 6177 6251 6221 6044 5995 5924 6000 5820 5900

Heat Pumps to water 5000 Electric Boilers Wall Hung Gas Cond

4000 Floor Standing Cond Wall Hung Gas Non Cond '000 '000 units sold Floor Standing Gas non Cond 3000 Jet Burner Boilers Total 2000

1000

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(Source: BRG) Figure 7. EU28 Boiler unit sales 2004-2016

Table 4. EU-28 BOILER SALES - Units year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 By type Wall Hung Gas Non Cond 4185 3537 3224 2713 2286 1955 1893 1792 1674 1553 1441 1430 440 Wall Hung Gas Cond 1308 2062 2590 2846 3125 3113 3353 3328 3287 3614 3647 3931 4629 Floor Standing Gas non Cond 389 302 231 160 129 106 92 80 73 68 54 43 10 Floor Standing Gas Condensing 52 68 84 87 96 93 96 94 92 99 97 97 103 Jet Burner Boilers (85% oil, 15% gas) 904 801 743 633 546 507 465 395 337 298 287 313 301 Subtotal gas 6070 6089 6240 5901 5718 5343 5504 5353 5177 5379 5282 5548 5227 Subtotal oil 768 681 632 538 464 431 395 336 286 253 244 266 256

Solid Fuel Boilers 276 353 480 458 511 471 461 453 468 459 413 387 367 Electric Boilers 44 58 69 74 79 71 67 61 58 57 56 64 69 Heat Pumps to water 119 148 229 253 363 330 284 295 297 306 320 344 373

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year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 By energy Gas 83% 83% 82% 82% 80% 80% 82% 82% 82% 83% 84% 84% 83% Oil 11% 9% 8% 7% 7% 6% 6% 5% 5% 4% 4% 4% 4% Solid fuel 4% 5% 6% 6% 7% 7% 7% 7% 7% 7% 7% 6% 6% Electric 2% 3% 4% 5% 6% 6% 5% 5% 6% 6% 6% 6% 7% TOTAL (incl. solid fuel boilers) 7278 7329 7650 7223 7135 6648 6712 6498 6288 6454 6313 6607 6292 Boilers in scope 7002 6977 7170 6765 6624 6177 6251 6044 5820 5995 5900 6221 5924

3.3.2 Sales per type The share of gas-fired boiler sales has remained more or less constant at ~83% over the 2004-2016 period. Oil-boiler share dropped from 11% to 4% over that period, but appear to remain constant since 2013. Solid fuel boiler grew quickly till 2008 to a share of 7% but then slowly declined to 6% in 2015-2016. The share of electric boilers remained at a share of 0.6-1.1% over the period, while the share of heat pumps boilers was 1.6% in 2004, peaked at 5.1% in 2008, declined till 2013 and is now at almost 6% in 2016. Figure 8 below gives the long-term trend per type.

400% Boiler unit sales trend 2004-2016 (2004=100%)

350% 354%

314% 300% gas condensing wh

Wall Hung Gas Non Cond 250% heat pump Wall Hung Gas Cond

Floor Standing Gas non Cond 200% gas condensing fs 198% Floor Standing Cond solid fuel 156% 150% Jet Burner Boilers

electric boiler Solid Fuel Boilers 100% Electric Boilers 86% Heat Pumps jet burner (90% oil) 50% TOTAL gas non-condensing 33% 11% 0% 2%

(Source: BRG) Figure 8. EU28 Boiler unit sales trends by type 2004-2016

Condensing boilers took over from non-condensing boilers and are now almost 90% of the boiler market. The most conspicuous jump occurred between 2015 and 2016, the year of the implementation of the Ecodesign and energy label regulation implementation per 1.9.2015. Wall-hung gas condensing boiler sales increased by 0.7 million (18%), while the less efficient non-condensing boilers sales dropped by almost 1 million (−69%). Also 2016 was a good year for the heat pump boilers, gaining an extra 9% versus the previous year.

The fact that in 2016 there are still sales of non-condensing gas and oil boilers, despite the Ecodesign regulation, can be explained by

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. The stock of non-condensing boilers at wholesalers and retailers that can still be sold after 26.9.2015. 11 . Type B1 (non-condensing) boilers with rated heat output ≤ 10 kW and type B1 (non- condensing) combination boilers with rated heat output ≤ 30 kW that can still be sold for connection to a flue shared between multiple dwellings in existing buildings

Another trend is that wall-hung gas boilers became relatively more popular than floor standing gas boilers. In 2004 the latter had a market of 441,000 units (7% of the gas boiler market), while in 2016 only 113,000 units were sold (2% of the gas boiler market).

The most recent year for market segmentation per Member State is 2014, i.e. before the regulation. Table 5 gives the sales data for 2014.

Table 5. EU-28* BOILER SALES 2014 per country, in '000 Units Gas fs Electr. Gas wh Gas wh Gas fs Oil jet Electr. non- heat TOTAL non-cond cond cond burner boilers cond pump Austria 20.6 21.7 1.1 2.7 4.9 - 15.4 66 Belgium 24.7 149.9 2.6 6.1 20.3 - 9.4 213 Bulgaria 2.1 1.1 0.0 0.0 0.2 1.9 0.5 6 Croatia 9.7 4.9 0.1 0.2 1.7 7.4 0.9 25 Czech Republic 31.9 36.3 4.5 0.6 0.3 12.9 8.1 95 Denmark - 19.5 0.0 0.5 1.3 - 5.7 27 Estonia 1.0 0.6 0.2 0.0 0.3 0.4 1.7 4 Finland - - - - 2.6 3.4 14.4 20 France 212.0 300.5 11.5 18.6 53.3 4.9 78.8 679 Germany 98.0 376.4 11.0 36.4 69.0 - 58.4 649 Greece 10.9 6.1 0.0 0.0 5.4 0.1 5.4 28 Hungary 36.7 24.5 1.7 0.2 0.2 - 1.0 64 Ireland 1.7 29.1 0.1 0.4 28.2 0.5 1.5 61 Italy 535.8 276.5 10.1 10.3 13.9 - 24.0 871 Latvia 2.2 1.3 0.1 0.1 0.1 - 0.6 4 Lithuania 3.6 4.6 0.6 0.0 0.2 0.2 0.8 10 Netherlands 5.2 399.4 - 0.8 0.2 - 7.3 413 Poland 95.0 89.1 2.2 2.8 3.2 0.5 8.0 201 Portugal 9.3 2.0 0.1 0.3 1.4 - 2.3 15 Romania 169.4 18.9 0.7 0.3 0.9 7.5 0.6 198 Slovakia 10.4 19.8 4.4 0.3 0.2 2.7 0.8 39 Slovenia 0.3 3.1 0.1 0.1 2.6 0.6 3.4 10 Spain 156.0 110.5 1.8 1.6 26.3 - 7.4 304 Sweden - 0.8 - 0.1 0.2 5.7 45.0 52 United Kingdom 4.3 1750.4 1.0 14.4 50.3 7.2 18.5 1846 TOTAL EU 1 441 3 647 54 97 287 56 320 5900 Norway - - 0.1 - 0.05 1.6 6.3 *=Excl. MT, CY, LU

(Source: BRG 2017)

11 In its comments, EHI states that this factor has no impact. However, individual manufacturers –especially operating in the Italian market—believe stock levels at wholesale and retail were very high.

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It shows that the UK has the highest unit sales overall (31% of total) and almost half of the EU-sales of the largest category, i.e. gas wall-hung condensing boilers. These numbers illustrate also that the UK boilers have the shortest product life in the EU. The second largest customer is Italy, but still far behind the UK. In 2014 Italy was the largest buyer of non-condensing gas boilers in the EU, buying 37% of this less efficient type. France and Germany are then the largest buyers of boilers, both with a high share of oil- boilers and floor standing boilers. France, followed by Germany and Sweden, was the largest purchaser of heat pumps. Electric resistance space heating boilers are still popular in Eastern Europe, i.e. in Czech Republic, Romania and Croatia.

In figures 9, 10 and 11 a comparison is made of boiler sales in 2004 and 2014 per Member State. Figure 9 gives absolute total numbers. Figure 10 gives the relative increase/decrease (in %) and Figure 11 gives the absolute increase/decrease (in units). Tabular values behind these figures are given in Annex I.

2 000 1852 Boiler sales 2004 and 2014, per Member State (in 000 units) 1 800 1726 EU 2004 total 7.3 million - EU 2014 total 6.3 million 1 600 1 352 1 400

1 200

1 000 2004 881 814 845 2014 800 682 697 566 600 417 414 400 363 309 214 231 148 235 176 208 83 24 35 60 88 127 111 80 118 200 23 6 13 17 79 28 54 81 63 21 6 24 34 10 13 55 17 34 55 1754 32 - PL UK BE RO FI EE LT DK LV NL BU SK AT SI CR CZ SV HU PT GR EI DE FR ES IT (Source: BRG) Figure 9. EU Boiler unit sales trends by type 2004-2016

80 PL 60 55 Increase/decrease in total boiler sales 2014 vs. 2004 per Member State and EU (in %) 40 BE 21 FI RO UK 20 15 EE 11 7 LT 5 1 - NL DK SK -20 -1 AT EU -4 -8 CZ DE FR -10 -13 -14 -16 -17 BU LV HU -40 -24 -25 SV IT -27 CR SI -34 -35 -37 ES EI -60 -39 -45 -46 GR -80 -60 PT -70 (Source: BRG) Figure 10. Relative increase/decrease boiler sales per Member State in %

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In absolute numbers it is evident that the total EU sales decrease of 965k units mainly comes from IT (471k), ES (257k), FR(148k) and DE (132k). All other countries with negative sales trends account for 276k, which is more than compensated by positive sales of 317k in PL plus UK and a few other countries with a positive sales trend.

Increase/decrease in total boiler sales 2014 vs. 2004

200 PL UK per Member State and EU (in 000 units) 128 126 100 BE RO FI EEES LT 37 23 3 0 0 - DK LV NL BU SK AT SI CR CZ -1 -3 -4 -4 -5 SV HU PT -9 -11 -20 -21 GR EI -100 -28 -30 -38 -48 -54 DE -200 FR -132 -148

-300 TotalTotal EU -946-965 ES -257

-400

-500 IT -471 -600 (Source: BRG) Figure 11. Absolute increase/decrease boiler sales per Member State in 000 units

3.3.3 Sales by end-use Figure 12 gives the relative share of boiler sales by end-use, subdivided in new housing, new non-housing, 1st time users and replacement sales, per Member State in 2014.

The boiler market was already mainly a replacement market, but due to the crisis in the construction sector in most countries this increased. In 2014 replacement sales were 78% of the total (2004: 60%), new housing accounted for 14% (2004: 22%).

First time installations (14.3%) refer to situations where the owner previously had a different heating system (e.g. local heaters or no heating). In 2014 they accounted for 5% (2004: 14%). The boiler sales to new non-residential buildings were stable and remained at 4% of the total sales both in 2004 and 2014.

Figure 12 shows that the UK, Italy, the Netherlands, Denmark and Hungary had the highest percentage of replacement sales and scored below-EU average in new buildings and sales to 1st time users. The highest relative score for sales to 1st time users that have no heating or only local heaters goes to countries like Bulgaria, Portugal, Croatia and Slovenia. These four small countries also rank first in sales to new non-housing.

The highest share of sales to new housing in 2014 goes to Portugal, Austria, Bulgaria and France.

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2014 sales to new housing (% of total) 41% 33% 29% 28% 24% 23% 23% 22% 22% 20% 17% 17% 16% 16% 15% 15% 15% 14% 14% 12% 12% 10% 9% 8% 7% 7%

PT AT BU FR FI EE PL SK LT BE GR DE CR EI SV RO LV CZ EU SI DK NL HU IT UK ES 2014 sales to new non-housing (% of total) 18% 15% 15% 12% 11% 9% 9% 8% 8% 7% 7% 7% 6% 5% 5% 4% 4% 4% 4% 4% 4% 3% 3% 2% 2% 2%

CR SI EE LV SK BU SV DE FI FR LT GR CZ DK PT HU ES EI EU AT PL RO BE NL IT UK 2014 sales to 1st time users 34% (switch from other or no heating, % of total) 20% 20% 17% 15% 15% 14% 13% 11% 9% 9% 9% 7% 6% 6% 5% 5% 5% 5% 3% 3% 2% 2% 2% 1% 1%

BU SI GR CR RO EE ES SK CZ PT PL LV HU AT EI FI BE LT EU FR UK NL DK IT SV DE

89% 88% 86% 2014 replacement sales (% of total) 81% 79% 78% 74% 74% 74% 74% 72% 70% 66% 66% 64% 64% 62% 62% 57% 57% 54% 52% 50% 48% 44% 27%

UK IT NL DK HU EU ES SV EI DE BE CZ LT RO PL LV FI FR AT GR SK SI CR EE PT BU

(Source: BRG) Figure 12. Share of boiler sales to new housing, non-housing, 1st time users and replacement, per Member State in %

Figure 13 gives the end-use per Member State in absolute numbers. It shows that France has the highest boiler sales to new housing and is second in non-housing. The UK and Germany are in the top 3 on both accounts. The UK and Spain have the highest number of 1st time users, with Romania and Poland in third and fourth place. The UK has the highest number of replacement sales.

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United Kingdom 130 46 35 1 641 Italy 74 15 20 772 France 192 21 51 434 Germany 114 8 56 504 Poland 82 34 13 234 Netherlands 41 8 10 355 Spain 21 45 14 230 Romania 35 35 7 151 Belgium 43 11 6 154 Czech Republic 17 14 7 89 Austria 26 5 5 44 New Housing Hungary 8 64 64 1st Time Installed Slovakia 12 7 6 30 Ireland 104 3 47 Non- Housing Sweden 815 40 Croatia 5 6 6 17 Replacement Greece 5 6 2 18 Denmark 42 27 Finland 612 15 EU Boiler Sales 2014 by End-Use (in '000 units) Lithuania 512 16 Portugal 7 2 7 Slovenia 233 9 Bulgaria 441 3 Latvia 111 6 Estonia 111 3 0 50 100 150 200 250 300 350

(Source: BRG) Figure 13. EU Boiler Sales 2014 by End-Use, in ‘000 units sold

Table 6 shows that in 2014 the wall hung gas condensing boiler was the most popular boiler in all end-use segments.

In the new housing segment the heat pump is second, with 49% of heat pumps sold in new housing.

The wall hung non-condensing boiler, 10 years ago as popular as the condensing version today, was the second most popular option in the replacement market. Floor standing gas boilers, jet burner boilers and solid fuel boilers are, after replacement, the most popular in the new non-housing. In first-time installation, particularly strong in Bulgaria and Croatia, the solid fuel boiler and the electric boiler find a significant part of their sales.

Table 7 shows the same data but for the year 2004. At that time, the grand total of boiler sales was 15% higher than in 2014. However, the comparison shows that this is only due to sales to new housing (85% higher) and first time installation (almost 4 times higher). Boiler sales to non-housing are approximately the same. Replacement sales in 2004 were 13% lower than in 2014, more or less proportional with the increase in boiler stock over the period 2004-2014.

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Table 6. EU - BOILER SEGMENTATION BY END-USE 2014

First Time New Housing Non Housing Replacement TOTAL Installation Boiler Type 2014 2014 2014 2014 2014

#000 % v* % h* #000 % v % h #000 % v % h #000 % v % h #000 % v % h Wall Hung Gas Non Cond 55 6% 4% 69 24% 5% 18 7% 1% 1297 26% 90% 1441 23% 100% Wall Hung Gas Cond 545 64% 15% 155 55% 4% 122 46% 3% 2825 58% 77% 3647 58% 100% Gas Floor St. Boilers 15 2% 10% 5 2% 3% 24 9% 16% 106 2% 71% 150 2% 100% Jet Burner Boilers 13 1% 4% 11 4% 4% 27 10% 10% 236 5% 82% 287 5% 100% Solid Fuel Boilers 64 7% 16% 29 10% 7% 38 14% 9% 280 6% 68% 410 6% 100% Electric Boilers 5 1% 9% 6 2% 11% 2 1% 3% 43 1% 77% 56 1% 100% Heat Pumps 157 18% 49% 9 3% 3% 31 12% 10% 122 2% 38% 319 5% 100% Grand Total 853 100% 14% 284 100% 5% 262 100% 4% 4910 100% 78% 6310 100% 100% Total excl. solid fuel 790 256 225 4630 5900 *= %v is vertical share (share per type of boiler); %h is horizontal share (share per type of end-use)

Table 7. EU - EU BOILER SEGMENTATION BY END-USE 2004*

First Time New Housing Non Housing Replacement TOTAL Installation Boiler Type 2004 2004 2004 2004 2004

#000 % v** % h #000 % v % h #000 % v % h #000 % v % h #000 % v % h Wall Hung Gas Non- Cond 951 62% 23% 603 60% 14% 57 22% 1% 2555 61% 61% 4166 60% 100% Wall Hung Gas Cond 333 22% 25% 187 19% 14% 53 20% 4% 748 18% 57% 1321 19% 100% Gas Floor St. Boilers 54 4% 13% 47 5% 11% 43 16% 10% 281 7% 66% 425 6% 100% Jet Burner Boilers 140 9% 16% 111 11% 12% 94 36% 11% 548 13% 61% 893 13% 100% Solid Fuel Boilers 53 3% 19% 39 4% 14% 21 8% 7% 169 4% 60% 282 4% 100% Electric Boilers 5 0% 10% 11 1% 19% 1 0% 2% 38 1% 69% 55 1% 100% Heat Pumps 45 3% 38% 48 5% 40% 8 3% 7% 18 0% 15% 120 2% 100% Grand Total 1581 100% 22% 1048 100% 14% 277 100% 4% 4357 100% 60% 7263 100% 100% Total excl. solid fuel 1528 1008 256 4188 6981 *= Data 2014 for missing BU, RO, CR + Data 2004 for other EU Member States (VHK, 2007 preparatory study) **= %v is vertical share (share per type of boiler); %h is horizontal share (share per type of end-use)

The question is whether the level of new housing and first-time installation will remain at the 2014-level.

There are some countries where building new houses is needed and —now that the economic crisis is ending—can be expected. But on the long run the population growth in the EU keeps stagnating. As regards the 1st time installation there has been a major effort in Eastern Europe to bring central heating to the houses in the last decade, but at some point the backlog will have been largely dealt with.

3.3.4 Technical market segmentation Table 8 below gives the technical segmentation by main boiler characteristics in 2014. The table gives the EU-totals and the sales numbers in the top-3 countries regarding

. Condensation: condensing/non-condensing;

. Burner type: conventional/premix/other low NOx; . Hot water production: combi/ heating only + external cylinder/heating only + integrated cylinder/heating only); . Flue type: open/ room sealed balanced/room sealed fanned; . Breakdown of the combi segment: conventional flow-through, with preheat, with storage<40 L.

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Table 8. EU 28 - BOILERS - TECHNICAL SEGMENTATION SALES 2014 (in ‘000 units)

GAS WALL HUNG BOILERS GAS FLOOR STANDING JET BURNER BOILERS BOILERS

TOTAL Nr. 1 Nr. 2 Nr. 3 TOTAL Nr. 1 Nr. 2 Nr. 3 TOTAL Nr. 1 Nr. 2 Nr. 3

TOTAL 5084 UK 1754 IT 812 FR 512 150 DE 47 FR 30 IT 20 287 DE 69 FR 53 UK 50

CONDENSATION Condensing 3644 UK 1749 NL 399 DE 374 97 DE 36 FR 19 UK 15 165 UK 49 DE 48 EI 27 Non condensing 1441 IT 535 FR 212 RO 169 53 FR 11 DE 11 IT 10 122 FR 29 ES 25 DE 21 BURNER TYPE

Conventional 895 IT 466 RO 166 PL 84 23 IT 8 SK 4 CZ 4 Fan assisted premix 3651 UK 1750 NL 399 DE 374 98 DE 36 FR 19 UK 15 other low NOx 538 FR 189 ES 105 DE 98 30 DE 11 FR 10 BE 3 HOT WATER PRODUCTION

Combi 3943 UK 1334 IT 783 FR 423 - Heating only w. ext. cyl. 911 UK 397 DE 279 FR 54 88 DE 34 UK 14 FR 11 181 DE 48 UK 45 FR 28 Heating only w. int. Cyl. 25 IT 11 FR 10 BE 1 47 FR 17 ES 11 DE 8 Heating only without Cyl. 231 PL 58 FR 35 DE 27 37 DE 14 FR 8 IT 4 59 DE 12 ES 12 FR 8

FLUE TYPE

Open 659 FR 165 RO 164 DE 83 33 DE 9 SK 4 FR 3 97 FR 25 ES 19 DE 15 Room Sealed (Balanced) 4 RO 3 DE 1 UK 0.1 1 EI 0.4 FR 0.2 - 0 RO 0.2 0 0 Room Sealed (Fanned) 4422 UK 1754 IT 737 NL 403 117 DE 38 FR 27 IT 18 189 DE 54 UK 49 FR 29 COMBI - BREAKDOWN

Combi Conventional 3283 UK 1259 IT 671 NL 369 Combi with Pre-Heat 463 FR 127 ES 102 DE 94 Combi with Storage > 40L 197 FR 78 IT 43 UK 22

Table 9. Technical segmentation comparison 2004 and 2014, unit sales and % (Source: VHK based on BRG data) Segment 2004 2014 2004 2014 ‘000 units ‘000 units % of sales % of sales

TOTAL 6595 5521 100% 100%

TYPE

Wall-hung gas 5281 5084 80% 92% Floor standing gas 423 150 6% 3% Jet burner 891 287 14% 5% CONDENSATION

Condensing 1383 3906 21% 71% Non condensing 5213 1616 79% 29% BURNER TYPE

Conventional 3 921 919 59% 17% Fan assisted premix 1 412 3749 21% 68% other low NOx 348 568 5% 10% HOT WATER

Combi 4163 3943 63% 71% Heating only w. ext. cyl. 1 300 1179 20% 21% Heating only w. int. Cyl. 370 72 6% 1% Heating only without Cyl. 742 327 11% 6% FLUE TYPE

Open 2 164 788 33% 14% Room Sealed 4 396 4733 67% 86% COMBI - BREAKDOWN Combi Conventional/preheat 3656 3746 55% 68% Combi with Storage < 40L 507 197 8% 4%

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The switch to condensing boilers has been discussed in previous sections. The trend in burners towards burners with premix fan, typical for a condensing boiler, follows the same trend. The same goes for the room sealed flue type, fanned either as premix or in the flue gas duct. All in all, these trends —further accelerated through Ecodesign and Energy Label regulations implemented in September 2015— move in the direction of a safer, better controlled (less emissions, more space heating comfort) and more energy efficient heating system.

Table 10 gives additional market segmentation regarding fuel type, heat exchanger and ignition type. The fuel mix per boiler type is not very different from 2004: With gas boilers the share of LPG is 2-3%. For the jet burner 91% can burn oil and 28% is capable of burning gas. On average an 85-15% mix is assumed.

As regards the heat exchanger materials it seems that copper (60% of gas wh in 2004) and cast iron (67% of gas fs and 43% of jet burners in 2004) have substantially decreased in favour of steel (17-23% of gas boilers and 56% of jet burners in 2004) and aluminium (18% of gas wh, 3% of gas fs in 2004). In 2014 56% of all heat exchangers were made of steel and 31% were made of aluminium. Copper and cast iron now make up only 13% of the total.

Table 10. EU - HEAT EXCHANGER, IGNITION AND FUEL SEGMENTATIONS - 2014, TOTAL in 000 units (Source: BRG 2017) Gas Wall Hung Gas Floor Boilers Standing Boilers Jet Burner Boilers Units % Share Units % Share Units % Share Gas Type Fuel Type LPG 99 2% 5 3% Bi-Fuel Units 9 3% Natural 4 985 98% 145 97% Gas Units 17 6% Gas Type Total 5 084 150 Oil Units 198 69% Heat Exchanger - - Oil/Gas Units 63 22% Aluminium 1 675 33% 40 27% Fuel Type Total 287 Cast Iron 29 1% 25 17% Heat Exchanger Copper 524 10% 8 5% Cast Iron 70 24% Steel 2 856 56% 78 52% Other 52 18% Heat Exchanger Total 5 084 150 Steel / Mixed 165 57% Heat Exchanger Ignition Type - - Total 287 Electronic 5 084 100% 150 100% Pilot - 0% 1 0% Ignition Type Total 5 084 150

3.3.5 Sales by power class Table 11 below gives the segmentation per power class, resulting in average power per country and EU. BRG power classes are different per country. VHK has assessed the average based on plausible weighting and has concluded to two classes, one below and one above 70 kW. The latter is believed to cover mainly the larger collective (residential) and commercial boilers. The former covers the residential and smaller collective (residential) and commercial boilers.

The EU average nominal power for the class <70 kW is 25 kW/unit (total 133 GW). The EU average nominal power for the class ≥70 kW is 129 kW/unit (total 16 GW). Overall

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the EU average nominal power is estimated at 27 kW/unit and almost 150 GW total capacity sold in 2014.

These values are comparable to the values found for 2004 in the first preparatory study, where VHK also concluded, through a different estimation/calculation method, to an average 27 kW/unit. Due to higher sales numbers in 2004 the total estimated boiler capacity sold in that year amounted to 181 GW.

Note that these numbers only relate to gas- and oil-boilers sold. The capacity of gas/oil boilers traditionally relates to the input values (in GCV of the fuel). The Ecodesign and Energy Label regulations require capacity to be stated in heat output, but there is uncertainty whether this is the case with the BRG data.

Table 11. EU28 - Boiler capacity, below and above 70 kW (or nearest value), per country and EU total, 2014 (VHK based on BRG data 2017) class class limits avg. total limits avg. total Country (kW) sales kW MW Country (kW) sales kW MW kW 000# kW MW kW 000# kW MW <60 49 22 1069 <50 843 25 21295 AUSTRIA >60 1.8 115 201 ITALY >50 4.0 160 640 tot/avg 51 25 1270 tot/avg 847 26 21935 <70 198 28 5648 <100 3.7 24 88 BELGIUM >70 5.1 188 959 LATVIA >100 0.1 110 9 tot/avg 204 32 6607 tot/avg 3.8 26 97 <50 3.2 27 87 <100 9.0 24 219 BULGARIA >50 0.1 120 17 LITHUANIA >100 0.1 110 6 tot/avg 3.4 31 104 tot/avg 9.0 25 224 <50 15 22 343 <60 396 33 13251 NETHER- CROATIA >50 1.1 127 145 >60 9.5 119 1124 LANDS tot/avg 17 29 488 tot/avg 406 35 14376 <50 72 28 2017 <50 187 27 5084 CZECH >50 1.9 154 289 POLAND >50 5.7 125 715 REPUBLIC tot/avg 74 31 2306 tot/avg 192 30 5799 <60 21 18 370 <70 13 31 388 DENMARK >60 0.4 102 44 PORTUGAL >70 0.3 139 47 tot/avg 21 20 414 tot/avg 13 33 435 <100 2.0 30 61 <70 189 27 5069 ESTONIA >100 0.1 110 6 ROMANIA >70 1.1 125 138 tot/avg 2 32 66 tot/avg 190 27 5207 <60 2.0 48 97 <50 34 27 921 FINLAND >60 0.6 102 56 SLOVAKIA >50 0.7 140 100 tot/avg 2.6 60 154 tot/avg 35 29 1021 <70 583 24 14259 <50 4.9 27 136 FRANCE >70 13 184 2386 SLOVENIA >50 1.2 211 251 tot/avg 596 28 16645 tot/avg 6.1 63 387 <50 554 20 11309 <70 291 28 8145 GERMANY >50 35 116 4005 SPAIN >70 5.5 137 752 tot/avg 588 26 15314 tot/avg 296 30 8897 <70 22 25 533 <60 0.7 48 34 GREECE >70 0.9 193 172 SWEDEN >60 0.4 102 39 tot/avg 23 31 705 tot/avg 1.1 67 73 <70 61 26 1598 < 44 1790 22 39915 HUNGARY >70 2.0 126 254 UK > 44 29 106 3093 tot/avg 63 29 1852 tot/avg 1819 24 43008 <44 57 22 1224 <70 5399 25 133159 IRELAND >44 2.4 106 258 EU > 70 122 129 15707 tot/avg 59 25 1482 tot/avg 5521 27 148866

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3.3.6 Efficiency of sales (EHI data) One of the objectives of the market analysis is to establish whether the boiler regulations actually had the intended impact on the market. There are at least three major barriers here:

. The efficiency limits and energy labelling schemes under the boiler regulations were only implemented in September 2015; . Reliable and affordable market data run a few years behind; . Market research in the heating sector is not tuned (yet) to collecting exact energy efficiency data or energy label data.

As regards the last point, i.e. this data does not exist and can only be estimated from typology

Some indicative seasonal efficiency values (VHK estimate)

Heating only

. Electric boiler 35 (E ) . Non-condensing gas, conventional 50 (D) . Non-condensing gas 10 kW, LT - B1 75 (C ) . Condensing gas 93 (A) . Oil-fired non-condensing 73 (C) . Oil-fired condensing 91 (A) . 10 m² solar collector + gas condensing 100 (A+) . CHP (combustion motor) 124 (A+) . Fuel cell 131 (A++) . Heat pump air-to-water 145 (A++) . Heat pump ground source to water 158 (A+++)

Water heating:

Table 12. Typical combi-boiler related water heating efficiencies by capacity

EFFICIENCY 3XS XXS XS S M L XL XXL 3XL 4XL Storage losses (not smart or off-peak) [kWh/yr] 285 329 329 430 567 641 728 810 1022 1302 COMBI (M=LT, >L=cond., L=mix) 70% 74% 77% 79% 80% 80%

Energy class A B B B COMBI+ indirect cylinder 46% 57% 64% 67% 71% 74%

B B B B COMBISOL 57% 81% 106% 123% 148% 153%

Comprehensive and detailed BRG data, as presented in the previous sections is available only for 2014; for 2016 there are only EU totals per boiler-type as presented in Table 4 and Figure 8.

Thankfully, industry association EHI was able to supply more detailed information on the year 2016. The table below gives the sales by category for the top-7 boiler markets in Europe (UK, IT, DE, FR, NL, ES, BE). Also, mainly based on typology, the 2016 energy label rating is given for 4 countries.

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Table 13. Boiler sales in top 7 EU-boiler markets (Source: EHI 2018)

United Bel- Ger- Nether- TOTAL year France Italy Spain King- inc Boilers gium many lands EU7 Sales x1000 units dom

2014 2.5 9.5 11.0 6.5 0.0 2.0 4.6 36

fs - 2016 0.6 2.7 0.0 0.5 0.0 0.1 1.0 5 non- 86% condens 2014 23.5 200.0 96.0 460.0 5.0 139.0 4.9 928

wh - 2016 9.4 118.5 71.0 77.1 1.0 4.4 0.4 282 GAS 70%

2014 8.5 54.5 107.5 12.8 1.9 0.3 12.0 198 fs* 2016 8.0 56.5 118.0 15.0 1.9 1.8 16.3 218 10% condens 2014 147.0 263.5 305.0 265.0 390.0 109.7 1 655.0 3 135 wh 2016 165.0 365.1 338.0 523.0 397.7 259.2 1 652.3 3 700 18%

2014 14.4 29.0 21.0 9.6 0.0 17.0 1.0 92 non- fs - condens 2016 10.4 24.5 4.0 8.0 0.0 24.3 0.4 72 OIL 22% 2014 5.1 23.0 46.5 2.4 0.5 2.4 62.0 142 condens fs & wh 2016 8.4 32.7 67.0 2.6 0.5 3.4 71.0 186 31%

chips, logs 2014 0.4 14.5 36.0 11.6 0.3 2.9 5.5 71 WOOD or pellets - CH 2016 0.3 8.3 28.5 9.5 0.4 1.3 6.2 55 23%

Hydronic, 2014 6.5 72.9 58.0 13.5 6.9 8.0 15.8 182 HEAT PUMP heating only 2016 7.2 77.2 66.5 21.0 9.1 11.2 14.8 207 14%

2014 208 667 681 781 405 281 1 761 4 784 TOTAL** 2016 209 686 693 657 411 306 1 762 4 723 -1%

2014 42.5 131.0 810.0 180.0 16.5 105.7 24.6 1 310 Flat Plate (1000 m²) - 2016 39.5 59.8 676.0 136.0 17.7 66.8 9.1 1 005 Solar 23% collector sales in 1000 m² 2014 9.5 19.5 90.0 32.5 1.9 15.9 6.0 175 Vacuum Collectors - (1000 m²) 2016 7.0 6.1 68.0 24.5 1.7 11.0 2.5 121 31%

condens=condensing, fs= floor standing, wh=wall-hung, inc=increase (negative is decrease) *=condensing floor standing gas boiler includes compact boiler (boiler with a storage tank), **=rounded

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Energy Label rating 2016 for gas- & oil boilers in France, Germany, Italy, Spain (source EHI, 2018) 100% 13.2% 90% 24.5% 80% A 70% 61.4% 72.1% 60% 75.3% B 86.5% 50% 94.4% 98.3% C 86.8% 40% 75.5% 30% 20% 38.6% 15.3% 10% 24.7% 13.5% 12.6% 0% 5.6% 1.7% gas oil gas oil gas oil gas oil France Germany Italy Spain

(Source: EHI 2018) Figure 14. Energy label rating 2016 for gas & oil boilers FR, DE, IT, ES

The EHI-data are largely consistent with BRG totals in that the transition to condensing boilers —and thus the minimum Ecodesign energy efficiency limit—has been successful.

Having said that, in 2016 still 10% of the market consists of non-condensing boilers. These are either boilers from wholesale/industry stock or exemptions for B1-types. In particular for oil-fired boilers, the EHI figures reveal that the share of non-condensing versus condensing boilers is high, at 28% (72 out of 258 k units). This could be due to old stock being sold, as well as oil burners sold as replacement for identical burners for heaters placed on the market before 1.1.2018 (in accordance with article 1, par. 2(g) of the Ecodesign Regulations 813 and 814/2013, plus FAQ 55 of the Guidelines). Also, EHI states that non-condensing oil-fired boilers can meet the minimum Ecodesign seasonal efficiency limits of 86% as well as, after recertification with Low NOx burners, the Ecodesign NOx limits.

EHI supplied also more recent stock data, i.e. for the year 2015, at aggregated EU level.

Table 14. Installed stock of hydronic space heaters (<400 kW) in the EU Member States in 2015 (Source: EHI, 2018)

Non-condensing Condensing Solid Heat 2015 Biomass fuel Others TOTAL pumps Gas Oil Gas Oil boilers

TOTAL 55 864 18 126 37 130 1 884 3 346 3 453 4 406 1 085 125 294

45% 14% 30% 2% 3% 3% 4% 1% 100%

All EU Member States are covered by the BRG data (excluding Cyprus, Luxembourg and Malta)

'Others' include electric boilers and micro-CHP

The first three quarters of 2015 the EU boiler regulations were not implemented and in the last quarter it is plausible that trade and industry were trying to sell old stock, which is permitted. In that sense, the stock data cannot be expected to show a step change. Still, they are important to build consistent scenarios in Task 7.

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3.4 Sales heat pumps, mCHP, hybrids, solar thermal, PFHRD and miscellaneous 3.4.1 Heat pumps Table 15 gives the EU 2014 sales-split of the heat pumps that are in the scope of the regulation. It shows that over two thirds are made up of air-based heat pumps and less than one third is ground-source heat pumps.

France (76k units), Germany (56k) and Sweden (33k) make up 56% of total heat pump sales. Heat pump sales in Italy (20k), Austria (15k) and Finland (13k) are also significant.

Ground source heat pumps are most popular in Sweden (25k), German (16k) and Finland (11k). Also, some significant numbers are sold in Austria (4.7k) and Poland (5.5k). All others, especially France and Southern Europe, have a much higher share in air-to-water heat pumps.

Table 15. EU - HEAT PUMP BOILER UNIT SALES 2014 - Per Member State and Output power class (VHK based on BRG 2017 data)

Heat Pump Outside Air-Water Heat Pump Ground source Both Classes Output (kW) <5 5<10 10<15 15<20 >20 EU <5 5<10 10<15 15<20 >20 EU EU Total Average per class Total Total 4 7.5 12.5 17.5 25 4 7.5 12.5 17.5 25 (kW)

Austria 1236 6180 2369 309 206 10300 165 1763 1786 494 494 4702 15002 Belgium 1848 3311 2387 116 39 7701 289 782 477 85 68 1701 9402 Bulgaria 29 108 186 29 9 361 0 27 94 25 6 152 513 Croatia 60 443 165 57 27 752 5 48 60 25 14 152 904 Czech Republic 416 4122 948 640 276 6402 68 1240 215 91 38 1652 8054 Denmark 310 1170 1200 211 111 3002 600 551 960 150 140 2401 5403 Estonia 0 25 78 28 0 131 48 432 624 304 192 1600 1731 Finland 71 930 266 125 110 1502 2061 6230 1460 450 900 11101 12603 France 10151 26825 23925 9425 2175 72501 187 884 317 1724 289 3401 75902 Germany 1588 25408 10322 1481 902 39701 805 6601 4347 2498 1850 16101 55802 Greece 212 3392 1378 159 159 5300 4 34 21 12 11 82 5382 Ireland 70 812 364 140 14 1400 18 16 31 4 12 81 1481 Italy 1800 8400 6400 2200 1200 20000 45 275 324 131 127 902 20902 Latvia 0 32 13 2 0 47 28 231 143 78 72 552 599 Lithuania 4 64 26 3 3 100 35 294 182 99 91 701 801 Netherlands 3225 753 172 108 43 4301 1725 375 225 75 100 2500 6801 Poland 240 600 516 840 205 2401 275 2255 1430 1254 286 5500 7901 Portugal 90 417 1688 34 23 2252 0 3 6 24 18 51 2303 Romania 5 115 70 10 0 200 0 31 199 56 16 302 502 Slovakia 0 176 325 34 6 541 4 81 66 16 5 172 713 Slovenia 99 2175 726 0 0 3000 13 264 124 0 0 401 3401 Spain 124 2418 3162 310 186 6200 90 180 450 45 135 900 7100 Sweden 0 3600 3420 581 500 8101 2712 11235 8136 969 1550 24602 32703 United Kingdom 2490 7936 2023 934 2179 15562 390 315 480 135 180 1500 17062 0 EU TOTAL sales 24068 99412 62129 17776 8373 211758 9567 34147 22157 8744 6594 81209 292967 EU TOTAL MW 96 746 777 311 209 2139 38 256 277 153 165 889 3028 EU Average 10.1 10.9 10.3 kW/unit

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The table below gives heat pump sales (2014) and stock (2016) in Norway.

Table 16. Norway 2014 heat pump unit sales and 2016 stock, based on statistics from the Norwegian heat pump association (NOVAP)

Air-Air HP* VRF/ (not in Air-Water Venti- VRV (not Ground kW scope) HP lation HP in scope) source HP <10 (avg. 5) 49 912 2 032 530 1 2 178 10-20 (avg. 15) 1 022 574 7 39 491 21-50 (avg. 35) 38 103 41 103 153 51-100 (avg. 75) 4 37 1 15 106 101-500 (avg. 250 16 43 501-1000 (avg. 750) 1 18 > 1000 (avg. 3000) 2 TOTAL Sales 2014 50 976 2 763 579 158 2 991 Average power (kW) 5.2 10.8 7.4 33.7 20.7 TOTAL Stock 2016 720 000 31 253 7 731 na 31 825

*Cheap electricity prices (0,5 times average EU variable tariffs) and high labour costs (2-2,5 times average EU costs) leads to high share of air-air HP installations na=not available.

The exhaust air-to-water heat pump is a special case. According to BRG data the exhaust air-to-water heat pump was popular in Sweden and Finland in 2004, but in 2014 —while popularity in Sweden decreased— the phenomenon did spread to more EU countries. The solution should not be confounded with a mixed exhaust/outdoor air solution: The heat pump is placed indoors and receives all its air only from the exhaust ventilation system.12 In Task 4 the possible efficiency merits (or deficiencies) of this system will be discussed.

Table 17. EU Heat Pump sales Exhaust Air-Water 2004 and 2014 2004 2014 2004 2014 Austria 260 400 Ireland - 50 Czech Republic - 80 Netherlands - 480 Denmark 100 270 Poland 10 105 Finland 1 600 1 780 Romania - 50 France 300 700 Slovakia 5 70 Germany 500 1 650 Sweden 15 100 11 500 Hungary - 60 United Kingdom 50 1 320

Total 17 925 18 515

Including the exhaust-air heat pump the total heat pumps in the scope of the regulation amounted to 311 482 units in the EU in 2014.

Table 18 gives a comparison of the 2004-2014 of sales of ground/air source heat pumps- to-water. It shows that between 2004 and 2014 the ground source heat pump sales hardly changed, while the air-to-water heat pump sales became almost 10 times larger.

12 http://www.energimyndigheten.se/en/sustainability/households/heating-your-home/heat-pump/air-source- heat-pump/ 13 The original estimate was 6000 units, but EHI pointed out that this was too high because Robur also sells other products (convectors, chillers).

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The largest growth has been in France, from 11 to 76k sales, while over the same period the sales of (ground-source) heat pumps in Sweden even diminished, from 48 to 33k.

Table 18. Comparison 2004-2014 of sales of ground/air source heat pumps-to-water (source BRG) Ground Source Outside Air-Water TOTAL year 2004 2014 2004 2014 2004 2014 AT 3.4 4.7 0.38 10.3 3.78 15 BE 0.36 1.7 0.04 7.7 0.4 9.4 BU 0.01 0.15 0.01 0.36 0.02 0.51 CR - 0.15 - 0.75 0.9 CZ 0.9 1.65 0.45 6.4 1.35 8.05 DK 0.4 2.4 0.06 3 0.46 5.4 EE 0.57 1.6 0.01 0.13 0.58 1.73 FI 2.9 11.1 - 1.5 2.9 12.6 FR 11.28 3.4 9.8 72.5 21.08 75.9 DE 9.7 16.1 3.05 39.7 12.75 55.8 GR 0.01 0.08 0.08 5.3 0.09 5.38 HU 0.1 0.29 - 0.61 0.1 0.9 EI 1.35 0.08 0.1 1.4 1.45 1.48 IT 0.45 0.9 2.0 20.0 2.45 20.9 LV 0.4 0.55 0.01 0.05 0.41 0.6 LT 0.32 0.7 - 0.1 0.32 0.8 NL 1.5 2.5 0.18 4.3 1.68 6.8 PL 1 5.5 - 2.4 1 7.9 PT - 0.05 - 2.25 - 2.3 RO 0.01 0.3 0.01 0.2 0.02 0.5 SK 0.07 0.17 0.04 0.54 0.11 0.71 SI 0.31 0.4 0.07 3 0.38 3.4 ES 0.1 0.9 0.7 6.2 0.8 7.1 SE 41.4 24.6 6.5 8.1 47.9 32.7 UK 0.7 1.5 0.1 15.56 0.8 17.06 EU TOTAL 77.2 81.5 23.6 212.4 101 294

BRG does not give data of gas absorption heat pumps (GAHP). Based on revenue data of Robur and an estimated msp of €5000, it is estimated that up to 4000 GAHP-units are sold in the EU in 2014.13

3.4.2 Micro-CHP The boiler regulations include micro-CHP (Combined Heat and Power) installations with an electric output of up to 50 kW. These may be based on e.g. gas motors, Stirling motors, Rankine cycle, fuel cells (Solid Oxide Fuel Cell SOFC or Proton Exchange Membrane PEM) or a micro-turbine.

According to BRG micro-CHP sales in 2014 amounted to 3100 units, split between Belgium 700 units, Germany 2400 units, the Netherlands 50 units and 570 units in the UK. Prices for installations for single houses (1-2 electric) vary between €9000 for a

13 The original estimate was 6000 units, but EHI pointed out that this was too high because Robur also sells other products (convectors, chillers).

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Stirling based Remeha eVita, approx. €15 000 for a Vaillant ecoPower 1.0 and up to €20 000 for a Viessmann/ fuel cell solution.

In Japan some 52% of micro-CHP are fuel cells, 40% are IC engines and 8% are Stirling powered14. In Europe sales of fuel cells are much lower and probably closer to 400 fuel cells (11%) with the rest being some (50+570=) 620 units of Stirling powered micro- CHP (17%) and 2700 (72%) gas IC engine micro-CHP.

3.4.3 Hybrids A ‘hybrid’ has become the common name for a heating installation that combines an electric air source and a gas-fired (condensing) boiler. In reality, as pointed out by EHI, it can be any combination of at least 2 heat generators that work together to produce hydronic space heat. A combination can be made from single elements, and appropriately rated according to Ecodesign metrics, but since a few years there are also manufacturers that bring integrated solutions on the market. The idea is that 90% of the space heating effort will be delivered by the relatively small electric heat pump and that 10% of the space heating and up to 100% of the sanitary water heating, possibly with a small base- load from the heat pump, will be delivered by the gas-fired boiler. The combination might reach an ‘A++’ label rating for space heating and an ‘A’ for water heating, depending on the details of the design. The hybrid is attractive for both gas-boiler installers and consumers, because it gives high efficiency and at the same time incorporates trusted (gas-boiler) technology that will anyway keep the house warm and is quick to replace a broken-down boiler. Hybrids exist with outdoor unit (e.g. Daikin/Intergas), which require an installer certified to install a refrigerant line, or in a fully integrated version (e.g. SIME Murelle Revolution, see Figure 15) that has a factory-sealed refrigerant line and the same dimensions and attachments as a standard gas boiler.

Consumer prices incl. VAT start from €4190 (e.g. 5 kW Daikin/Intergas) and in some countries like the Netherlands a €1900 subsidy applies.

(source: SIME) Figure 15. Integrated hybrid

14 https://www.gminsights.com/industry-analysis/micro-combined-heat-and-power-market

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BRG indicates that in 2014 around 6600 hybrids were sold, split between Italy 3100, France 2150, Germany 920, Spain 300 and the UK 80 units.

3.4.4 Solar thermal Table 19 gives the sales of solar thermal collectors in the EU, per type and per Member State in 2004 and 2014. In 2014 2.8 million m² were sold, of which glazed flat plate panels were 86%, unglazed panels 4% and collectors 10%. In 2004 1.7 million m² were sold (40% less), with roughly the same shares per type. Note that this breakdown per type is not self-evident; in China, by far the largest market for solar thermal worldwide, 90% of the solar thermal panels use vacuum tubes.

Table 19. EU sales of solar thermal collectors in 2014, per type and MS, 2004 and 2014, in 1000 m² (Source: BRG)

Flat plate, Unglazed, Vacuum,

SOLAR combi TOTAL SOLAR

total total total −o/w −o/w combi WH −o/w only −o/w WH −o/w only −o/w combi WH −o/w only yr 2004 2014 2014 2014 2004 2014 2014 2014 2004 2014 2014 2014 2004 2014 AT 180 150 84.8 65.3 8.9 2.3 - 2.3 2.6 2.9 1.7 1.2 192 155 BE 13.8 36.2 4.2 32 1.6 6.5 - 6.5 0.9 8.6 8.6 - 16 51 BU 6 13 1 12 - - - - 0.4 0.4 0 0.4 6 13 CR 4.5 19.4 2.2 17.2 - - - - 0.7 2.7 0.6 2.1 5 22 CZ 8.2 27.2 8.3 18.9 2.7 35 - 35 2 11.2 6.3 4.9 13 73 DK 20 129 124.4 4.6 0.6 0.8 - 0.8 0.5 2 0 2 21 132 EE 0.1 0.3 - 0.3 - - - - 0 0.3 - 0.3 0 1 FI 2 3 1.4 1.6 - - - - 0.3 1 0.6 0.4 2 4 FR 58 148.6 14.9 133.7 3 6.1 - 6.1 2.7 12.6 2.6 10 64 167 DE 675 830 215.8 614.2 40 10 - 10 86 85 22.1 62.9 801 925 GR 215 272 1.1 270.9 - - - - - 0.7 - 0.7 215 273 HU 3 14.5 0.9 13.6 0.3 0.3 - 0.3 0.3 5.1 0.4 4.7 4 20 EI 2.2 14.7 0.4 14.3 0.1 0.1 - 0.1 16 10.6 0.5 10.1 18 25 IT 96 251 40.2 210.8 3.6 6 - 6 16.3 40 8.6 31.4 116 297 LV 0.1 2.7 - 2.7 - - - - 0 0.8 - 0.8 0 4 LT 0.1 2 - 2 - - - - 0.1 0.8 - 0.8 0 3 NL 14 23.3 4.1 19.2 7.6 2.5 - 2.5 - 1.4 0.5 0.9 22 27 PL 26.3 192 30.7 161.3 - - - - 3.7 64.7 7.8 56.9 30 257 PT 15.1 74 5.3 68.7 0.9 1.3 - 1.3 0 0.7 0 0.7 16 76 RO 1 7.2 0.4 6.8 - 0.2 - 0.2 0.7 12.5 1.3 11.3 2 20 SK 4.9 10.4 2.6 7.8 5 15 - 15 0.6 2.6 1.9 0.7 11 28 SI 4.4 3.5 0.8 2.7 - - - - 0.3 1.2 0.3 0.9 5 5 ES 80 157.5 15.8 141.8 8 18.5 - 18.5 6 8.3 2.9 5.4 94 184 SE 17.8 5 4.6 0.4 14 4 - 4 2.4 1.6 1.5 0 34 11 UK 16.8 29.1 1.5 27.6 1.3 4.8 - 4.8 7.5 7 0.5 6.5 26 41 EU 1464 2416 565 1851 98 113 - 113 150 285 69 216 1712 2814

By far the largest market was Germany with 950,000 m² (34% of total) in 2014. This was also the case in 2004. After Germany, there are a number of countries that each take on 5-10% of the solar thermal market: Italy (2.5 times 2004 sales), Greece (27% more than in 2004), Poland (8 times more than in 2004), Spain (double 2004 sales),

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France (2.5 times 2004 sales), Austria (20% lower than in 2004) and Denmark (6 times more than in 2004).

Some 22% (634,000 m²) is used for both space and water heating, presumably mostly in Germany, Austria and Poland. At e.g. 16 m² per installation, this means around 40,000 solar combi installations were sold/installed in 2014.

Around 78% of solar panel surface was used for water heating only (2,180,000 m²). They are only in the scope of the boiler regulation when they have a combi-boiler as back-up. When they have a dedicated water heater as back-up, they are in the scope of the water heater regulations. If they don’t have any fossil fuel fired or electric back-up at all, e.g. for thermosiphon systems used only in summer, they are not in the scope of any Ecodesign or Energy Label regulation. There are no data available, but a preliminary estimate by the authors is given in Figure 16 below (further stakeholder input appreciated).

180 EU Solar Installations 2014 640 Preliminary estimate VHK 72 40

Inner ring 762 x 1000 250 1000 solar installations Outer ring 2820 x 1000 m² solar combi, 80% Central EU(16 m²) solar surface

solar WH 80% Central EU (4 m²), 400 boiler bu

solar WH 80% South EU (2.5 m²), WH bu

1000 solar WH South no back-up (2.5 m²)

(sources: BRG for m², VHK for no. of installations) Figure 16. Estimated split-up of EU solar system sales 2014

According to this estimate, there are 290k solar thermal installations with a total collector surface of 1640k m² in the scope of the boiler regulation and there are 400k solar installations with 1000k m² total collector surface in the scope of the water heater regulations. A total of 72k installations with a collector surface of 180k m² and no heat generator at all are not in the scope of any Ecodesign or Energy Label regulation.

Trend According to statistics of Solar Thermal Europe (formerly ESTIF), the annual sales of solar thermal panels has been declining since 2013 (see Table 20). EHI believes that the decline has started earlier, i.e. since 2008, and now stands at about a third of its 2008

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peak. In the seven major EU markets for which EHI provided aggregated data, the solar thermal collector market decreased by about a quarter between 2014 and 2016.

Table 20. EU sales solar panels 2013-2015 (source: SOLAR HEAT EUROPE) Annual Annual Evolution Evolution of the 2013 2014 2015 2015 of the Total Market Installed Capacity Total Total Flat Vacuum Total Total Total Total Glazed Glazed Glazed Plate Collectors Glazed Glazed Glazed m² m² m² m² m² kW(th)1 % m² kW(th) % Austria 179 180 153 440 134 260 2 320 136 580 95 606 -11% 4 201 321 2 940 925 -0.6% Belgium 59 000 52 000 38 250 6 750 45 000 31 500 -13.5% 538 033 376 623 8.9% Bulgaria 5 600 5 600 5 100 500 5 600 3 920 - 133 900 93 730 - Croatia 20 900 21 527 19 000 2 500 21 500 15 050 -0.1% 188 592 132 014 12.9% Cyprus 20 991 19 467 18 000 600 18 600 13 020 -4.5% 676 834 473 784 -1.7% Czech Rep. 44 531 38 243 22 000 9 000 31 000 21 700 -18.9% 534 617 374 232 5.4% Denmark 117 170 179 186 264 565 0 264 565 185 196 47.6% 1 175 916 823 141 25.5% Estonia* 2 000 2 000 1 000 1 000 2 000 1 400 - 12 520 8 764 - Finland* 4 000 4 000 3 000 1 000 4 000 2 800 - 47 523 33 266 - France3 190 300 150 500 101 450 0 101 450 71 015 -32.6% 2 516 650 1 761 655 4.2% Germany 1 020 000 900 000 729 000 77 000 806 000 564 200 -10.4% 18 300 000 12 810 000 3.5% Greece 227 500 270 600 271 000 600 271 600 190 120 0.4% 4 388 900 3 072 230 2.4% Hungary 18 000 16 000 10 080 5 570 15 650 10 955 -2.2% 269 464 188 625 6.2% Ireland 27 269 24 524 12 720 9 953 22 673 15 871 -7.5% 344 855 241 398 7% Italy 358 000 268 500 201 810 27 520 229 330 160 531 -14.6% 4 174 124 2 921 887 5.3% Latvia* 2 222 2 360 1 580 330 1 910 1 337 -19.1% 10 532 7 372 22.2% Lithuania* 2 200 2 200 800 1 400 2 200 1 540 - 12 600 8 820 - Luxemburg* 6 000 5 486 4 700 750 5 450 3 815 - 55 736 39 015 - Malta* 1 089 1 520 759 172 931 652 -38.8% 53 770 37 639 1.5% Netherlands 38 775 31 411 17 548 3 971 21 519 15 063 -31.5% 569 506 398 654 1.6% Poland 274 100 260 100 225 000 52 000 277 000 193 900 6.5% 2 022 590 1 415 813 15.9% Portugal 57 234 50 967 45 304 830 46 134 32 294 -9.5% 979 952 685 966 3.9% Romania 23 850 18 500 6 800 11 000 17 800 12 460 -3.8% 158 350 110 845 10.7% Slovakia 6 200 5 500 4 500 800 5 300 3 710 -3.6% 154 250 107 975 1.2% Slovenia 10 000 4 500 2 200 600 2 800 1 960 -37.8% 159 100 111 370 -9.8% Spain 228 721 251 249 226 138 11 121 237 259 166 081 -5.6% 3 279 894 2 295 926 7.5% Sweden 8 611 6 673 4 928 1 643 6 571 4 600 -1.5% 335 565 234 896 -0.8% Switzerland 121 974 113 147 65 000 15 000 80 000 56 000 -29.3% 1 401 492 981 044 4.3% UK 43 133 36 552 20 322 3 967 24 289 17 002 -33.5% 792 251 554 576 2.2% EU28 + 3 118 550 2 895 752 - - 2704711 1893298 -6.6% 47 488 836 33 242 185 4.4% Switzerland

In 2013, with around 3 million m² solar panels installed, SOLAR HEAT EUROPE estimated the turnover of manufacturer and installation at €2.3 bn 15. This gives a specific price of 754 EUR/m² (excl. VAT).

For comparison, in the same year China realised 63.6 million m² at a turnover of RMB 100 billion (EUR 14.4 bn). Even when using the more expensive vacuum tubes for 91%

15 http://www.solarthermalworld.org/content/estimated-global-solar-thermal...

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of the collectors the average price is no more than 226 EUR/m² according to German agency Solrico.

Typically, a 4 m² installation would save 40% on water heating and 3% on space heating in a country like Belgium (average climate, 4-person family). Monetary saving is 150 euro and thus the simple payback period is 25-30 years. This long payback period explains why sales of solar thermal installations are declining without subsidies.

3.4.5 Passive Flue Heat Recovery Device (PFHRD) According to the Energy Label regulation (EU) No. 811/2013, the appropriateness of including passive flue heat recovery devices in the scope of this Regulation shall be reviewed. At the moment, also because no test standard was in place16, the PFHRD is mentioned but cannot contribute to the seasonal boiler efficiency in the current calculation method when it is used as an ‘add-on’.

A PFHRD is a tertiary heat exchanger (& store), fed by cold sanitary water (<10°C), that extracts extra latent heat from the flue gases of a gas-boiler. It follows the same principle as the secondary heat exchanger of a condensing boiler, where the flue gases condense against a heat exchanger that is fed by the return water of the space heating system (30-50°C for normal radiator systems) and the condensation heat contributes to the heating effort of the boiler. Only with a PFHRD, the temperature of the tertiary heat exchanger is considerably colder and can extract more heat even after the flue gases have passed the secondary heat exchanger.

The PFHRD can have no significant heat storage facility. In that case it is only (or mostly) useful when the boiler is producing sanitary hot water (SHW). The PFHRD can also have a 10-15 litre storage that allows to extract also useful heat from flue gases when the boiler is working in space heating mode, i.e. between draw-offs. It can be a separate add-on device, mounted in the flue gas duct and in that case it usually has storage, or it can be integrated in the boiler. In the latter case it would automatically contribute to the boiler water heating efficiency in the Ecodesign-calculation. For ‘add-on’ solutions there is currently no way to include an efficiency contribution

In a 2016 report for the British government, Delta and Enertek have evaluated the PFHRD for possible inclusion in British energy policy.17 They found that a PFHRD with storage can save 31% on hot water energy consumption of a gas condensing combi- boiler. This is in the same range as the contribution of a small solar thermal installation.18 Without the storage facility, the PFHRD saves 9%.

Delta and Enertek mention an average PFHRD price of £ 550 (~€620) for the consumer (incl. VAT), but also that there are ample possibilities to significantly lower that price at mass production to less than half. They believe a price of £200 (€225) per unit is feasible for units with storage and £90 (€100) for units without storage. This would bring paybacks down to 5 years for PFHRD with storage and 8 years for PFHRD without storage.

16 Currently being elaborated by TC109-WG4. 17 Delta Energy & Environment Ltd. & Enertek International Ltd., Evidence Gathering: Passive Flue Gas Heat Recovery Technologies, report prepared for the UK Department for Business, Energy and Industrial Strategy (BEIS), 2016. 18 EHI thinks the contribution of the PFHRD looks overestimated because tests show that the savings from the PFHRD vary depending on the type of boiler, type of heating system and how these work together.

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Delta and Enertech estimated that in 2015 around 14,000 PFHRDs were sold. They foresee that major increases in future sales of PFGHR will likely be dependent on regulatory forces rather than any changes in customer behaviour or technology advances. Currently, as discussed previously, SAP compliance is the major driver for PFGHR (Passive Flue Gas Heat Recovery) and will likely remain so for the foreseeable future. They present alternative scenarios whereby the PFHRD sales might rise to levels of 50,000-100,000 units per year (and more).

(Source: Delta and Enertek for UK Dept. of BEIS) Figure 17. Future PFGRH sales scenarios

It appears that some vendors in the UK market have listened to these messages. At the moment, in October 2017, an add-on PFHRD-solution for the UK market is offered by leading boiler manufacturers (e.g. Bosch19 and Vaillant20) and independent suppliers (e.g. ZENEX ‘GasSaver’). The Bosch-Worcester ‘Greenstar Xtra’ —with storage— was launched in 2016 and is currently offered on-line at a price of £ 230 (incl VAT).21 Vaillant is keeping official prices for its similar ‘recoFlue’ device still high (£ 689) but vendors on ebay are selling new recoFlue products already at prices similar to those of Bosch. Note that to these material prices around £ 50 has to be added for installation.

Apart from the UK, currently probably the largest market for the PFHRD, the device is also marketed in the Netherlands. The Ariston subsidiary ATAG uses its Economiser in its i-series boilers. Intergas uses an integrated PFHRD in its Xtreme boiler models and boosts a hot water efficiency up to 115%22 . Vaillant has announced to use a PFHRD for the ecoTech Exclusive boilers. Burgerhout's EcoFlo 'add-on' solution, e.g. certified for use with the Bosch-Nefit ProLine boilers, has been on the market since 2014.

In Germany and other Member States the PFHRD has not been visually marketed as such. Possibly the boiler manufacturers have not clearly decided yet whether to promote

19 https://www.worcester-bosch.co.uk/professional/products/accessories/flue-gas-heat-recovery-unit 20 www.vaillant.co.uk/installers/products/recoflue-2880.html 21 http://www.discountedheating.co.uk/worcester-greenstar-xtra-flue-gas-heat-recovery-unit (24% discount on list price of £330) 22 http://intergasvsk2016.nl/#xtreme. The value of 115% on GCV can be used in the EPN (Dutch EPB calculation). Intergas uses in its advertising also a value of 127.6%, which relates to NCV (Net Calorific Value). The advertised Energy Label rating is ‘A’.

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the PFHRD as an ‘add-on’ or to market the technology integrated in combi-boilers with increased water heating efficiency.

Another barrier concerns the legal/liability aspects regarding the ‘add-on’ (or ‘bolt-on’) solution: The PFHRD will cause some pressure drop (18-20 Pa) in the flue gas duct. Generally speaking, for a gas-boiler with a premix-fan burner —like condensing boilers— this does not pose a technical/safety problem, but at the moment boiler manufacturers do make a point of the premix boiler being ‘certified’ for adding a specific PFHRD to a specific boiler-model. In principle, this problem seems solvable e.g. by incorporating a simple flue gas (pressure) test with the periodical boiler-inspection to see whether it is fit for an ‘add-on’ PFHRD with a certain maximum pressure drop. But of course, if the PFHRD were to be used without reservation as an ‘add-on’ to any existing boiler, it might pose a technical/safety risks e.g. with natural draught boilers.

3.4.6 Heating controls The Ecodesign and Energy Label regulations for boilers assign a contribution to the heating controls, varying between 1 and 5% depending on efficacy and level of sophistication of the control. The range is from a simple mechanical on/off thermostat up to solutions with weather compensator (outdoor sensor setting the boiler water heating curve), clock-programme, modulation control of the boiler and possibly multi-zone control.

No statistics on the sales or use of boiler heating controls could be identified but there is a clear trend that every boiler manufacturer prescribes his very own model of thermostat to go with a new boiler, at unit prices ranging from €80-100 to €200 for a manually operated thermostat and up to €400 or more for wireless, internet-enabled, etc. versions. Assuming conservatively a manufacturer selling price of €50-70 for a thermostat sold with each of the 6.9 million boilers this means a contribution of €0.35- 0.48 bn to industry turnover for products in the scope. Taking into account also the 0.1 million solar controls, this figure can be rounded to €0.5 bn.

Most heat pumps are equipped with heating control and cannot operate without it.

3.4.7 Mounting kits and flue gas sets If the new boiler is an exact one-on-one replacement or at least fits the standardised connection frame, it will hardly be needed, but in principle for every boiler there is a ‘kit’ or a collection of components that may include

. mounting frame (to wall or floor), . safety valves (for central heating inlet/outlet, cold and warm sanitary water in case of a combi, gas valve, possibly an external CH filling valve if not incorporated in the combi-boiler), . pipework near the boiler, . a ‘certified’ flue gas/air intake set (especially when switching boiler type, e.g. non- condensing to condensing) possibly extended with a new inner-liner and/or a more extensive set of components for chimney renovation, . an external expansion vessel (usually but not always incorporated inside a modern boiler), . CO-safety alarm (usually not needed with a room-sealed system), . a condensate pump (if the boiler condensate outlet is below sewer level, e.g. in a basement; rare),

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. a neutralisation set (with salt) for treatment of the condensate (hardly ever needed, depending on local rules), . extra circulator for separate heating circuits, etc.

For larger boilers more and more cascades (multiple boilers working together) are used, which means the addition of special collective provisions for flue gas/air intake ducts, mounting frames, piping, etc. but also a cascade controller.

For boilers with an external cylinder, the mounting kit may include a 3-way valve, no- return valve, sensors and in some cases a separate circulator pump (for multi-valent cylinders). The external cylinder itself (not in scope here, but part of the water heater regulation) is also part of the package.

For a solar thermal panel with a back-up combi, the ‘kit’ will include a solar circulator, a solar controller, safety/drainage/filling valves and a multi-valent cylinder.

In total, it is assumed that the ‘kits’ will add some 30-35% to the boiler costs. In msp this means €220 per boiler and in consumer prices it will be around €400. This is an average, fluctuating between almost no cost for a simple one-on-one replacement and many thousands for a commercial boiler cascade. In 2014, at 7.25 million boilers sold, this means a contribution to industry turnover of €1.6 bn. In terms of consumer expenditure, the ‘kits’ will add almost €3 bn.

3.4.8 Spare parts Recent sales statistics of boiler spare parts are not available. Older and anecdotal information shows that the costliest spare parts, and also most frequently replaced, are the boiler-CPU, pressure switch for combustion airflow, combustion-fan, gas valve block and circulator pump. Small parts like seals, sensors, etc. are often replaced, but charged extra, as part of periodical boiler maintenance. Heat exchanger and burner are seldom replaced.

For some components such as circulators, the Ecodesign preparatory studies might give a hint of the sales numbers involved in boiler spare parts. According to the draft version of the review study on circulators (ongoing 2017), there were almost 90 million integrated circulators installed in boiler stock and the sales of these integrated circulators amounted to 9.3 million in 2015. Assuming that in that year 6.2 million new boilers are sold this means that the remainder of little more than 3 million circulators are replacement sales. In other words, 3.3% of the boiler owners (1 in 30) decided to buy a new circulator as a spare part.

Spare parts are much more expensive than the part included in mass-produced boiler thus a circulator-replacement may cost the boiler-owner as much as €300 on average in material costs. It is assumed that similar statistics apply to the boiler-CPU (€250), combustion-fan-unit (€300), the gas valve block (€150), differential pressure switch for the combustion airflow (€150) and the built-in expansion vessel (€150).

From the Ecodesign study on fans it is known that also for heat pump or RAC cooling fans, 2% may be sold as spare parts over a much shorter lifetime.

Assuming 3 million spare part sales for these 6 items, their acquisition cost increases the EU consumer expenditure by as much as €4 bn, excluding installation. Assuming on average 100 euro installation costs for each of these larger 6 categories of repairs, the man-hour costs will amount to €1.8 bn. In total, counting also the material costs of

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smaller components replaced during maintenance, the consumer costs will amount to 6-7 bn euro annually in repairs. This is on top of the maintenance (labour) costs of around €120/year per unit for 120 million units installed in 2014, resulting in €15 bn/year.

The trade margins for spare parts are high. Assuming a factor 3.5 to 4 between msp and consumer price (incl. VAT), the sales of spare parts will contribute around €1.2-1.5 bn to the boiler industry turnover.

3.5 Average age and product life The average product life is an important parameter in scenario calculations. According to the 2004 market data for individual wet heating boilers, with a stock of 100 million boilers and replacement sales of 4.3 million units, a product life of 23 years was calculated. Specific country research showed that there were huge differences between Member States, ranging from an average boiler life of 8.5 years for the UK up to 33 years for Germany.

At the same time, a considerable difference between fuel types was assessed, with an average age of 12 to 14 years for gas-fired boilers and 15 to 25 years for oil-fired boilers, meaning a product life of 26 years for gas-fired boilers and over 40 years for oil-fired boilers in countries like Germany and Belgium. It was then believed that with the decrease of oil-boilers in the stock a shorter product life of 17-18 years could be more realistic for future projections23, as was done in the boiler impact assessment study accompanying current legislation.

But the financial crisis changed all that, because boiler sales slumped and gas-boilers apparently ‘lived longer’. At the moment, with a 120 million individual boiler stock and 4.9 million replacement sales a product life of 24 years is still the average and thus the projections of the boiler impact assessment regarding the boiler replacement rate, and the improvement rate for energy efficiency that goes with it, were too optimistic.

Due to national policy actions to replace boilers older than 30 years, like in Germany and Denmark, the future average product life might become lower24. Also, the labelling of >15 year boilers is expected to help make the boiler stock younger.

23 EHI still believes that 17-18 year product life is a realistic average for gas and oil boilers but claims a sensitivity analysis is needed for other types. 24 But apparently there are legal problems in the implementation (DE. ‘Bestandsschutz’)

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Table 21 below shows the number of >15-year-old boilers that the German government expects to be labelled in the coming years. The total of 7.9 million boilers means that 38% of the current German boiler stock will have an energy label in 2023. The table also shows that probably around 0.7 million boilers were installed before 1987 (older than 30 years) and will need to be replaced.

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Table 21. Number of >15 old boilers expected to be labelled (Source: German government, draft legislation 2015)

Year of installation (boilers in ‘000 units) To be labelled Year <1983 <1991 <1993 <1994 <1995 <1997 <2001 <2005 <2008

2017 217 342 538 269 - - - - - 1366 2018 217 342 376 269 - - - - - 1204 2019 114 179 376 188 - - - - - 857 2020 - - 13 65 132 377 397 397 298 1679 2021 - - - - 132 377 278 397 298 1482 2022 - - - - 69 198 278 278 298 1121 2023 ------10 97 104 211 total 548 863 1303 791 333 952 963 1169 998 7920

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4 PRICES AND RATES

4.1 Introduction Ingredients of the LCC calculation are:

. Product price; . Installation costs; . Energy (gas, oil & electricity) prices; . Service, maintenance & repair costs; . Prices of other consumables; . Disposal tariffs; . Discount rate (interest minus inflation)

4.2 Boiler prices

4.2.1 Gas-fired boilers Compared to 2004, the reference year for the first preparatory study, prices of boiler installations have changed substantially in 2016. In 2004 the base product with the lowest price was a non-condensing gas-fired, wall-hung solo ('heat only') boiler with a list price of 1178 Euro and a street price of 1014 Euro, all including VAT.

In 2017 the low-end base product is still gas-fired and wall-hung, but condensing and a combi. In 2004, the average street price of such a product was estimated at €1700 (incl. VAT). Today, in most of Europe, the low-end version of this product can be bought at a price considerably below 1000 Euro (incl. VAT)25. High-end prices at similar heating capacity can be twice as high.

As mentioned in Chapter 3, the gas-fired wall-hung condensing combi constitutes 70% of the gas-boiler market and for this model there is fierce price competition. In fact, in 2016 the price differentiation by functional features that was employed in the 2007 preparatory study hardly exists any more: There are no budget-versions of the non- condensing gas (combi) boiler or the solo (‘space heating only’)26 product.

With many manufacturers, the solo (‘heating only’) product is now a mid- to high-end product because it is assumed that people that buy the solo product will hook it up to an external cylinder to obtain a higher warm water comfort. Hence they are assumed be a more up-market public and prepared to pay more for a better product.

The buyers of non-condensing boilers, i.e. the B1 boilers that are exempted from the Ecodesign, typically have a problem, mainly with the condensing flue gases, to install a condensing boiler. They are forced to pick this solution and of course, due to the lower sales volume, the production and logistics costs of the non-condensing products are

25 In Italy on-line prices go as low as €600. 26 ‘Solo’ or ‘space heating only’ means that it is not a combi-boiler

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higher. Hence, both the solo condensing boilers and the non-condensing combis are easily 30% more expensive than a budget-version of the condensing combi-boiler.27

With the dominant influence of mass production (or not) and price competition on the product price, the traditional approach to assess the impact of an Ecodesign measure by looking at detailed production costs of single features does not correspond with reality for the boiler market.

Another change, compared to 2004, is the increased transparency and the fierce price competition that has come with the internet. Almost all consumer products and many commercial boilers can be bought online, often at prices that are 35-45% below the official list price. And these official list prices of manufacturers, 10 years ago hard to find and only accessible to installers, are now also available on-line for all consumers. The increase of e-commerce certainly has an impact on the traditional wholesalers in terms of margins and exclusivity (see Chapter 5).

Nonetheless, for lack of a better alternative, the study team still takes the price built-up of the 2007 preparatory study, leading to a mark-up of a factor 1.87 on the manufacturer selling price, as a guideline (see Figure 18 below).

Consumer price, value chain (% of msp) % 200 consumer price =187% of msp 180 31 160 Overhead Labour 140 26 OEM 120 Margin 30 msp=100 Raw material 100

35 80 156 130 60 15 100 7.5 40 10 50 20 17.5 2.2 3 15 9.8 0

(Source: VHK, 2007 preparatory study) Figure 18. Boiler consumer price, built-up

With the estimate of an msp of €650 for the average gas-fired boiler in Chapter 2, the consumer street price thus becomes €1215/unit (including VAT). This is assumed for all versions, i.e. condensing or non-condensing, combi or solo, without hot water storage.

27 This means that —unless there is a considerable cost saving in chimney and installation work— it is economically less attractive to buy a non-condensing boiler instead of a condensing boiler.

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For units with a hot water storage cylinder (integrated or external) on average a double price is calculated (€2430/unit).

The reference capacity is the EU average of 27 kW mentioned in the previous chapter.

4.2.2 Heat pump boilers and hybrids Over the last 10 years, the market has become much more diverse in terms of technologies and energy resources. Whereas in 2004 the market share of heat pumps boilers (i.e. for water-based heating systems) was still small and dominated by ground- source solutions, air-source heat pump boilers are now experiencing a remarkable growth in recent years. Heat pumps now take second place in market share after gas-fired boilers. The average on-line price of a 10 kW heat pump is now in the range of €4000 (incl. VAT). For ground-source heat pump boilers of the same capacity prices are in the range of €6000 to 8000. These are all bare prices without installation, which can vary between €3000 for an air-source heat pump and €10,000 or more for a ground-source solution.

Especially for the replacement market, the 'hybrid' combination of an air-to-water heat pump and a gas-fired combi-boiler —a phenomenon that is accommodated by the new ecodesign and energy label rating system— is very promising. Price levels are comparable to the single air-to-water heat pumps —around 4000-4500 euro for a bare system. For hybrids with an outdoor unit the installation costs will be similar as those for an air-to-water heat pump, i.e. around €3000. For hybrids with a gas boiler and heat pump circuit both integrated inside the dimensions of a normal gas boiler the installation costs could be considerably lower. Installation of a hybrid is flexible and could take place in two stages: first a quick install to hook up the gas-boiler part to provide instant space heating —e.g. after an unexpected boiler breakdown in winter—and then working on the heat pump part when outdoor circumstances and planning permit. Hybrids with a factory- sealed circuit can be installed by normal gas-boiler installers without having to be certified to connect refrigeration lines.

A gas absorption heat pump, air-to-water, is offered at on-line prices from €8300 upwards.

4.2.3 Other technologies But there are also technologies that are not faring so well. The trend of a decreasing market share for oil-fired boilers continued, although in the last 5 years it seems to have reached a low, yet stable level mainly for the condensing version. The average consumer price is estimated at €5000/unit28. This is excluding auxiliary components such as the oil storage tank, flue gas system and other costs.

The solar thermal assisted space- and heating market appears to have suffered, despite the fact that the so-called installer label accommodated the ex-post addition to the heating system. One explanation is that in many countries the governmental financial incentives were reduced or abolished.

The market for micro-CHP has difficulties in taking off. Several products are now technically mature, although the fuel cell is still struggling, but the market seems very cautious in taking on Stirling or gas motor-based systems. One barrier could be the price,

28 Based upon "Marktübersicht Öl-Heizkessel 2016" by IWO Österreich.

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which is still somewhere between €9 000 (Remeha Stirling combi) and €15-20 000 Euro (e.g. Vaillant and Dachs gas motors) for a combustion motor-based solution for a single home. Fuel cell-based solutions, e.g. from Viessmann with Panasonic PEM cell, cost around €20- 30 000. No sales data per type are available. Also considering local subsidies a provisional price of €10 000 for micro-CHP is assumed.

For a solar complete installation, including external cylinder, solar controller and –pump, it is estimated that EU prices are around €1100-1200/m² (incl. VAT), of which at least one third will relate to installation work. For solar installations with a combi back-up, around 6 m²/installation is assumed (tapping pattern XL) at €675029 (without the price of the back-up). The manufacturer selling price of the components, including bivalent cylinder, is estimated at around €2250. The industry turnover of 0.1 million solar thermal installations sold in 2014 is thus conservatively estimated at €0.225 bn.

Sales of electric resistance boilers have remained constant over the last decade. A 9 kW system boiler (heating only) will cost from €1100 upwards and an electric combi-boiler can be found on-line starting from €2000 on UK websites. A price of €1500/unit is assumed.

Although no statistics are available, better heating controls are on offer, not just in energy saving features (e.g. outdoor temperature control) but also in more wireless and remote connections through domotica and/or smartphone. Heating controls and other auxiliary (security) features can easily add some 30-40% to the product price and may help to boost the manufacturer's turnover and profit margin in these difficult times, but these high costs controls are a niche market according to EHI. This has been discussed in the previous chapter.

4.2.4 Price differentiation per country A tour on the internet of on-line offers in various countries shows that the price differences are still significant despite the equalising influence of e-commerce, but also that some countries have suffered more than others from the construction crisis, the larger price competition in a smaller market and the outsourcing of components in Asia. Particularly in Italy —the largest producer of gas boilers— the gas-fired combi prices are now the lowest in the EU at a level of e.g. 680 Euro for a budget-version of a gas-fired condensing combi. In countries like Germany and France the low-end prices appear to be substantially higher. The boilers in the UK and the Netherlands are slightly more expensive than in Italy, at price levels that are some 20% higher for the budget products. It is remarkable that in Poland, and possibly in one or two other Eastern- European countries, the boiler prices are no longer the lowest in the EU but start approaching the average EU level. Having said that, prices in the latest new EU Members like Bulgaria, Romania and Croatia can still be expected to be at the lowest end.

In the 2007 preparatory study the following ‘country multipliers’ for the boiler street price were given:

. High (SE, DK, AT): 2.6 – 2.2 - 2 . Higher than avg. (DE, FI): 1.65 – 1.55 . Average (FR, UK/BE/SL, NL/IT): 1.1 – 0.9 – 0.85

29 E.g. see http://zonneboilertips.be/prijs-zonneboiler/ (prices in Belgium)

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. Lower than avg. (IE/ES/GR/SK/ES/LT/LV, PT): 0.7 – 0.65 . Low (PL/CZ/HU): 0.5 Considering the developments described above, the estimate for 2017 is slightly different:

. High (SE/NO, DK, AT): 2.5 – 2.1 – 1.9 . Higher than avg. (DE, FI, FR): 1.6 – 1.5 – 1.3 . Average (UK/IE/BE/NL): 1 . Lower than avg. (IT/ES/GR/ES/PT/SK/LT/LV/PL/CZ/HU): 0.75 . Low (BG/RO/CR): 0.6

4.2.5 Summary Based on the above, Table 22 gives an estimate of the current average boiler price in the EU for 2014-2017.

Table 22. Average EU Boiler (street) price incl. VAT, excl. installation and kit, EU, 2014-2017 sales (street) Consumer msp industry

2014 price expense (price/1.87) turnover 000 EUR/unit bn EUR EUR/unit bn EUR units gas, combi/solo 27 kW average 4220 1215 4.79 650 2.56 gas, external cylinder 27 kW avg. 1044 2000 3.16 1070 1.69 air-source heat pump boiler 10 kW 212 4000 0.85 2139 0.45 ground-source heat pump 10 kW 81 7000 0.57 3743 0.30 oil-fired (80% with ext. cylinder) 230 6000 1.15 2674 0.61 solar thermal assistance (without boiler) 6m² 100 6700 0.67 3583 0.36 electric resistance boiler 56 1500 0.08 802 0.04 gas absorption heat pump boiler 18 kW 6 8300 0.05 4439 0.03 hybrid 5-6 kW (HP) 27 kW (gas boiler) 7 4500 0.03 2406 0.02

micro-CHP 1 kWel+1-3 kWth; 27 kWth back-up 3 10000 0.03 5348 0.02

total/ weighted average 5959 1825 11.4 976 6.1

compare average street price 2004* EUR/unit difference

nominal 2004 price 1500 -22%

Inflation corrected 2004 price (in 2014 euro) 1845 1%

*= relates only to fossil fuel fired boilers (source: 2007 prep. study)

Note that this estimate does not include financial incentives from national or local governments. As discussed in Task 1 and is also obvious from a tour of on-line sellers, there are still financial incentives for more efficient solutions like heat pumps, hybrids, micro-CHP, etc.. For instance, in Italy 65% of the cost of new energy saving boiler systems, from the condensing boiler and upwards, is tax deductible. In France the percentage is 35% for heat pumps. In the Netherlands there is a €1900 subsidy for e.g. certain hybrids. In Germany and the Netherlands there is financial support for consumers installing micro-CHP solutions. See Task 1 for a more complete overview.

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The price estimate also does not consider the new boiler rental solutions that are on offer. In the Netherlands there are several energy suppliers and others that are offering a condensing combi boiler solution for a rent of 25 Euro (and upwards) per month, including VAT, installation and service contract.

4.3 Installation costs 2007 preparatory study The installation cost of boiler systems depends not only on the labour costs but very much on the situation at hand. In the 2007 preparatory study the installation costs of gas-boilers were linked to the boiler price as follows:

Installation cost multipliers:

. Replacement (excl. Chimney renew): boiler street price * 0.6 . New/Replacement incl. chimney renew attic: boiler street price * 0.9 . New/Replacement chimney inner liner: boiler street price * 1.2

At price-levels 10 years ago this means that the cost of a simple replacement of a non- condensing gas boiler was €600, of a condensing gas combi €1000. If the gas-boiler is placed directly under the roof (attic, utility room; common in NL and UK), the costs go up to €900 or €1500 when replacing a non-condensing with a condensing boiler. The extra costs go to the new flue gas set and taking care of condensate drainage of the boiler.

It is important to keep in mind that, especially for the gas condensing combi the nominal boiler prices have become 30% lower and real prices –inflation corrected—even 50% lower. This means that the above multipliers could be much higher. On the other hand, the installation-technology has also evolved.

If the boiler is placed in the basement and the flue gas goes through a chimney that ends on the roof, the chimney will need a new inner liner and sometimes also a separate condensate drain. In most countries (UK, NL, IT, etc.) this is a matter of inserting a flexible plastic inner liner-pipe down the existing chimney up to the boiler flue duct and realising the air-intake laterally. An extra cost of €300-€400 should be more than enough to cover that and the country multiplier of 1.2 (and extra €600 or €1000) seems too much. In other countries with national or local legacy chimney legislation the chimney needs to be rigid and preferably in stainless steel not in the existing chimney. In that case, the costs might be twice as high as the extra €600 or €1000. The preparatory study gives more details on chimney problems.

Check against 2017 The country multipliers and prices were checked against on-line offers for a simple one- on-one replacement in a few EU Member States. Lowest offers were found in the Netherlands, where various vendors offer budget combi-boilers for all-in prices, including VAT and installation, for as little as €1100 with a boiler that can be found on other websites at €800. This means installation costs of as little as €300. However, it is not known how much such a budget-offer costs if there is only the slightest deviation from a simple replacement. More ‘neutral’ Dutch websites reckon that a boiler replacement costs between €500 and €900.

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In the UK the estimates are slightly higher, at around €1000, - per standard replacement of a regular boiler on the same location. Costs go up when the location has to change, the boiler is not a regular boiler but a combi boiler, or if an old installation of a regular boiler with an external cylinder also must be removed. Table 23 below summarizes the indicative offer from the website of a British installer-group, merely as an illustration and not necessarily representative.

Table 23. UK Boiler & installation costs (incl. VAT) (Source: The Heating Hub, 2017) Boiler Labour and Total Installation of a new boiler * Time cost** materials cost 1) Replacing an existing regular ('heat only') € 961 € 1 017 € 1 978 1 day boiler with a new boiler, in the same location 2) Replacing an existing regular ('heat only') € 961 € 1 356 € 2 317 1.5 days boiler with a new boiler, in a new location 3) Replacing an existing combi boiler with a € 961 € 1 294 € 2 254 1 day new boiler, in the same location 4) Replacing an existing combi boiler with a € 961 € 1 921 € 2 882 1.5 days new boiler, in a new location 5) Replacing an existing regular boiler and hot € 961 € 2 317 € 3 277 2.5 day water tank with a new combi boiler**

*=Possible additional costs not taken into account: the gas pipe is undersized and needs to be re-run; the system requires a condensate pipe for the first time; the system needs to be sealed (i.e. there are currently expansion tanks in the loft); there are some building works, for example to brick up a large existing flue hole

**= Mid-range boiler, efficiency 94% (on GCV), warranty 7-8 years, expected life >10 year. Other boilers specified are budget boilers (638 Euro, 89% efficiency, 2 years warranty, 7 years life), low- range boilers (740 Euro, 89% efficiency, 5-7 years warranty, 7-10 years life), high-end boilers (1119 Euro, 94% efficiency, 8-10 years warranty, >10 years life)

***=In this scenario there are a lot of additional works to remove the hot water cylinder and re-direct the hot water pipes to the new combi boiler location. Source: https://www.theheatinghub.co.uk/guide-to-boiler-installation-costs; conversion 1 GBP=1.13 Euro

The British consumer association Which? investigated boiler installation costs. They found very large differences, in particularly that energy companies were charging one-third more than independent installers. Together with the Association of Plumbing and Heating Contractors (APHC) they gave the estimates mentioned in the Table 24 below.

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Table 24. Estimated boiler installation costs in UK (Source: Which? with the Association of Plumbing and Heating Contractors APHC)* Installation work Expected costs (excl. boiler) One-on-one replacement of a condensing combi £540 to £660 (€610-€745) Replacement of a non-condensing by a condensing £640 to £770 plus £200-300 for moving pipes. Very boiler in the same position old systems may require a mechanical flush before installation at a cost of around £510. Installing a new gas condensing boiler in a different £1140 to £1440 plus a chemical flush of the system at location and upgrading your heating system by adding around 200 pounds. radiator valves and changing the controls. Trading in an open gas heat-only conventional boiler £1440 for a basic job. You may need additional pipe with cylinder for a room-sealed condensing combi boiler work (around £200 to £300) and a chemical (about £200) or mechanical flush (around £510) of your heating system. *See also: https://www.which.co.uk/reviews/boilers/article/new-boiler-what-you-need-to-know-before-you- buy-a-new-boiler/the-cost-of-installing-a-boiler - Which? Exchange rate October 2017: 1 £ =€1.13

Belgian installers30 mention costs of €700 to €1200 for installing a gas-fired condensing boiler and installing an oil-fired boiler would cost between €1000 and €2000.

German installers mention costs for chimney renovation between €900 and €1500 when switching to a condensing boiler.31

All in all, the current installation prices for gas-boilers, at least in absolute numbers do not seem to have changed substantially since 2007. Only the multipliers need to be adjusted for the fact that real (=inflation corrected) gas boiler prices actually dropped by some 20%. Thus, the following multipliers are proposed:

. Replacement (excl. chimney renewal): boiler street price * 0.7 . New/Replacement incl. chimney renewal attic: boiler street price * 1 . New/Replacement chimney inner liner: boiler street price * 1.3

What did change is that 90% of all boilers need to be condensing boilers. In 2007 this was already the practice in the Netherlands and the UK and thus in these countries may be the only ones where a boiler replacement does not usually mean a chimney renovation. But these countries represent only 37% of boiler replacement sales. Around 10% of replacement sales concern non-condensing boilers where there are also no chimney costs. In 53% of cases the chimney (multiplier 1.2) or at least the flue gas set (multiplier 0.9) needs to be changed and a condensate drain needs to be Replacement sales are now 78% of the total sales. The other 22% of sales goes to new housing, 1st time users and (new/renovated) non-housing where anyway the chimney/flue gas will be part of the acquisition and installation costs.

Figure 19 below gives the split-up. The weighted average is 1, meaning that on average the installation costs will be equal to the boiler cost, so on average €1825 /unit. In the 2007 preparatory study the nominal installation cost was €1140/unit; in euros of 2017 this comes down to €1400/unit, which means that the real (inflation-corrected)

30 https://www.verwarmingsketel-weetjes.be/cv-ketels/cv-ketel-vervangen/ 31 https://www.energieheld.de/heizung/gasheizung/kosten#komponenten-kosten

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installation costs have increased 30% over the last 10 years, due to the higher share of condensing boilers and heat pump boilers.

Installation cost multipliers

22% no flue work (0.7) 39% simple flue work (1) complex flue work (1.3) new flue work (1.3)

20% weighted average 1.0 19%

Figure 19. Installation cost multipliers

Figure 19 relates to installation costs of most boilers. They include labour and material costs, whereby the material costs relate to the standard kit of installation materials plus flue gas set/chimney materials and condensate drains32 where needed. Overall, the material costs are estimated at one third of installation costs.

The material costs for external cylinders and solar thermal panels, both including pipework, controls and valves as needed, are already included in the boiler price in Table 22 in the previous paragraph.

However, several items are not yet included:

In principle, a new thermostat is usually not needed for a boiler replacement. Most boilers can function with an existing manual on-off thermostat. However, in practice most replacement sales and all new installations will use an up-to-date thermostat. This is highly recommended by the boiler industry and rewarded in the EU Energy Label regulation with a contribution to the seasonal efficiency of up to 5%. In the previous chapter it is assumed that these thermostats, also taking into account outdoor sensors additional controls, will add €0.5 bn to the industry turnover. Consumer expenditure, using a factor 1.87, will thus be in the range of €0.94 bn. Per boiler (ca. 6 million) the consumer cost of thermostat/sensor/etc. amounts to €155 per boiler.

For all boilers installed in new housing, 1st time installations and non-housing (total 22% of sales) an electrician is needed to install a dedicated socket and . The extra costs are between €50 (gas-fired boiler, new house) and €200 (existing house, electric boiler with extra fuse, etc.), say around €100 on average33. If this applies to ca. 22% of sales, it will raise the average EU installation costs of per boiler by €22. For a micro-CHP installation the extra costs e.g. of supplying electricity back to the grid are estimated at €800/unit.

32 In rare cases including a €150 condensate pump. 33 German sources mention around €150.

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For oil-fired boilers in new housing, non-housing and first-time installations, also the materials and labour costs of the oil tank and piping must be taken into account. In 2014, EU sales of oil boilers (85% of jet burners) to non-replacement market segments amounted to 45,000 units or 16% of oil-boiler sales or 0.7% of total boiler sales. An average oil storage tank costs around €2500 34. For piping and installation another €1700 is estimated35, bringing the total cost for the house owner to around €4200. When applied to 16% of the oil boiler sales, this raises the average oil boiler price (replacement and new combined) by €670/boiler.

Non-condensing gas/oil boilers can no longer be sold for new housing, first-time installation and non-housing. This means that there will be no new boiler rooms and no need to take into account the costs for ventilation provisions in these rooms. In 2004, these costs of €200/room applied to 10% of sales and thus amounted to €20 per average boiler sold.

For ground-source heat pump boilers, the costs of drilling holes for a vertical heat pump or excavation works for a horizontal heat pump must be added. These costs vary widely depending on the type of soil, local labour costs36, etc. The 2013 impact assessment study mentions a cost of €1000 per kW for vertical ground source heat pumps, which comes down to €10 000 per average (10 kW) installation. For a horizontal ground-source heat pump costs are €500/kW. Considering that vertical ground-source heat pumps have a higher market share, an EU average of €8000 per ground-source heat pump is assumed. This is confirmed in the 2013 Shell-BDH Hauswärme study for Germany 37, which mentions a total cost for a vertical ground-source heat pump of €24 500. With a heat pump boiler price of €7000 from the previous paragraph, installation costs of €7000 (multiplier 1) and the costs of drilling holes at €8 000, this results in €22 000. This is in the same order of magnitude.

Table 25 summarizes the installation and total acquisition costs, per unit and for the EU as a whole. Per unit average installation costs are €2022 and acquisition costs are €3847. Total EU installation costs are €12 bn; adding the €11 bn for boiler acquisition the total EU consumer costs for the acquisition of boilers amounts to €23 bn (incl. VAT).

34 source: www.heizungsvergleich.de 35 also source: www.heizungsvergleich.de 36 Note that most ground-source heat pumps are in Sweden, Germany and Finland, i.e. countries with relative high installation costs (see country multiplier) 37 Shell/BDH Hauswärme-Studie, Klimaschutz im Wohnungssektor — Wie Heizen Wir morgen?, May 2013.

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Table 25. Boiler acquisition costs, split-up Per unit Total EU boiler Total Unit Total Total (street) Installation costs acqui- sales EU EU price sition EU install acqui- 2014 costs sition Stan- Extra Total costs dard install

€ € € € € ‘000 € bn € bn gas, combi/solo 27 kW average 1215 1215 177 1392 2607 4220 5.87 11.00 gas, external cylinder 27 kW avg. 2000 2000 177 2177 4177 1044 2.27 4.36 air-source heat pump boiler 10 kW 4000 4000 177 4177 8177 212 0.89 1.73 ground-source heat pump 10 kW 7000 7000 8177 15177 22177 81 1.23 1.80 oil-fired (80% with ext. cylinder) 6000 6000 849 6849 12849 230 1.58 2.96 solar thermal assistance (without boiler) 6m² 6700 0 0 0 6700 100 0.00 0.67 electric resistance boiler 1500 1500 177 1677 3177 56 0.09 0.18 gas absorption heat pump boiler 18 kW air- 8300 8300 177 8477 16777 6 0.05 0.10 source hybrid 5-6 kW (HP) 27 kW (gas boiler) 4500 4500 177 4677 9177 7 0.03 0.06 micro-CHP 1 kWel+1-3 kWth; 27 kWth back-up 10000 10000 977 10977 20977 3 0.03 0.06 total/ weighted average 1825 1825 309 2022 3847 5959 12 23

The above numbers cannot be compared to data from earlier studies, because they include many more cost items. The acquisition costs (€23 bn incl. VAT, €19 bn excl. VAT) will be part of, and must be consistent with, the figures mentioned in Chapter 5 for the turnover of installers.

4.4 Repair and maintenance costs 4.4.1 Maintenance In the 2007 preparatory study the maintenance costs were estimated at around €120/year (€10/month). For a 2016 park of 120 million installed individual boilers this will mean €14.4 bn. Owners of oil-fired boilers will have to add costs for inspection of the storage tanks and in Germany, around €50/year has to be added for boiler inspection by the chimney sweeps (not installers doing the maintenance). Furthermore, there are 14 million boilers in the tertiary sector that will have much higher service costs. Overall the EU maintenance costs are thus estimated at €16 bn.

4.4.2 Repairs and spare parts Small repairs will be done during boiler repairs and maintenance. In chapter 3 it is estimated that there are annually around 18 million repairs that lead to larger repairs and replacement of expensive parts.

The costs for the spare parts are estimated 18 x €300 = €5.4 bn. The labour costs are estimated at €100 per event and thus total consumer costs of €1.8. In total the consumer expenditure for these repairs is €7.2 bn.

In total the consumer costs for repair and maintenance are estimated at €23.2 bn (incl. VAT). In the turnover of installers this should turn up as around €19.3 bn (excl. VAT).

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An annual expenditure of €23.2 bn, divided over 120 million boilers, is €200/year. Over a full boiler life of currently 24 years this is €4800 (nominal, to be discounted in Life Cycle Cost calculations).

Also taking into account the acquisition costs in the previous paragraphs, the turnover of installers related to (combi) boilers should be close to €40 bn.

4.5 Other costs 4.5.1 Disposal costs The installation costs for a new replacement boiler usually include dismounting and disposal of the old boiler by the installer. The boiler is >90% made of metal (steel, aluminium, copper-alloys, etc.) and will be brought to a recycler who might possibly even pay.

4.5.2 Consumables In general, there are, apart from energy sources, no significant other materials consumed during use. The exception may be in those rare occasions where people bought a condensing oil-fired boiler but insist on buying ‘standard’ (high sulphur) heating oil. In that case a neutralization facility for the condensate is required, which requires €5 annually in neutralization salt? More information is given in the 2007 preparatory study.

4.6 Energy prices Eurostat is the source for the energy prices presented in the tables in this paragraph. The discrepancy between the lower Eurostat prices versus prices identified by most consumers’ associations has been discussed in the MEEUP Methodology Report (VHK 2005), but for the moment it is not possible to make a comprehensive correction Eurostat data for the whole of the EU-25. For that reason we will have to use the Eurostat prices, rounded to the highest near whole number.

4.6.1 Electricity The average 2016 electricity tariff for EU-households is approximately €0.20/kWh. Households in most countries are charged according to the DC-tariff (2500-5000 kWh/year). Households in France, Finland, Sweden and Iceland use more than 5000 kWh/year and are charged according to the DD-tariff (5-15 MWh/year). In Norway the average household consumption is higher than 15 MWh/year and they will be charged according to the DE-tariff.

Expressed in Euros (2016) the lowest tariff is in Bulgaria (€0.094/kWh) and the highest in Denmark (€0.308/kWh). Expressed in Purchasing Power Standard (pps) the lowest tariff in the EEA is in Norway (0.074€/kWh); in the EU28 the lowest tariff is in Finland (€0.110/kWh). The highest tariff in pps is in Germany (€0.287/kWh).

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Table 26. Electricity prices private households incl. VAT and taxes per Member State (Source: Eurostat) in electricity consumption per household 2014 electricity prices 2016 S2* PPS*** Country households GWh** Price- DC 2.5-5 DD 5-15 DE >15 applicable kWh/hh (x 1000) electric band MWh/a MWh/a MWh/a band EU28 216 751 785156 3622 DC 0.205 0.194 0.183 0.205

Belgium 4 652 18942 4072 DC 0.275 0.250 0.221 0.257 Bulgaria 2 760 10590 3837 DC 0.094 0.094 0.093 0.202 Czech Rep. 4 607 14125 3066 DC 0.142 0.113 0.104 0.224 Denmark 2 360 10104 4281 DC 0.308 0.242 0.220 0.235 Germany 39 710 129600 3264 DC 0.298 0.282 0.268 0.287 Estonia 561 1739 3099 DC 0.124 0.119 0.111 0.167 Ireland 1 707 7704 4512 DC 0.234 0.199 0.166 0.217 Greece 4 345 17151 3948 DC 0.172 0.184 0.197 0.209 Spain 18 329 70710 3858 DC 0.228 0.200 0.167 0.256 France 28 718 149426 5203 DD 0.171 0.159 0.156 0.149 Croatia 1 519 5629 3706 DC 0.133 0.128 0.124 0.211 Italy 25 768 64255 2494 DC 0.234 0.268 0.263 0.240 Cyprus 289 1425 4933 DC 0.162 0.162 0.164 0.183 Latvia 830 1747 2104 DC 0.162 0.159 0.160 0.245 Lithuania 1 309 2656 2029 DC 0.117 0.113 0.105 0.197 Luxembourg 225 942 4194 DC 0.170 0.156 0.146 0.144 Hungary 4 130 10423 2524 DC 0.113 0.110 0.113 0.200 Malta 150 640 4264 DC 0.127 0.150 0.394 0.159 Netherlands 7 595 22896 3015 DC 0.159 0.173 0.201 0.147 Austria 3 768 17439 4628 DC 0.201 0.177 0.149 0.188 Poland 13 928 28083 2016 DC 0.135 0.129 0.128 0.249 Portugal 4 063 11915 2933 DC 0.230 0.223 0.216 0.294 Romania 7 470 11910 1594 DC 0.123 0.121 0.117 0.254 Slovenia 862 3125 3624 DC 0.163 0.142 0.127 0.208 Slovakia 1 837 4917 2677 DC 0.154 0.134 0.116 0.237 Finland 2 595 21362 8232 DD 0.155 0.133 0.113 0.110 Sweden 4 591 36821 8020 DD 0.196 0.162 0.140 0.130 United 28 076 108881 3878 DC 0.183 0.171 0.161 0.171 EEA EFTA (countries with data) Iceland 118 842 7136 DD 0.148 0.131 0.066 0.088 Norway 2 350 37124 15801 DE 0.163 0.118 0.105 0.074

* = tariffs incl. VAT and taxes, second half of 2016 (1.7.2016), source Eurostat nrg_pc_2004

** = calculated with 1 ktoe=11.63 GWh

*** = tariffs incl. VAT and taxes, expressed in Purchasing Power Standard, DE band for NO; DD-band for FR,FI,SE,ICE; DC-band for the rest

When looking at the differences between DC, DD and DE, it is clear that most countries give effectively a discount on the kWh-rate when the consumer uses more electricity. In practice this results largely from the share of fixed versus variable costs. There are several countries where this ‘discount’ is modest and then there are countries like Italy, Greece, Cyprus, and the Netherlands where the effective rate increases when a household uses more electricity.

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Table 27. Electricity prices for non-household consumers per 1 July (from 2007 onwards) Band IC : 500 MWh < Consumption < 2 000 MWh, excl. VAT and recoverable taxes (Source: Eurostat 2017, [nrg_pc_205]) Country 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EU28 0.0943 0.1027 0.1024 0.1051 0.1117 0.1157 0.1182 0.1206 0.1187 0.1140 Belgium 0.0868 0.0859 0.0946 0.0950 0.1033 0.0999 0.0976 0.0979 0.0979 0.1083 Bulgaria 0.1415 0.1519 0.1429 0.1498 0.1409 0.1651 0.1527 0.1606 0.1693 0.1701 Czech Rep. 0.1507 0.1517 0.1564 0.1470 0.1514 0.1463 0.1466 0.1282 0.1215 0.1153 Denmark 0.0657 0.0740 0.0658 0.0705 0.0685 0.0734 0.0740 0.0719 0.0672 0.0714 Germany 0.0990 0.1038 0.1054 0.1140 0.1196 0.1255 0.1374 0.1459 0.1432 0.1440 Estonia 0.0781 0.0846 0.0921 0.1073 0.1081 0.1153 0.1330 0.1247 0.1321 0.1258 Ireland 0.1046 0.1165 0.0991 0.1024 0.1173 0.1273 0.1245 0.1219 0.1218 0.1155 Greece 0.0891 0.1025 0.1009 0.1116 0.1197 0.1366 0.1452 0.1566 0.1438 0.1351 Spain 0.1067 0.1159 0.1188 0.1163 0.1239 0.1321 0.1335 0.1305 0.1266 0.1151 France 0.0522 0.0546 0.0566 0.0638 0.0722 0.0708 0.0771 0.0856 0.0888 0.0833 Croatia 0.1141 0.1387 0.1289 0.1289 0.1335 0.1461 0.1489 0.1451 0.1465 0.1391 Italy : 0.1485 0.1322 0.1412 0.1629 0.1770 0.1703 0.1729 0.1587 0.1597 Cyprus 0.1594 0.2060 0.1681 0.1950 0.2292 0.2580 0.2256 0.2165 0.1550 0.1464 Latvia 0.0892 0.1115 0.1309 0.1388 0.1645 0.1610 0.1665 0.1725 0.1753 0.1812 Lithuania 0.1294 0.1331 0.1275 0.1769 0.1720 0.1897 0.2001 0.1909 0.1653 0.1481 Luxembourg 0.0857 0.0844 0.0960 0.0847 0.0844 0.0858 0.0826 0.0828 0.0744 0.0726 Hungary 0.1759 0.1835 0.2106 0.1788 0.1740 0.1681 0.1704 0.1596 0.1554 0.1410 Malta 0.1746 0.2258 0.1775 0.2478 0.2381 0.2361 0.2282 0.2221 0.1752 0.1743 Netherlands 0.0961 0.0962 0.0948 0.0871 0.0863 0.0876 0.0864 0.0811 0.0780 0.0746 Austria 0.0879 0.0982 0.1035 0.1023 0.1019 0.1013 0.0991 0.0955 0.0964 0.0941 Poland 0.1484 0.1354 0.1576 0.1651 0.1666 0.1634 0.1534 0.1443 0.1512 0.1504 Portugal 0.0975 0.1084 0.1121 0.1111 0.1231 0.1441 0.1459 0.1526 0.1481 0.1448 Romania 0.1628 0.1718 0.1670 0.1655 0.1637 0.1628 0.1654 0.1563 0.1616 0.1587 Slovenia 0.1173 0.1213 0.1123 0.1196 0.1154 0.1163 0.1174 0.1060 0.1088 0.1062 Slovakia 0.1546 0.1830 0.2065 0.1792 0.1835 0.1861 0.1868 0.1762 0.1727 0.1711 Finland 0.0506 0.0574 0.0569 0.0572 0.0623 0.0616 0.0607 0.0581 0.0569 0.0573 Sweden 0.0556 0.0679 0.0604 0.0664 0.0644 0.0570 0.0562 0.0519 0.0461 0.0529 UK 0.0940 0.1067 0.1031 0.0934 0.0977 0.1043 0.1096 0.1129 0.1186 0.1191 Iceland 0.0440 Norway 0.0552 0.0661 0.0572 0.0636 0.0592 0.0540 0.0574 0.0544 0.0504 0.0574

Trend Both for average EU household and non-household customers the nominal electricity tariff decreased between 2015 and 2016. For household customers the decrease was 2.4%, from €0.21 to €0.205 per kWh. For industrial customers the decrease was almost 4%, from €0.1187 to €0.1140 per kWh.

This is the first time in the last 15 years that there has been a decrease in average electricity tariffs.

Figure 20 below gives the trend in household and non-household electricity tariffs over the last 10 years, in nominal values and inflation corrected.

In nominal values the compound aggregated growth rate (CAGR) for households has been 31% over the period (average year-on-year 2.9%). Corrected for inflation it has been 14% (average year-on-year 1.3%).

For industrial customers the CAGR was 21% (1.9% year on year); corrected for inflation it was 5% (0.5% average year-on-year).

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(source Eurostat 2017) Figure 20. Electricity prices households & industrial 2007-2016, nominal and inflation corrected in EUR/kWh

4.6.2 Natural gas The average gas tariff in the 2nd half of 2016 for households, usually in the consumption band of 20-200 GJ per year (D2), is €0.064/kWh, including VAT and taxes. After Sweden, where the gas grid is small and thus costs are high, the highest nominal gas tariffs for households, i.e. above €0.08/kWh, can be found in Italy, Spain and the Netherlands. The lowest nominal household tariffs, i.e. below €0.04/kWh, can be found in Bulgaria, Romania, Estonia, Lithuania, Hungary and Croatia. Corrected for purchasing power of the inhabitants (PPS), the lowest tariff can be found in the UK (€0.04/kWh) and the highest in Portugal (€0.097/kWh).

A comparison of the D2 and D3 band shows that only Slovakia has a negative progressive tariff, i.e. where the kWh-rate is higher when the consumer uses more gas. For the other countries the gas tariff in the D3 band (>200 GJ/a per household) is either equal to (DK, LV, LT, LU, HU) or lower than the D2 band (20-20 GJ/a per household).

The average gas tariff in the 2nd half of 2016 for industry in the I3-band, is €0.030/kWh, including VAT and taxes. Apart from the extremes (Sweden, Finland on the high end and Bulgaria on the lower end), the spread is smaller than with domestic gas tariffs, i.e. between 23 and 34 Eurocents per kWh (in Euro/kWh).

As an average for commercial customers, the average between D2 (excl. 21% VAT €0.053/kWh) and I3 band (€0.030/kWh) can be assumed. Overall for the EU this means a tariff of €0.042/kWh, excluding VAT and recoverable taxes.

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Table 28. Gas prices for EU* per 1.7.2016, in Euro and PPS per kWh, for bands D2 and D3 (households) and I3 (industry) (Source: Eurostat [nrg_pc_202] & [nrg_pc_203], Oct. 2017 ) Households (incl. VAT& taxes) Industry (excl. VAT)** Country D2: 20-200GJ D3: >200GJ I3: 10 - 100 TJ Euro/kWh in PPS Euro/kWh in PPS Euro/kWh in PPS EU28 0.064 0.064 0.055 0.055 0.030 0.030 Belgium 0.053 0.050 0.046 0.043 0.026 0.024 Bulgaria 0.031 0.067 0.031 0.067 0.019 0.042 Czech Republic 0.056 0.089 0.052 0.082 0.026 0.041 Denmark 0.074 0.057 0.074 0.057 0.030 0.023 Germany 0.064 0.062 0.059 0.057 0.033 0.032 Estonia 0.033 0.046 0.029 0.041 0.023 0.033 Ireland 0.068 0.063 0.060 0.056 0.034 0.032 Greece 0.065 0.079 0.054 0.065 0.028 0.034 Spain 0.086 0.096 0.059 0.066 0.026 0.029 France 0.068 0.063 0.055 0.051 0.038 0.035 Croatia 0.037 0.059 0.035 0.055 0.028 0.044 Italy 0.084 0.086 0.071 0.073 0.027 0.028 Latvia 0.041 0.061 0.041 0.061 0.025 0.037 Lithuania 0.039 0.065 0.039 0.065 0.025 0.041 Luxembourg 0.042 0.035 0.042 0.036 0.033 0.028 Hungary 0.036 0.064 0.036 0.064 0.028 0.049 Netherlands 0.081 0.075 0.071 0.066 0.029 0.026 Austria 0.067 0.063 0.058 0.054 0.034 0.032 Poland 0.044 0.081 0.038 0.071 0.026 0.048 Portugal 0.082 0.104 0.075 0.097 0.028 0.035 Romania 0.032 0.067 0.031 0.064 0.026 0.054 Slovenia 0.056 0.072 0.051 0.065 0.033 0.042 Slovakia 0.045 0.069 0.047 0.073 0.031 0.048 Finland na na na na 0.044 0.036 Sweden 0.114 0.092 0.105 0.084 0.038 0.031 United Kingdom 0.050 0.047 0.043 0.040 0.025 0.023 *=includes only countries with natural gas supply grid **=excluding VAT and recoverable taxes na=not available

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(Source: Eurostat 2017) Figure 21. Natural gas prices households & industrial 2007-2016, nominal and inflation corrected in EUR/kWh

Between 2015 and 2016 the nominal gas price for households decreased by almost 12%, i.e. from €0.0711 to €0.0636 per kWh. For industrial customers, which already saw gas prices decreasing since 2013, the price drop from 2015 to 2016 added yet another 15% with prices going from €0.345 to €0.301 per kWh.

The graph above gives the trend in household and non-household gas tariffs over the last 10 years, in nominal values and inflation corrected.

In nominal values the compound aggregated growth rate (CAGR) for households has been 24% over the period (average year-on-year 2.2%). Corrected for inflation it has been 8% (average year-on-year 0.7%).

For industrial customers the CAGR was -2% (0.2% year on year); corrected for inflation it was -15% (-1.4% average year-on-year).

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4.6.3 Heating Oil For heating oil Eurostat has not yet released an overview of developments and the data in Table 29 were retrieved and analysed by VHK from various Oil Bulletins published by the European Commission.

Table 29. Consumer prices of petroleum products inclusive of duties and taxes, per 9.10.2017 (Source: EC Oil Bulletin, extract 16.10.2017) Fuel oil - Fuel oil - Heating gas oil (III) (III) LPG (II) Sulphur <= 1% Sulphur > 1%

1000L t t 1000L Austria 689.81 386.70

Belgium 581.20 305.72 516.00

Bulgaria 914.20 497.29

Croatia 644.85 455.45 607.80

Cyprus 780.68 568.08

Czech Republic 657.59 276.60 537.29

Denmark 1 204.89 786.38

Estonia 723.00 598.00

Finland 911.00

France 748.58 448.22 741.46

Germany 610.00 564.00

Greece 409.87

Hungary 1 163.46 507.23 700.84

Ireland 629.98 691.25

Italy 1 165.88 381.53 650.63

Latvia 666.60 529.43

Lithuania 530.00 280.00 546.27

Luxembourg 545.00 518.00

Malta 1 000.00 656.00

Netherlands 997.00 590.00

Poland 678.71 371.50 290.46 485.30 Portugal 1 065.00 563.30 614.00

Romania 921.60 362.18 507.66

Slovakia 471.63 464.99 585.00

Slovenia 846.94 504.12 646.69

Spain 645.05 357.50 630.86

Sweden 1 124.72 813.65

United Kingdom 576.10 443.71*

EU28 Weighted average 689.70 423.33 356.29 585.92

*=Standard Grade Burning Oil UK

Prices in the second column apply to light fuel oil or ‘gas heating oil’, which is the heating oil used in residential boilers. Specific weight is 0.85 kg/l. and the Gross Calorific Value is approx. 38 GJ per 1000 litres (42.5 MJ/kg). Therefore, a price of €645/1000 litres is equivalent to €17/GJ.

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Heating oil prices households 2009-2017 (per 1 Jan.) nominal and inflation corrected, in Eur/1000L(gas oil) or Eur/t(fuel oil)

1200 Heating gas oil nom. Fuel oil S <=1% nom. 1000 Fuel oil S >1% nom. Heating gas oil real 729 800 Fuel oil S <=1% real 606 Fuel oil S >1% real 600 658 431 298 400 389 366 330 200 260

0 2009 2010 2011 2012 2013 2014 2015 2016 2017

(Source: Eurostat 2017) Figure 22. Heating oil prices households 2009-2016, nominal and inflation corrected (‘real’) in EUR/kWh

4.6.4 Other petroleum products: HFO and LPG Heavy Fuel Oil (HFO) Apart from gas heating oil, there is also an official price quote from the European Commission’s Oil Bulletin for ‘heavy fuel oil’ (HFO). HFO is a low-grade fuel primarily used in industrial boilers and other direct source heating applications (i.e., blast furnaces). It is also used as a principal fuel in marine applications in large diesel engines. Given its high boiling point and tar-like consistency, HFO typically requires heating before it can be moved through pipes or dispensed into a boiler or other heating vessel to be burned.

HFO is the least expensive of the refined oil fuels and can only be used by facilities that have preheating capabilities. HFO is typically high in sulphur and other impurities that are released into the air when the fuel is burned. The Oil Bulletin gives price quotes for HFO with sulphur content <= 1% (ca. €380/1000 litres, July 2006) and HFO with sulphur content > 1% (ca. €300/1000 litres, July 2006). 38

LPG LPG is a mixture of third family gases (propane 70-80 vol. %, butane 20-30%)39 that comes from petroleum distillation or from natural gas fields as a by-product. In Europe it is most known for its use in cars. However, it is also used in residential CH boilers. The LPG storage tank is filled before/during the heating season by a delivery truck, similarly to the current practice with oil-fired boilers. LPG has a negligible sulphur content and low emissions.

38 To calculate prices per GJ for HFO: The density of HFO is higher than that of gas heating oil (0,94 kg/dm³) and the Gross Calorific Value of HFO per weight unit is lower than that of (approx. 40 MJ/kg), therefore also here —as with gas heating oil—there is a conversion of 38 GJ (GCV) per 1000 litres. 39 This also known as ‘LPG Mix’. As bottled gas it is also often referred to as ‘propane’. Pure or almost pure propane also exists. Ffor industrial use there is ‘LPG propane’ and ‘LPG Butane’ .

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Density is around 0.52 kg/litre and it has a GCV of around to 50 MJ/kg. 40 Per litre the GCV is thus around 25 MJ. LPG Prices from the European Commission’s Oil Bulletin, Jan. 2006, are given below. The (straight) average price is estimated at €570 per 1000 litres. An additional analysis shows that per litre the prices are on average some 16% lower than those of gas heating oil. However, per GJ the LPG is around 23% higher on average (€23/GJ).

4.7 Financial parameters 4.7.1 Life Cycle Cost formula For Life Cycle Cost calculations the relevant equation is

LCC = PP + PWF ∙ OE where LCC is Life Cycle Costs, PP is the purchase price (incl. installation costs) and OE is the operating expense.

The Present Worth Factor (PWF) is given by

1+e 1+e 푃푊퐹 = ∙ 1− d−e 1+d

Where

− d is discount rate (-), − e is escalation rate (-), i.e. the aggregated annual growth rate of the operating expense, − N is the product life (years).

In case d=e (mathematically undefined), PWF = N

Note that the formula in MEErP (Part 1, page 133) contained an error which was corrected. Furthermore, as the difference between d and e is larger than 1 percent-point, the simplification PWF = N does not apply.

4.7.2 Discount and inflation rate Following the recommendations in the Commission’s Better Regulation Toolbox, the discount rate (d) for life cycle cost calculations is set at 4%.

Inflation rates, as published by Eurostat, are given in Table 30 below.

40 http://www.lpga.co.uk/TypicalPropofCommercialLPG.htm

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Table 30. Inflation Rate 2006-2016 and comparative price level 2015 EU28 & others comparative Inflation (in %) price level (EU=100)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2015

EU28 2.2 2.3 3.7 1.0 2.1 3.1 2.6 1.5 0.5 0.0 0.3 100

Euro area 2.2 2.1 3.3 0.3 1.6 2.7 2.5 1.4 0.4 0.0 0.2 99

Belgium 2.3 1.8 4.5 0.0 2.3 3.4 2.6 1.2 0.5 0.6 1.8 105

Bulgaria 7.4 7.6 12.0 2.5 3.0 3.4 2.4 0.4 -1.6 -1.1 -1.3 47

Czech Rep. 2.1 2.9 6.3 0.6 1.2 2.2 3.5 1.4 0.4 0.3 0.6 63

Denmark 1.8 1.7 3.6 1.0 2.2 2.7 2.4 0.5 0.4 0.2 0.0 136

Germany 1.8 2.3 2.8 0.2 1.1 2.5 2.1 1.6 0.8 0.1 0.4 100

Estonia 4.4 6.7 10.6 0.2 2.7 5.1 4.2 3.2 0.5 0.1 0.8 73

Ireland 2.7 2.9 3.1 -1.7 -1.6 1.2 1.9 0.5 0.3 0.0 -0.2 122

Greece 3.3 3.0 4.2 1.3 4.7 3.1 1.0 -0.9 -1.4 -1.1 0.0 85

Spain 3.6 2.8 4.1 -0.2 2.0 3.0 2.4 1.5 -0.2 -0.6 -0.3 91

France 1.9 1.6 3.2 0.1 1.7 2.3 2.2 1.0 0.6 0.1 0.3 105

Croatia 3.3 2.7 5.8 2.2 1.1 2.2 3.4 2.3 0.2 -0.3 -0.6 65

Italy 2.2 2.0 3.5 0.8 1.6 2.9 3.3 1.2 0.2 0.1 -0.1 100

Cyprus 2.2 2.2 4.4 0.2 2.6 3.5 3.1 0.4 -0.3 -1.5 -1.2 88

Latvia 6.6 10.1 15.3 3.3 -1.2 4.2 2.3 0.0 0.7 0.2 0.1 69

Lithuania 3.8 5.8 11.1 4.2 1.2 4.1 3.2 1.2 0.2 -0.7 0.7 61

Luxembourg 3.0 2.7 4.1 0.0 2.8 3.7 2.9 1.7 0.7 0.1 0.0 121

Hungary 4.0 7.9 6.0 4.0 4.7 3.9 5.7 1.7 0.0 0.1 0.4 57

Malta 2.6 0.7 4.7 1.8 2.0 2.5 3.2 1.0 0.8 1.2 0.9 80

Netherlands 1.6 1.6 2.2 1.0 0.9 2.5 2.8 2.6 0.3 0.2 0.1 108

Austria 1.7 2.2 3.2 0.4 1.7 3.6 2.6 2.1 1.5 0.8 1.0 104

Poland 1.3 2.6 4.2 4.0 2.6 3.9 3.7 0.8 0.1 -0.7 -0.2 54

Portugal 3.0 2.4 2.7 -0.9 1.4 3.6 2.8 0.4 -0.2 0.5 0.6 82

Romania 6.6 4.9 7.9 5.6 6.1 5.8 3.4 3.2 1.4 -0.4 -1.1 51

Slovenia 2.5 3.8 5.5 0.8 2.1 2.1 2.8 1.9 0.4 -0.8 -0.2 80

Slovakia 4.3 1.9 3.9 0.9 0.7 4.1 3.7 1.5 -0.1 -0.3 -0.5 66

Finland 1.3 1.6 3.9 1.6 1.7 3.3 3.2 2.2 1.2 -0.2 0.4 119

Sweden 1.5 1.7 3.3 1.9 1.9 1.4 0.9 0.4 0.2 0.7 1.1 122

United 2.3 2.3 3.6 2.2 3.3 4.5 2.8 2.6 1.5 0.0 0.7 133

Iceland 4.6 3.6 12.8 16.3 7.5 4.2 6.0 4.1 1.0 0.3 0.8 129

Norway 2.4 0.8 3.4 2.3 2.3 1.3 0.4 2.0 1.9 2.0 3.9 138

Switzerland 1.0 0.8 2.4 -0.7 0.6 0.1 -0.7 0.1 0.0 -0.8 -0.5 163

Turkey (1) 9 8.8 10.4 6.3 8.6 6.5 9.0 7.5 8.9 7.7 7.7 61

Japan (2) 0.3 0.0 1.4 -1.4 -0.7 0.1 0.0 0.4 2.7 : : 99

United 3.2 2.6 4.4 -0.8 2.4 3.8 2.1 1.2 1.3 -0.7 0.5 110

(1) Definition differs.

(2) National CPI: not strictly comparable with the HICP. Source: Eurostat 2017 (online data codes: prc_hicp_aind, prc_ipc_a, prc_ppp_ind)

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Electricity real price increases in the 2016 PRIMES reference scenario 41 are used for the escalation rate. The PRIMES Average Price of Electricity in Final demand sectors (€13/MWh), using the same increase for domestic and non-domestic customers, is as follows: . 2015-2020: 1.2295 %/year . 2020-2025: 0.5517 %/year . 2025-2030: 0.4366 %/year . 2030-2050: 0.0514 %/year

Note that the PRIMES electricity price forecasts tend to change dramatically between versions, but currently the above values are used in a wider EU energy policy context.

41 https://ec.europa.eu/energy/sites/ener/files/documents/AppendixRefSce.xls, sheet ’EU28-B’ based on PRIMES version 4, issued 20 July 2016 by E3M Lab, National Technical University of Athens.

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5 INDUSTRY, DISTRIBUTION AND COSTS

This section gives policy makers an overview of supply side market actors, i.e. boiler manufacturers, suppliers, wholesalers, installers and their associations.

5.1 Manufacturers 5.1.1 Introduction Table 31 gives an overview of the EU boiler manufacturers, their headquarters (HQ), revenues (in billion euros) and number of employees as well as their brands. Information on boiler market shares is not available. Note that ‘boiler’ is used in this section for all products that are in the scope of the Ecodesign regulation, i.e. gas and/or oil-fired, electric resistance boilers, air/ground source-to-water heat pumps, micro-CHP, etc.

The information in this chapter is not part of the BRG subcontract. The data was compiled by VHK from company websites and annual reports (2016 when available). In some cases (NIBE, Daikin, Stiebel, Centrotec) only the estimated boiler-related share is given. In cases where more than two-thirds of the revenue comes from boiler manufacturing, the company totals are given.

The information is intended to give policy makers an idea of the size of the companies involved. The employment figures can also contribute to the scenario calculations in Task 7, but data are indicative and not necessarily complete. VHK has compiled data to the best of knowledge and ability, but it does not assume any liability for the use of the information presented.

5.1.2 Overview As already was indicated in the first 2007 Ecodesign preparatory study, the trend towards more concentration in the boiler market, through mergers and acquisitions, has continued over the last decade.

German manufacturers are still occupying the top 3 positions in terms of revenue. Revenue of Bosch Thermotechnik is now higher than that of Vaillant. Viessmann is in third position. Mainly through the acquisition of British manufacturer Baxi/Potterton, the Netherlands-based BDR Thermea is now in fourth place. French Atlantic has increased group revenue through acquisition of a host of small companies over the years. It is uncertain whether Atlantic actually has a higher boiler market share than the largest Italian manufacturer (previously MTS). Both companies realise a considerable part of their turnover in dedicated (mainly electric) water heaters, but there is no information that indicates how large that part is.

Riello is the second Italian boiler manufacturer in size. In 2016 it has been acquired by the US-giant UTC Climate, Controls & Security ($62.6 bn turnover, amongst others owner of the Carrier air conditioner brand). Its focus is more on the commercial than the residential boiler market (e.g. with jet burners for oil and gas). The same can be said about the German oil-fired boiler specialist Weishaupt and Liechtenstein’s Hoval.

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Table 31. EU Boiler manufacturers, >250 jobs (illustrative) Company HQ Revenue Jobs Brands bn euro42 jobs

Bosch TT DE 3.30 13500 Bosch, Buderus, Junkers, Nefit (NL), Worcester (UK), Heliotek & regional brands (Dakon, IVT, e.i.m. leblanc, Vulcano) Vaillant DE 2.40 12000 Brands: Vaillant (DE), Saunier Duval (FR, ES, Eastern EU), AWB (NL), Bulex (BE), DemirDöküm (TK), Glow-worm (UK), Hermann Saunier Duval (IT), Protherm (Eastern Europe) Viessmann DE 2.25 12000 Viessmann BDR Thermea NL 1.70 6500 Remeha, DeDietrich, Baxi, Potterton, Heatrae Sadia, Senertech (Dachs) Atlantic FR 1.50 6500 Atlantic (gasboilers, RACs, radiators), Ideal (boilers), Thermor (electric radiators), Sauter (ESWH, electr. radiators, ventilation), Lazzarini (radiators), Ygnis (commercial WHs all types), Hamworthy (commercial boilers), Austria Email (ESWHs & tanks), Atlantic Guillot (commercial gas boilers/GSWHs), Ideal Commercial (commercial boilers), Keston (gas boilers), Gledhill (cylinders) Ariston Thermo IT 1.43 6900 Boiler and water heater brands (89% of turnover): Ariston, Elco, Chaffoteaux, ATAG, Racold, NTI. Burner brands (6% of turnover): Elco, Cuenod, Ecoflam. Component brand (5% of turnover): Thermowatt Riello IT 0.56 2400 Riello, Beretta, Thermital, Sylber, Vokera, Fontecal, FIT Service Weishaupt DE 0.54 3000 Weishaupt NIBE (~25%) SE 0.40 2700 NIBE (estimated revenue & jobs for heat pumps in Europe) Hoval LI 0.30 1400 Hoval Centrotec (50%) DE 0.30 1550 Wolf (estimated revenue & jobs exclude Ubbink, Brink, medical) Daikin Europe BE 0.26 800 Daikin (revenue & jobs only relate to 'wet' heat pumps for (14%) heating, Altherma) Immerfin IT 0.24 600 Immergas Stiebel (30%) DE 0.14 930 Stiebel Eltron and heating tech brands: AEG, Zanker, Tatramat (revenue & jobs for heat pumps exclude water heating)

ACV BE 0.10 380 ACV (jobs estimate BE 240,SK 140) Fonderie SIME IT 0.09 400 SIME, CLIMIT, Murelle Ferroli IT 0.08 500 Ferroli (revenue & jobs after reorganisation) Fondital (15%) IT 0.07 350 Fondital (15% is half of heating division €148m/687 jobs) Intergas NL 0.07 300 Intergas (collaboration with Daikin on hybrid) Frisquet FR 0.07 >300 Frisquet Danfoss (1%) DK 0.06 250 Danfoss, Thermia (heat pumps in Arvika, SE) Itho Daalderop BE 0.04 175 Itho Daalderop (revenue & jobs only for boiler part, not (50%) ventilation) BSG IT 0.04 250 Biasi Robur IT 0.03 >200 Robur (also OEM of GAHP in the EU)

15.97 73725

42 Where data were not in euro, the following currency conversion was used (rates per 28.10.2017) =EUR =EUR

1.00 USD US dollar 0.86137 1.00 DKK Danish crown 0.13442

1.00 GBP Britsh pound 1.13082 1.00 NOK Norwegian crown 0.10578

1.00 JPY Japanese yen 0.00758 1.00 SEK Swedish crown 0.10293

1.00 CYN Chinese Yuan 0.1295 1.00 PLN Polish zloty 0.23537

1.00 CHF Swiss franc 0.86335 1.00 TRY Turkish lira 0.22712

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NIBE's Climate Solutions division (62% of total NIBE revenue) realised a 978 million euro turnover with 4075 employees. Around 61% of jobs is in Europe. Part of the division's products, estimated at one-third, does not relate to boilers/heat pumps. This gives the estimated figures in the table.

Centrotec is a German holding company that deals with climate systems, including Wolf (DE) and Brink (NL), flue gas systems (Ubbink, NL) and medical products. The values in the table relate only to the estimated share of Wolf GmbH in the company’s total.

Daikin Europe (HQ in Oostende, BE) is part of the Japanese Daikin Group. It produces mainly air-to-air products (not in scope), but also air-to-water heat pumps, hybrids (gas boiler and heat pump) and —through the acquisition of Turkish Airfel in 2011— also oil- /gas-fired boilers. Daikin Europe reports that 14% of its turnover comes from ‘heating’ and that figure has been used in the table. Daikin is so far the only Japanese air conditioning company that has invested in a considerable European production base. Other Japanese, South-Korean and most American air conditioning companies —UTC being the exception with the takeover of Riello— did not.

German Stiebel-Eltron is market leader in electric resistance space- and water heating. It is amongst others market leader in instantaneous water heaters (see Lot 2 report). The share of heat pumps to water and electric boilers —i.e. the products in scope of the boiler regulation— is unknown, but for now a figure of 30% was assumed.

The rest of the list is a selection of the medium-sized boiler-companies that have (still) remained independent:

. Immerfin with gas boiler production in Italy and Romania; . Belgian producer ACV —known for its tank-in-tank solution— ; . Italian gas boiler manufacturer Fonderie SIME, that has recently announced a fully factory-sealed hybrid boiler solution; . Ferroli that has recently announced to restart with 500 employees and a restricted product package; . Fondital (€0.88 bn, 2644 jobs) has 4 divisions; the heating division makes radiators and boilers. . Intergas, the last remaining independent Dutch gas boiler manufacturer to survive and thrive in the NL market; . Frisquet, French independent producer of gas boilers; . Danfoss/Thermia heat pump competence centre in Arvika, Sweden; . BSG Caldaie a gas, remainder of the Italian Biasi brand; . Robur, the market leader in Gas Absorption Heat Pump (GAHP) boilers under its own brand and as OEM.

Not included in the list are:

. Boiler SME companies with less than 250 employees (mix of about 50 companies importing and/or manufacturing boilers), including A.O. Smith (US/NL, 160 jobs), Ochsner (AT, 160 jobs), Motan (RO, part of Köber), etc. ; . Companies where production of products in the scope is not the main activity, e.g. Windhager (AT, 485 jobs, pellet boilers but also some boilers in scope), Inventum (NL, >100 jobs, water heaters and OEM, but also heat pumps), ATTACK s.r.o. (SK, solid fuel but also boilers in scope, 150 jobs); . Manufacturers of dedicated electric storage water heaters that sell small amounts of electric (resistance) boilers for space heating on the side.

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5.1.3 Global markets Extra-EU competition in the EU-market In fossil fuel fired boilers the position of EU manufacturers is strong. Extra-EU imports in that field come mainly from Turkish and Chinese subsidiaries of EU companies. Some EU manufacturers may also source complete boilers from one of the more than 100 Chinese boiler manufacturers43 or independent Turkish suppliers like EMKO. These suppliers are offering condensing combi boilers starting from €255 (CN) or €290 (TK) per unit.44 The European presence of large gas boiler45 companies like A.O. Smith (US, €2.3 bn, 15500 employees), Rinnai (JP, €2.5 bn revenue, 10512 employees46), Noritz (JP, €1.6 bn revenue, 9118 employees) is modest. South-Korean gas boiler companies47 do not have a strong presence in the EU.

As regards heat pumps for water-based heating systems the situation is different. Residential and commercial air-to-water heat pumps are in the catalogue of most air conditioning producers from Japan (Daikin, Mitsubishi, Toshiba, Fujitsu, Panasonic) and South-Korea (LG, Samsung). US air conditioning manufacturers (Trane, Carrier/UTC, Johnson Controls, Honeywell, Lennox) produce mainly chillers for large commercial buildings; in some cases, depending on size and lay-out, the heating part of such installations may be subject either to the boiler regulation or the regulation on central air heating and cooling.

As regards the solar thermal market, the European firms can hold their own in the flat panel market, where transportation costs are an important factor. But as far as vacuum tubes are concerned the market appears to be dominated by Chinese imports. A search on Europages gave 13 Chinese suppliers and a handful of European firms, where the latter are possibly not even making the vacuum tubes but assembling them into collectors48. Viessmann, one of the leaders in the EU solar thermal market, has a vacuum collector factory in China.

5.1.4 Preliminary observations The sum of revenues (€16 bn) and jobs (74000) only gives an impression of the EU industry involved in boilers. It should not be confused with the sales and employment directly related to the scope of the Ecodesign & Energy Label regulations for CH boilers, because:

. Imports and exports play a role: many of the larger companies have important manufacturing sites (jobs) outside the EU, notably in Turkey (e.g. Bosch, Vaillant) and China (e.g. Ariston), producing for the global market. . Most companies produce not only boilers and ‘wet’ heat pumps, but also products that are not in the scope: solid fuel boilers, ‘dry’ (air-to-air) heat pumps, dedicated water heaters and all sorts of auxiliary installation components.

43 E.g. Macro, Vanward, Midea, VATTI 44 www.alibaba.com and EMKO Heating Systems site www.emkoisi.com 45 Mainly gas water heaters, but space heating boilers are also part of the catalogue 46 consolidated 47 E.g. Altoen Daewoo, Kiturami, Kyungdong 48 http://www.europages.co.uk/companies/solar vacuum tube.html

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. The boiler industry not only gives employment to its direct employees, but also its suppliers (OEMs, see next paragraph) and the external business services in accountancy, advertising, catering, security, logistics49.

In Task 7 an updated scenario analysis will be conducted.

5.2 Suppliers (OEMs)

5.2.1 Overview Table 32 gives an overview of the main suppliers (Original Equipment Manufacturers, OEMs) to the European boiler industry and Figure 23 gives an illustration of where the main OEM components can be found.

Information on suppliers was retrieved from their public websites50. Mainly information on larger OEM-component-suppliers could be identified. Most boiler manufacturers deal mainly with R&D, assembly, testing and logistics; manufacturing of parts is mostly outsourced. If there is a component that is manufactured in-house it is usually only the core heat generator, i.e. burner & heat exchanger for an oil/gas fired boiler. All other manufactured parts, including casing, piping, wiring, etc. are outsourced to OEMs. Furthermore, compared to 2004, it has become more common to outsource the complete boiler, i.e. import low-end boilers from 3rd party suppliers outside the EU (China, Turkey).

49 Dealers and installers are part of the direct product chain (they buy and sell the product); they are not considered ‘indirectly employed’ by industry 50 Not included in the subcontract and thus without input from BRG.

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Table 32. Selected suppliers of EU boiler-industry with EU manufacturing (Source: VHK 2017) Company Company totals Components [Brands] (estimated share of company revenue & jobs through supply to the EU boiler industry Name (abbreviated) HQ M euro jobs & related installations)

Grundfos DK 3300 18000 Circulator (40%) WILO DE 1300 7500 Circulator (40%) Ebmpapst DE 1900 14400 Combustion fan (5%) Honeywell US 33400 131000 Gas valves, thermostats (0.6%) SIT IT 290 1950 Gas valves & other controls (70%) M&G NL 200 1200 Flue gas venting & air ducts [M&G, Burgerhout, Anjo, Isoleco, Ant Kalip, Stabile] (70%) Ubbink NL 110 600 Flue gas vents & air ducts [part of Centrotec] (70%) Sermeta FR 185 600 Heat exchangers [formerly Giannoni] (80%) Danfoss DK 5300 25300 Thermostats, controllers (<2%) Johnson Controls EI 32000 120000 Boiler & heating controls (<0.5%) Bekaert BE 4400 30000 Steel meshed pipe, gas burners & alu heat exchangers(<2%) WAVIN NL 1200 5500 Flexible metal/plastic pipe (<5% related to boiler installation) Caleffi IT 300 1000 Safety valves [Caleffi, Altecnic, All Valves] (20%) Aalberts Industries NL 2552 15300 Expansion vessels (Flamco, 700 jobs, NL HQ), pipes & fittings (COMAP, 800 jobs, FR HQ) (10%) Uponor FI 1099 3868 Pipes & fittings (<5% related to boiler installation) Zilmet IT 62 390 Expansion vessels, heat exchangers (80%) Reflex Winkelmann DE 445 2500 Expansion vessels (25%) Siemens DE 79600 351000 Combustion controls (<0.5%) Polidoro IT 30 150 Gas burners (80%) Worgas IT/US >20 140 Gas burners, since 2016 part of US Becket (80%) CIB UNIGAS IT 20 80 Jet burners (50%) Greenonetec AT 32 150 Solar thermal flat panels [50% of shares with ] (50%)

Important notice: The above data were compiled from company websites and annual reports (2016 when available). The share in supply of the EU boiler industry was estimated only for large companies to the best of ability and knowledge of the study team. Nevertheless, the information is indicative, incomplete and only intended to give policy makers an idea of the size of the companies involved and their employment. The study team does not assume any liability whatsoever for possible material or immaterial damage from using the information in this table.

The circulator pump market is dominated by Grundfos and Wilo. Circulator-functionality has expanded considerably over the last decade, i.e. from a bare 3-speed pump to a variable speed pump, controls and —in case of a combi— also a 3-way valve51. Pump manufacturers are represented at EU-level by Europump.

51 Circulators up to 2.5 kW are subject to Ecodesign regulation under Commission Regulation (EC) No 641/2009, currently being reviewed. Additional information from preparatory studies mentions 2015 EU- sales of 8.5-9 million boiler-integrated circulators (new boilers and spare parts). Small circulators (5 million) are used in solar installations and floor heating (not in scope). Large circulators (<1 million) are used e.g. in hydronic air conditioning systems (partly in scope).

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(VHK, 2017) Figure 23. Gas-fired boiler main components and OEMs

Ebm-papst is the largest combustion fan producer, but there are other suppliers like Ziehl-Abegg (DE) or Nicotra-Gebhardt (IT) of fans for flue-gas extraction, cooling fans for heat pumps and other components that are in the scope. Combustion (pre-mix) fans are only a small part of their product-mix. A combustion (pre-mix) fan is a necessity for room-sealed, condensing boilers; due to Ecodesign boiler measures this market has grown. Fan manufacturers, including those that make cooling fans for heat pumps in the scope, are represented at EU-level by EVIA and Eurovent.

SIT (IT) and Honeywell (NL, BE ‘Maxon’) produce gas (control) valve systems. Honeywell is also a major supplier of thermostats under its own brand or as an OEM-product for major boiler manufacturers.

M&G (NL) and Ubbink (NL) are market leaders in flue gas/air intake duct systems for boilers, sold directly to installers and/or integrated in the boiler package. Also they profit from the increase in condensing boilers, both for newly built and boiler replacement in existing buildings that necessitate chimney renovation. Especially in the latter segment there are also other suppliers e.g. of flexible ducts.

Sermeta (formerly Giannoni) makes stainless steel heat exchangers for boilers at a rate of 8000-10000 units per day and is thus a major supplier for boiler segments where the boiler manufacturer chooses not to make his own heat exchanger.

Danfoss and Johnson Controls are large companies that realise only a small fraction of their turnover as controls suppliers to the boiler industry, usually as part of divisions that deal with space heating and building automation for larger products. (FR, €24.7 bn revenue, 143901 jobs) could be added to that list but they mainly deal with building automation (not in the scope).

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The same can be said of Siemens, but in one particular field they are also important as supplier of the boiler industry: combustion control. This is an essential component, especially in emission control and dealing with various gas qualities, but it is of course relatively small compared to the revenue of the company. The European gas and oil control manufacturers are represented by AFECOR.

Table 33. European gas and oil control manufacturers (Members of AFECOR) Maxon (Honeywell) BE Vilvoorde Bertelli&Partners IT Cerea (VR) Danfoss DK Nordborg Brahma IT Legnano (VR) Dungs DE Urbach Gruppo Giordano IT Villa Bartolomea Elster Kromschröder DE Osnabrück SIT La precisa IT Padova Maxitrol DE Senden Honeywell B.V. NL Emmen Mertik Maxitrol DE Thale Amorim Cork Composites PT Mozelos Siemens DE Rastatt Siemens Schweiz AG CH Zug VHB* DE Köln Pactrol Controls Ltd UK Ashton-in-Makerfield *= (German heating controls manufacturers ass.)

Calefffi is an important, but not the only, supplier of (safety) valves. Reflex Winkelmann (DE), Zilmet (IT) and Aalberts Industries (NL) with its Flamco brand are the leading manufacturers of expansion vessels for boilers in the EU. As regards burners, the situation is not transparent. There are only a few gas burner manufacturers, like Polidoro, Bekaert and Worgas that supply the residential boiler sector, but there are at least a dozen jet burner OEMs, ranging from large companies like Weishaupt and Riello to smaller companies like CIB UNIGAS. Jet burners are used not only in new boilers, but they are also the ultimate ‘spare part’ for the existing boilers.

Last but not least, Table 32 mentions GreenOneTec, an EU market leader in flat panel solar thermal panel production that recently sold 51% of its shares (50% of voting rights to Chinese Haier. The European solar thermal sector is in turmoil because many governments have reduced or abolished financial incentives. According to Solar Heat Europe (previously ESTIF), solar thermal panels provided 23 700 jobs in the EU in 201552. Most of these jobs (>80%) will be installer jobs and some of the industrial jobs will be with some of the companies already mentioned. But it is not unlikely that 1000- 2000 EU jobs in SME manufacturing of solar thermal panels are out there. Table 34 gives an overview of solar (component) suppliers that are industry members of Solar Heat Europe (formerly ESTIF).

Table 34. Solar thermal industry, SOLAR HEAT EUROPE Industry Members (2017)

Alanod solar (DE): absorbent & reflective coatings Magontec (DE): Mg anodes AlfaLaval (SE): heat exchangers for e.g. collective solar Resol (DE): solar controllers Almeco Solar (DE): absorbent coatings Saint-Gobain Isover (FR): panel insulation BDR Thermea (NL): boiler manufacturer+ solar systems Savosolar (FI): producer collectors, 42 jobs Calpak(GR): collectors Schweizer (DE): solar system installer DOMA Energie Solar Thermodinamica (PT): solar & heat pump Solahart (AU): NL distributor of Australian solar combi systems GreenOneTec (AT): Flat panel collectors producer, 150 Solar metal flex (TK): stainless steel flex pipes for solar jobs installations Grundfos (DK): solar circulator pumps Solid (AT): installer large solar systems

52 http://solarheateurope.eu/welcome-to-solar-heat-europe/

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Hewalex (PL): collectors & systems installer solimpeks (TK): produces solar collectors, 120 jobs Janus Energy (IT): solar installer Soltigua (IT): solar tracking systems KBB solar collectors (DE): production collectors, 60 jobs S-Solar (SE): solar panel coatings Kingspan (UK): produces solar collectors Tisun (AT): produces/distributes collectors & tanks Logstor (DK) pre-insulated piping for solar

The OEMs for the heat pump industry are probably under-represented in the table, but also when looking at the list of industrial members of the European Heat Pump Association EHPA there are e.g. no specialist compressor manufacturers on the list.

Table 35. Heat pump manufacturers and suppliers (EHPA Members per Oct. 2017) ACV International Jifon AB AERMEC S.p.A. Johnson Controls Denmark ApS Alpha-InnoTec GmbH Johnson Controls Air Conditioning Europe Sas Ariston Thermo Group Kermi Gmbh Arriba Cooltech ltd KRONOTERM (Termo-tehnika d.o.o.) BDR Thermea LG Electronics AB BEAMA Ltd. Mayekawa BoostHeat SA Mirai Intex Calefa Oy Nibe AB Carel Industries Srl Ochsner Wärmepumpen GmbH Climaveneta S.p.A Panasonic Appliance Air-Conditioning Europe Clivet s.p.a. Parker Hannifin Manufacturing srl CTA AG Samsung Ltd. DAIKIN Europe N.V. Sanden International Europe, LTD Danfoss Heat Pumps (Thermia) Sanhua International Europe SL Delta Energy & Environment Ltd. Sharp Electronics Europe LTD Denso Europe BV Shecco Sprl Diehl AKO Stiftung & Co. KG Siemens Building Technologies AG DunAn Internationl (Europe) GmbH Star Refrigeration LTD. Dürr thermea GmbH STIEBEL ELTRON GmbH & Co KG Ecotherm Austria Gmbh SULPU Suomen Lämpöpumppuyhdistys ry ELECTRA Air conditioning Industries Sunamp LTD Emerson Commercial and Residential Solutions Suomen Lämpöpumpputekniikka Oy EnBW Vertriebs- und Servicegesellschaft mbH SWEP International AB Enertech CTC AB Tecnocasa Climatizzazione (EU AISIN Toyota gas heat pumps) Fujitsu General (Euro) GmbH Templari Galletti spa TERMO SHOP d.o.o. GEA Refrigeration technologies Gmbh Tesy Glen Dimplex Deutschland GmbH Thermowatt Groupe Atlantic Uponor Corporation Grundfos Direct Sensors (Grundfos Sensor S/A) Vaillant Deutschland GmbH & Co KG Heliotherm GmbH Viessmann (Schweiz) AG Honeywell Fluorine Products Viking Heat Engines AS Hoval AG Wilo SE IDM Energiesysteme GmbH Yanmar Europe BV Insero Energy A/S

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Also not captured in Table 32 are the many SME metalworking companies that are making the boiler frame, casing, piping and wiring sub-assemblies. They are represented at EU level by Orgalime.

As regards micro-CHP, BDR Thermea is an important market actor with gas motors (Senertech 'Dachs') and Stirling based models (Remeha eVita). Vaillant has stopped its effort in fuel cell-based solutions and now only offers the Ecopower 1.0 model based on a Honda motor. Panasonic (JP) is the supplier of the PEM fuel cell for a Viessmann micro- CHP model. Viessmann also has several motor-driven micro-CHP models. Bosch offers CHP-models for the non-residential market, some of these VW motor-driven CHP models are in the scope of the regulation (<50 kW). Yanmar (JP) is also offering larger (25-30 kWe) motor-driven CHP solutions. Yanmar Europe in the Netherlands (240 jobs) is the regional distributor. The association for micro-CHP is Cogen Europe.

As mentioned, Table 32 does not include all general metalworking for subassemblies. Revenues and jobs in the EU could easily be 50% higher if they were included.

Suppliers to the heat pump industry such as OEMs for compressors, evaporators and condensers, refrigerants, etc. are not mentioned because no information could be found whether or not they have EU-based manufacturing.

5.2.2 Preliminary observations Partitioning the number of jobs and revenue in the OEM-sector to EU boiler manufacturing is difficult. The level of detail that would be needed for such an estimate cannot be found in annual reports or publicly available data. Also, the market is very heterogeneous. In other words, this paragraph gives policy makers an impression of the type and size of OEM market actors involved, but for the scenarios in Task 7 the study team will have to rely on revenue per employee averages and on consistency with boiler cost calculations. As an example of the latter, Figure 24 below —taken from the 2007 preparatory study— is given.

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Condensing combi boiler, component costs (in %)

packaging & manual 2%

hot water flow-thru HE condensate drain heat exchanger 13% 8% 21%

casing & frame el. control unit 8% 13% air supply (incl.fan) 9% gas valve burner 9% 5% CH supply assembly, 2% CH return ass. (incl.circulator) 10% (Source: VHK, 2007 preparatory study) Figure 24. Component cost shares in gas-fired condensing boiler

5.3 Distribution 5.3.1 Wholesale The prevalent form of distribution is: manufacturer/importer > wholesaler > installer/contractor. The bulk of sales go through wholesalers/merchants. Wholesalers usually operate at national scale. There are two large international wholesalers: Ferguson and Saint Gobain (see box below). A third internationally active player is the CG Group (22 000 employees), a German-based alliance of wholesalers that is expanding over Europe.

Apart from sales through wholesalers, a significant portion of sales (approximately 20- 30%) is delivered from factory to installers, sometimes through integrated distribution channels (e.g. the Buderus brand has its own sales organisation).

When looked upon at country level the number of boilers sold through DIY channels is still limited in volume and ranges from 1 to 3% maximum. The number of boilers installed by consumers themselves (including boilers obtained through installers) ranges from 5 to 17% for a specific number of countries for which these sales are known (FR, NL, PL, SK).

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Ferguson plc (previously Wolseley plc, HQ UK), 16.3 bn euro revenue (1 GBP=1.13 EUR), 28% gross margin, 1 bn euro trading profit, 39k employees. The company claims to be the largest distributor of heating and plumbing materials in the world. Largest market is in the US (65% of turnover). UK (2.3 bn), Nordic countries (2.1 bn, incl. DK, SE, FI, NO) and 'Canada & Central Europe' (1.2 bn, incl. NL, CH) account for the remainder. Brands: Ferguson, Wolseley, WASCO, Stark, Beijer. Ferguson has 52000 suppliers, 28 distribution centres, 2754 branches. Physical deliveries go mainly through branches, 14% comes directly from suppliers and 7% directly from distribution centers. The orders come 69% through branches, 14% through e-commerce, 9% through central account management, 8% through showrooms. There are 1.1 million customers, i.e. professionals in the plumbing and building sector. The future focus is on e-commerce and 'eco' (green) products. EU Ecodesign and Energy Label seen as a major driver in European markets (source: Annual Report 2016).

Saint Gobain (HQ France): 39.1 bn euro revenue (71% in Europe), 47% in building materials distribution sector (18.3 bn), 28% construction products, 25% innovative materials (incl. glass), 173k employees (117k in Europe). No. 1 in distribution of building materials: 24 countries, 61k employees, 4100 sales outlets. Major player in plumbing-heating-sanitary market. Key distribution and service brands in Europe: Point.P and LaPeyre (FR), La Plateforme du Batiment (EU), Jewson and Graham (UK), Dahl and Optimera (Scandinavia), Raab Karcher (DE and Central Europe). Overall sales go 43% to building renovation, 21% to new housing, 12% to new other buildings, 24% to civil engineering and industry. (source: Annual Report brochure 2016).

5.3.2 E-commerce Examples of dedicated on-line portals that are doing quite well are caldaiemurali.it, thermondo.de and many other local ones. Wholesaler Ferguson, just as an example, reports 14% of orders go through the internet, but for some countries the share of e- commerce goes up to 35%. No sales data on boiler-related e-commerce is available.

Most of these online sales channels focus on wall hung gas boilers, that are relatively easy to ship, but oil and solid fuel fired boilers are being offered as well. Offers for heat pumps remain rare (or do not exist yet). The installation of the boiler is optional: consumers may decide to install the boilers themselves, leaving only the commissioning of the system (final check of safety and performance) to certified installers, depending on what local or national regulation prescribes/allows.

5.3.3 Rentals Energy service providers (ESPs) leasing larger commercial and industrial heating boilers, either as part of utilities (British Gas, Engie, etc.) or as specialist firms, have been around for some time. The ESPs take care of purchase, installation, maintenance and energy costs of the installation.

For residential (gas) boilers this phenomenon is more recent and usually does not include the energy cost of the installation. As an example, Dutch company Warmgarant (www.warmgarant.nl) offers consumers the choice to either buy a 24 kW condensing gas-fired combi boiler for around €1100 —including installation, excluding €10.87 per month for maintenance— or to rent the same boiler, including installation and maintenance, for €25 per month.

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5.4 Installers 5.4.1 Statistics Most heating installers (‘plumbers’) are small enterprises of 1 to 9 persons working in the local market (city or village and surroundings). Private installation firms with 25 or more employees, usually working in the commercial boiler market, are considered ‘big’ (excluding installation services by utilities). Heating installers rarely deal only with installation and maintenance of boilers, but also install full radiator or floor heating systems, chimneys, bathrooms, etc..

European and most national statistics are rarely detailed enough to identify the number of enterprises and jobs in the EU. Eurostat gives an overview of NACE Rev. 1.1 class 45.3 ‘plumbing’53 , based on 2009 data.

Table 36. Economic activities in the building installation sector

(Source: Eurostat)

‘Plumbing’ involves not only installing heating equipment, but also sanitary hardware and ventilation. Some national statistics give also a further subdivision. The 2007 preparatory study showed the result of VHK analysis, based on available national data, with a five- digit split-up. This analysis for the EU-25 revealed almost 200,000 companies in NACE class 45.331 ‘Contractors for heating and sanitary equipment installation’ and 70 000 companies in NACE class 45.332 ‘contractors for ventilation equipment installation’.

This indicates that almost 75% of NACE 45.3 relates to class 45.331. This comes down to 250 000 enterprises with a turnover of ~€90 bn and 1 million employees.

The 2013 Impact Assessment gives an estimate of a further split up. Eliminating the ventilation from that split up and taking into account the findings of Chapter 4, the following subdivision remains:

. 10% (€9 bn) in drains and sewage; . 20% (€18 bn) in bathrooms; . 45% (€40 bn) in (combi) boiler heating, of which: o repairs space heating & combi €6 bn (of which ~€4.5 bn in spare parts); o maintenance, etc. space heating & combi €13 bn (of which ~€1 bn in seals and small replacement parts); o installation space heating €12 bn (of which around €3 bn in additional installation materials);

53 http://ec.europa.eu/eurostat/statistics- explained/index.php/File:Building_installation_(NACE_Group_45.3)_Structural_profile,_EU-27,_2006.PNG

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o sales of space heating equipment €9 bn (80% wholesale price + 20% installer margin, excl. VAT); . 25% (€23 bn) other (radiators, floor heating, dedicated water heaters, local heaters, air conditioning, etc.).

This means €40 bn relates to products in the scope of the boiler regulations. This means 45% of turnover and thus 450 000 jobs. Note that the employment number does not include trainees (usually 10% of total).

The trend in plumbing turnover has been more positive than the trend in the EU construction sector as a whole. This is shown in Figure 25 (dotted line gives the average of the construction sector as a whole).

200 EU Plumbing sector turnover (NACE F4332) 180 180

164 160 158 140 137

120 113 100 North (DK, SV, FIN, NO, LT, LV, EE) 80 79 West (AT, BE, DE, EI, 60 FR, LU, NL, UK) index(2004=100) East (BU, CZ, CR, 40 HU, PL, SI, SK) South (GR, IT, CY, 20 ES, MT, PT) EU plumbers avg 0 EU Construction avg

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dotted line is the total construction sector (Source: Eurostat sbs_na_4a_co) Figure 25. Turnover in the EU plumbing sector for 4 country-clusters and EU+Norway

Evidently, despite the downward trend in new buildings the installers have kept turnover at a higher level, probably due to activities in the existing building sector with a higher added value (e.g. more heat pumps, more sophisticated controls, etc.).

Boiler installers are represented at EU level by GCP Europe, but statistical information is only available from a few of its national members and is in line with data given above.

5.5 Other stakeholders 5.5.1 Test laboratories, notified bodies and standardisation For oil- and gas-fired boilers 3rd party certification is mandatory for safety (Gas Appliance Regulation), energy efficiency (Boiler Efficiency Directive 92/42/EEC, now ecodesign regulation 813/2013) and under several other New Approach Directives where applicable. The assessment of both boiler safety and efficiency is often performed by the same notified body for practical reasons. Compared to e.g. cogeneration boilers or heat pumps (or other boilers excluded from 92/42/EEC) the support infrastructure of laboratories, notified bodies, standards committees, etc. is more extensive for oil- and gas-fired boilers.

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A notified body is an organisation designated by an EU country to assess the conformity of certain products before being placed on the market. These bodies carry out tasks related to conformity assessment procedures set out in the applicable legislation, when a third party is required. 54 Often, but not necessarily, notified bodies and test laboratories are combined, although often as different legal entities.

A list of Notified Bodies can be found on the NANDO website (New Approach Notified and Designated Organisations). 55For instance, under the 2016 Gas Appliance Regulation and its 2009 predecessor there are approximately 60 notified bodies.

The notified bodies do not only give out Documents of Conformity (DoC) and CE-marks, but are also involved in voluntary certification schemes such as Eurovent certification, HP-KEYMARK, Solar Keymark (SOLAR HEAT EUROPE), etc..

Notified bodies and test laboratories interact specifically with the Ecodesign regulatory process through their participation in standardisation (see Task 1 report) and research programmes (e.g. ECOTEST below). They are engaged in the ECO-BEDAC56 forum, which amongst others advises the Ecodesign AdCO.

By way of illustration, Table 37 below gives the characteristics of the members of the ECOTEST project consortium that is engaged in the round-robin (reproducibility) testing relevant for the verification tolerances in the Ecodesign boiler and water heater regulations.57

For information: A standard gas/oil boiler test costs around €2500 to €3000 per unit. Heat pump boiler tests and solar panel tests may cost up to €10 000 per unit. For testing the concept of ‘equivalent model’ can be used.

Table 37. Boiler laboratories and notified bodies, participating in the ECOTEST project LABNET/ Noti- Experience, expertise, LABTQ fied N° Short name Partner name accreditations member Body Member of TC Danish Gas Boilers, Combi-boilers, water 1 DGC DK Yes Yes No Technology Centre heaters, micro-CHP Instytut Nafty I TC 109, 238 2 INIG-PIB Gazu –Państwowy PL Boilers, combi boilers, water heaters Yes Yes Secretary of PKN Instytut Badawczy TC 277/4 Boilers, combi boilers, water heaters, el. and gas fired and full 3 Kiwa NL KIWA Nederland NL Yes Yes Yes (TC 109) electric heat pumps, solar thermal collectors and systems, heat storage Yes, TCs DVGW- Gas and oil boilers, water heaters, DVGW 4 DVGW-EBI DE Yes 48/109/238/299/ Forschungsstelle micro-CHP appliances and GHP CERT 113 GmbH GAS.BE (previously: Association Royale gas and oil boilers, water heaters 5 GAS.BE BE Yes Yes TC 109 and 238 des Gaziers Belges and micro-CHP appliances ARGB) gas and oil boilers, water heaters 6 Kiwa UK KIWA UK UK Yes Yes No and micro-CHP appliances

54 https://ec.europa.eu/growth/single-market/goods/building-blocks/notified-bodies_en 55 http://ec.europa.eu/growth/tools-databases/nando/index.cfm 56 Originally founded to deal with testing and conformity issues regarding the 1992 Boiler Efficiency Directive. ECO-BEDAC is Ecodesign Boiler Efficiency Directive Advisory Committee, currently chaired by DVGW. 57 The ECOTEST project runs from October 2017 until mid-2019, with intermediate test results expected by September 2018. The study team is following the project closely through the steering committee.

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Centre Technique For all products: R&D and TCs des Industries 7 CETIAT FR Certification testing. ISO 17025 Yes No 48/109/238/299/ Aérauliques et accreditation 113 Thermiques Boilers, Combi-boilers, el. and gas TC 156, TC57, 8 IGE IGE-HLK GE Yes Yes driven heat pumps JWG TC 113/156 TC 109,48, 49, APPLUS Gas appliances, gas and oil boilers 9 APPLUS ES Yes Yes 181, 106, 238, Laboratories (efficiency) 234, 164 CEN TC109, CEN 10 IMQ IMQ IT Boilers, combi-boilers, water heaters Yes Yes TC238 UNI/CT 110/GL01, Gas appliances, gas and oil boilers, UNI/CT 11 KIWA IT KIWA IT IT Yes Yes water heaters 109/GL01, UNI/CT 109/GL02, Technological 48 / 49 / 106 / 12 CATIM Centre for the Metal PT Gas appliances Yes Yes 109 / 181 / 238 Working Industry CEN/TC Institute for Solar 312ISO/TC 180 & 13 SPF CH Solar Thermal No No Technologies CEN/TC 312/WG1 Convenor Institute of Solar collectors, solar thermal Thermodynamics 14 ITW GE systems, heat storage, combi- No No CEN TC 312 and Thermal storage, heat pumps, chillers Engineering (ITW) Department of Civil Engineering, 15 DTU DK Water heaters, solar heating No No TC 312 observer Technical University of Denmark Refrigeration and Heat Pump TC 113 (previous 16 DTI Technology, Danish DK DANAK 300 No No LABNET member) Technological Institute AIT Austrian TC 113,TC 182, El. and gas fired heat pumps, water 17 AIT Institute of AT No No TC 156 IEA Heat heaters Technology GmbH Pump Programme Wärme-pumpen- El. heat pumps, DHW heat pumps, 18 WPZ CH No Yes TC 113, TC 182 Testzentrum Buchs water heaters Fraunhofer Institute El. and gas fired heat pumps, solar VDI, IEA Heat 19 ISE for Solar Energy DE thermal collectors and systems, heat No No Pump Programme Systems ISE storage Electric and gas heat pumps POLITECNICO DI 20 Polimi IT (/chillers), DHW appliances, hybrid No No Yes, TC299 MILANO systems. Experience and accreditation for TÜV Rheinland 21 TÜV RHEIN DE testing gas and oil boilers, water Applied for Yes YES Energy GmbH heaters, heat pumps, burners TÜV SÜD Industrie Boiler for oil and gas, forced draft 22 TÜV SÜD DE No Yes TC57 Service GmbH burners, CHP (fuel cell, motors)

LABTQ (www.labtq.eu) is an association of European laboratories aiming to enhance the accuracy of efficiency and emission measurements by or on behalf of its members in the field of energy using appliances, qualifying independent laboratories respecting an enhanced level of accuracy (requiring ISO 17025 accreditation) and communication of common positions to relevant third parties. As regards the latter, the association is promoting third party certification to ensure minimum Ecodesign requirements are met and energy labelling is providing reliable information. Reproducibility of measurements is an important issue in this context. Currently there are 12 members (see Table 37) and 1 application for membership. The European network of laboratories LABNET is a predecessor of LABTQ.

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5.5.2 Building inspection and EPB-certification Space heating installations, including and foremost boilers, are an important part of the energy performance of buildings (EPB) Directive. This is mentioned in the European EPB Directive, which specifically mentions the importance of Ecodesign and Energy Labelling in that context, and the national building codes where the space heating installation is an important part of the energy performance assessment. Ideally, the Ecodesign and energy labelling effort for boiler installations should be integrated as much as possible in the regulation of buildings. In fact, the EPB standards that were developed at EU level for heating installations were an important inspiration for the calculation and test methods employed in the current Ecodesign and energy labelling regulations.

Although the transposition of EU rules and standards at Member State level is still slow, there are now several areas and new market actors that are confronted with Ecodesign and energy labelling boiler regulations:

. Communes and their building inspectors involved in issuing permits for new buildings and large renovations, also on the basis of a minimum energy performance of the new/renovated building, including its heating installations. Inspection may also be necessary if for instance the collective chimney needs to be changed to accommodate condensing boilers. . EPB-certifiers, i.e. private companies that give out EP-certificates for existing buildings, mandatory prior to the rent or sale of these buildings. Often this may be an extra activity of installers, but there are also certifiers that have little experience in heating installations and will be helped by the energy label. . Boiler-inspectors carrying out the mandatory periodical inspection. In most Member States this is done by installers, but e.g. in Germany this is done by a separate entity, i.e. the ‘chimney sweeps’ (Schornsteinfeger58).

5.5.3 Trade fairs International bi-annual trade fairs are ISH in (DE) and Mostra Convegno in Milan (IT). Apart from that, there are national trade fairs in every other country.

5.6 Customers Task 3 will discuss the user aspects in more detail. Here only the main parties involved in acquiring boiler heating installations are listed:

. Private householders, replacing their existing boilers planned or —more frequently— after a breakdown . Private householders, building their own house with architect and contractor(s), having to abide by EPB and safety rules to obtain the building permit, available budget, etc.. The boiler installation will be carefully planned. . Landlords —ranging from private house-owners that rent out a second home or apartment, to social housing corporations and large private enterprises—who build and manage the boiler installations in rented buildings. Especially in residential

58 There are around 8000 Schornsteinfeger in Germany dealing with boiler inspection. Source: Gesetzentwurf der Bundesregierung, Entwurf eines Ersten Gesetzes zur Änderung des Energieverbrauchskennzeichnungs- gesetzes, Germany, 2015.

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housing, where the landlord has to invest in the boiler, but the tenant must pay the energy bill, the acquisition costs of the boiler will play a major role. . Private developers, private or public housing corporations, who are building blocks of new houses or new non-residential buildings, also having to abide by EPB- and safety rules, considering commercial aspects and financing. More and more the energy costs and ecological profile are important selling points for future buyers/tenants. . Large investors in real estate like banks, insurance companies and pension funds that not only look at profitability, but more and more are setting more stringent —more stringent than the national EPB— rules for Green Buildings, including their space heating installations.

The influence of the latter group should not be underestimated. Around 400 large investors, managing $ 22 trillion (1012) in assets, have formed the Global Investor Coalition on Climate Change (www.globalinvestorcoalition.org). The coalition is subdivided in four coalitions per continent: IIGCC (Europe, www.iigcc.org), Ceres (North America, www.ceres.org), IGCC (Australia & New Zealand, www.igcc.org.au) and AIGCC (Asia, www.aigcc.net). The coalition actively promotes carbon emission reduction through addressing fund managers, investee companies and politicians in general on their responsibilities in this respect.

The total annual consumer expenditure on boiler acquisition, installation, maintenance and repairs equals the turnover of installers plus 20% VAT. This results in €48 bn. This excludes the energy costs, which will be calculated in Task 5.

5.7 Associations EHI Association of European Heating Industry (www.ehi.eu)

EHI has 52 members (2019): 13 national or specialist associations and 39 direct industry members. EHI-members represent 90% of the European market for heat and hot water generation, heating controls and heat emitters as well as 75% of the hydronic heat pump market, 80% of the biomass central heating market (pellets, wood) and 70% of the solar thermal market. Its members produce technologies for heating in buildings, including: space heaters (boilers, electric and fuel driven heat pumps, micro-cogeneration), heating controls and components, heat storage and heat emitters (radiators, surface heating and cooling systems), renewable energy systems (solar thermal, geothermal, biomass).

EPEE European Partnership for Energy & the Environment (www.epeeglobal.org).

Members are 16 associations and 27 direct industry members, mainly working in the field of (room) air conditioning and suppliers for that sector (refrigerants Chemours, AGC, Arkema, Daikin, Climalife, Mexichem; compressors Bitzer, Emerson). Air conditioning parent companies were mentioned in the paragraph 5.3.3. EU companies include Danfoss, Schneider Electric, Carel and some EU manufacturers in commercial refrigeration (AHT, Hauser).

EHPA European Heat Pump Association (www.ehpa.org)

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123 members of which 59 research institutes and associations as well as around 70 industrial companies. An overview of industrial member companies is given in Table 35.

EUROVENT Industry Association for Indoor Climate (HVAC), Process Cooling, and Food Cold Chain Technologies (eurovent.eu)

Eurovent is Europe’s Industry Association for Indoor Climate (HVAC), Process Cooling, and Food Cold Chain Technologies. Its members from throughout Europe, the Middle East and Africa represent more than 1000 companies, the majority small and medium-sized manufacturers. In total, these account for a combined annual turnover of more than 30 bn EUR, employing around 150 000 people within the association’s geographic area. Eurovent has two subunits: Eurovent Certita Certification (ECC), a majority owned independent product performance certification company based in Paris, known for its ‘Eurovent Certified Performance’ mark. Activities are complemented by Eurovent Market Intelligence (EMI) with EMEA-wide data sets frequently used to support the development of legislation in the EU and beyond.

EUROFUEL (www.eurofuel.eu)

The European Heating Oil Association (Eurofuel) represents the national organisations that promote the use of heating oil for domestic heating in 10 European countries: IWO-Austria (AT), Informazout (BE), Union of European Petroleum Independents UPEI (FI), Finnish Petroleum and Biofuels Association (FI), Alliance Solutions Fioul ASF (FR), IWO-Germany (DE), OFTEC-Ireland (EI), MIL (LU), Norks Petroleumsinstitutt NP (NO), Union Pétrolière / Erdoel Vereinigung UP/EV (VH).

Marcogaz (www.marcogaz.org)

Marcogaz is the Technical Association of the European Natural Gas Industry. It is the representative body of the European Natural Gas Industry on all technical issues, amongst others gas equipment and the rational use of energy.

It has 24 Member Organisations in 18 countries: Gasum (FI), DGC (DK), GAZ System (PL), Scotia Gas Networks (UK), Gas Networks Ireland (EI), NationalGrid (UK), ZEBRA gasnetwerk (NL), Gasunie (NL), Eurogas (association, BE), DVGW (DE), Synergrid (BE), AFG (FR), SVGW (CH), OVWG (AT), CIG (IT), Distrigaz Sud SA, DESFA (GR), Sedigas (ES), Enagas (ES), AGN (PT), REN (PT), CGA (CZ), SGOA (SK).

Eurogas (www.eurogas.org)

Eurogas represents the interests of the gas industry in one voice towards European and global stakeholders. Its 45 members currently comprise companies, national associations and international organisations all engaged in the wholesale, retail and distribution of gas in Europe. Marcogaz is also member and deals with the technical aspects of gas equipment.

Solar Heat Europe (www.solarheateurope.eu, formerly ESTIF)

Solar Heat Europe is the voice of the solar thermal industry, actively promoting the use of solar thermal technology for renewable heating and cooling in Europe.

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With around 80 members from 17 European countries, Solar Heat Europe represents the entire value chain. Industry members were mentioned in Table 34.

COGEN Europe (www.cogeneurope.eu)

This is the European association for the promotion of cogeneration. Its principal goal is to work towards the wider use of cogeneration in Europe for a sustainable energy future. Micro-CHP industry members are BDR Thermea (UK), EC Power (DK), Honda Motor Europe (UK), Panasonic (UK), Senertech (DE, part of BDR Thermea), Vaillant (DE), Yanmar Europe (NL).

BEUC consumer association (www.beuc.eu) ANEC (www.anec.eu) consumer representation in standardisation

BEUC is the European consumer association representing the interest of European consumers. There are 43 members (see Table 38 below). ANEC represents the European voice of consumers in standardisation.

Table 38. European consumer associations (BEUC Members 2017)

Arbeiterkammer (AT) Alliance of Lithuanian Consumer Organisations (LT) VKI (AT) ULC (LU) Test-Achats (BE) CA (MT) BNAAC (BU) Consumentenbond (NL) CCA (CY) Forbrukerrådet (NO) dTest (CZ) SKP (PO) Forbrugerrådet Tænk (DK) Polish Consumer Federation (PO) LIIT (ES) Deco (PT) Kuluttajaliitto-Konsumentförbundet ry (FI) APC (RO) FCCA (FI) Association of Slovak consumers (SK) CLCV (FR) S.O.S. Poprad (SK) UFC-Que choisir (FR) ZPS(SI) Stiftung Warentest (DE) CECU (ES) vzbv (DE) OCU (ES) KEPKA (GR) Sveriges Konsumenter (SE) EKPIZO (GR) Fédération Romande des consommateurs (CH) NFACPH - FEOSZ (HU) Consumers' Organisation of Macedonia (MK) NS (Iceland) Citizens Advice (UK) CAI (EI) Financial Services Consumer Panel (UK) Altroconsumo (IT) Legal Services Consumer Panel (UK) CIE Consumatori Italiani per l'Europa (IT) Which? (UK) LPIAA (LV)

ECOS green NGO organisation (www.ecostandard.org)

ECOS defends the environmental interests in the standards development process at European and international level. Pan-European members: EEB, Friends of the Earth Europe, Health Care Without Harm, rreuse, Transport & Environment, WWF plus 32 national organisations.

Orgalime (www.orgalime.org)

Orgalime is the European federation representing the interests at the level of the EU institutions of the European mechanical, electrical, electronic and metal articles

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industries as a whole. The engineering industry is the largest industrial branch in the EU, with a turnover of some €2,000 billion in 2016. The industry accounts for over a quarter of manufacturing output and a third of the manufactured exports of the European Union. In the context of the boiler regulation Orgalime is relevant especially because it represents the SME metalworking and plastics manufacturers producing casing, frame, piping and wiring subassemblies.

REHVA HVAC engineers (rehva.eu)

REHVA is the Federation of European Heating, Ventilation and Air Conditioning Associations representing a network of more than 100,000 engineers from 27 countries. In the context of the boiler regulation they are relevant as specifiers for larger boiler installations

GCP Europe installers (www.gcpeurope.eu)

GCP Europe is the voice of the efficient building engineering services at EU level - heating & cooling, ventilation, air condition and plumbing systems in buildings, including smart controls, metering and system integration. GCP Europe has 18 member associations in 14 countries (see Table 39).

Table 39. GCP Europe, Member organisations 2017 B.S.H.L. Austria FIESC Luxembourg VZHL Austria UNETO-VNI Netherlands CEMEEK Cyprus Rørentreprenørene Norge Norway TEKNIQ Denmark CONAIF Spain ARBEJDSGIVERNE Denmark INSTALLATÖRSFÖRETAGEN Sweden LVI-TU Finland Plåt & Ventföretagen Sweden BTGA Germany suissetec Switzerland ZVSHK Germany BESA United Kingdom M.E. & B.S.C.A. Ireland NCMCA United States

AFECOR (www.afecor.org)

Association for gas/oil combustion controls industry, including those for boilers (see

Europump (www.europump.org)

Association for the European pump industry, including heating circulators.

EVIA (www.evia.eu)

Association for ventilation industry, including manufacturers of combustion and cooling fans in space heating equipment.

EBA European Biogas Association (european-biogas.eu)

EBA is the leading European association in the field of biogas and bio methane production covering the anaerobic digestion and gasification industries. EBA has created a wide network of established national organisations, scientific institutes and companies. In 2017, the association counted more than 90 members from all over Europe and has established co-operation with biogas associations from outside Europe. The involvement of EBA may become relevant if and when

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dedicated biogas boilers, i.e. boilers working on a local 100% biogas grid, are discussed.

EUBIA European Biomass Industry Association (www.eubia.org)

EUBIA represents organisations and companies from throughout the European Union to promote biomass. The involvement of EUBIA members can become relevant for discussions on dedicated bio-oil (e.g. pyrolysis oil) boilers if and when applicable.59

59 See also: European Commission, DG ENER, Mandate to CEN for standards on pyrolysis oils produced from biomass feedstocks to be used in various energy applications or intermediate products for subsequent processing, M/525 EN, 27.6.2013.

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6 EVALUATION AND OUTLOOK

In the 2007 preparatory study and subsequent scenario calculations it was expected that the investment costs for boilers would increase by 80% and arrive at a level of around €50 bn. In reality they went up to 39 bn, an increase of 15% (inflation corrected).

In the 2007 preparatory study it was expected that the space heating energy efficiency would increase by 28% between 2005 and 2015, going from a low space heating efficiency of 65% to 93% (on NCV). In reality, using the Ecodesign seasonal efficiency metrics, the new boiler efficiency went from 80 to 94% on GCV, i.e. by 14%.

The main reason for the lower-than-expected price increase (positive) and energy savings (negative) is the financial crisis with subsequent construction slump and austerity policy.

Boiler sales to new buildings and 1st time more than halved between 2004 and 2014. In 2014 as much as 78% of boiler sales went to replacements, where both the technical possibilities and budgetary options are more limited. Only in the last two to three years the heat pump boiler sales recovered to the same level they reached in 2006. Government incentives for solar thermal assistance and micro-CHP reduced or stopped and sales are declining (solar thermal) or still at very low levels (micro-CHP). Condensing boiler sales continued, thanks to fierce price competition, but the switch from non- condensing to condensing boilers is not enough to meet projections.

EHI mentions that the low awareness of the bad efficiency of currently installed space heaters plays a role in the limited market dynamics. Also, the current quality and performance of boilers do not induce early replacement in continental Europe.

There have been no 'significant negative impacts' and in many respects the changes induced by Ecodesign and Energy Label regulations gave a handle to EU-industry to show a good price-quality ratio vis-à-vis low-cost imports from Asia.

Overall, despite the financial crisis preventing to meet projections, the current Ecodesign and Energy Label regulations have been effective and valuable.

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ANNEX I: DETAILED STATISTICS

Detailed Country Tables, summary of BRG data delivered 2017

. Boiler sales 1991, 2004, 2014 by type per Member States + EU totals 2016 . Sales segmentation by type and end-use 2014, per Member State . Technical Segmentation by type and features 2014 . Boiler sales ‘other products’ by type and Member State 2014 . Heat pump boiler unit sales 2014 - per Member State and Output power class . Technical Segmentation sales by power class, per Member State 2014

Note that EFTA countries, Cyprus, Malta and Luxemburg were not included in the BRG dataset. Sales and stock data for Norway were given in the main text.

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Table 40. EU- BOILER SALES 1991, 2004 and 2014 per Member State/ EU, 2016 for EU only (in 000 units) VHK report based on BRG 2017 Type year AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK TOTAL %

Wall Hung Gas 1991 31 26 - 11 10 10 0 - 324 458 1 36 12 870 - - 176 20 2 1 2 1 187 - 556 2734 51% Non-Cond 2004 28 78 5 35 77 6 2 - 505 155 12 84 57 1171 5 8 44 115 34 178 21 6 443 0 1118 4185 58% 2014 21 25 2 10 32 - 1 - 212 98 11 37 2 536 2 4 5 95 9 169 10 0 156 - 4 1441 23% 2016 440 7%

Wall Hung Gas 1991 2 ------9 18 ------90 ------3 122 2% Cond 2004 20 28 0 1 8 16 0 - 36 340 0 2 3 60 1 0 364 12 - 2 6 2 2 1 406 1308 18% 2014 22 150 1 5 36 19 1 - 300 376 6 25 29 277 1 5 399 89 2 19 20 3 111 1 1750 3647 58% 2016 4629 74%

Floor Standing Gas 1991 11 34 - 4 30 1 0 - 76 360 - 68 1 163 0 1 45 18 1 0 10 0 4 1 271 1099 21% non-Cond 2004 3 27 0 2 10 1 0 - 77 62 1 20 3 58 1 3 5 17 1 7 17 1 10 1 64 389 5% 2014 1 3 0 0 5 0 0 - 11 11 0 2 0 10 0 1 - 2 0 1 4 0 2 - 1 54 1% 2016 10 0% Floor Standing 1991 1 ------4 ------2 ------6 0% Cond 2004 2 1 0 0 1 0 - - 3 18 0 0 - 7 - - 2 - 0 0 1 - - - 16 52 1% 2014 3 6 0 0 1 0 0 - 19 36 0 0 0 10 0 0 1 3 0 0 0 0 2 0 14 97 2% 2016 103 2%

Jet Burner Boilers 1991 32 48 1 4 1 6 0 8 134 490 56 1 27 112 1 - 1 9 1 1 - 13 96 13 69 1124 21% 2004 13 41 2 7 1 6 1 10 188 202 67 1 48 46 1 0 1 17 19 3 0 10 109 3 108 904 12% 2014 5 20 0 2 0 1 0 3 53 69 5 0 28 14 0 0 0 3 1 1 0 3 26 0 50 287 5% 2016 301 5%

Solid Fuel Boilers 1991 13 1 1 4 30 1 0 2 14 0 3 12 5 3 4 8 0 85 2 - 2 6 5 13 12 224 4% (not in scope Lot 1) 2004 18 1 7 6 39 5 2 3 11 24 1 4 4 7 6 12 0 71 0 17 15 9 2 9 5 276 4% 2014 13 1 7 9 33 7 2 3 18 33 4 17 2 11 5 14 1 162 1 33 17 7 5 3 6 413 7% 2016 367 6%

Electric Boilers 1991 - - 2 2 2 - 0 1 - - - - 1 ------20 4 32 1% 2004 - - 3 2 11 - 0 3 5 - - - 1 - - - - 2 - 1 1 0 - 7 8 44 1% 2014 - - 2 7 13 - 0 3 5 - 0 - 1 - - 0 - 1 - 8 3 1 - 6 7 56 1% 2016 69 1%

Heat Pumps 1991 1 0 - - - - - 0 1 1 ------0 ------15 - 19 0% 2004 4 0 0 - 1 1 1 5 21 13 0 0 1 2 0 0 2 1 - 0 0 0 1 63 1 119 2% 2014 15 9 1 1 8 6 2 14 79 58 5 1 2 24 1 1 7 8 2 1 1 3 7 45 18 320 5% 2016 373 6%

TOTAL 1991 91 109 3 25 72 17 1 11 558 1331 60 117 47 1148 4 9 315 132 5 2 13 20 292 62 915 5358 100% 2004 88 176 17 54 148 35 6 21 845 814 80 111 118 1352 13 24 417 235 54 208 60 28 566 83 1726 7278 100% 2014 79 214 13 34 127 34 6 23 697 682 32 81 63 881 10 24 414 363 17 231 55 17 309 55 1852 6313 100% 2016 6292 100%

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Table 41.EU- boiler sales segmentation by end-use per Member State 2014 (source: BRG) CZECH in units AUSTRIA BELGIUM BULGARIA CROATIA REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace Wall Hung Gas Non-Cond 1.6 19.0 0.6 24.1 1.9 0.2 5.0 4.7 4.7 27.2 - - 0.8 0.2 - - 14.4 197.6 2.7 95.3 4.8 6.1 2.8 33.9 0.0 1.6 Wall Hung Gas Cond 13.5 8.3 47.4 102.6 1.0 0.1 4.1 0.9 19.3 17.1 2.8 16.6 0.6 0.0 - - 158.4 142.1 106.3 270.1 3.7 2.4 6.9 17.6 8.9 20.2 Gas Floor Standing 1.9 1.9 2.9 5.7 0.0 0.0 0.2 0.1 1.1 4.1 0.2 0.3 0.1 0.1 - - 13.4 16.6 7.2 40.2 0.0 0.0 0.2 1.7 0.3 0.1 Jet Burner Boilers 0.5 4.4 4.4 15.9 0.1 0.1 0.8 0.9 0.1 0.1 0.2 1.1 0.1 0.2 0.6 2.0 5.2 48.0 11.7 57.3 2.7 2.8 0.2 - 5.9 22.3 Solid Fuel Boilers 5.4 7.6 0.1 0.7 4.6 2.4 5.2 3.6 8.7 24.0 0.5 6.2 0.7 1.4 0.5 2.6 8.3 9.8 11.1 21.8 1.3 3.0 6.1 11.0 0.7 1.4 Electric Boilers - - - - 1.2 0.7 0.9 6.5 1.7 11.2 - - 0.2 0.2 0.5 2.9 1.2 3.7 - - - 0.1 - - 0.1 0.4 Heat Pumps 12.2 3.2 4.3 5.1 0.5 0.0 0.8 0.1 3.0 5.2 2.5 3.2 0.9 0.8 7.2 7.2 63.1 15.6 39.2 19.2 1.4 4.0 0.8 0.2 0.4 1.1 Grand Total 35.1 44.4 59.7 154.1 9.2 3.5 17.0 16.8 38.4 88.8 6.3 27.3 3.3 3.1 8.8 14.6 264.0 433.5 178.2 503.9 13.9 18.3 17.0 64.4 16.4 47.1

NETHERLAND in units ITALY LATVIA LITHUANIA S POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK TOTAL New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace Wall Hung Gas Non-Cond 5.1 530.7 0.5 1.6 0.6 3.0 - 5.2 15.4 79.6 4.2 5.1 47.9 121.5 2.4 7.9 0.3 0.0 27.5 128.5 - - - 4.3 143.1 1297.5 Wall Hung Gas Cond 74.8 201.7 1.3 0.0 4.1 0.5 51.6 347.8 66.9 22.2 1.5 0.5 11.3 7.6 11.3 8.6 2.2 0.9 36.8 73.7 0.2 0.6 187.3 1563.1 821.9 2825.1 Gas Floor Standing 3.9 16.4 0.1 0.1 0.1 0.5 0.8 - 2.5 2.5 0.2 0.2 0.4 0.6 1.9 2.8 0.1 0.0 0.7 2.7 0.1 0.1 6.0 9.4 44.4 106.1 Jet Burner Boilers 3.8 10.1 0.1 0.1 0.1 0.1 0.1 0.1 1.9 1.3 1.0 0.4 0.6 0.3 0.2 0.1 1.4 1.2 4.2 22.1 0.0 0.1 5.3 45.0 51.2 235.8 Solid Fuel Boilers 7.1 3.6 1.0 4.5 2.1 11.7 0.4 0.3 34.6 127.6 0.4 0.8 13.7 15.8 7.5 9.2 2.8 3.7 4.7 0.5 0.7 2.4 1.6 4.7 130.0 280.1 Electric Boilers - - - - 0.2 0.0 - - 0.5 0.1 - - 2.9 4.6 1.3 1.4 0.3 0.3 - - 0.7 5.0 1.1 6.1 12.8 43.1 Heat Pumps 14.2 9.8 0.6 0.0 0.8 0.0 5.9 1.4 7.5 0.5 1.9 0.4 0.4 0.2 0.8 0.0 0.8 2.6 5.0 2.4 12.1 32.1 10.4 8.1 196.7 122.3 Grand Total 108.9 772.4 3.5 6.3 8.1 15.8 58.8 354.8 129.2 233.9 9.2 7.3 77.2 150.5 25.3 29.9 8.0 8.8 78.9 229.9 13.9 40.3 211.7 1640.5 1400.0 4910.0 in % AUSTRIA BELGIUM BULGARIA CROATIA CZECHREPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace Wall Hung Gas Non-Cond 4% 43% 1% 16% 20% 6% 30% 28% 12% 31% 0% 0% 23% 8% 0% 0% 5% 46% 2% 19% 35% 33% 16% 53% 0% 3% Wall Hung Gas Cond 38% 19% 79% 67% 10% 3% 24% 5% 50% 19% 45% 61% 17% 1% 0% 0% 60% 33% 60% 54% 27% 13% 41% 27% 54% 43% Gas Floor Standing 5% 4% 5% 4% 0% 1% 1% 1% 3% 5% 3% 1% 2% 4% 0% 0% 5% 4% 4% 8% 0% 0% 1% 3% 2% 0% Jet Burner Boilers 1% 10% 7% 10% 2% 2% 4% 5% 0% 0% 3% 4% 3% 7% 7% 13% 2% 11% 7% 11% 19% 15% 1% 0% 36% 47% Solid Fuel Boilers 15% 17% 0% 0% 50% 68% 31% 22% 23% 27% 9% 23% 22% 46% 6% 18% 3% 2% 6% 4% 9% 16% 36% 17% 4% 3% Electric Boilers 0% 0% 0% 0% 13% 19% 5% 39% 4% 13% 0% 0% 5% 7% 6% 20% 0% 1% 0% 0% 0% 1% 0% 0% 1% 1% Heat Pumps 35% 7% 7% 3% 5% 1% 5% 1% 8% 6% 40% 12% 27% 27% 81% 49% 24% 4% 22% 4% 10% 22% 5% 0% 3% 2%

NETHERLAND in % ITALY LATVIA LITHUANIA S POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK TOTAL New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace New Replace Wall Hung Gas Non-Cond 5% 69% 15% 26% 8% 19% 0% 1% 12% 34% 45% 69% 62% 81% 10% 27% 4% 0% 35% 56% 0% 0% 0% 0% 10% 26% Wall Hung Gas Cond 69% 26% 36% 0% 51% 3% 88% 98% 52% 10% 16% 7% 15% 5% 45% 29% 28% 10% 47% 32% 1% 2% 88% 95% 59% 58% Gas Floor Standing 4% 2% 3% 2% 2% 3% 1% 0% 2% 1% 2% 3% 1% 0% 7% 9% 2% 0% 1% 1% 0% 0% 3% 1% 3% 2% Jet Burner Boilers 3% 1% 2% 1% 1% 1% 0% 0% 1% 1% 11% 6% 1% 0% 1% 0% 17% 14% 5% 10% 0% 0% 3% 3% 4% 5% Solid Fuel Boilers 7% 0% 28% 71% 27% 74% 1% 0% 27% 55% 4% 11% 18% 11% 29% 31% 35% 43% 6% 0% 5% 6% 1% 0% 9% 6% Electric Boilers 0% 0% 0% 0% 2% 0% 0% 0% 0% 0% 0% 0% 4% 3% 5% 5% 4% 3% 0% 0% 5% 12% 1% 0% 1% 1%

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Heat Pumps 13% 1% 16% 0% 10% 0% 10% 0% 6% 0% 21% 5% 0% 0% 3% 0% 10% 30% 6% 1% 88% 80% 5% 0% 14% 2%

New includes new housing, 1 st time use and non-housing. Gas Wall Hung Boilers Cond includes also Micro CHP in Belgium, Germany, Netherlands and UK. Heat Pumps includes Outside Air, Ground Source, Exhaust Air and Hybrid models. Does not include Air-to-Air models. EU 25 - BOILER UNIT SALES 2014, SEGMENTATION BY END-USE. New Housing versus Non-Housing (in 000 units and %, source BRG 2017) AUSTRIA BELGIUM BULGARIA CROATIA CZECH REP. DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. Wall Hung Gas Non-Cond 0.8 0.4 - - 1.4 0.2 1.8 1.9 0.7 - - - 0.3 0.1 - - 5.1 2.5 0.2 2.2 2.9 - 1.9 - 0.0 - Wall Hung Gas Cond 11.1 1.3 36.6 1.7 0.6 0.1 1.8 0.8 10.6 0.8 1.6 0.8 0.4 0.0 - - 111.7 37.7 69.9 31.6 0.7 0.2 3.4 1.4 5.5 1.2 Gas Floor Standing 1.0 0.8 0.2 2.6 0.0 0.0 0.1 0.1 0.1 0.8 0.0 0.2 0.0 0.0 - - 8.3 3.3 1.8 4.4 0.0 0.0 0.0 0.2 0.0 0.3 Jet Burner Boilers 0.1 0.1 2.0 1.2 0.0 0.1 0.2 0.5 0.0 0.1 0.0 0.2 0.0 0.0 0.1 0.6 1.1 3.3 1.6 8.6 1.4 0.9 - 0.2 3.8 1.0 Solid Fuel Boilers 2.4 1.0 0.0 0.1 1.0 0.4 1.0 2.1 3.0 4.9 0.2 0.3 0.2 0.5 0.2 0.1 5.6 2.0 7.2 3.5 0.2 0.8 1.8 1.7 0.4 0.2 Electric Boilers - - - - 0.5 0.1 0.3 0.1 0.8 - - - 0.0 0.1 0.2 0.0 0.9 ------0.1 - Heat Pumps 10.4 1.2 3.8 0.3 0.2 0.2 0.3 0.5 2.1 0.8 2.0 0.4 0.5 0.2 5.2 1.3 59.3 2.6 33.0 5.8 0.1 0.3 0.6 0.2 0.3 0.1 TOTAL 25.7 4.8 42.7 5.8 3.7 1.1 5.4 5.9 17.4 7.4 3.9 1.8 1.4 0.9 5.7 1.9 191.9 51.5 113.6 56.1 5.5 2.2 7.7 3.7 10.1 2.7

ITALY LATVIA LITHUANIA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK TOTAL House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. Wall Hung Gas Non-Cond 3.7 0.3 0.2 0.2 0.4 0.1 - - 7.8 2.3 3.6 0.3 23.2 3.0 1.2 0.2 0.2 0.0 - 4.7 - - - - 55 18 Wall Hung Gas Cond 58.6 8.1 0.9 0.1 3.7 0.2 35.8 7.6 40.4 3.1 1.2 0.1 2.8 0.9 6.5 1.0 1.4 0.3 16.4 3.9 0.1 0.1 123.1 18.8 545 122 Gas Floor Standing 1.8 1.6 0.0 0.1 0.1 0.0 - 0.8 1.2 0.8 0.0 0.1 0.1 0.2 0.5 1.0 0.0 0.1 0.1 0.4 - 0.1 0.1 5.8 15 24 Jet Burner Boilers 0.3 1.7 0.0 0.0 0.1 0.0 - 0.1 0.6 0.5 0.5 0.1 0.1 0.4 0.0 0.1 0.1 1.0 0.2 2.1 - 0.0 0.4 4.7 13 27 Solid Fuel Boilers 1.9 2.7 0.2 0.7 0.7 1.1 0.0 0.4 25.8 5.4 0.0 0.1 7.8 2.4 3.2 3.2 0.1 0.8 0.2 1.9 - 0.7 0.3 1.0 64 38 Electric Boilers - - - - 0.1 0.0 - - 0.0 0.4 - - 0.6 0.4 0.5 0.1 0.1 0.2 - - - 0.4 0.7 - 5 2 Heat Pumps 7.8 5.4 0.1 0.1 0.3 0.2 4.8 1.1 6.4 0.9 1.5 0.2 0.3 0.1 0.3 0.4 0.2 0.1 3.7 0.7 8.2 3.5 5.5 4.9 157 31 TOTAL 74.2 19.8 1.5 1.2 5.2 1.8 40.6 10.0 82.1 13.4 6.8 0.8 34.9 7.4 12.2 6.0 2.1 2.6 20.7 13.6 8.3 4.8 130.1 35.1 853 262

in % AUSTRIA BELGIUM BULGARIA CROATIA CZECH REP. DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. Wall Hung Gas Non-Cond 3% 8% 0% 0% 38% 15% 33% 31% 4% 0% 0% 0% 18% 14% 0% 0% 3% 5% 0% 4% 54% 0% 25% 0% 0% 0% Wall Hung Gas Cond 43% 27% 86% 30% 16% 9% 34% 14% 61% 11% 42% 46% 29% 3% 0% 0% 58% 73% 61% 56% 13% 8% 44% 39% 54% 44% Gas Floor Standing 4% 16% 1% 44% 0% 0% 1% 1% 1% 11% 1% 10% 1% 3% 0% 0% 4% 6% 2% 8% 0% 2% 0% 6% 0% 11% Jet Burner Boilers 0% 2% 5% 20% 1% 8% 3% 8% 0% 2% 0% 10% 3% 3% 1% 29% 1% 6% 1% 15% 26% 41% 0% 4% 38% 35% Solid Fuel Boilers 9% 21% 0% 1% 26% 38% 18% 35% 17% 66% 5% 16% 14% 50% 4% 3% 3% 4% 6% 6% 4% 36% 23% 46% 4% 6% Electric Boilers 0% 0% 0% 0% 12% 8% 5% 2% 5% 0% 0% 0% 2% 8% 4% 1% 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% Heat Pumps 40% 25% 9% 5% 6% 22% 5% 8% 12% 11% 52% 20% 32% 18% 91% 67% 31% 5% 29% 10% 2% 13% 8% 5% 3% 4%

in % ITALY LATVIA LITHUANIA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWE DEN UNITED KINGDOM TOTAL House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. House Non-h. Wall Hung Gas Non-Cond 5% 1% 15% 14% 7% 8% 0% 0% 9% 17% 53% 33% 67% 41% 10% 3% 10% 2% 0% 34% 0% 0% 0% 0% 6% 7% Wall Hung Gas Cond 79% 41% 63% 12% 70% 14% 88% 76% 49% 23% 17% 7% 8% 12% 53% 17% 66% 11% 79% 28% 2% 1% 95% 54% 64% 46% Gas Floor Standing 2% 8% 1% 7% 1% 1% 0% 7% 1% 6% 0% 17% 0% 3% 4% 17% 1% 2% 0% 3% 0% 1% 0% 17% 2% 9% Jet Burner Boilers 0% 9% 2% 3% 1% 2% 0% 1% 1% 4% 7% 12% 0% 6% 0% 2% 4% 39% 1% 15% 0% 0% 0% 13% 1% 10% Solid Fuel Boilers 3% 14% 11% 55% 14% 62% 0% 4% 31% 40% 0% 8% 23% 32% 26% 52% 6% 32% 1% 14% 0% 14% 0% 3% 7% 14% Electric Boilers 0% 0% 0% 0% 1% 3% 0% 0% 0% 3% 0% 0% 2% 5% 4% 1% 4% 9% 0% 0% 0% 9% 1% 0% 1% 1% Heat Pumps 11% 27% 10% 9% 5% 9% 12% 11% 8% 7% 22% 22% 1% 1% 3% 7% 10% 5% 18% 5% 98% 74% 4% 14% 18% 12%

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 92

Table 42. EU– BOILER SALES 2014 - TECHNICAL SEGMENTATION (Source: BRG) Country AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK TOTAL

GAS WALL HUNG BOILERS 42.3 174.6 3.1 14.6 68.2 19.5 1.6 - 512.5 472.0 17.0 61.2 30.8 812.3 3.5 8.2 404.6 184.1 11.2 188.3 30.2 3.4 266.5 0.8 1 754.1 5084 of which 5084 CONDENSATION

Condensing 21.7 149.9 1.1 4.9 36.3 19.5 0.6 - 300.5 374.0 6.1 24.5 29.1 276.5 1.3 4.6 399.4 89.1 2.0 18.9 19.8 3.1 110.5 0.8 1749.8 3644

Non-condensing 20.6 24.7 2.1 9.7 31.9 - 1.0 - 212.0 98.0 10.9 36.7 1.7 535.8 2.2 3.6 5.2 95.0 9.3 169.4 10.4 0.3 156.0 - 4.3 1441

BURNER TYPE Conventional 5.2 8.2 1.2 5.7 25.3 - 1.0 - 23.3 0.5 - 35.6 1.7 466.1 2.2 3.6 - 83.5 - 166.0 10.4 0.1 51.5 - 4.3 895

Fan assisted premix 21.7 149.9 1.9 4.9 36.8 19.5 0.6 - 300.5 374.0 6.1 24.5 29.1 276.5 1.3 4.6 399.4 98.6 2.0 18.9 16.0 3.3 110.5 0.8 1749.8 3651

other low NOx 15.5 16.5 - 4.0 6.0 - - - 188.7 97.5 10.9 1.1 - 69.7 - - 5.2 2.0 9.3 3.4 3.8 - 104.5 - - 538

HOT WATER PRODUCTION

Combi 18.7 142.0 2.4 12.3 44.2 2.1 1.4 - 422.8 165.1 13.4 40.3 10.5 783.2 2.9 7.1 385.3 100.2 8.8 167.2 13.6 2.9 262.4 0.0 1334.3 3943

Heating Only With External Cylinder 18.4 20.9 0.2 1.2 17.0 17.0 0.1 - 54.2 279.4 1.7 2.1 17.1 21.9 0.1 0.1 9.2 26.3 1.6 6.4 14.1 0.2 3.6 0.7 397.1 911

Heating Only Without Cylinder 5.2 11.6 0.5 1.1 6.9 0.4 0.2 - 35.5 27.5 1.9 18.8 3.2 7.2 0.5 1.0 10.1 57.5 0.8 14.7 2.5 0.4 0.5 0.1 22.7 231

FLUE TYPE

Open 12.4 10.4 1.1 6.6 11.3 - 0.4 - 165.4 83.3 10.2 17.2 1.7 75.0 1.2 1.2 1.2 81.2 3.2 164.3 10.4 0.2 0.8 - 0.1 659

Room Sealed (Balanced) ------0.9 ------3.2 - - - - 0.1 4

Room Sealed (Fanned) 30.0 164.2 2.0 8.0 56.9 19.5 1.2 - 347.1 387.8 6.8 44.0 29.1 737.3 2.2 7.0 403.4 102.9 8.0 20.7 19.8 3.2 265.7 0.8 1753.9 4422

COMBI - BREAKDOWN

Combi Conventional 13.8 127.9 2.3 7.8 37.3 1.2 1.3 - 218.4 63.8 13.2 36.5 9.7 670.6 2.8 7.1 369.4 98.6 8.2 159.9 12.6 1.7 160.0 - 1259.0 3283

Combi With Pre-Heat 2.6 0.9 0.0 2.5 0.2 - - - 126.7 94.4 0.2 - 0.4 69.5 - - 8.0 0.7 - - 0.3 1.2 102.4 - 53.3 463

Combi With Storage > 40L 2.3 13.2 - 2.0 6.7 0.9 0.1 - 77.6 7.0 - 3.7 0.3 43.2 0.1 - 8.0 1.0 0.6 7.3 0.7 - - 0.0 22.0 197

Country AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK TOTAL GAS FLOOR STANDING BOILERS 3.8 8.7 0.0 0.3 5.1 0.5 0.2 - 30.1 47.4 0.1 1.9 0.4 20.4 0.2 0.6 0.8 5.0 0.4 1.0 4.6 0.2 3.4 0.1 15.4 150 of which CONDENSATION

Condensing 2.7 6.1 0.0 0.2 0.6 0.5 0.0 - 18.6 36.4 0.0 0.2 0.4 10.3 0.1 0.0 0.8 2.8 0.3 0.3 0.3 0.1 1.6 0.1 15.0 97

Non-condensing 1.1 2.6 0.0 0.1 4.5 0.0 0.2 - 11.5 11.0 0.0 1.7 0.1 10.1 0.1 0.6 - 2.2 0.1 0.7 4.4 0.1 1.8 - 0.4 53

BURNER TYPE

Conventional 0.1 - 0.0 0.1 4.2 - 0.2 - 1.8 0.2 - - 0.1 8.5 0.1 0.5 - 1.2 0.1 0.7 4.3 0.0 0.7 - 0.4 23

Fan assisted premix 2.7 6.1 0.0 0.2 0.9 0.5 0.0 - 18.6 36.4 0.0 0.2 0.4 10.3 0.1 0.1 0.8 2.8 0.3 0.3 0.2 0.1 1.6 0.1 15.0 98

other low NOx 1.0 2.6 0.0 0.0 0.1 0.0 - - 9.6 10.8 0.0 1.7 - 1.5 - - - 1.0 - 0.0 0.2 0.0 1.1 - - 30

HOT WATER PRODUCTION

Combi

Heating Only with External Cylinder 2.9 6.1 0.0 0.1 4.2 0.4 0.0 - 11.1 33.8 0.1 0.1 0.1 5.5 0.1 0.1 0.7 2.3 0.1 0.3 3.1 0.1 3.2 0.1 13.9 88

Heating Only with Integrated Cylinder 0.5 1.2 0.0 0.2 0.4 - - - 10.5 - - 0.0 - 10.6 - - - 0.5 0.3 0.0 0.6 0.0 - - - 25

Heating Only Without Cylinder 0.4 1.4 0.0 0.1 0.5 0.1 0.1 - 8.5 13.6 0.0 1.8 0.3 4.2 0.1 0.5 0.1 2.2 0.0 0.6 1.0 - 0.3 0.0 1.4 37

FLUE TYPE

Open 1.0 1.9 0.0 0.1 1.4 0.0 0.2 - 3.3 9.2 0.0 1.6 0.1 2.5 0.1 0.6 - 2.1 0.1 0.7 4.4 0.0 1.8 - 1.5 33

Room Sealed (Balanced) - - 0.0 ------0.2 - - 0.4 - - - - - 0.0 ------1

Room Sealed (Fanned) 2.8 6.7 0.0 0.2 3.7 0.5 0.0 - 26.7 37.9 0.0 0.3 0.0 17.8 0.1 0.0 0.8 2.9 0.3 0.3 0.3 0.1 1.6 0.1 13.9 117

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 93

EU 25 – BOILER SALES 2014 - TECHNICAL SEGMENTATION (c’td) Country AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK TOTAL JET BURNER BOILERS 4.9 20.3 0.2 1.7 0.3 1.3 0.3 2.6 53.3 69.0 5.4 0.2 28.2 13.9 0.1 0.2 0.2 3.2 1.4 0.9 0.2 2.6 26.3 0.2 50.3 287 of which CONDENSATION

Condensing 4.2 5.2 0.1 0.2 0.1 0.8 0.0 0.6 24.1 47.7 0.2 0.0 27.3 2.4 0.0 0.0 - 1.1 0.1 0.1 0.1 0.2 1.3 - 49.4 165

Non-condensing 0.7 15.1 0.1 1.5 0.1 0.6 0.3 2.0 29.2 21.3 5.3 0.1 0.9 11.5 0.1 0.2 0.2 2.1 1.3 0.8 0.1 2.4 25.0 0.2 0.9 122

HOT WATER PRODUCTION

Combi ------

Heating Only with External Cylinder 2.2 13.9 0.2 0.7 0.1 1.0 0.0 0.4 28.1 48.5 4.6 0.0 26.7 2.7 0.0 0.0 0.0 1.4 0.3 0.7 0.1 1.0 3.2 0.0 44.8 181

Heating Only with Integrated Cylinder 1.0 4.4 - 0.6 0.0 0.2 - 0.0 16.8 8.1 - - - 2.9 - - - 1.1 0.5 0.1 - 0.4 11.0 0.1 - 47

Heating Only Without Cylinder 1.7 2.1 0.0 0.4 0.1 0.1 0.2 2.2 8.3 12.5 0.9 0.1 1.4 8.3 0.1 0.2 0.2 0.7 0.7 - 0.1 1.2 12.1 0.1 5.5 59

FLUE TYPE

Open 0.5 12.1 - 0.5 0.1 0.4 0.1 1.2 24.7 14.7 5.3 0.1 0.9 10.2 0.1 0.1 0.2 1.8 1.3 0.6 0.1 2.0 18.7 0.2 1.0 97

Room Sealed (Balanced) ------0.0 ------0.2 - - - - 0.0 0

Room Sealed (Fanned) 4.3 8.2 - 1.1 0.1 0.9 0.2 1.3 28.5 54.3 0.2 0.0 27.3 3.7 0.0 0.1 - 1.3 0.2 0.1 0.1 0.5 7.6 - 49.3 189

Table 43.EU - HEAT EXCHANGER, IGNITION AND FUEL SEGMENTATIONS - 2014, TOTAL EU (in 000 units) (Source: BRG 2017) Gas Wall Hung Boilers Gas Floor Standing Boilers Jet Burner Boilers Units % Share Units % Share Units % Share Gas Type Fuel Type LPG 99.2 2% 5.1 3% Bi-Fuel Units 8.9 3% Natural 4985.2 98% 145.2 97% Gas Units 16.9 6% Gas Type Total 5084.4 150.4 Oil Units 197.9 69% Heat Exchanger - - Oil/Gas Units 63.2 22% Aluminium 1674.8 33% 40.0 27% Fuel Type Total 286.9 Cast Iron 29.3 1% 25.1 17% Heat Exchanger Copper 524.5 10% 7.7 5% Cast-iron 70.0 24% Steel 2855.8 56% 77.6 52% Other 52.3 18% Heat Exchanger Total 5084.4 150.4 Steel/Mixed 164.7 57% Ignition Type - - Heat Exchanger Total 286.9 Electronic 5084.4 100% 149.8 100% Pilot - 0% 0.6 0% Ignition Type Total 5084.4 150.4

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 94

Table 44. BOILER SALES 2004 and 2014, 'OTHER PRODUCTS' (in 000 units) HEAT PUMPS to water yr AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK EU25 Exhaust Air-Water 2004 0.26 - - - - 0.10 - 1.60 0.30 0.50 ------0.01 - 0.01 - - 15.10 0.05 17.9 2014 0.40 - - - 0.08 0.27 - 1.78 0.70 1.65 - 0.06 0.05 - - - - 0.48 0.11 0.05 0.07 - - 11.50 1.32 18.5

Ground Source 2004 3.40 0.36 0.01 - 0.90 0.40 0.57 2.90 11.28 9.70 0.01 0.10 1.35 0.45 0.40 0.32 1.50 1.00 - 0.01 0.07 0.31 0.10 41.40 0.70 77.2 2014 4.70 1.70 0.15 0.15 1.65 2.40 1.60 11.10 3.40 16.10 0.08 0.29 0.08 0.90 0.55 0.70 2.50 5.50 0.05 0.30 0.17 0.40 0.90 24.60 1.50 81.5

Outside Air-Water 2004 0.38 0.04 0.01 - 0.45 0.06 0.01 - 9.80 3.05 0.08 - 0.10 2.00 0.01 - 0.18 - - 0.01 0.04 0.07 0.70 6.50 0.10 23.6 2014 10.30 7.70 0.36 0.75 6.40 3.00 0.13 1.50 72.50 39.70 5.30 0.61 1.40 20.00 0.05 0.10 4.30 2.40 2.25 0.20 0.54 3.00 6.20 8.10 15.56 212.4 TOTAL HEAT PUMPS 2004 4.0 0.4 0.0 - 1.4 0.6 0.6 4.5 21.4 13.3 0.1 0.1 1.5 2.5 0.4 0.3 1.7 1.0 0.0 0.0 0.1 0.4 0.8 63.0 0.9 119 2014 15.4 9.4 0.5 0.9 8.1 5.7 1.7 14.4 76.6 57.5 5.4 1.0 1.5 20.9 0.6 0.8 6.8 8.4 2.4 0.6 0.8 3.4 7.1 44.2 18.4 312

HYBRIDS & micro-CHP yr AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK EU25 Hybrids (HP+gas) 2014 ------2.15 0.92 - - - 3.10 ------0.30 - 0.08 6.6 Micro-CHP 2014 - 0.07 ------2.40 ------0.05 ------0.57 3.1

SOLAR yr AT BE BU CR CZ DK EE FI FR DE GR HU EI IT LV LT NL PL PT RO SK SI ES SE UK EU25 Flat plate, total 2004 180.0 13.8 6.0 4.5 8.2 20.0 0.1 2.0 58.0 675.0 215.0 3.0 2.2 96.0 0.1 0.1 14.0 26.3 15.1 1.0 4.9 4.4 80.0 17.8 16.8 1464 Flat plate, total 2014 150.0 36.2 13.0 19.4 27.2 129.0 0.3 3.0 148.6 830.0 272.0 14.5 14.7 251.0 2.7 2.0 23.3 192.0 74.0 7.2 10.4 3.5 157.5 5.0 29.1 2416 −o/w combi 2014 84.8 4.2 1.0 2.2 8.3 124.4 - 1.4 14.9 215.8 1.1 0.9 0.4 40.2 - - 4.1 30.7 5.3 0.4 2.6 0.8 15.8 4.6 1.5 565 −o/w WH only 2014 65.3 32.0 12.0 17.2 18.9 4.6 0.3 1.6 133.7 614.2 270.9 13.6 14.3 210.8 2.7 2.0 19.2 161.3 68.7 6.8 7.8 2.7 141.8 0.4 27.6 1851

Unglazed, total 2004 8.9 1.6 - - 2.7 0.6 - - 3.0 40.0 - 0.3 0.1 3.6 - - 7.6 - 0.9 - 5.0 - 8.0 14.0 1.3 98 Unglazed, total 2014 2.3 6.5 - - 35.0 0.8 - - 6.1 10.0 - 0.3 0.1 6.0 - - 2.5 - 1.3 0.2 15.0 - 18.5 4.0 4.8 113 −o/w combi 2014 ------−o/w WH only 2014 2.3 6.5 - - 35.0 0.8 - - 6.1 10.0 - 0.3 0.1 6.0 - - 2.5 - 1.3 0.2 15.0 - 18.5 4.0 4.8 113

Vacuum, total 2004 2.6 0.9 0.4 0.7 2.0 0.5 0.0 0.3 2.7 86.0 - 0.3 16.0 16.3 0.0 0.1 - 3.7 0.0 0.7 0.6 0.3 6.0 2.4 7.5 150 Vacuum, total 2014 2.9 8.6 0.4 2.7 11.2 2.0 0.3 1.0 12.6 85.0 0.7 5.1 10.6 40.0 0.8 0.8 1.4 64.7 0.7 12.5 2.6 1.2 8.3 1.6 7.0 285 −o/w combi 2014 1.7 8.6 0.0 0.6 6.3 0.0 - 0.6 2.6 22.1 - 0.4 0.5 8.6 - - 0.5 7.8 0.0 1.3 1.9 0.3 2.9 1.5 0.5 69 −o/w WH only 2014 1.2 - 0.4 2.1 4.9 2.0 0.3 0.4 10.0 62.9 0.7 4.7 10.1 31.4 0.8 0.8 0.9 56.9 0.7 11.3 0.7 0.9 5.4 0.0 6.5 216

TOTAL SOLAR 2004 191.5 16.3 6.4 5.2 12.9 21.1 0.1 2.3 63.8 801.0 215.0 3.6 18.3 115.9 0.1 0.2 21.6 30.0 16.0 1.7 10.5 4.7 94.0 34.2 25.5 1712 2014 155.2 51.3 13.4 22.1 73.4 131.8 0.6 4.0 167.3 925.0 272.7 19.9 25.4 297.0 3.5 2.8 27.2 256.7 76.0 19.9 28.0 4.7 184.3 10.6 40.9 2814

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 95

Table 45. EU25 - HEAT PUMP BOILER UNIT SALES 2014 - Per Member State and Output power class (VHK based on BRG 2017 data) Heat Pump Outside Air-Water Heat Pump Ground source

Classes Output (kW) <5 5<10 10<15 15<20 >20 EU Total <5 5<10 10<15 15<20 >20 EU Total Average per class (kW) 4 7.5 12.5 17.5 25 4 7.5 12.5 17.5 25 Sales:

AUSTRIA 1236 6180 2369 309 206 10300 165 1763 1786 494 494 4702 BELGIUM 1848 3311 2387 116 39 7701 289 782 477 85 68 1701 BULGARIA 29 108 186 29 9 361 0 27 94 25 6 152 CROATIA 60 443 165 57 27 752 5 48 60 25 14 152 CZECH REPUBLIC 416 4122 948 640 276 6402 68 1240 215 91 38 1652 DENMARK 310 1170 1200 211 111 3002 600 551 960 150 140 2401 ESTONIA 0 25 78 28 0 131 48 432 624 304 192 1600 FINLAND 71 930 266 125 110 1502 2061 6230 1460 450 900 11101 FRANCE 10151 26825 23925 9425 2175 72501 187 884 317 1724 289 3401 GERMANY 1588 25408 10322 1481 902 39701 805 6601 4347 2498 1850 16101 GREECE 212 3392 1378 159 159 5300 4 34 21 12 11 82 IRELAND 70 812 364 140 14 1400 18 16 31 4 12 81 ITALY 1800 8400 6400 2200 1200 20000 45 275 324 131 127 902 LATVIA 0 32 13 2 0 47 28 231 143 78 72 552 LITHUANIA 4 64 26 3 3 100 35 294 182 99 91 701 NETHERLANDS 3225 753 172 108 43 4301 1725 375 225 75 100 2500 POLAND 240 600 516 840 205 2401 275 2255 1430 1254 286 5500 PORTUGAL 90 417 1688 34 23 2252 0 3 6 24 18 51 ROMANIA 5 115 70 10 0 200 0 31 199 56 16 302 SLOVAKIA 0 176 325 34 6 541 4 81 66 16 5 172 SLOVENIA 99 2175 726 0 0 3000 13 264 124 0 0 401 SPAIN 124 2418 3162 310 186 6200 90 180 450 45 135 900 SWEDEN 0 3600 3420 581 500 8101 2712 11235 8136 969 1550 24602 UNITED KINGDOM 2490 7936 2023 934 2179 15562 390 315 480 135 180 1500

EU TOTAL sales 24068 99412 62129 17776 8373 211758 9567 34147 22157 8744 6594 81209 EU TOTAL MW 96 746 777 311 209 2139 38 256 277 153 165 889 EU Average kW/unit 10.1 10.9

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Table 46. EU25 BOILER SALES 2014 – TECHNICAL SEGMENTATION BY POWER CLASS (in 000 units sales, average power in kW, total power in MW) (Source: VHK elaboration of data BRG 2017) AUSTRIA BELGIUM BULGARIA CROATIA CZECH REPUBLIC DENMARK ESTONIA 0.2 Floor Standing Gas Cond 0 Class limits 15 25 60 60 tot 35 70 150 500 500 tot 25 50 50 tot 25 50 12 12 tot 30 50 100 100 tot 60 60 tot 30 100 100 tot sales per class 0.3 0.8 0.8 0.8 2.7 2.9 1.1 0.7 1.2 0.2 6.1 0.0 0.0 0.0 0.0 0. 0.0 0.10 0.00 0.2 0.4 0.0 0.0 0.2 0.6 0.3 0.2 0.5 - 0.03 - 0.0 Average kW per class 12 20 43 10 51 28 53 110 325 750 127 200 381 1052 833 201 38 85 25 58 24 40 75 210 94 48 102 69 24 65 110 653 Total MW 4 16 34 852 138 80 60 76 382 173 772 0 0 2 2 2 0 6 2 11 9 1 2 48 59 14 18 31. 0 2 0 2 Floor Standing Gas Non-cond 5 Class limits 15 25 60 60 35 70 150 500 500 25 50 50 25 50 12 12 30 50 100 100 60 60 30 100 100 sales per class 0.1 0.4 0.5 0.1 1.1 2.1 0.4 0.04 0.0 0.0 2.6 0.0 0.0 0.0 0.0 0. 0.1 0.00 0.00 0.1 4.2 0.2 0.1 0.1 4.5 0.0 0.0 0.0 0.03 0.11 0.0 0.1 Average kW per class 12 20 43 10 34 28 53 110 3252 7501 38 200 381 1051 832 200 38 85 25 78 24 40 75 210 29 48 102 102 24 65 1102 645 Total MW 1 9 20 72 37 60 19 4 7 8 99 0 0 1 1 0 2 4 42 10 100 7 6 17 131 0 1 1.0 1 7 2 10 Jet Burner Cond Class limits 20 30 60 35 350 25 35 70 70 25 50 120 120 25 50 12 12 25 50 150 350 350 35 60 60 30 100 100 sales per class 1.4 1.4 1.2 0.20 0.0 4.2 1.8 2.3 1.0 0.1 5.2 0.0 0.0 0.0 0.0 0.1 0. 0.1 0.00 0.00 0.2 0.0 0.1 0.00 0.0 0.0 0.1 0.3 0.4 0.1 0.8 0.01 0.01 0.0 0.0 Average kW per class 16 25 45 20 595 35 20 30 53 105 32 204 381 853 2520 45 200 38 85 25 39 200 384 100 2500 7350 38 28 48 10 47 24 65 1100 452 Total MW 22 35 54 375 0 148 36 70 51 7 164 1 0 2 0 3 1 5 2 02 8 0.0 5.1 0.0 0.0 0.0 5 8 17 102 35 0 1 0 1 Jet Burner Non-Cond Class limits 20 30 60 35 350 25 35 70 70 25 50 120 120 25 50 12 12 25 50 150 350 350 35 60 60 30 100 100 sales per class 0.2 0.2 0.2 0.10 0.0 0.7 2.1 6.3 5.6 1.1 15.1 0.0 0.0 0.0 0.0 0.1 0. 0.5 0.60 0.20 1.5 0.0 0.0 0.0 0.0 0.1 0.1 0.3 0.2 0.2 0.6 0.0 0.2 0.0 0.3 Average kW per class 16 25 45 20 5951 44 20 30 53 105 42 203 381 856 2523 98 201 38 85 25 90 20 38 100 250 735 644 28 48 10 54 24 65 110 66 Total MW 3 5 8 135 0 30 42 189 294 116 641 1 0 5 7 13 2 20 48 602 13 0.0 0.6 0.0 0.0 73. 74 7 7 152 29 1 14 3 18 Wall Hung Gas Cond 1 5 Class limits 15 25 60 60 23 25 35 70 70 12 20 20 15 25 50 50 12 20 50 50 18 25 25 15 25 25 sales per class 2.9 13. 2.9 0.6 19.6 14. 64.0 55.3 11. 1.8 147 0.0 0.7 0.3 1.0 0. 4.0 0.0 0.2 4.8 4.9 11. 18.2 1.1 35.7 14. 4.0 0.3 18. 0.0 0.3 0.3 0.6 Average kW per class 12 203 43 10 25 185 24 30 536 105 29 10 16 42 246 126 20 38 10 22 10 165 35 105 28 146 22 43 169 12 20 28 23 Total MW 34 266 121 592 480 268 153 165 611 185 425 0 12 14 25 8 80 0 195 10 47 184 637 116 984 210 86 12 309 0 7 7 14 Wall H.Gas Cond+Floor Std Cyl. 5 8 6 6 Class limits 15 25 60 60 23 25 35 70 70 15 25 50 50 12 20 50 50 18 25 25 sales per class 1.3 0.9 0.0 0.0 2.1 1.4 0.5 0.9 0.0 0.0 2.7 0. 0.1 0.0 0.0 0.1 0.0 0.2 0.4 0.0 0.6 0.5 0.1 0.0 0.6 Average kW per class 12 20 43 10 15 18 24 30 530 1050 23 120 20 38 10 20 10 16 35 105 28 14 22 43 15 Total MW 15 17 0 02 33 25 11 27 0 0 63 0 2.4 0 05 2.4 0 3 14 0 17 7 1 0 8 Wall Hung Gas Non-Cond Class limits 15 25 60 60 23 25 35 70 70 12 20 20 15 25 50 50 12 20 50 50 15 25 25 sales per class 4.5 14. 1.2 0.0 20.6 0.9 20.1 3.7 0.1 0.0 24.7 0.1 0.9 1.0 2.0 0. 7.1 1.8 0.0 9.7 1.5 3.0 27.1 0.3 31.9 0.0 0.8 0.2 1.0 Average kW per class 12 208 43 10 20 18 24 30 53 1050 25 10 16 42 295 128 20 38 10 23 10 16 35 105 33 12 20 28 22 Total MW 54 297 53 02 404 16 481 110 5 0 613 1 14 43 59 9 14 69 0.05 22 15 49 947 26 1037 0 15 7 22 TOTAL <60 >6 <70 >70 <50 >50 <52 >5 0 <50 >50 7 <60 >60 <10 >10 sales per class 49 20 51 198 5 204 3 0.1 3 150 1.10 17 72 1.9 74 21 0.4 21 20 0.10 2 Average kW per class 22 11 25 28 188 32 27 120 31 22 12 29 28 154 31 18 102 20 30 110 32 Total MW 106 205 127 564 959 660 87 17. 104 34 147 48 201 289 2307 370 44. 414 61 5.5 66 class multipliers: lowest, middle, 9 1 0 8 7 4 0. 3 5 8 7 4 highest 0.8 0.5 0.5 1.7 0.8 0.5 0.5 1.5 0.8 0.5 0.5 2.1 8 0.5 0.5 2.1 0.8 0.5 0.5 2.1 0.8 0.5 0.5 1.7 0.8 0.5 0.5 1.1

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 97

FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY Floor Standing Gas Cond Class limits 30 70 180 180 tot 15 25 50 50 All 25 70 70 12 18 25 44 44 35 50 100 100 sales per class 5.5 6.0 3.3 3.8 18.6 2.3 8.8 11.4 13.9 36.4 0.02 0.02 - 0.0 0.1 0.2 - 0.0 0.0 0.0 0.3 0.4 6.8 1.9 0.8 0.8 10.3 Average kW per class 24 50 125 270 101 12 20 38 105 57 60 60 20 48 119 110 10 15 22 35 106 86 28 43 75 210 48 Total MW 132 299 408 1035 1875 28 177 427 1454 2086 1.2 1.2 0 1 17 18 0 0 1 1 30 32 190 79 60 167 496 Floor Standing Gas Non-cond Class limits 30 70 180 180 15 25 50 50 All 25 70 70 12 18 25 44 44 35 50 100 100 sales per class 8.0 2.5 0.3 0.6 11.5 2.1 5.9 2.3 0.7 11.0 0.05 0.05 0.1 1.5 0.1 1.7 0.0 0.0 0.0 0.0 0.0 0.0 9.4 0.3 0.1 0.3 10.1 Average kW per class 24 50 125 270 46 12 20 38 105 27 60 60 20 48 119 51 10 15 22 35 106 62 28 43 75 210 34 Total MW 192 126 42 167 526 25 118 88 68 299 2.7 2.7 2 72 15 89 0 0 0 0 1 1 263 11 11 60 346 Jet Burner Cond Class limits 60 60 tot 30 70 180 180 25 50 120 120 30 70 180 180 25 70 120 120 12 18 25 44 44 35 50 110 110 sales per class 0.4 0.2 0.6 20.3 3.3 0.3 0.2 24.1 35.4 11.7 0.5 0.2 47.7 0.2 0.0 0.0 0.0 0.2 0.00 0.00 0.00 0.04 0.04 0.3 4.1 19.7 2.5 0.7 27.3 2.1 0.1 0.1 0.0 2.4 Average kW per class 48 102 67 24 50 125 270 30 20 38 85 252 26 24 50 125 306 24 20 48 95 204 204 10 15 22 35 106 24 28 43 80 231 34 Total MW 18 20 39 487 165 36 45 733 708 438 41 47 1234 4 0 0 0 4 0 0 0 8 8 3 62 423 87 74 649 59 6 11 6 82 Jet Burner Non-Cond Class limits 60 60 30 70 180 180 25 50 120 120 30 70 180 180 25 70 120 120 12 18 25 44 44 35 50 110 110 sales per class 1.7 0.4 2.0 22.5 3.7 2.1 0.9 29.2 12.5 4.6 1.5 2.6 21.3 2.9 1.6 0.6 0.3 5.3 0.0 0.0 0.0 0.1 0.1 0.0 0.1 0.5 0.0 0.3 0.9 8.6 1.1 0.6 1.2 11.5 Average kW per class 48 102 57 24 50 125 270 42 20 38 85 252 57 24 50 125 306 60 20 48 95 204 204 10 15 22 35 106 46 28 43 80 231 53 Total MW 79 36 115 541 183 266 235 1225 251 173 131 657 1212 68 78 70 102 318 0 0 0 23 23 0 1 10 2 27 40 241 46 51 275 612 Wall Hung Gas Cond Class limits 15 30 70 70 15 25 50 50 15 25 25 15 25 70 70 12 18 25 44 44 17 35 35 sales per class 39.2 221.9 0.0 1.5 262 77.4 183.1 25.1 15.3 301 0.0 5.9 0.2 6.1 0.3 18.0 4.5 1.6 24.4 2.0 4.3 17.0 4.6 1.2 29.1 24.6 234.4 9.5 268.5 Average kW per class 12 23 50 105 21 12 20 38 105 24 12 20 43 21 12 20 48 119 31 10 15 22 35 106 25 14 26 74 27 Total MW 470 4992 0 152 5614 929 3663 943 1607 7141 0 118 9 127 3 361 213 190 768 19 65 365 160 127 736 335 6094 698 7127 Wall H.Gas Cond+Floor Std Cyl. Class limits 15 30 70 70 15 25 50 50 15 25 70 70 17 35 35 sales per class 5.7 30.4 1.9 0.0 38 27.2 41.8 4.0 0.0 73 0.0 0.1 0.0 0.0 0.1 0.7 7.3 0.0 8.0 Average kW per class 12 23 50 105 22 12 20 38 105 18 12 20 48 119 28 14 26 74 25 Total MW 68 684 95 0 847 326 837 151 0 1313 0 1 1 0 3 10 189 0 199 Wall Hung Gas Non-Cond Class limits 15 30 70 70 15 25 50 50 15 25 25 15 25 70 70 12 18 25 44 44 17 35 35 sales per class 10.6 159.0 42.4 0.0 212 7.1 83.8 7.2 0.0 98 0.0 9.4 1.6 10.9 0.0 29.1 7.6 0.0 36.7 0.0 1.7 0.0 0.0 0.0 1.7 72.2 462.8 0.8 535.8 Average kW per class 12 23 50 105 27 12 20 38 105 21 12 20 43 23 12 20 48 119 26 10 15 22 35 106 15 14 26 74 24 Total MW 127 3578 2120 0 5825 85 1676 268 0 2029 0 187 66 253 0 582 361 0 943 0 25 0 0 0 25 982 12032 59 13073 TOTAL <60 >60 <70 >70 <50 >50 <70 >70 <70 >70 <44 >44 <50 >50 sales per class 2 0.6 2.6 583 13.0 596 554 34.6 588 22 0.9 23 61 2.0 63 57 2.4 59 843 4.0 847 Average kW per class 48 102 60 24 184 28 20 116 26 25 193 31 26 126 29 22 106 25 25 160 26 Total MW 97 56.1 154 14259 2386 16645 11309 4 005 15314 533 171.8 705 1598 254 1852 1224 258 1482 21295 640.3 21935 class multipliers: lowest, middle, highest 0.8 1.7 0.8 0.5 0.5 1.5 0.8 0.5 0.5 2.1 0.8 0.5 0.5 1.7 0.8 0.5 0.5 1.7 0.8 0.5 0.5 2.4 0.8 0.5 0.5 2.1

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 98

LATVIA LITHUANIA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA Floor Standing Gas Cond Class limits 30 100 100 30 100 100 30 60 120 250 250 35 50 50 30 70 70 25 70 70 30 50 100 100 sales per class 0.0 0.0 - 0.1 - 0.04 - 0.04 - - 0.1 0.3 0.4 0.8 1.5 0.3 1.0 2.8 0.0 0.1 0.2 0.3 0.0 0.2 0.1 - 0.3 0.1 0.0 0.1 0.1 0.3 Average kW per class 24 65 110 45 24 65 110 65 24 45 90 185 425 297.4 28 43 105 57 24 50 119 94 20 48 105 59 24 40 75 210 79 Total MW 0.6 1.6 0 2.2 0 2.6 0 2.6 0 0 5.4 58 159 223 43 11 105 159 1 3 21 25 0 9 6 15 2 2 7 11 22 Floor Standing Gas Non-cond Class limits 30 100 100 30 100 100 35 50 50 30 70 70 25 70 70 30 50 100 100 sales per class 0.0 0.1 0.0 0.1 0.1 0.4 0.0 0.6 1.3 0.3 0.6 2.2 0.1 0.0 0.0 0.1 0.1 0.5 0.2 0.7 2.3 2.0 0.0 0.0 4.4 Average kW per class 24 65 110 71 24 65 110 58 28 43 105 49 24 50 119 53 20 48 105 57 24 40 75 210 33 Total MW 0 6 3 10 3 29 1 32 37 13 58 108 2 2 4 7 2 22 17 41 55 80 3 5 143 Jet Burner Cond Class limits 30 100 100 30 100 100 50 200 200 30 70 180 180 25 70 120 120 25 50 150 350 350 sales per class 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.1 0.0 1.1 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0 0.0 0.0 0.1 0.0 0.0 0.1 Average kW per class 24 65 110 57 24 65 110 65 40 125 420 61 24 50 125 306 33 20 48 95 180 115 20 38 100 250 735 141 Total MW 0 2 0 2 0 1 0 1 38 14 15 67 2 2 0 0 3 0 1 1 6 9 0 0 10 5 3 17 Jet Burner Non-Cond Class limits 30 100 100 30 100 100 60 120 250 250 50 200 200 30 70 180 180 0.0 25 70 120 120 25 50 150 350 350 sales per class 0.0 0.1 0.1 0.1 0.0 0.2 0.0 0.2 0.1 0.1 0.0 0.0 0.21 1.4 0.4 0.3 2.1 0.3 0.9 0.1 0.0 1.3 0.0 0.4 0.1 0.3 1 0.0 0.0 0.0 0.0 0.0 0.1 Average kW per class 24 65 110 85 24 65 110 71 48 90 185 425 134 40 125 420 112 24 50 125 306 56 20 48 95 180 100 20 38 100 250 735 237 Total MW 0 4 6 9 0 11 4 16 4 6 9 10 28 54 50 126 230 7 45 12 10 75 0 19 10 49 78 0 1 1 12 11 25 Wall Hung Gas Cond Class limits 15 25 25 15 25 25 23 30 60 60 23 30 50 50 22 28 28 15 25 70 70 13 20 50 50 sales per class 0.0 0.7 0.6 1.3 0.3 2.7 1.6 4.6 9.8 #### 153.1 8.6 399 14.4 53.6 12.0 3.3 83.3 0.1 1.4 0.5 0.0 2.0 0.0 13.2 5.2 0.5 18.9 3.3 5.5 10.4 0.3 19.4 Average kW per class 12 20 28 24 12 20 28 22 18 27 45 102 35 18 27 40 105 30 18 25 28 0 25 12 20 48 105 30 10 17 35 105 27 Total MW 0 14 17 31 3 54 44 102 180 6035 6890 877 13982 265 1420 480 347 2512 2 34 13 0 49 0 265 245 47 557 34 90 365 26 515 Wall H.Gas Cond+Floor Std Cyl. Class limits 23 30 60 60 23 30 50 50 15 25 70 70 13 20 50 50 sales per class 0.0 0.1 0.2 0.0 0.20 0.1 4.7 1.0 0.0 5.8 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.2 0.0 0.4 Average kW per class 18 27 45 102 40 18 27 40 105 29 12 20 48 105 n.a. 10 17 35 105 26 Total MW 0 1 7 0 8 1 125 41 0 167 0 0 0 0 0 0 2 9 0 11 Wall Hung Gas Non-Cond Class limits 15 25 25 15 25 25 23 30 60 60 23 30 50 50 22 28 28 15 25 70 70 13 20 50 50 sales per class 0.2 1.7 0.3 2.2 0.6 2.6 0.4 3.6 0.3 4.9 0.0 0.0 5.20 6.8 81.2 6.9 0.0 95.0 0.5 6.7 2.1 9.3 0.0 128.7 40.7 0.0 169 1.5 2.3 6.5 0.1 10.4 Average kW per class 12 20 28 20 12 20 28 20 18 27 45 102 26 18 27 40 105 27 18 25 48 30 12 20 48 105 27 10 17 35 105 28 Total MW 3 33 7 43 7 52 12 71 6 130 0 0 135 126 2152 277 0 2556 8 168 99 275 0 2575 1931 0 4506 16 37 227 6 287 TOTAL <100 >100 <100 >100 <60 >60 <50 >50 <70 >70 <70 >70 <50 >50 sales per class 4 0.1 4 9 0.1 9 396 9 406 187 5.7 192 13 0.3 13 189 1.1 190 34 0.7 35 Average kW per class 24 110 26 24 110 25 33 119 35 27 125 30 31 139 33 27 125 27 27 140 29 Total MW 88 8.8 97 219 5.5 224 13251 1124 14376 5084 715 5799 388 47.3 435 5069 138 5207 921 100 10211 class multipliers: lowest, middle, highest 0.8 0.5 0.5 1.1 0.8 0.5 0.5 1.1 0.8 0.5 0.5 1.7 0.8 0.5 0.5 2.1 0.8 0.5 0.5 1.7 0.8 0.5 0.5 1.5 0.8 0.5 0.5 2.1

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 99

SLOVENIA SPAIN SWEDEN UK EU Floor Standing Gas Cond Class limits 20 35 50 50 25 50 70 120 120 60 60 12 18 25 44 44 <70 >70 tot sales per class - 0.03 0.02 0.04 0.09 0.1 0.4 0.1 0.4 0.7 1.6 - 0.1 0.1 - 2.8 2.6 3.6 5.4 14.4 63 33.4 97 Average kW per class 16 28 43 105 67 20 38 60 95 180 116 48 102 102 10 15 22 35 106 55 32 147 72 Total MW 0 1 1 4 6 1 14 5 37 129 185 0 13 13.3 0 42 56 124 570 791 2052 4917 6968 Floor Standing Gas Non-cond Class limits 20 35 50 50 25 50 70 120 120 12 18 25 44 44 sales per class 0.00 0.01 0.05 0.01 0.07 0.1 0.8 0.2 0.4 0.3 1.8 0.0 0.0 0.0 0.0 0.4 0.4 49 3.8 53 Average kW per class 16 28 43 105 50 20 38 60 95 180 74 10 15 22 35 106 106 30 151 39 Total MW 0 0 2 1 4 2 31 10 40 50 133 0 0 0 0 46 46 1496 581 2077 Jet Burner Cond Class limits 25 50 120 120 25 50 70 120 120 30 60 60 12 18 25 44 44 sales per class 0.0 0.1 0.0 0.1 0.2 0.3 0.6 0.2 0.1 0.1 1.3 0.0 0.0 0.0 0.0 0.0 7.1 32.9 5.1 4.3 49.4 156 8.8 165 Average kW per class 20 38 85 252 106 20 38 60 95 180 53 24 45 102 10 15 22 35 106 29 24 109 29 Total MW 0 4 1 14 19 7 23 10 5 24 69 0 0 0 0 0 107 708 174 454 1443 3777 966 4743 Jet Burner Non-Cond Class limits 25 50 120 120 25 50 70 120 120 30 60 60 12 18 25 44 44 sales per class 0.1 1.4 0.1 0.8 2.4 6.9 12.7 3.5 0.6 1.4 25.0 0.0 0.0 0.1 0.2 0.0 0.1 0.4 0.0 0.4 0.9 98 23.6 122 Average kW per class 20 38 85 252 112 20 38 60 95 180 45 24 45 102 98 10 15 22 35 106 56 31 144 53 Total MW 2 53 8 206 269 138 474 207 56 254 1129 0 0 14 15 0 1 8 1 37 48 2996 3407 6403 Wall Hung Gas Cond Class limits 15 25 50 50 18 30 70 70 60 60 12 18 25 44 44 sales per class 0.3 2.1 0.5 0.2 3.0 0.0 99.2 9.8 1.5 110 0.2 0.1 0.3 92.6 227.8 1107.1 303.6 18.8 1750 3456 55 3512 Average kW per class 12 20 38 105 27 14 24 50 105 27 48 102 69 10 15 22 35 106 23 24 104 25 Total MW 3 41 19 18 82 0 2381 491 158 3029 8 11 19.4 889 3417 23803 10473 1985 40566 83346 5784 89130 Wall H.Gas Cond+Floor Std Cyl. Class limits 15 25 50 50 60 60 sales per class 0.0 0.1 0.0 0.0 0.1 0.5 0.0 0.5 132 132 Average kW per class 12 20 38 105 23 48 102 48 20 20 Total MW 0 2 1 0 2 25 0 25.4 2700 2700 Wall Hung Gas Non-Cond Class limits 15 25 50 50 18 30 70 70 12 18 25 44 44 sales per class 0.0 0.2 0.0 0.0 0.3 0.0 132.6 23.4 0.0 156 0.0 0.0 2.7 1.6 0.0 4.3 1438 2.4 1441 Average kW per class 12 20 38 105 24 14 24 50 105 28 10 15 22 35 106 26 26 55 26 Total MW 0 5 2 0 7 0 3182 1170 0 4352 0 0 57 56 0 114 36714 132 36846 TOTAL <50 >50 <70 >70 <60 >60 < 44 > 44 <70 > 70 sales per class 5 1.2 6 291 5.5 296 1 0.4 1 1790 29.3 1819 5399 122 5521 Average kW per class 27 211 63 28 137 30 48 102 67 22 106 24 25 129 27 Total MW 136 251 387 8145 752 8897 34 38.8 73 39915 3093 43008 133 159 15 707 148 866 class multipliers: lowest, middle, highest 0.8 0.5 0.5 2.1 0.8 0.5 0.5 1.5 0.8 0.5 0.5 1.7 0.8 0.5 0.5 2.4

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 100

Note on technical segmentation by power classes:

The class limits are always the upper limits of subsequent classes (‘<’), except for the last one per country, which indicates the lower limit (‘≥’). The average power per class is calculated using the class multipliers at the bottom of each table: For the smallest class the upper limit is multiplied by 0.8; for the middle classes it is the average value (multiplying lower and upper limit both by 0.5 and then sum). For the highest class the multiplier varies per country. The reference is a limit of 70 kW (Energy label limit of the scope) with multiplier 1.5 times the lower limit (estimate VHK). This multiplier will be used if a country-specific limit of 70 kW exists. If it is lower, e.g. 60 instead of 70 kW, the multiplier will be corrected with a factor (70 / 60) * 1.5 = 1.7 (rounded to one digit). If it is higher, e.g. 100 kW, then the multiplier will be corrected with a factor (70 / 100) * 1.5 = 1.1 (rounded to one digit). With these corrections it is estimated that an estimate for the EU can be made for sales, average kW and total MW power for boilers <70kW and >70kW sold in 2014, within a reasonable margin of error (estimate ±10%).

The EU column shows that >70kW gas and jet burner boilers constitute 2.2% of 2014 unit sales (122 000 units) and 10.6% of total nominal power (15.7 GW). The average power per unit is estimated at 129 kW. Gas and jet burner boilers <70kW constitute 97.8% of unit sales (5.4 million units), 89.4% of total power (133 GW) and have an average power of 25 kW per unit.

The subdivision per boiler type shows that floor standing gas boilers and jet burner boilers, that make up less than 8% of the total sales, make up more than half (57%) of the >70kW sales. Floor standing gas boilers and jet burner boilers (mostly oil-fired) are typically used in commercial buildings and for collective heating of apartment buildings. Note that in recent years more and more cascades of smaller boilers are also used in these non-residential applications, as well as air conditioning systems, (other) heat pumps and district heating.

Ecodesign Review Boilers, Task 2, Final | July 2019 | VHK for EC 101

ANNEX II: EEA EFTA COUNTRIES

EEA EFTA Countries EEA EFTA countries are not explicitly included in the sales and stock data acquired from BRG for budgetary reasons. Nonetheless, especially Norway and Iceland may represent climatic extremes in space heating situation and therefore they are discussed here separately.

Norway With 5.1 million inhabitants (1% of the EEA) is the largest EEA EFTA country.

Most of Norwegian buildings are heated by electric resistance heating, mainly in the form of (local) electric radiators or convectors, supplemented by local wood heating (fireplaces, stoves). Water-based heating systems are relatively scarce, although there will be a stock of electric resistance boilers, solid fuel boilers and a very small share of district heating60. The share of installed oil-fired space heaters has been diminishing rapidly and their installation in new dwellings is now forbidden61, mainly for environmental reasons (emissions). There are hardly any gas-fired boilers. The share of solar assistance is modest.62

Table 47. Norway, avg. energy use per household (source: SSB) in kWh/a per hh. 1993 1994 1995 2001 2004 2006 2009 2012 Total 22 706 23 525 23 633 22 399 21 143 21 644 20 415 20 230 Electricity 18 064 18 436 18 537 17 779 15 991 16 240 15 977 16 044 Oil or paraffin 1 761 1 718 1 908 1 217 1 562 1 411 845 698 Solid fuel (mainly wood) 2 872 3 274 3 105 3 331 3 504 3 853 3 407 3 204

According to the Norwegian heat pump association NOVAP there were 750 000 heat pumps installed in Norway in March 2016.63 The prognosis is that in 2018 the installed heat pump stock will reach 1 million units. Over 90% of these heat pumps are in fact air- to-air room air conditioners; the remainder is split between air-to-water (4%), ground source-to-water (4%) and exhaust air (2%). Only this latter 10% is in the scope of the boiler regulation. Of the almost 50-70k heat pumps sold annually, 76% are new sales for existing houses, 10% are replacement sales in existing houses, 4% are placed in new houses and 10% in 'other' (commercial buildings and apartment buildings). The largest geographical market is Hedmark (North of Oslo), where many people from the Norwegian capital have their second home for weekends or holidays. This is also one of the coldest parts of Norway in the winter, where in fact the heating contribution of most room air conditioners (RACs) is problematic during that season. It can be expected that these RACs, typically 4 or 5 per house, are mainly used for cooling in the summer and possibly

60 https://www.ssb.no/en/energi-og-industri/artikler-og-publikasjoner/fjernvarme-og-fjernkjoling-i-norge 61 THEMA Consulting, Kapasitet og tilgjengelighet for oljefyring, Utarbeidet på oppdrag for OED, 2013. 62 Sorensen, Solar energy use and regulations in Norway, Trondheim 20.3.2015. See also www.solenergu.no 63 https://www.novap.no/artikler/snart-1-million-varmepumper-i-norge

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some heating in the half-season. The official number of second homes (or cabins) in Norway as of January 2010 is 429 000, whereof 34 000 are in Hedmark county alone on a total of 95 000 dwellings 64 65. Norway has 2.3 million households, i.e. primary dwellings, so 19% of households has a second home.

The share of heat pump boilers, i.e. air-to-water or ground or water source-to-water, is thus less than 10%, i.e. less than 75000 units. Sales are estimated at considerably less than 10 000 units/year.

Combi-boilers are almost non-existing. If there is a boiler for water-based space heating it may also heat the heating coil in a large separate cylinder placed next to it for hot water. For a single dwelling, a cylinder with a storage volume of over 1000 litres is no exception. The high hot water consumption, more than twice the EU average, is due to the Nordic culture of saunas and spas.

The climate in Norway, also during the heating season, is relatively mild for the 90% of the population living at the coast; comparable to e.g. the Netherlands. For the remaining 10% of the population that lives in the scarcely populated inland area, the Norwegian climate is very harsh and may reach temperatures of -30 or -40 degrees Celsius in winter.

Per capita income in Norway is the highest in the European Economic Area (EEA), more than twice the average, whereas the effective electricity prices —at an average annual consumption of 20 000 kWh/household and not at the Eurostat average of 3500 kWh/year— are the lowest in the EEA, around half of the average. In the Northern part of Norway there are additional subsidies on electricity (e.g. lower VAT tariff) to attract more inhabitants to those scarcely populated parts.

It is remarkable though that in 2016, while most other EEA countries lowered their prices, Norway substantially raised its electricity tariffs. For BE-band (>15 MWh, relevant for most Norwegians households are) the price including VAT and other taxes went from 8.5 Eurocent/kWh (July 2015) to 10.5 Eurocent/kWh (July 2016), a raise of 22% in one year. In the BC-band (2.5 to 5 MWh) the raise was smaller (13%), which might imply that Norway is taking some progression out of their tariffs.

64 EVEN TJØRVE, THOR FLOGNFELDT & KATHLEEN M.CALF TJØRVE, The Effects of Distance and Belonging on Second-Home Markets, Faculty of Economics and Organisation Science, Lillehammer University College, Lillehammer, Norway Tourism Geographies, 2013, Vol. 15, No. 2, 268–291. 65 https://knoema.com/cens_11dwob_r3/conventional-dwellings-by-occupancy-status-type-of-building-and- nuts-3-region?geo=1028350-hedmark (Eurostat site)

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Norway: Household electricity tariffs 2007-2016 (dotted line EU BC) 0.25

0.2054 0.20

0.1631

0.15 0.1181

0.10 0.1045 BC (2.5-5 MWh/a) BD (5-15 MWh/a) 0.05 BE (>15 MWh) avg. NO household EU average BC

tariff tariff in Euro/kWh VAT (incl. taxes) and 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year (tariff 2nd half)

(Source: Eurostat nrg_pc_204, extract Oct. 2017) Figure 26. Norway electricity tariffs 2007-2016 in Euro/kWh

The low electricity prices can be explained from the abundant availability of hydropower that is almost the only source of electricity. Norway is also rich in fossil fuels (gas) but most of this is exported e.g. to Germany. Last but not least, Norway is rich in forests and wood for heating is available in abundance.66

Norway's particular energy resources situation, and the prices that go with it, always places it at the extreme of any economic analysis relating to possible harmonised Ecodesign measures. Energy efficiency improvements are hardly ever 'economical' in the sense of payback period or least life cycle costs. This situation is aggravated by the fact that product prices are amongst the highest in the EEA. The same goes for the installation costs, due to the high wages.

Nonetheless, for Ecodesign regulation of central heating (combi) boilers the situation has not led to any problems, because there are hardly any central heating boilers —in scope— in Norway. This may change, i.e. problems may arise in the future, for instance in case requirements for electric heating boilers become more stringent.

Iceland Iceland is an EEA EFTA country with 330,000 inhabitants. According to euroheat.org almost all houses use district heating: 92% from geothermal heat and 3-4% from electricity. Furthermore, Euroheat expects that heat pumps may be installed in some cases for colder areas. The only barrier to a complete role out of district heating in Iceland is the lack of geothermal energy sources of sufficient quality in certain areas and also the long distances between buildings in some rural areas.

66 Note that wood for heating does not mean deforestation, but is mostly wood from forest maintenance.

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In short, at the moment there are no central heating boilers —in the scope of the regulation— in Iceland. If and when that happens in the future, they may be heat pump boilers.

Liechtenstein Liechtenstein (38 000 inhabitants) is a country with winter resort situated between Switzerland and Austria. Its energy mix is diverse and overall comparable to that of its neighbours. It uses 1223 GWh of energy resources, of which 394 GWh electricity (of which 66 GWh hydro power), 254 GWh gas, 158 GWh heating oil, 105 GWh district heating and the rest in car fuels (diesel and petrol)67. No further data on space heating could be retrieved. Liechtenstein is the headquarters of Hoval, a large heating equipment manufacturer.

67 http://www.klimastiftung.li/CFDOCS/cms/cmsout/index.cfm?GroupID=199&MandID=1&meID=174& https://www.liechtenstein.li/news-detail/article/energieverbrauch-sinkt-und-eigenversorgung-steigt/

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ANNEX III: REFERENCES

Altoen Daewoo, Kiturami, Kyungdong

Annual reports of manufacturers, wholesellers and retailers, published 2017-2018.

BRG Building Solutions (BRG), Market and stock data Boilers and Water Heaters per country up to 2014, for EU total up to 2016, London, Oct. 2017. BRG data exclude Luxembourg, Malta and Cyprus, so the EU28 only relates to 25 Member States and the EU25 relates to 22 Member States. The error in excluding these small markets is believed to be less than 1% of the total and thus acceptable.

Delta Energy & Environment Ltd. & Enertek International Ltd., Evidence Gathering: Passive Flue Gas Heat Recovery Technologies, report prepared for the UK Department for Business, Energy and Industrial Strategy (BEIS), 2016.

European Commission, DG ENER, Mandate to CEN for standards on pyrolysis oils produced from biomass feedstocks to be used in various energy applications or intermediate products for subsequent processing, M/525 EN, 27.6.2013.

European Heating Industry (EHI), Market and stock data 2015-2016, pers. comm. with NDA, August 2018.

Eurostat COMEXT database for trade, using HS codes 84031010 (cast iron boilers) and 84031090 (non cast-iron boilers), PRODCOM categorisation ‘Boilers for central heating other than those of HS 8402’.

Eurostat PRODCOM prccode 2851380, Heat pumps other than air conditioning machines of HS 8415. Export, import, production, apparent consumption value (in million euros), production volume in ‘000 units, years 2010-2015-2016 (source: Eurostat PRODCOM prccode 2851380; extract Oct. 2017)

Eurostat PRODCOM/Europroms database, using CN8 product code 25.22.12.00, ‘Boilers for central heating other than those of HS 8402’. and the

1EVEN TJØRVE, THOR FLOGNFELDT & KATHLEEN M.CALF TJØRVE, The Effects of Distance and Belonging on Second-Home Markets, Faculty of Economics and Organisation Science, Lillehammer University College, Lillehammer, Norway Tourism Geographies, 2013, Vol. 15, No. 2, 268–291.

Gesetzentwurf der Bundesregierung, Entwurf eines Ersten Gesetzes zur Änderung des Energieverbrauchskennzeichnungs-gesetzes, Germany, 2015.

http://www.energimyndigheten.se/en/sustainability/households/heating-your-home/heat-pump/air- source-heat-pump/ http://www.solarthermalworld.org/content/estimated-global-solar-thermal...

http://ec.europa.eu/eurostat/statistics- explained/index.php/File:Building_installation_(NACE_Group_45.3)_Structural_profile,_EU- 27,_2006.PNG

http://ec.europa.eu/growth/tools-databases/nando/index.cfm

http://intergasvsk2016.nl/#xtreme. The value of 115% on GCV can be used in the EPN (Dutch EPB calculation). Intergas uses in its advertising also a value of 127.6%, which relates to NCV (Net Calorific Value). The advertised Energy Label rating is ‘A’.

http://solarheateurope.eu/welcome-to-solar-heat-europe/

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http://www.discountedheating.co.uk/worcester-greenstar-xtra-flue-gas-heat-recovery-unit (24% discount on list price of £330)

http://www.europages.co.uk/companies/solar vacuum tube.html

http://www.lpga.co.uk/TypicalPropofCommercialLPG.htm

http://zonneboilertips.be/prijs-zonneboiler/ (prices in Belgium)

https://ec.europa.eu/energy/sites/ener/files/documents/AppendixRefSce.xls, sheet ’EU28-B’ based on PRIMES version 4, issued 20 July 2016 by E3M Lab, National Technical University of Athens.

https://ec.europa.eu/growth/single-market/goods/building-blocks/notified-bodies_en

https://knoema.com/cens_11dwob_r3/conventional-dwellings-by-occupancy-status-type-of-building- and-nuts-3-region?geo=1028350-hedmark (Eurostat site)

https://www.energieheld.de/heizung/gasheizung/kosten#komponenten-kosten

https://www.novap.no/artikler/snart-1-million-varmepumper-i-norge

https://www.ssb.no/en/energi-og-industri/artikler-og-publikasjoner/fjernvarme-og-fjernkjoling-i- norge

https://www.verwarmingsketel-weetjes.be/cv-ketels/cv-ketel-vervangen/

https://www.worcester-bosch.co.uk/professional/products/accessories/flue-gas-heat-recovery-unit

Shell/BDH Hauswärme-Studie, Klimaschutz im Wohnungssektor — Wie Heizen Wir morgen?, May 2013.

Sorensen, Solar energy use and regulations in Norway, Trondheim 20.3.2015. See also www.solenergu.no

The ECOTEST project runs from October 2017 until mid 2019, with intermediate testv results expected by September 2018. The study team is following the project closely through the steering committee.

THEMA Consulting, Kapasitet og tilgjengelighet for oljefyring, Utarbeidet på oppdrag for OED, 2013.

www.alibaba.com and EMKO Heating Systems site www.emkoisi.com

www.heizungsvergleich.de

www.vaillant.co.uk/installers/products/recoflue-2880.html

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