Energy transition picks up momentum: Natural gas continues to dominate the heating market, but heat pumps are catching up

Eschborn, November 15, 2023 – Climate change, the achievement of the 1.5-degree target and the success of the energy transition continue to require decisive action. How can we succeed in reducing energy consumption, increasing efficiency and establishing renewable and CO2-neutral energy sources across the board? The latest Techem consumption data study 2022 provides relevant insights. It is based on the evaluation and analysis of data from the year 2022 on consumption and costs for heating and hot water from 1.4 million German apartments in around 120,000 multi-family houses. The study provides insights into the current state of energy supply and reveals potential for increasing efficiency and avoiding emissions in German residential buildings.

Image information: The Techem CO2 Index indicates the ratio of actual emissions to the target emission for 2023.  (Copyright: Techem).

The most important results at a glance:

• Natural gas remains dominant, accounting for a 51% share of heating energy in apartment buildings. At the same time, the use of heating oil has continued to decline and now accounts for less than 10% of energy sources. Wood and electricity are steadily increasing as energy sources for room heating and domestic hot water. In the meantime, heat pumps are gaining ground, although their use is still limited compared to more traditional energy sources.
• Heat pumps have a key role to play in the energy transition. Half or even 90% (after replacing radiators) of the heating systems in existing apartment buildings in Germany that are currently heated with radiators are already suited for the use of heat pumps. However, heat pumps have a considerable optimization potential of around 25% on average - and significantly more in a third of the systems. 
• Monitoring and optimized operational management can reduce the final energy consumption of buildings by 10-15% and thus make a valuable contribution to energy efficiency. This generally leads to a better emissions class for the building and thus to lower costs for tenants and considerable CO2 savings for landlords. Such efficiency measures could lead to an annual reduction of around 4 million tons of CO2 equivalents in German apartment buildings. This creates strong incentives for landlords to invest in energy-saving technologies and operating processes. 
• A particular focus is on Techem’s new CO2 index. This provides an objective assessment of the CO2 emissions of various energy sources and is a useful tool for measuring and tracking progress in reducing CO2 emissions. For 2022, the index shows that the emissions targets for 2030 were exceeded by 60% in the Techem billing portfolio. Natural gas and district heating have better emission values than heating oil.
• “The debate about our future energy supply has moved into focus - driven by climate change and rising energy prices. The Techem consumption data study 2022 provides an insight into current consumption and emission values and shows the potential for efficiency improvements through monitoring and operational optimization. The increasing use of heat pumps and the associated higher optimization potential requires better use and operational management. Here, too, it is clear that energy efficiency must be further improved in order to make an even greater contribution to a secure, affordable and sustainable energy supply,” commented Techem CEO Matthias Hartmann on the results of the study.

“The newly developed Techem CO2 Index serves as an important indicator here. It can be used to monitor and evaluate progress in reducing CO2 emissions in the heating sector for apartment buildings. In 2022, buildings supplied with heating oil will exceed the German emission targets for 2030 by 130%. Buildings supplied with electrically powered heat pumps are already below the emission targets with an index of 90% - based on the German electricity mix,” adds Dr. Arne Kähler, Head of Techem Research Institute on Sustainability (TRIOS). 

For more information and acceess to the full study.

About Techem 

Techem is a leading service provider for smart and sustainable buildings. The company's services cover energy management and resource conservation, residential health and process efficiency in real estate. Founded in 1952, the company is now active in 18 countries with around 4,300 employees and services more than 13 million homes. Techem offers efficiency improvements along the entire value chain of heat and water in real estate. As the market leader in remote radio detection of energy consumption in homes, Techem continues to drive networking and digital processes in real estate. Modern radio smoke detectors with remote inspection and services related to improving drinking water quality in properties complement the solution portfolio for the housing industry. For more information, visit www.techem.com/corp/en.