Iberdrola launches heat pump subsidiary

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Iberdrola España has launched ATuAire, a new unit focused on aerothermal heat pump solutions aimed at electrifying heating and hot water systems across Spain’s residential, commercial, and industrial sectors.

The company said the move supports its commitment to reducing fossil fuel reliance and accelerating the decarbonization of building energy use, in line with European Union mandates. Heat accounts for 41% of Spain’s final energy consumption, and under current EU directives, all new buildings must be zero-emissions by 2030, with the requirement extending to existing buildings by 2050.

It said ATuAire provides turnkey solutions customized to each client’s infrastructure and energy needs, combining heat pump technology with thermal insulation and on-site solar generation to increase efficiency and reduce emissions. The systems draw energy from ambient air to deliver heating in winter, cooling in summer, and hot water year-round, with four times the efficiency of conventional fossil fuel boilers, according to the company.

To ease adoption, ATuAire finances 100% of the installation costs and manages subsidies, grants, and energy savings certifications to improve returns. It also offers green electricity plans, including access to long-term clean power purchase agreements typically reserved for large-scale buyers.

“The economy's total decarbonization won't be possible without electrifying heat,” said ATuAire CEO Pablo Collado. “ATuAire is born to accelerate the transition to more sustainable and efficient HVAC, leading and activiating the industry, as we did in Iberdrola España more than 25 years ago with renewables.”

The new subsidiary also handles the full project lifecycle – from permitting to commissioning and maintenance – targeting widespread adoption of heat pumps as Spain pursues its 2050 climate goals.

Last year, a Spanish research group developed a thermoelectric heat pump (TEHP) system for thermal energy storage, achieving an overall efficiency of 112.6% at 135 C. The system, designed to enhance power-to-heat energy conversion, uses thermoelectric modules and a two-stage heat pump configuration, and has the potential to improve energy storage efficiency by up to 30%.

Earlier this year, the European Heat Pump Association (EHPA) said that most European nations lack value-added tax (VAT) incentives for heat pump installations, hindering their financial viability. It called on EU member states to leverage fiscal tools, including VAT reductions, to encourage heat pump adoption and support energy security.

In March, Spanish grid operator Red Eléctrica de España (REE) said solar became Spain’s top power source in 2024, reaching 6 GW and accounting for 25.1% of the country’s electricity generation, surpassing wind at 24.9%.

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