Ireland issues tender to stimulate limited industrial heat pump market

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The SEAI is seeking applicants to a tender it released seeking service providers to assist it in delivering some of its grant programs for businesses.

According to the tender, it will gather “suitably qualified service providers” to establish a multi-party framework agreement, or “lot.” Each lot will cover a separate need based on the SEAI’s grant programs EXEED and the Support Scheme for Renewable Heat (SSRH).

EXEED is a grant scheme for organizations planning to invest in a renewable energy project. It covers both new design projects and major renovations to existing assets. SSRH provides financial support to businesses switching to renewable heat sources, including installation grants for commercial heat pumps.

Two of the tender lots are for energy efficient design trainers and mentors and technical project assessors. The third lot covers operational, technical and advisory services for the SSRH. Finally, the fourth lot is for developmental, technical and advisory services for SSRH and EXEED.

The contract duration will be for four years, and the estimated value is €2,750,000 ($3.1 million). Tenderers must submit tenders for all four lots. They have until midnight, May 21, Central European Time, Western European Summer Time to submit.

All information on the tender can be found here at the Irish government’s online tenders portal.

The SEAI is targeting businesses to decarbonize to meet Ireland’s net zero targets. In March, it released a report that said fulfilling Ireland’s energy transition could result in up to €19 billion of capital expenditure by 2030.

The report described heat pumps as “a key technology” for enhancing energy efficiency and sustainability in smart buildings and homes. However, it acknowledged that despite support schemes such as the SSRH, the market size for industrial heat pumps in Ireland is currently limited. SEAI’s 2030 figures project industrial heat pumps’ market size in Ireland will be €25 million, while the potential Irish share will be €13 million. Sustainable biomass heating and district heating are bigger markets, at €2 billion and €221 million respectively.

Image: SEAI Supply Chain Analysis

SEAI Supply Chain Analysis

The report’s authors are hopeful that Irish companies could provide the expertise required for installing heat pumps.

“Continuous improvements in heat pump technology and increasing demand for low-temperature heating solutions will contribute to the anticipated growth of the industrial heat pump market in Ireland. Further, SSRH's financial incentives, targeted support and alignment with climate goals is collectively expected to drive the growth of the industrial heat pump market in Ireland,” they said.

SEAI CEO William Walsh said businesses across the country can “reap the economic benefits of a fossil fuel free economy and society” and added the SEAI was “committed to supporting businesses across the Irish energy supply chain” to decarbonize.

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