The European Commission has selected 65 projects, representing a total of 766 MW of thermal capacity and expected to generate 16.3 TWh of decarbonised heat over a five-year period. Spain holds a particularly prominent position, with 24 selected projects and €135.6 million in expected funding support.

Electric Boilers at the Forefront of Heat Electrification

In medium-temperature applications, ranging from 100 to 400°C, electric boilers and resistance heating systems are the dominant technologies. In fact, 50 of the 65 selected projects, representing 77% of the total, incorporate direct or indirect electric resistance technologies, highlighting the growing role of these solutions in the decarbonisation of industrial thermal processes.

With efficiencies close to 98-100% at the point of use, fast and flexible response capabilities, and the elimination of combustion and direct CO₂ emissions on-site, electric boilers offer significant potential for steam and hot water generation in sectors such as food and beverage, paper, chemicals, pharmaceuticals and textiles.

A New Opportunity for Industry

The Heat Auction also introduces an incentive mechanism that improves the economic viability of these projects. The scheme rewards both the CO₂ emissions avoided and the decarbonised heat actually produced and verified, for a period of up to five years, helping to narrow the cost gap between natural gas and electricity.

The results of the call show an average aggregated premium of around €24 per thermal MWh, a level of support that could prove decisive in accelerating the electrification of industrial processes and enhancing their long-term competitiveness.

The first auction also highlights the considerable growth potential that remains in this market. Of the €1 billion available, €396.5 million has been allocated. This suggests that the main constraint was not the availability of funding, but rather the number of projects sufficiently mature in terms of engineering, grid connection, permitting and energy strategy.

The second Heat Auction, scheduled for December 2026, will provide a further €1 billion budget, offering a new opportunity for industries that begin preparing their decarbonisation projects.

More Than a Boiler: An Integrated Energy Solution

Industrial heat electrification reaches its full potential when approached as part of an integrated energy system. Combining electric boilers with photovoltaic generation or renewable Power Purchase Agreements (PPAs), thermal energy storage, Battery Energy Storage Systems (BESS), heat recovery solutions and intelligent energy management tools enables companies to optimise energy consumption, reduce costs and improve overall competitiveness.

This evolving landscape creates new opportunities for companies with expertise in engineering, electrification, renewable energy and energy storage, areas in which GDES is actively involved.

The European Heat Auction therefore represents a significant boost towards making industrial heat electrification a tangible opportunity for investment, efficiency and decarbonisation. It also underscores the importance of integrated solutions capable of bringing together the various technologies required to deliver this energy transition successfully.