Leveraging the Innovation Fund Heat Auction to decarbonise heat

Industrial heat accounts for roughly two-thirds of energy use in manufacturing, yet it remains one of the least discussed challenges in the energy transition. In this episode of the Energy Transitions podcast, Pamela Largue speaks with Daniel Galis, Europe Director at the Renewable Thermal Collaborative, about the European Innovation Fund's €1 billion Heat Auction and its role in accelerating industrial heat decarbonisation. Daniel explains how competitive auction mechanisms are being used to support renewable heat technologies, explores why electric boilers dominated the first funding round, and discusses the barriers facing heat pumps, geothermal and solar thermal solutions. He also highlights a critical challenge for Europe’s industrial future: high electricity prices.