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Europe doesn't have a technology problem.

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It has a coordination problem.

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If you focus on electricity separately from heating and separately from cooling,

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you have different islands that don't communicate with one another.

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What matters to tenants as well is that it's the possibility of having a free mind and being sure that the system works in itself.

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The energy transition is happening,

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but is it fair?

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Is it working for people like you and me,

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or just for big market players?

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Welcome to Energetic.

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I am Mayim Cornelis,

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an expert in energy and climate policies,

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and I bring you the voices shaping our energy future.

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Activists,

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scientists,

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policymakers,

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the real people making real change,

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often against the odds.

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Here,

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we do not settle for surface-level takes.

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We dig into the challenges,

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the solutions,

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and the lessons that do not...

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always make the headlines.

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And in doing so,

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we rediscover something vital,

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our ability to trust in institutions,

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to believe in change,

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and to reclaim our power to act.

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Because if we want just resilience,

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if we want to just transition,

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we need to understand what it takes to make it happen.

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And more importantly,

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we need to believe that we can.

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Let's get into it.

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Heating and cooling are where the

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energy transition becomes real.

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They affect bills,

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comfort,

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and the resilience of buildings and neighborhoods.

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After sharing an event on heat pump in Brussels at the end of 2025,

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one thing was clear to me.

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Europe doesn't have a technology problem.

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It has a coordination problem.

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We keep deploying heat pumps without aligning buildings,

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energy systems,

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financing,

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and the people expected to use them.

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That's why I wanted to have this conversation.

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I'm joined by Vladimir Georgievsky.

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who works on electrification,

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sector coupling,

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and integrated energy planning in contexts like North Macedonia,

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where limited gas infrastructure and growing cooling needs for system-level choices.

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And by Louise Maester,

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who works at the Austrian Energy Agency on heat pump rollout,

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energy communities,

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and buildings.

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Through the EU-funded InstallRest project,

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she looks at how business models,

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coordination,

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and communication shape whether clean heating actually works

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in multi-apartment buildings and social housing.

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Today,

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we talk about heat pumps as part of buildings,

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communities and energy systems,

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and about what it takes to scale clean heating without shifting costs and risk onto residents.

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Louise and Vladimir,

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welcome to the show.

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I would like to begin with your own trajectories,

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because the way you both approach heat pumps is clearly shaped by where you work and what you have been seeing on the ground.

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So,

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Vladimir,

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if I can start with you,

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you've been working on electrification,

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sector coupling and integrated energy planning,

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but in a context where the energy system doesn't really follow the standard European models,

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right,

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in North Macedonia.

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So what pulled you towards heating and cooling specifically and why did it become such a central part of your work?

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Yeah,

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thank you.

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So to answer that question,

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I think it...

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It's worth going back around a decade.

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Coming out fresh out of university,

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I was a power engineer.

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So I was focusing mostly on electrical engineering and the power system.

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So my worldview was centered around the electricity sector and the challenges that arise from the electricity sector.

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And coming straight out of university,

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I jumped into a project that focuses on heating and cooling.

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And it was a Horizon-funded project called Cool Heating.

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And then through that project...

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I got in touch with the huge challenge that Europe faces with the decarbonization of the heating sector.

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Because when we're talking about decarbonizing energy systems,

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the first thing that comes to mind is the electricity system,

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because we know about wind farms and solar panels and so on.

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But back then,

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we had around more than 70%,

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75%

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of the heating demand was met by fossil fuels,

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which is most the share of fossil fuels in the electricity sector.

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And the amount of energy that is required for heating and cooling is far beyond that of electricity,

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of simply electricity demand in some sectors.

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So that made it clear to me that heating and cooling are really central to decarbonizing energy systems in the long run.

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So then you think about what are the tools that allow you to do that.

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And if you focus on electricity separately from heating and separately from cooling,

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you have different islands that don't communicate.

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with one another.

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And you think about isolated strategies,

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and it's like running a...

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household budget,

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but you have the household budget with one pocket only for groceries and another pocket only for etc.

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And you're not looking at the whole picture holistically.

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So that led me to Integrated Energy Planning and I've had the opportunity to work with some wonderful people from academia,

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from governmental organizations and international institutions.

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And 10 years later,

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here I am working at

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But the university is an assistant professor and doing my research still mostly on this topic and tackling it from different angles.

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That's really interesting.

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And thank you so much for this very,

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very comprehensive view of what you've been doing so far and how it's unfolding.

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Louise,

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your work also is very multidisciplinary,

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right?

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You've been working at the crossroad of buildings,

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housing and energy systems.

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What made multi-apartment buildings and limited profit housing such an entry point for you in the energy transition?

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So for me,

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it didn't start a decade ago,

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but it also started in university.

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So I wrote my master's thesis on the limited profit sector in Vienna,

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which I feel is just a very cool construct basically to look at.

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Because it's quite a unique model that the Viennese social housing sector has,

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where you can really see that this does have a buffering effect on rent levels and also involves,

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let's say,

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more of a mix of different people with different backgrounds.

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So there's no social stigmatizing going on.

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And my focus on this work was basically looking at the ecologicalization of the limited profit housing sector.

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and through interviewing some of the social housing...

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organizations in Vienna.

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I saw that some of them really do some pioneering work on in terms of like upgrading the energy efficiency of the buildings,

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decarbonizing the heating system.

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And the thing is that they all operate under the limit profit principles.

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So all the money,

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let's say they generate,

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goes back into the sector,

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goes back into the building.

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Through that,

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like bigger housing organizations,

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they can also use their funds upgrading the buildings shall changing the heating system.

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And I thought it was just great to see this development because through this one can combine the aspect of affordability with also clean heating.

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And this is where we need to go,

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right?

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So to leave no one behind in the heating transition.

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So that was my entry point into basically looking more into how buildings can become climate ready,

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also affordable,

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still keeping rents and systems affordable.

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And then I started diving deeper into,

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let's say,

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just the heat pump trajectory through my work here at the Austrian Energy Agency,

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where we coordinate life funded project calls in SORES,

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which we use to look at different technical solutions,

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but also business models that can make the heat pump rollout simple and affordable.

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And yeah,

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we focus on existing.

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buildings here.

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And as my background,

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as you said,

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is more interdisciplinary,

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it's more on the social science side.

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I'm also looking more at the social factors.

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So not only how heat pumps can enter buildings in a technical sense,

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but also in a social sense.

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So how we can ensure that people can afford heating and the transition and also accept this,

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let's say,

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for some still very new technology.

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That's really super interesting because the Vienna,

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let's see.

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social or public housing system is like a blueprint for Europe's affordable housing.

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And you've been looking at it with a different approach,

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different lenses.

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And really,

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it's like about system integration.

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But what you do,

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Vladimir,

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is also about system integration,

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but with a more technical approach.

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So why does it matter to make those concept work integrate really in practice?

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Because as I said in the introduction,

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we have a kind of challenge with the fact that we forget to work with one another.

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The InstallRest project is really,

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and the work you've been doing so far,

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is about bridging those gaps,

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right?

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So why does it matter so much?

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Let's start maybe with the social science perspective with this.

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Yes,

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I think it matters a lot because we...

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As I said,

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so we need to combine the technical side with the social side to make it also affordable for people to know how to use it.

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And the coupling,

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let's say,

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from before there was

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heating on its own,

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electricity on its own,

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mobility on its own.

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And now through the electrification,

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basically all these different systems,

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they use electricity to run.

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And this can bring a lot of,

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let's say,

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there are a lot of synergies that can evolve through this way.

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Also,

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let's say,

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with the possibility of making life easier for people.

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So that we,

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through,

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let's say,

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coupling these different sectors,

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we can also manage them.

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easier or let the technology manage them for us so that we in the end as the tenant or the one the one living in the building don't need to think that much about okay when when do I charge my

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EV when do I like how does my heat pump work but rather getting the best out of the energy that we have so maybe if we have a PV system on our roof then it's great because we reproduce our own electricity,

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and then we can be sure.

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that this electricity is used to,

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let's say,

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fuel our heating,

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our heat pump or our electric vehicle.

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So,

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yeah,

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I would say the social side of this or what matters to tenants as well is that it's a possibility of having a free mind,

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let's say,

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and being sure that the system works in itself if there's system integration.

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Yeah.

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Is it something that,

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let's say,

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the engineers are still looking at?

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And how,

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Vladimir?

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So from the engineering perspective and from the technical perspective,

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what users and energy systems are designed to do.

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So what energy systems are designed to do is they're designed to provide reliable,

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secure and affordable energy.

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So comparing energy to other goods and services,

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consumers usually derive a certain preference and individual value from different goods that they're buying and consuming.

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I don't think that energy is...

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falls within that category specifically.

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What we want is we want our electricity on,

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we want our homes heated or cooled,

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and we want to be able to move around.

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So it is the end uses that we should be meeting.

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Meeting those end uses,

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we should be able to find the technologies and the business models to fill those gaps.

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So the end uses are essentially the goal that we're pursuing.

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We want to meet those end uses that end.

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energy demand.

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So how we do it is we have multiple options.

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Let's say as we want to decarbonize our energy systems,

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we know that we're introducing more variable and intermittent renewable energy sources.

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And if we're looking only at one sector,

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we will be searching for the options and the solutions only in that sector.

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So let's say if there's more wind or more solar energy generation,

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00:12:35.202 --> 00:12:37.444
and we're looking only at the electricity sector,

264
00:12:38.084 --> 00:12:41.008
then we would be thinking about installing more batteries.

265
00:12:41.188 --> 00:12:43.774
But why not installing more thermal energy storage,

266
00:12:43.914 --> 00:12:46.813
which is sometimes orders of magnitude cheaper?

267
00:12:46.993 --> 00:12:54.664
And if we can install thermal energy storage or use the energy storage in the sense of thermal isolation of our buildings,

268
00:12:55.024 --> 00:12:57.899
because when we slightly overheat our buildings,

269
00:12:58.180 --> 00:13:00.180
they act as certain buffers,

270
00:13:00.321 --> 00:13:03.274
we can think of these integrated approaches.

271
00:13:03.758 --> 00:13:08.182
in a way that finally the needs of consumers are met.

272
00:13:08.342 --> 00:13:09.162
And in doing so,

273
00:13:09.905 --> 00:13:12.584
we also have to think about how we deploy these technologies,

274
00:13:13.045 --> 00:13:21.881
because some of the technologies may have some upfront costs that are challenging for the wide public to adopt or to pay.

275
00:13:22.350 --> 00:13:26.162
So we have to think about not only the technical implementation,

276
00:13:26.225 --> 00:13:32.381
but also the business model and the economic implementation of these new technologies in our way towards more.

277
00:13:32.970 --> 00:13:37.053
affordable towards more decarbonized and sustainable energy systems.

278
00:13:38.350 --> 00:13:40.752
And that's exactly what the InstallRest,

279
00:13:40.908 --> 00:13:41.791
the life project,

280
00:13:41.830 --> 00:13:42.049
Luis,

281
00:13:42.072 --> 00:13:43.174
you mentioned is about,

282
00:13:43.228 --> 00:13:43.455
right?

283
00:13:43.510 --> 00:13:45.955
It's about the combination of business models,

284
00:13:46.010 --> 00:13:46.689
coordination,

285
00:13:46.775 --> 00:13:49.299
and really not only communication,

286
00:13:49.361 --> 00:13:55.611
but adoption really shape how heating actually works in multi-apartment buildings.

287
00:13:56.174 --> 00:13:58.236
But there is something you mentioned,

288
00:13:58.299 --> 00:13:58.658
Vladimir,

289
00:13:58.659 --> 00:14:00.033
it was about cooling.

290
00:14:00.678 --> 00:14:02.260
You come from Northern Macedonia,

291
00:14:02.340 --> 00:14:06.363
so you have like huge experience in very warm summers.

292
00:14:06.504 --> 00:14:07.383
And still,

293
00:14:07.926 --> 00:14:09.187
we talked about that earlier,

294
00:14:09.266 --> 00:14:16.953
but cooling is kind of forgotten and it's still treated as secondary in many discussions.

295
00:14:17.937 --> 00:14:20.562
Why is it a mistake,

296
00:14:20.578 --> 00:14:22.266
especially in multi-apartment buildings?

297
00:14:22.437 --> 00:14:29.453
And why are heat pumps a good start to conversation starter when we talk about cooling?

298
00:14:29.672 --> 00:14:29.812
Yeah,

299
00:14:29.922 --> 00:14:30.062
well...

300
00:14:30.282 --> 00:14:36.810
heat pumps maybe have gotten their name slightly unfortunately because they only show the heat aspect

301
00:14:37.306 --> 00:14:39.608
or they only indicate that there is a heat aspect.

302
00:14:40.009 --> 00:14:43.770
But heat pumps are essentially reversible refrigerators.

303
00:14:43.833 --> 00:14:46.458
They can either heat our home or cool our home,

304
00:14:46.794 --> 00:14:47.919
and they can do both things.

305
00:14:48.841 --> 00:14:51.341
And I wouldn't say that it's a forgotten question,

306
00:14:51.481 --> 00:14:53.395
but I think that it's a question that the public,

307
00:14:53.536 --> 00:14:54.302
policymakers,

308
00:14:54.364 --> 00:14:55.020
engineers,

309
00:14:55.130 --> 00:14:58.724
and essentially system planners are waking up more and more.

310
00:14:58.864 --> 00:15:00.005
As our climate changes,

311
00:15:00.255 --> 00:15:02.692
we are seeing abrupt heat waves.

312
00:15:02.895 --> 00:15:07.020
We're seeing temperatures that make it very difficult for people to go to work.

313
00:15:07.086 --> 00:15:07.587
to function,

314
00:15:07.607 --> 00:15:08.507
to go outside,

315
00:15:08.968 --> 00:15:10.349
to go about their everyday lives.

316
00:15:10.490 --> 00:15:11.793
And coming from North Macedonia,

317
00:15:11.910 --> 00:15:15.652
we've had summers that have had extremely high temperatures.

318
00:15:15.832 --> 00:15:16.613
For a while now,

319
00:15:16.793 --> 00:15:20.316
cooling has not been a question that we're waking up recently.

320
00:15:20.480 --> 00:15:23.910
It's been a question that we've grappled with for over the past decades.

321
00:15:24.035 --> 00:15:28.660
So maybe some of the experience can be directed and shared with other countries.

322
00:15:28.847 --> 00:15:30.707
But as our climate changes,

323
00:15:31.050 --> 00:15:32.550
I think that in the future,

324
00:15:32.785 --> 00:15:36.316
we will see the growing need for cooling energy.

325
00:15:37.062 --> 00:15:39.903
And this is an aspect that we have to take into consideration.

326
00:15:40.602 --> 00:15:41.563
So traditionally,

327
00:15:41.602 --> 00:15:43.582
we've been thinking about heating and cooling separately.

328
00:15:43.844 --> 00:15:45.864
But what we should be thinking about,

329
00:15:46.481 --> 00:15:52.887
we should be seeing them as different sides of the same point because we can solve them or meet them with the same technology,

330
00:15:53.121 --> 00:15:54.059
and that's heat pumps.

331
00:15:55.168 --> 00:16:02.871
So the idea is if we're thinking about introducing a gas boiler or a wood boiler or some other technology for heating,

332
00:16:03.231 --> 00:16:04.528
and we need to cool our home,

333
00:16:05.074 --> 00:16:05.965
then it's...

334
00:16:06.526 --> 00:16:11.168
introducing two different technologies to supply the different sides of the same point.

335
00:16:11.566 --> 00:16:12.328
But with heat pumps,

336
00:16:12.367 --> 00:16:15.086
we can do them with the same technology.

337
00:16:15.125 --> 00:16:16.468
And for multi-apartment buildings,

338
00:16:16.531 --> 00:16:17.047
especially,

339
00:16:17.109 --> 00:16:21.547
that's very important because we are not thinking about the infrastructure costs of one apartment.

340
00:16:21.586 --> 00:16:24.812
You're thinking about the infrastructure costs for the whole building.

341
00:16:25.015 --> 00:16:26.906
And that's not only a technical,

342
00:16:27.172 --> 00:16:30.390
the engineering perspective in the sense of electricity,

343
00:16:30.453 --> 00:16:31.094
heating and cooling,

344
00:16:31.109 --> 00:16:32.531
but that's also an architectural.

345
00:16:33.703 --> 00:16:36.345
How are we going to go about designing the buildings?

346
00:16:36.906 --> 00:16:41.347
What impact will it have on the outside look of buildings?

347
00:16:41.410 --> 00:16:50.496
And how will our cities change if we need to find individual solutions to cooling or maybe a centralized solution to cooling?

348
00:16:50.964 --> 00:16:54.683
So I think that heat pumps shine when this question comes to mind.

349
00:16:55.199 --> 00:16:59.511
And they solve this question simultaneously,

350
00:16:59.605 --> 00:17:00.886
both heating and cooling.

351
00:17:01.554 --> 00:17:02.935
That's really interesting.

352
00:17:02.976 --> 00:17:11.242
And what you said about the policymakers starting to take the cooling need into consideration is indeed growing.

353
00:17:11.766 --> 00:17:12.226
Last year,

354
00:17:12.328 --> 00:17:16.945
I saw the report for the European Commission really on summer energy parity.

355
00:17:17.133 --> 00:17:20.414
And whenever I presented it to policymakers,

356
00:17:21.070 --> 00:17:21.976
some of them were saying,

357
00:17:22.055 --> 00:17:22.180
oh,

358
00:17:22.289 --> 00:17:23.180
it's an eye opener.

359
00:17:23.258 --> 00:17:30.602
I didn't realize that heat waves and the heat in general is killing more people yearly than the cold is.

360
00:17:31.338 --> 00:17:32.420
But in Europe,

361
00:17:32.459 --> 00:17:33.220
we're talking about

362
00:17:33.601 --> 00:17:38.804
60,000 deaths every year over mortality because of the heat.

363
00:17:38.886 --> 00:17:44.050
So it's no longer becoming a luxury to have access to a cooling system.

364
00:17:44.113 --> 00:17:46.996
It's becoming like indispensable for human life,

365
00:17:47.035 --> 00:17:48.441
especially if you are older,

366
00:17:48.691 --> 00:17:49.941
if you are pregnant,

367
00:17:49.957 --> 00:17:51.676
if you have small children at home.

368
00:17:51.722 --> 00:17:56.676
So that is becoming like part of the mainstream equipment in a home,

369
00:17:56.847 --> 00:17:58.457
like a washing machine.

370
00:17:58.972 --> 00:18:00.066
But at the same time,

371
00:18:00.642 --> 00:18:09.207
The infrastructure that is needed to make it happen is a little bit more maybe visible or maybe a little bit bigger.

372
00:18:09.488 --> 00:18:12.754
Also because heat pumps are using a lot of electricity,

373
00:18:12.894 --> 00:18:14.598
they're using a lot of energy in general.

374
00:18:14.637 --> 00:18:19.098
So there is also conversations you have about the resilience of the grid,

375
00:18:19.207 --> 00:18:20.629
about like the affordability,

376
00:18:21.098 --> 00:18:25.223
making sure that more people can also access this kind of technologies.

377
00:18:25.770 --> 00:18:26.004
Louise,

378
00:18:26.020 --> 00:18:28.910
I would like to bring this to you since you...

379
00:18:29.238 --> 00:18:31.760
mostly work on multi-apartment buildings.

380
00:18:32.041 --> 00:18:33.243
And one of the,

381
00:18:33.684 --> 00:18:34.063
let's say,

382
00:18:34.243 --> 00:18:41.832
big challenge related to the cooling system is that it contributes to the urban heat island effect.

383
00:18:42.192 --> 00:18:42.848
So basically,

384
00:18:43.051 --> 00:18:44.215
one device can,

385
00:18:44.496 --> 00:18:48.582
since it blows hot air in the atmosphere,

386
00:18:48.942 --> 00:18:50.036
it overall,

387
00:18:50.645 --> 00:18:51.317
instead of cool,

388
00:18:51.473 --> 00:18:52.426
the neighborhood as well.

389
00:18:52.473 --> 00:18:55.004
So is it a conversation?

390
00:18:55.864 --> 00:18:57.692
How is the need for

391
00:18:57.998 --> 00:19:00.080
cooling being approached in Austria,

392
00:19:00.441 --> 00:19:01.761
especially in multi apartment building,

393
00:19:02.304 --> 00:19:05.847
is it becoming something like mainstream as well?

394
00:19:06.804 --> 00:19:07.304
Definitely.

395
00:19:07.750 --> 00:19:09.687
I think also in Austria,

396
00:19:10.531 --> 00:19:10.773
I mean,

397
00:19:10.812 --> 00:19:12.015
especially living in

398
00:19:12.570 --> 00:19:15.257
Vienna, a city where in the neighborhood that I live,

399
00:19:15.523 --> 00:19:16.023
a lot of,

400
00:19:16.664 --> 00:19:17.632
there's a lot of concrete,

401
00:19:18.086 --> 00:19:19.242
little trees and everything.

402
00:19:19.445 --> 00:19:25.710
It's something that definitely enters also the everyday conversation with friends,

403
00:19:25.773 --> 00:19:26.398
with colleagues,

404
00:19:26.586 --> 00:19:27.351
thinking about

405
00:19:28.014 --> 00:19:28.275
Yes,

406
00:19:28.536 --> 00:19:29.820
I'm looking forward now in winter.

407
00:19:29.1000 --> 00:19:31.183
I'm looking forward to the summer,

408
00:19:31.242 --> 00:19:31.543
but then,

409
00:19:31.705 --> 00:19:31.943
oh no,

410
00:19:32.025 --> 00:19:33.951
but then it will get that hot again.

411
00:19:34.091 --> 00:19:36.798
So it's something that since people...

412
00:19:37.853 --> 00:19:45.140
Just experience it directly and often also have little possibilities to forego this,

413
00:19:45.179 --> 00:19:49.726
because especially with the building structure in Vienna,

414
00:19:50.023 --> 00:19:50.265
with,

415
00:19:50.429 --> 00:19:50.867
for example,

416
00:19:51.085 --> 00:19:51.625
myself,

417
00:19:51.648 --> 00:19:52.531
I live in one of these,

418
00:19:52.585 --> 00:19:52.867
let's say,

419
00:19:52.929 --> 00:19:55.523
like old apartment buildings under the roof.

420
00:19:55.664 --> 00:19:58.039
So there's little we can do to cool.

421
00:19:59.195 --> 00:19:59.554
Of course,

422
00:19:59.555 --> 00:20:02.023
we do everything we can do with opening the windows in the evening.

423
00:20:02.195 --> 00:20:05.539
But if it's 20 degrees plus outside,

424
00:20:05.554 --> 00:20:06.117
then even then.

425
00:20:06.553 --> 00:20:08.175
it doesn't really cool down that much anymore.

426
00:20:08.275 --> 00:20:08.395
So

427
00:20:09.136 --> 00:20:10.818
I feel like that is,

428
00:20:10.857 --> 00:20:11.560
as Vladimir said,

429
00:20:11.599 --> 00:20:13.958
it's something that it's entering the conversation,

430
00:20:14.040 --> 00:20:19.185
but it's something that we need to stress more and more and show that this is just,

431
00:20:19.388 --> 00:20:28.388
and it will become a way more important benefit in the future for people if they also have a system that can at the same time also cool their building.

432
00:20:28.591 --> 00:20:29.294
And I mean,

433
00:20:29.310 --> 00:20:33.216
I can give an example from one of the demo sites that we have in Austria,

434
00:20:33.825 --> 00:20:35.701
where they are basically...

435
00:20:36.185 --> 00:20:51.990
implemented a heat pump through facade integration so they don't talk about active cooling because it's more of like a tempering of the facade let's say in summer so it's normally two degrees cooler than outside through the system which might

436
00:20:52.045 --> 00:21:04.389
not sound that much but there was one instance when there were some technical problems with the whole system and it's like it stopped working for one or two days and instantly people were calling

437
00:21:05.041 --> 00:21:06.302
It's so hot in my room.

438
00:21:06.382 --> 00:21:08.064
What did happen and everything?

439
00:21:08.586 --> 00:21:11.589
So they could see that even though one thinks,

440
00:21:11.629 --> 00:21:11.828
okay,

441
00:21:11.829 --> 00:21:12.648
it's not a big difference,

442
00:21:12.649 --> 00:21:13.933
it really does make a difference.

443
00:21:13.972 --> 00:21:17.910
And it affects their living comfort in summer dramatically.

444
00:21:18.472 --> 00:21:21.035
Maybe it was affecting like humidity or something.

445
00:21:21.097 --> 00:21:23.175
And that was leading to a feeling,

446
00:21:23.191 --> 00:21:25.644
a greater feeling of discomfort or something like that.

447
00:21:25.847 --> 00:21:26.003
Well,

448
00:21:26.066 --> 00:21:26.441
exactly.

449
00:21:26.503 --> 00:21:27.379
Even these two degrees,

450
00:21:27.380 --> 00:21:29.332
they made a difference in their comfort.

451
00:21:29.582 --> 00:21:29.738
Yeah.

452
00:21:30.269 --> 00:21:34.613
One of the big challenges or maybe the biggest challenges.

453
00:21:35.105 --> 00:21:41.210
is the upfront costs for equipping buildings with this kind of comprehensive solutions.

454
00:21:41.632 --> 00:21:41.831
Again,

455
00:21:41.952 --> 00:21:47.581
here we are not talking about detached house being trying to get equipped with some heat pump,

456
00:21:47.636 --> 00:21:52.019
but really we're talking about collective heat pump or collective system to heat and cool,

457
00:21:52.503 --> 00:21:52.737
right?

458
00:21:52.987 --> 00:21:54.519
Yet the upfront costs,

459
00:21:55.019 --> 00:21:57.363
they remain one of the biggest barriers.

460
00:21:57.784 --> 00:22:03.331
Why is it still so expensive to install such systems in collective buildings?

461
00:22:03.921 --> 00:22:05.243
And who's carrying these costs?

462
00:22:06.243 --> 00:22:06.364
So

463
00:22:06.704 --> 00:22:08.044
I would say in Austria,

464
00:22:08.045 --> 00:22:08.407
of course,

465
00:22:08.446 --> 00:22:11.868
it's a complex things that play into these high upfront costs.

466
00:22:11.891 --> 00:22:12.009
So,

467
00:22:12.048 --> 00:22:12.290
I mean,

468
00:22:12.291 --> 00:22:13.688
you pay the heat pump itself,

469
00:22:13.751 --> 00:22:14.571
the installation,

470
00:22:15.173 --> 00:22:17.376
possibly you need to drill into the ground.

471
00:22:17.454 --> 00:22:19.759
Possibly you will need to finance renovation measures.

472
00:22:20.243 --> 00:22:21.102
I think in Austria,

473
00:22:21.540 --> 00:22:25.368
the installation is a big part of these upfront costs.

474
00:22:25.415 --> 00:22:27.821
But I know from other colleagues in Poland,

475
00:22:27.868 --> 00:22:29.165
I think it doesn't play that.

476
00:22:29.737 --> 00:22:47.411
isn't that huge of a role so I think it really depends also on the context one is in but of course it's still one big thing like people maybe don't know yet that well what to expect so I think there's quite some not say skepticism but rather little experience which

477
00:22:47.536 --> 00:22:58.849
also deters people from from going because it's something new and they're not sure does my building need to be upgraded in some way or the other what will what will it cost me throughout the lifetime and so on so

478
00:22:59.273 --> 00:23:05.139
I think this is also why some people might reframe or rather be like rather slow to adopt.

479
00:23:06.178 --> 00:23:10.842
And this is something that we also as part of the project InstaRest we want to work on.

480
00:23:10.905 --> 00:23:17.264
So giving people more tools to easily decide or understand what will it cost,

481
00:23:17.311 --> 00:23:25.202
what will I need to do and so on to make it easier for them or more predictable for them to know how to do the investment.

482
00:23:25.795 --> 00:23:25.999
Yeah.

483
00:23:26.369 --> 00:23:28.410
Also because there are so many differences,

484
00:23:28.512 --> 00:23:30.094
like the installation,

485
00:23:31.254 --> 00:23:38.641
it can go from $5,000 to $20,000 just for one individual apartment or house or something.

486
00:23:39.320 --> 00:23:41.227
So the difference is absolutely huge.

487
00:23:41.242 --> 00:23:45.367
So you need to know if you are making the right choice.

488
00:23:45.492 --> 00:23:47.023
It's such a big investment.

489
00:23:47.086 --> 00:23:48.195
It's just a lot of money.

490
00:23:49.258 --> 00:23:51.133
It means that probably...

491
00:23:51.529 --> 00:23:54.532
most of the people cannot make the purchase immediately.

492
00:23:54.772 --> 00:24:01.017
So how do you see that happen in the context you are experiencing and what you are observing as well?

493
00:24:02.102 --> 00:24:02.243
Yeah,

494
00:24:02.602 --> 00:24:03.462
so this is a very,

495
00:24:03.657 --> 00:24:06.641
very important and very difficult question that you're addressing.

496
00:24:06.665 --> 00:24:10.595
And maybe it's at the heart of the challenges of heat pump deployment.

497
00:24:11.454 --> 00:24:14.329
It ties to everything from misinformation to...

498
00:24:14.877 --> 00:24:19.524
poor deployment and poor experiences in the past that may hinder the future experiences.

499
00:24:19.660 --> 00:24:25.531
The lack of experience of some installers that take on the deployment and installation of heat pumps that may lead,

500
00:24:25.609 --> 00:24:27.211
because of the steep learning curve,

501
00:24:27.227 --> 00:24:29.875
that may lead to higher installation costs.

502
00:24:30.211 --> 00:24:35.938
But it's also a question of the power purchasing parity of the households that are essentially buying,

503
00:24:35.1000 --> 00:24:37.453
because across Europe...

504
00:24:38.324 --> 00:24:41.308
we see households with highly different standards,

505
00:24:41.747 --> 00:24:45.191
standards of living and average salaries and the costs.

506
00:24:45.331 --> 00:24:51.335
And we may adjust those investment costs based on the purchasing power of households,

507
00:24:51.398 --> 00:24:53.640
but it's still a huge difference.

508
00:24:53.718 --> 00:25:00.585
And I think that one of the underlying problems here comes from the fact that people don't think within

509
00:25:01.273 --> 00:25:02.054
10-year intervals.

510
00:25:02.304 --> 00:25:07.492
And it's very difficult to have a spreadsheet of economic calculation in your mind.

511
00:25:08.180 --> 00:25:12.720
Because when you're looking at quotas from different installers of heat pumps,

512
00:25:12.943 --> 00:25:17.122
and you're finding that the cost for the installment would be around

513
00:25:17.685 --> 00:25:18.404
6, 7,

514
00:25:18.701 --> 00:25:20.201
8 thousand euros,

515
00:25:20.341 --> 00:25:20.583
maybe.

516
00:25:21.263 --> 00:25:22.763
And you're comparing that to,

517
00:25:23.302 --> 00:25:23.685
I don't know,

518
00:25:23.982 --> 00:25:25.091
a pellet boiler,

519
00:25:25.169 --> 00:25:25.888
a wood boiler.

520
00:25:26.716 --> 00:25:32.232
And I'm thinking about pellets and wood because we don't have a secondary natural gas distribution system.

521
00:25:32.310 --> 00:25:37.591
And natural gas is not used in North Macedonia for heating in almost all.

522
00:25:37.848 --> 00:25:38.188
cities,

523
00:25:38.349 --> 00:25:39.290
with the exception of a few,

524
00:25:39.970 --> 00:25:42.873
and you compare it to the cost of a wood boiler,

525
00:25:43.416 --> 00:25:45.076
it's hugely different.

526
00:25:45.255 --> 00:25:46.798
And that deters people.

527
00:25:47.119 --> 00:25:49.939
So the high upfront costs deters people.

528
00:25:49.978 --> 00:25:52.025
And that's one of the main challenges.

529
00:25:52.705 --> 00:25:57.150
But then we have to take into account then what happens with the lifecycle and the usage.

530
00:25:57.228 --> 00:25:58.947
And I will go back to a point that you made,

531
00:25:58.962 --> 00:25:59.244
Maureen,

532
00:25:59.853 --> 00:26:00.166
earlier.

533
00:26:00.197 --> 00:26:00.728
And you said,

534
00:26:00.978 --> 00:26:03.790
but heat pumps consume a lot of energy.

535
00:26:04.416 --> 00:26:04.697
And yes,

536
00:26:04.759 --> 00:26:05.212
that's true.

537
00:26:05.728 --> 00:26:06.119
But that's...

538
00:26:06.616 --> 00:26:10.540
It's subconsciously one of the myths that we take on every day.

539
00:26:10.740 --> 00:26:11.060
And yes,

540
00:26:11.079 --> 00:26:12.501
they consume a lot of energy,

541
00:26:13.040 --> 00:26:18.204
but we also have to say that they consume three to five times less energy than the alternative.

542
00:26:19.267 --> 00:26:21.134
And when we put it into that perspective,

543
00:26:21.228 --> 00:26:22.548
then it's not a lot of energy.

544
00:26:22.697 --> 00:26:23.134
Essentially,

545
00:26:23.165 --> 00:26:27.837
what we're saying is they will save a lot of energy compared to wood,

546
00:26:28.025 --> 00:26:28.759
natural gas,

547
00:26:29.040 --> 00:26:29.337
oil,

548
00:26:29.681 --> 00:26:31.494
or whatever other alternative.

549
00:26:31.634 --> 00:26:33.228
They actually save a lot of energy.

550
00:26:33.462 --> 00:26:33.603
Yes,

551
00:26:33.604 --> 00:26:35.040
they will consume a lot of electricity,

552
00:26:35.400 --> 00:26:35.822
of course,

553
00:26:36.072 --> 00:26:36.181
but

554
00:26:36.880 --> 00:26:39.200
they will save a lot of fossil fuel usage.

555
00:26:39.620 --> 00:26:46.802
So I think that we have to find ways of communicating the additional benefits of heat pumps beyond the upfront investment costs.

556
00:26:46.803 --> 00:26:49.466
We have to talk about the costs on a monthly basis.

557
00:26:49.825 --> 00:26:52.106
We have to talk about the savings.

558
00:26:52.107 --> 00:26:53.481
We have to talk about the comfort.

559
00:26:53.700 --> 00:26:56.309
The European Union and North Macedonia,

560
00:26:56.372 --> 00:26:59.138
although a country that is not part of the European Union,

561
00:26:59.606 --> 00:27:01.278
but the Western Balkan region as well,

562
00:27:01.731 --> 00:27:03.669
we're having an aging population.

563
00:27:03.825 --> 00:27:04.044
And.

564
00:27:04.408 --> 00:27:06.290
I'm talking right now about the Western Balkans,

565
00:27:06.390 --> 00:27:11.054
where we have traditionally been using a lot of wood for heating.

566
00:27:12.034 --> 00:27:17.585
And we see a lot of these aging households with older people living alone.

567
00:27:17.741 --> 00:27:25.241
And they have to take care of chopping wood and preparing the stove and preparing the boiler and doing all the manual and physical work.

568
00:27:25.288 --> 00:27:27.429
And it's a question of comfort.

569
00:27:28.054 --> 00:27:30.116
It's a question of different type of energy,

570
00:27:30.335 --> 00:27:32.194
poverty beyond economic.

571
00:27:32.808 --> 00:27:38.010
So these are challenges that we're almost single-handedly solving by this new technology.

572
00:27:38.288 --> 00:27:38.549
And yes,

573
00:27:38.569 --> 00:27:39.889
there are challenges to deploy it.

574
00:27:40.249 --> 00:27:40.608
But this,

575
00:27:41.006 --> 00:27:41.647
as Louis said,

576
00:27:41.710 --> 00:27:44.467
this InsolRes project is intended to do that.

577
00:27:44.514 --> 00:27:46.592
So it's a huge challenge to take on,

578
00:27:46.631 --> 00:27:47.967
but worth taking on.

579
00:27:47.991 --> 00:27:48.952
You know,

580
00:27:48.999 --> 00:27:56.311
that's really great that you bring the example of North Macedonia and people collecting wood for heating or even for cooking.

581
00:27:56.546 --> 00:27:59.639
Some would argue that collecting wood is free.

582
00:28:00.030 --> 00:28:00.155
So,

583
00:28:00.561 --> 00:28:00.796
you know,

584
00:28:00.936 --> 00:28:02.202
whenever you add some...

585
00:28:02.640 --> 00:28:05.983
The cost of a new technology that adds a cost,

586
00:28:06.064 --> 00:28:09.265
so that adds a lot of new challenges.

587
00:28:09.726 --> 00:28:11.429
Maybe it's not affordable and so on.

588
00:28:12.530 --> 00:28:12.710
Well,

589
00:28:12.913 --> 00:28:16.398
but you're absolutely right about the quality of life and the comfort,

590
00:28:16.515 --> 00:28:23.101
not having to carry huge pieces of wood or pallets or everything.

591
00:28:23.663 --> 00:28:28.382
And there is also this summer aspect that is absolutely fundamental,

592
00:28:28.491 --> 00:28:28.679
right?

593
00:28:28.882 --> 00:28:31.101
So how do you manage to kind of...

594
00:28:31.260 --> 00:28:32.802
address these concerns.

595
00:28:32.942 --> 00:28:33.243
Because,

596
00:28:33.682 --> 00:28:33.923
I mean,

597
00:28:34.022 --> 00:28:35.044
I totally get it.

598
00:28:35.143 --> 00:28:36.704
Like when someone says I'm 70,

599
00:28:36.705 --> 00:28:38.028
75,

600
00:28:39.325 --> 00:28:50.372
why should I make an investment for something that will show up over the years and maybe in 10 or 20 years when I can have access to something very cheap now?

601
00:28:51.075 --> 00:28:52.794
Maybe not energy efficient at all,

602
00:28:53.403 --> 00:28:56.841
but very cheap now when they are aging as well.

603
00:28:57.384 --> 00:28:58.885
Maybe that's a question for Louise,

604
00:28:59.026 --> 00:29:02.670
given that it's more a social science aspect.

605
00:29:02.768 --> 00:29:03.030
But

606
00:29:03.530 --> 00:29:06.713
Vladimir, you must also have something to share.

607
00:29:06.831 --> 00:29:06.956
So,

608
00:29:07.010 --> 00:29:07.292
Louise.

609
00:29:08.096 --> 00:29:08.315
Yes,

610
00:29:08.393 --> 00:29:08.659
I mean,

611
00:29:08.674 --> 00:29:10.120
I think Vladimir can go more in the

612
00:29:10.916 --> 00:29:13.081
North Macedonian example into that.

613
00:29:13.213 --> 00:29:15.198
I think one thing or one,

614
00:29:16.166 --> 00:29:16.463
let's say,

615
00:29:16.838 --> 00:29:17.151
bigger,

616
00:29:17.979 --> 00:29:18.698
not a problem,

617
00:29:18.745 --> 00:29:21.542
but one phenomena that we discuss here is that,

618
00:29:22.292 --> 00:29:22.792
of course,

619
00:29:22.916 --> 00:29:23.151
it's a...

620
00:29:23.515 --> 00:29:41.995
process of installing the heat pump and it starts with when to install it and here i think it's there are some let's say windows of opportunities how to get into the game so of course when the when let's say when the existing system breaks down or maybe when someone worse renovation

621
00:29:42.057 --> 00:29:52.511
works become necessary that's let's say the window of opportunity that opens up for let's say people to think about maybe i could install a install the heat pump and i think here it's important at

622
00:29:52.932 --> 00:29:53.238
to be

623
00:29:53.946 --> 00:29:55.007
be there at the right moment.

624
00:29:55.067 --> 00:29:57.748
So to have the resources,

625
00:29:57.788 --> 00:30:02.231
the support for housing owners that think about maybe installing a heat pump,

626
00:30:04.332 --> 00:30:05.032
to have them there,

627
00:30:05.152 --> 00:30:06.553
to take them by the hand,

628
00:30:06.554 --> 00:30:08.854
to explain to them like the things we discussed,

629
00:30:08.894 --> 00:30:09.875
what will it cost?

630
00:30:09.975 --> 00:30:12.717
What are the things that might need to be done with your building?

631
00:30:12.777 --> 00:30:13.637
How will it work?

632
00:30:14.177 --> 00:30:17.179
What are the operation costs of it and so on?

633
00:30:17.759 --> 00:30:21.121
So there has to be enough support there,

634
00:30:21.221 --> 00:30:22.342
enough materials there.

635
00:30:22.942 --> 00:30:24.443
to support the housing owners here.

636
00:30:24.623 --> 00:30:29.246
And we have another example of our demo sites from the Netherlands here,

637
00:30:29.707 --> 00:30:30.707
which have developed,

638
00:30:30.888 --> 00:30:32.669
they call it the Heat Comparator Platform,

639
00:30:33.169 --> 00:30:36.111
which is a very easygoing,

640
00:30:36.331 --> 00:30:43.797
low entry website for households to basically let's check out what heat pump would fit to my house,

641
00:30:43.917 --> 00:30:47.339
what heat pump would fit to my needs and enter this information,

642
00:30:47.619 --> 00:30:51.022
like little information about the house that is not expert level,

643
00:30:51.142 --> 00:30:51.342
but

644
00:30:52.130 --> 00:30:53.111
easy for everyone to know,

645
00:30:53.531 --> 00:31:00.657
enter this into a website and then they get different heat pumps that would fit to their needs.

646
00:31:00.817 --> 00:31:03.158
So they can already inform themselves before,

647
00:31:03.239 --> 00:31:03.619
let's say.

648
00:31:04.159 --> 00:31:05.140
And on top of that,

649
00:31:05.600 --> 00:31:06.901
talking about coordination,

650
00:31:07.161 --> 00:31:14.607
this platform also gives the possibility to find an installer near you who could install that heat pump.

651
00:31:15.087 --> 00:31:17.729
So there we have the whole coordination process,

652
00:31:17.769 --> 00:31:18.510
the whole process,

653
00:31:19.082 --> 00:31:19.642
Thinking about,

654
00:31:19.682 --> 00:31:19.942
okay,

655
00:31:20.062 --> 00:31:20.602
what could I do?

656
00:31:20.642 --> 00:31:21.363
How could I do it?

657
00:31:21.423 --> 00:31:24.924
What do I need to make it easily accessible or like,

658
00:31:25.924 --> 00:31:26.064
yeah,

659
00:31:26.104 --> 00:31:31.726
to even the whole process easily for housing owners and have the right tools there.

660
00:31:32.406 --> 00:31:33.286
Vladimir,

661
00:31:33.526 --> 00:31:34.546
how have you...

662
00:31:34.987 --> 00:31:35.127
Yeah,

663
00:31:35.407 --> 00:31:42.169
so when I described the situation in North Macedonia with people using a lot of wood for heating,

664
00:31:42.469 --> 00:31:46.730
so how are you addressing the situation there?

665
00:31:47.030 --> 00:31:48.171
When at the same time,

666
00:31:48.431 --> 00:31:51.013
one of your objectives is to make sure that Macedonia,

667
00:31:51.113 --> 00:31:53.696
since it doesn't have a big gas infrastructure,

668
00:31:53.836 --> 00:31:58.760
leapfrogs from wood basically or solid fuel fuels to heat pumps.

669
00:31:59.260 --> 00:32:02.423
So what is and how is the strategy looking like?

670
00:32:03.263 --> 00:32:03.383
Yeah,

671
00:32:03.464 --> 00:32:03.784
thank you.

672
00:32:04.264 --> 00:32:06.586
That's a very interesting and very valuable point.

673
00:32:07.327 --> 00:32:10.750
So all comes down to cost at this point.

674
00:32:11.690 --> 00:32:12.711
We're talking about wood,

675
00:32:12.851 --> 00:32:15.934
but we're also talking about wood that has an inherent cost.

676
00:32:16.354 --> 00:32:19.355
So households have to purchase the heating wood.

677
00:32:19.976 --> 00:32:20.556
And right now,

678
00:32:20.636 --> 00:32:25.778
when we're talking to households that are changing their existing wood heating systems with heat pumps,

679
00:32:26.618 --> 00:32:27.559
they tell us two things.

680
00:32:27.839 --> 00:32:30.200
It comes down to costs and it comes down to comfort.

681
00:32:31.220 --> 00:32:42.145
Because we have slightly oversized houses that are non-uniformly heated when you're thinking about using a single heating stove or a heating boiler,

682
00:32:42.365 --> 00:32:44.706
and you don't have a central radiator system that

683
00:32:45.174 --> 00:32:46.375
uniformly heats the house,

684
00:32:47.016 --> 00:32:49.718
then you have some rooms that are overheated,

685
00:32:50.038 --> 00:32:51.580
others that are underheated.

686
00:32:51.760 --> 00:32:53.561
And you have that comfort challenge.

687
00:32:53.682 --> 00:32:56.444
And then you have the comfort challenge of dealing with the fuel wood.

688
00:32:56.824 --> 00:32:58.025
And on top of that,

689
00:32:58.145 --> 00:33:01.008
you have the essentially very high wood cost.

690
00:33:01.028 --> 00:33:02.649
So over the past years,

691
00:33:02.829 --> 00:33:06.853
the cost of heating wood has grown significantly and it's becoming a burden.

692
00:33:07.073 --> 00:33:12.538
And when households changed from logwood to heating pallets and they found...

693
00:33:13.026 --> 00:33:15.148
They started dealing with supply chain constraints.

694
00:33:15.488 --> 00:33:20.291
And there was a time when it was very difficult as Europe was getting rid of

695
00:33:20.712 --> 00:33:21.673
Russian natural gas.

696
00:33:22.293 --> 00:33:27.737
Then the market for pellets expanded and then it contracted nationally.

697
00:33:27.877 --> 00:33:30.759
So although we had producers of heating pellets,

698
00:33:30.879 --> 00:33:33.902
people couldn't get their hands on heating pellets.

699
00:33:34.482 --> 00:33:37.464
It was a challenge from that perspective.

700
00:33:37.504 --> 00:33:38.185
And it became,

701
00:33:38.325 --> 00:33:38.745
of course,

702
00:33:38.785 --> 00:33:39.726
supply and demand changing.

703
00:33:39.826 --> 00:33:41.967
overlap somewhere and you have in the equilibrium,

704
00:33:41.987 --> 00:33:44.387
you have an essentially a higher price.

705
00:33:44.927 --> 00:33:47.248
So this is where as Louise mentioned,

706
00:33:47.608 --> 00:33:50.509
you have to step in at the right time with the right solution.

707
00:33:51.069 --> 00:33:54.570
Right now in North Macedonia that solution are incentives,

708
00:33:55.750 --> 00:34:02.732
form of grants that cover a certain percentage of the investment of the heat pumps that range between

709
00:34:03.172 --> 00:34:04.853
20 to 30%,

710
00:34:04.854 --> 00:34:08.994
depending on the type of grant that is given and some are local,

711
00:34:09.374 --> 00:34:09.654
grants,

712
00:34:09.694 --> 00:34:14.097
some are national grants and some are grants given by international funding bodies.

713
00:34:15.197 --> 00:34:18.639
But what this has done over the past years,

714
00:34:19.279 --> 00:34:21.941
coupled with the lack of natural gas infrastructure,

715
00:34:22.361 --> 00:34:30.045
it has shown that we can think about a system without expanding the use of natural gas.

716
00:34:30.085 --> 00:34:38.470
And we can think about supplying and the energy demand without essentially expanding or even in the long term reducing the share of

717
00:34:38.850 --> 00:34:40.751
fossil fuels in that sector.

718
00:34:41.151 --> 00:34:41.271
So,

719
00:34:41.571 --> 00:34:42.612
in the heating sector,

720
00:34:43.232 --> 00:34:50.215
we're using or we're on a trajectory of using less fossil fuels and heating in North Macedonia.

721
00:34:50.395 --> 00:34:52.696
And while the natural gas infrastructure,

722
00:34:53.016 --> 00:35:02.481
primary natural gas infrastructure is expanding as time goes by and we see the fluctuations of natural gas prices and the import dependency that it creates,

723
00:35:02.921 --> 00:35:03.721
in my opinion,

724
00:35:03.761 --> 00:35:05.262
it doesn't make any sense

725
00:35:05.878 --> 00:35:10.561
to invest in natural gas infrastructure for heating individual homes.

726
00:35:11.009 --> 00:35:18.832
Because then we would have the challenges that are on the other side faced by European companies right now.

727
00:35:19.232 --> 00:35:20.513
So companies,

728
00:35:20.773 --> 00:35:21.473
heating companies,

729
00:35:21.493 --> 00:35:22.154
installers,

730
00:35:22.834 --> 00:35:30.637
designers and so on that have had significant experience with natural gas are now tackling to move from natural gas to heat pumps.

731
00:35:30.777 --> 00:35:40.241
On the contrary in North Macedonia there were a lot of companies given the lack of natural gas infrastructure could either focus on wood pellets or heat pumps.

732
00:35:40.681 --> 00:35:45.023
So that has given time for the industry to mature to a certain extent.

733
00:35:45.464 --> 00:35:53.628
And now we're at a point where they're maturing to think about how they can expand the deployment of heat pumps even further in the sense that,

734
00:35:53.808 --> 00:35:53.988
yes,

735
00:35:54.048 --> 00:35:58.511
households face these high upfront costs and we have to think about innovative business models.

736
00:35:58.691 --> 00:36:00.772
How do we offer these heat pumps,

737
00:36:00.812 --> 00:36:05.335
this technology that we're offering to make it affordable to even more households?

738
00:36:05.395 --> 00:36:09.437
And this is a lesson that we can learn not only about the heating sector in general.

739
00:36:09.477 --> 00:36:10.258
in North Macedonia,

740
00:36:10.259 --> 00:36:16.742
but there have been multiple studies showing that even countries right now that are facing significant energy poverty,

741
00:36:16.822 --> 00:36:19.324
not energy poverty in the sense of energy affordability,

742
00:36:19.824 --> 00:36:22.506
but energy poverty in the sense of lack of infrastructure,

743
00:36:22.926 --> 00:36:23.526
especially in

744
00:36:23.987 --> 00:36:24.807
Africa, let's say.

745
00:36:25.288 --> 00:36:32.492
There have been studies showing that you can leapfrog the dependency on natural gas and go straight to using cleaner,

746
00:36:32.633 --> 00:36:34.154
sustainable technologies.

747
00:36:34.234 --> 00:36:38.857
And this is valid not only for the

748
00:36:39.277 --> 00:36:47.339
We have a lot of developing countries that are seeing rising shares of electric vehicles far beyond those of internal combustion vehicles.

749
00:36:47.379 --> 00:36:51.921
So it's a lesson that we should be thinking about and a lesson that we should learn in time.

750
00:36:53.021 --> 00:36:53.161
Yeah,

751
00:36:53.201 --> 00:36:56.162
I find it incredibly powerful what you say because

752
00:36:56.542 --> 00:36:58.703
I've seen the same series of articles,

753
00:36:58.743 --> 00:36:59.063
I think,

754
00:36:59.103 --> 00:37:04.925
in you about the number of developing countries who are leapfrogging to clean mobility.

755
00:37:05.637 --> 00:37:05.877
I mean,

756
00:37:05.897 --> 00:37:07.498
it just makes more sense.

757
00:37:07.559 --> 00:37:08.960
Like they don't need to import,

758
00:37:08.980 --> 00:37:10.421
they don't need to pay taxes.

759
00:37:10.721 --> 00:37:13.123
You can recharge at home their infrastructure.

760
00:37:13.203 --> 00:37:30.636
So let's apply it really to the indoor heating and cooling needs because the heat pumps have a funny name for something that you can actually use for cooling and that is becoming absolutely indispensable for living our

761
00:37:30.696 --> 00:37:31.377
lives in Europe.

762
00:37:32.553 --> 00:37:36.396
But now we are reaching the end of this episode.

763
00:37:36.416 --> 00:37:45.324
So I would like you to go with one challenge or one assumption that you would like policymakers,

764
00:37:45.384 --> 00:37:47.145
whether at the local level,

765
00:37:47.225 --> 00:37:47.846
national level,

766
00:37:48.126 --> 00:37:48.806
or European level,

767
00:37:49.287 --> 00:37:50.908
or housing providers,

768
00:37:51.168 --> 00:37:56.713
something you would like them to question or some assumption you'd like them to overcome.

769
00:37:56.893 --> 00:37:57.253
Louise,

770
00:37:57.313 --> 00:38:01.637
would you like to start something like a myth that needs to be undone?

771
00:38:03.041 --> 00:38:03.241
Yes,

772
00:38:03.281 --> 00:38:09.563
I think funnily enough within the project that's something that Vladimir developed is heat pump fact check.

773
00:38:09.703 --> 00:38:13.684
So we actually have listed some myths that are out there about heat pumps.

774
00:38:13.864 --> 00:38:14.244
So yeah,

775
00:38:14.304 --> 00:38:29.508
there's I'll pick out one here and I think one big misconception for let's keep it more on let's say like individual housing owner level mustn't only be single family homes but also multi apartment buildings is that heat

776
00:38:29.568 --> 00:38:32.269
pumps do not work in existing buildings

777
00:38:32.793 --> 00:38:35.154
because maybe the efficiency is not good enough,

778
00:38:35.174 --> 00:38:36.654
they're not well enough insulated.

779
00:38:36.914 --> 00:38:41.555
And this might have been the case in the past when heat pumps were still,

780
00:38:41.756 --> 00:38:42.036
let's say,

781
00:38:42.116 --> 00:38:44.436
more in the whole developing phase.

782
00:38:44.536 --> 00:38:47.457
But now there have been a lot of technical advancements made.

783
00:38:47.497 --> 00:38:54.919
So it is possible to install a heat pump also maybe not in the most efficient building with highest insulation,

784
00:38:55.139 --> 00:38:57.280
also in multi-apartment buildings.

785
00:38:57.400 --> 00:38:57.800
Of course,

786
00:38:57.820 --> 00:38:58.440
there's always,

787
00:38:58.1000 --> 00:38:59.260
let's say,

788
00:38:59.261 --> 00:39:01.301
a balance you need to find between installation

789
00:39:01.549 --> 00:39:07.731
What should I insulate in order to increase the efficiency of the heat pump and what works well how it is,

790
00:39:07.871 --> 00:39:08.211
let's say.

791
00:39:08.451 --> 00:39:13.492
So there mustn't always be changes in the radiators and so on.

792
00:39:14.052 --> 00:39:16.493
Often they are sized well enough already.

793
00:39:17.173 --> 00:39:17.293
So

794
00:39:17.653 --> 00:39:24.115
I feel like that's this misconception that so much has to be done before installing a heat pump,

795
00:39:24.335 --> 00:39:27.236
which of course always depends on the individual house.

796
00:39:27.296 --> 00:39:28.896
Still some houses need a lot to be done.

797
00:39:31.405 --> 00:39:32.406
let's say it has the fee of,

798
00:39:32.486 --> 00:39:32.606
oh,

799
00:39:32.626 --> 00:39:36.829
there are so many other costs that will be there before I can install a heat pump.

800
00:39:37.289 --> 00:39:40.391
So I think that's one thing that should be debunked.

801
00:39:41.352 --> 00:39:41.532
Yeah,

802
00:39:41.592 --> 00:39:42.012
totally.

803
00:39:42.333 --> 00:39:42.453
Yeah.

804
00:39:42.593 --> 00:39:45.675
Something I heard recently with your house,

805
00:39:46.315 --> 00:39:52.640
you will never access comfort over 17 degrees because of the quality of your house or something.

806
00:39:53.200 --> 00:39:53.820
I think that's,

807
00:39:54.481 --> 00:39:54.801
I mean,

808
00:39:55.041 --> 00:39:57.063
when my friends shared that with me,

809
00:39:57.203 --> 00:39:57.743
I was like,

810
00:39:58.344 --> 00:40:00.405
maybe you should consult somebody else because it

811
00:40:00.665 --> 00:40:06.193
Seems like one of these big misconceptions coming from a potential installers.

812
00:40:06.594 --> 00:40:07.015
But anyway,

813
00:40:07.175 --> 00:40:07.555
Vladimir,

814
00:40:07.756 --> 00:40:11.121
what would be your misconception you'd like to debunk?

815
00:40:11.935 --> 00:40:14.077
So before debunking any misconceptions,

816
00:40:14.117 --> 00:40:20.402
I would like to thank Louise for making that point because it's a very important and valid point.

817
00:40:21.003 --> 00:40:35.735
And we are seeing countless of examples where houses change their source of heating and they're using their old existing radiators and they feel comfortable during these cold winters that we have in North Macedonia as well.

818
00:40:36.235 --> 00:40:38.858
But I would like to

819
00:40:40.867 --> 00:40:43.468
from the Paris Agreement in 2015.

820
00:40:43.968 --> 00:40:59.792
We're right now at a very strong tipping point where international scene and international relations are risking the global society and community to maybe negatively impact our previous ambitions for climate change mitigation.

821
00:40:59.952 --> 00:41:09.455
And one of the arguments where this is most seen is that climate change mitigation or reducing greenhouse gas emissions comes at a cost.

822
00:41:10.951 --> 00:41:11.071
So

823
00:41:11.811 --> 00:41:14.593
I think that this is a myth that we have to debunk,

824
00:41:14.633 --> 00:41:16.233
that although there are costs,

825
00:41:16.333 --> 00:41:19.055
we have to be thinking about not only heat pumps,

826
00:41:19.115 --> 00:41:22.896
but any of the technologies that we're deploying for a more sustainable future.

827
00:41:24.097 --> 00:41:28.579
So we have to think about the whole system cost or the whole societal cost.

828
00:41:28.779 --> 00:41:32.580
This is essentially very much pronounced in North Macedonia,

829
00:41:32.881 --> 00:41:38.523
where the use of fossil fuels or even old inefficient heating systems of wood

830
00:41:38.743 --> 00:41:40.824
contribute significantly to air pollution,

831
00:41:40.924 --> 00:41:42.084
to local air pollution.

832
00:41:43.145 --> 00:41:46.406
And this incurs additional costs to health systems,

833
00:41:46.466 --> 00:41:48.267
to other aspects of the economic system,

834
00:41:48.587 --> 00:41:49.948
reduced productivity,

835
00:41:50.048 --> 00:41:51.088
economic productivity.

836
00:41:51.288 --> 00:41:58.411
And these are just one aspect of the multiple costs that are associated with the use of inefficient fossil fuels,

837
00:41:58.892 --> 00:42:01.313
old energy elements or energy systems.

838
00:42:01.493 --> 00:42:06.615
And by introducing sustainable and cleaner sources of energy...

839
00:42:06.975 --> 00:42:09.497
and more sustainable energy solutions,

840
00:42:09.677 --> 00:42:16.922
yes we will have to introduce some costs but then the societal co-benefits hugely outweigh these costs.

841
00:42:17.382 --> 00:42:20.084
And these are co-benefits in the sense of health,

842
00:42:20.244 --> 00:42:20.824
well-being,

843
00:42:20.945 --> 00:42:21.985
impact on society,

844
00:42:22.105 --> 00:42:24.847
impact on economic productivity and so on.

845
00:42:25.307 --> 00:42:30.411
So I think this should be the take home message for policymakers in the future to come.

846
00:42:31.423 --> 00:42:32.003
I love that.

847
00:42:32.183 --> 00:42:33.484
If I can add one thing,

848
00:42:33.924 --> 00:42:49.768
I think we also need to have another conversation about the taxation of the different energy sources so that there is a better cost parity and we understand better that heat pumps are actually cheaper to run than subsidized

849
00:42:50.408 --> 00:42:50.968
natural gas,

850
00:42:51.028 --> 00:42:51.168
etc.

851
00:42:51.789 --> 00:42:56.670
I wrote a paper on that from the Eichelbohm Stiftung really on affordable heat pumps.

852
00:42:57.170 --> 00:43:00.071
So all of this is part of a...

853
00:43:00.491 --> 00:43:01.391
conversation.

854
00:43:01.531 --> 00:43:02.592
But in any case,

855
00:43:02.732 --> 00:43:04.013
Luis and Vladimir,

856
00:43:04.273 --> 00:43:06.994
I really appreciate your time and really appreciate what you said.

857
00:43:07.974 --> 00:43:08.214
Again,

858
00:43:08.234 --> 00:43:11.296
it doesn't have to be about one single home.

859
00:43:11.536 --> 00:43:13.897
It has to be about the building,

860
00:43:14.357 --> 00:43:15.037
the buildings,

861
00:43:15.337 --> 00:43:15.997
the neighborhood,

862
00:43:16.018 --> 00:43:16.418
et cetera.

863
00:43:16.578 --> 00:43:26.282
And that's also where we can learn and we can really make sure that there is some kind of a ripple effect from all coming together with

864
00:43:29.223 --> 00:43:30.203
So thank you so much,

865
00:43:30.223 --> 00:43:31.404
Louise and Vladimir,

866
00:43:31.564 --> 00:43:32.344
and see you next time.

867
00:43:34.545 --> 00:43:37.507
Thank you for tuning in to another episode of Energetic.

868
00:43:37.787 --> 00:43:45.650
It's been a pleasure diving deep into the world of sustainability and the just energy transition with some of the most forward-thinking mouths out there.

869
00:43:46.290 --> 00:43:47.211
I'm Maureen Cornelis,

870
00:43:47.291 --> 00:43:50.092
your host from policy consultancy Next Energy Consumer,

871
00:43:50.472 --> 00:43:53.934
and it's been an incredible journey growing this podcast together with you,

872
00:43:54.314 --> 00:43:56.435
our knowledgeable and passionate listeners.

873
00:43:57.151 --> 00:43:58.392
Since 2021,

874
00:43:58.552 --> 00:44:00.013
we've shared countless stories,

875
00:44:00.194 --> 00:44:03.837
insights and ideas over more than 40 episodes.

876
00:44:04.217 --> 00:44:07.400
And it's all thanks to your support and enthusiasm.

877
00:44:08.100 --> 00:44:12.384
If you enjoyed our journey so far and want to help us keep the conversation going,

878
00:44:12.764 --> 00:44:14.385
why not support us on Patreon?

879
00:44:14.986 --> 00:44:18.309
Every bit helps us bring more inspiring content your way.

880
00:44:18.789 --> 00:44:20.591
Check out the show notes for the link.

881
00:44:21.291 --> 00:44:21.712
And hey,

882
00:44:22.172 --> 00:44:25.815
if you're a part of an organization that shares our passion for a sustainable

883
00:44:26.015 --> 00:44:27.816
and inclusive energy future,

884
00:44:28.316 --> 00:44:31.177
we're excited to explore sponsorship opportunities with you.

885
00:44:31.657 --> 00:44:37.700
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886
00:44:38.660 --> 00:44:40.101
Shout out to the fantastic

887
00:44:40.461 --> 00:44:45.983
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888
00:44:46.324 --> 00:44:48.765
making every episode a joy to listen to.

889
00:44:49.685 --> 00:44:50.705
If you haven't already,

890
00:44:50.945 --> 00:44:54.407
make sure to subscribe to Energetic on your favorite podcast platform.

891
00:44:54.879 --> 00:44:58.380
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892
00:44:58.740 --> 00:45:00.341
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893
00:45:00.781 --> 00:45:05.022
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894
00:45:05.502 --> 00:45:06.802
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895
00:45:07.363 --> 00:45:12.504
Follow us on Twitter and LinkedIn to stay engaged and update on all things energetic.

896
00:45:12.824 --> 00:45:14.705
Thanks once again for lending your ears.

897
00:45:14.865 --> 00:45:15.605
Until next time.

898
00:45:23.863 --> 00:45:25.085
Give me your arms,

899
00:45:25.145 --> 00:45:30.373
give me your arms.

900
00:45:30.374 --> 00:45:31.415
I need you close,

901
00:45:31.675 --> 00:45:32.496
I need you here.

902
00:45:32.516 --> 00:45:33.338
I need you close,

903
00:45:33.378 --> 00:45:38.345
I need you here.

904
00:45:38.346 --> 00:45:38.726
And I gotta,

905
00:45:38.727 --> 00:45:39.206
I'm losing my mind.

