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Background

Joint letter: the Innovation Fund Heat Auction as part of the upcoming Electrification Action Plan

Published: 29/04/2026

ÌÒÉ«ÊÓÆµ has joined CEPI, CIRFS, EHPA, EuroGypsum, eurelectric, SolarPower Europe and Wind Europe in signing a joint letter addressed to Commissioners Hoekstra and Jørgensen to call on the European Commission to continue and replicate the pilot auction on industrial process heat under the Innovation Fund (IF25 Heat Auction) and establish a recurring call as of 2026, notably as part of the upcoming Electrification Action Plan.

We, the undersigned organisations, call for an early commitment from the European Commission to continue and replicate the pilot auction on industrial process heat under the Innovation Fund (IF25 Heat Auction) and establish a recurring call as of 2026, notably as part of the upcoming Electrification Action Plan.

Companies in our sectors, which represent end-users, renewable energy suppliers and technology providers, value the commitment demonstrated by the European Commission in proposing, developing and promoting the IF25 Heat Auction. The active and constructive engagement with stakeholders throughout the process was particularly appreciated.

At the same time, due to the novelty of this instrument, our members highlighted that participation in the IF25 Heat Auction was limited by two key issues: the short timeline between the publication of the final Terms and Conditions and the opening of the call, and the prolonged lack of clarity regarding the possibility to accumulate auction support with other forms of public support. The number of bids presented is promising, but we believe there is still significant potential to further increase industry participation.

Timing and predictability are essential for investment decisions and to allow companies to plan their participation in the Auction. Therefore, we call on the European Commission to give a strong political signal and establish a recurring call for the Innovation Fund Heat Auction as of 2026 as part of the Electrification Action Plan. Ideally, the budget for the Heat Auction should be increased, especially for the medium-temperature topics (up to 400°C), which were the most oversubscribed.

In light of the ongoing energy price volatility driven by fossil fuel markets, the efficient use of ETS revenues is key to Europe’s industrial competitiveness, energy security, and decarbonisation, in line with the announcement of an ETS Investment Booster by President Von der Leyen. The Heat Auction has the potential to lead the way and quickly become a cost-effective support tool to accelerate meaningful industrial decarbonisation projects in Europe.

We reiterate our appreciation for the work of the European Commission on the Innovation Fund and the pilot auction on industrial process heat. Our sectors remain committed to raising awareness and promoting the instrument among end-users and technology providers, as well as calling on Member States to contribute additional funding via Auctions-as-a-Service.