This document discusses principles for smart heat electrification in Europe. It notes that heating accounts for around 50% of energy use in the EU, with 75% currently generated from fossil fuels. The residential sector is most important for space heating. The document outlines four principles for heat electrification: 1) prioritize energy efficiency to reduce costs and enable thermal storage, 2) recognize the value of flexible heat loads for integrating renewable energy, 3) understand how load changes affect emissions, and 4) design electricity tariffs to reward flexibility. A range of policies are needed to accelerate the replacement of fossil fuel heating with low-carbon alternatives like heat pumps.