Fernheat requires additional billions of investment
To reach the climate goals, more buildings should be connected to the district heating network. District heating has so far been a promising and good alternative to electric heat pumps. However, the expansion of the network is turning out to be more expensive than planned. The funding is also not sufficient.
The planned expansion of district heating networks in Germany is expected to be significantly more expensive than previously assumed. The Prognos AG currently reports that for the period up to 2030, the investment volume will be 43.5 billion Euro, an increase of 10.6 billion Euro compared to the initial study. In 2020, the study still assumed an investment volume of 32.9 billion Euro. The commissioners of the investigation are the German District Heating Association (AGFW) and the Association of Municipal Utilities (VKU).
By political guidelines, the share of renewable energies and unavoidable waste in district heating should be increased to at least half of the district heating offer by 2030. At least 100,000 new buildings are to be connected to the network annually. By 2045, around 3.6 million residential buildings with 14 million dwelling units are to be heated and supplied with hot water via district heating.
From the higher investment requirements, the associations derive a higher funding requirement. According to the new study, the annual funding requirement is now approximately 3.4 billion Euro until 2030. The Federal funding for efficient heating networks (BEW) is considered good in content but not funded. The previously existing "Federal funding for efficient heating networks" is limited to 3.5 billion Euro and will expire at the end of 2028. This is far from sufficient to enable the networks to make their contribution to climate goals.
Communities see heating planning as a challenge
Currently, German communities are working on so-called heating plans for their area. Based on this, it will be decided whether private households will be connected to district heating networks or whether they must provide for emissions-free heating, for example, with heat pumps.
Currently, some communities in Baden-Württemberg are leading the way in planning, according to the head of the Competence Center for Municipal Energy Transition, Robert Brückmann. Other communities, however, are still at the beginning. The Federal Government intends to support the states in the creation of plans until 2028 with 500 million Euro. The Competence Center in Halle (Anhalt) is part of the German Energy Agency (dena) and is to support the communities in the creation of heating plans.
A half year after the enactment of the Heating Planning Law, the managing director of the North Rhine-Westphalian Energy and Climate Protection Agency, Christian Mildenberger, said in June that North Rhine-Westphalia has a special role in the energy transition. "We have a large population as the most populous federal state and a variety of urban agglomerations such as the Ruhr Area or the Rhineland," Mildenberger said. In these densely populated areas, there is a high heat demand that must be met through sustainable and climate-friendly heating.
Mildenberger also pointed out that financing is a challenge. "There are significant investments, some of which are in long-term infrastructure, which the municipalities cannot afford alone. Private capital is also needed," Mildenberger added.
- The high investment costs for expanding district heating networks pose a challenge for energy companies, potentially leading to increased energy prices for consumers.
- In light of the energy transition and the need for energy efficiency, policymakers are pressing energy companies to significantly increase the share of renewable energies in their energy supply.
- As the energy economy navigates the energy transition, the role of energy politics becomes increasingly important in managing the energy crisis and ensuring a stable energy supply.
- The escalating energy prices, coupled with the rising costs of expanding energy infrastructure, could negatively impact the overall economy, making it crucial for energy companies to seek innovative solutions.
- To cope with the funding shortage and minimize the financial burden on energy companies, collaborative efforts between energy suppliers, government entities, and private investors could help secure the necessary funds for the energy transition.
