Germany can invest almost 3 billion euros in the promotion of district heating from renewable energy sources. The EU competition watchdog approved aid totaling 2.98 billion euros over six years on Tuesday. The money should create incentives to use renewable sources in district heating production instead of fossil fuels and thus boost the energy transition, the EU Commission announced.
District heating is distributed to buildings through insulated pipes and can be produced in different ways, for example during electricity production in the power plant. According to the Commission, around four million tons of climate-damaging carbon dioxide (CO2) can be saved per year thanks to the funding.
Feasibility studies should also be funded
In concrete terms, operators should in future be able to receive direct grants for the construction of new district heating systems that are primarily operated with renewable energies or with waste heat that is emitted as a by-product of industrial plants. Existing systems are to be modernized with the money and new systems for heat generation using solar energy can also be built. There will also be grants for feasibility studies.
Federal Economics and Climate Protection Minister Robert Habeck reacted to the Brussels decision in a statement. Green district heating networks are a key to climate-friendly heat supply and crucial to reducing dependence on fossil energy imports. "Especially in cities and densely populated areas, connection to the increasingly climate-neutral district heating is the best solution to get away from oil and gas heating."
According to the ministry, almost half of German households still heat with fossil natural gas, and another quarter with heating oil. According to Habeck, the funding is aimed at energy supply companies, municipalities, public utilities and registered associations or cooperatives.
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