07/23/2026

Strategies for the decarbonisation of district heating in Germany: research project completed

The research project “Heat Transition: Strategies for the Deployment of Climate-Neutral District Heating Technologies”, funded by the BMWE, has been investigating since 2023 how selected technologies can be specifically supported to accelerate the heat transition. The project was carried out by a consortium led by HIC Consulting; the Federal Office for Energy Efficiency (BfEE) provided oversight. The final report, which has now been published, provides concrete answers regarding the use of large-scale heat pumps, unavoidable waste heat, solar thermal systems and large-scale heat storage systems. As part of the project, key barriers were systematically identified and, for each specific technology, addressed with concrete solutions and practical recommendations for action to accelerate market uptake. The project focused on four key technology areas that play a decisive role in the decarbonisation of district heating: large-scale heat pumps, unavoidable waste heat, solar thermal systems and large-scale heat storage.

Systematic analysis as the basis for concrete recommendations for action

The project followed a uniform methodological approach. For each technology, the existing barriers were first identified and specified. These were then prioritised in collaboration with stakeholders from industry, academia and trade associations. In addition, successful approaches from neighbouring European countries were analysed and assessed for their applicability to Germany. Based on these analyses, a review of the scientific literature and the project team’s own expertise, the project team developed concrete recommendations for action to remove the identified barriers in each of the four technology areas.

The results show that, in addition to technology-specific measures, reliable political and regulatory frameworks are crucial for enabling investment in climate-neutral district heating. Funding instruments such as the Federal Funding Scheme for Efficient Heating Networks (BEW), municipal heating planning, the reduction of information gaps, and long-term investment and planning certainty are essential prerequisites for a successful market ramp-up.

HIC Consulting was responsible for project management of the overall project and led several work packages. As consortium partners, ifeu and the Öko-Institut contributed their scientific expertise. A further five industry partners (AGFW Projekt GmbH, GEF Ingenieur AG, Consulaqua Hamburg, Ramboll Germany and PlanEnergi from Denmark) supported the project. The ifeu took the lead in addressing issues relating to the utilisation of unavoidable waste heat from industry and commerce, thermal waste treatment plants and wastewater.

Project report now available

With the publication of the final report, the project’s findings are now available to policymakers, energy suppliers and other interested stakeholders. The report provides, for the first time, a comprehensive and structured analysis of existing barriers, as well as concrete recommendations for overcoming them, and is thus intended to help accelerate the transformation of district heating supply.

Downloads

• Project report: ‘Heat Transition: Strategies for Climate-Neutral District Heating Technologies’ (in German)
• The guidance documents on large-scale heat pumps and large-scale heat storage systems are available for download on the BAFA website.
• Read the full BAFA press release