Implementing and financing the heating transition

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The heating transition is a central component of the energy transition in Germany and is crucial to achieving the climate and energy targets. Germany is aiming to become climate-neutral by 2045. This requires a transformation towards climate neutrality in all sectors, especially the heating and cooling sector, which currently accounts for more than half of total final energy consumption in Germany and is predominantly based on fossil fuels.

However, the transformation of the heating sector poses a considerable challenge. In addition to the technological switch to renewable energies and efficient heat generation systems, extensive infrastructure development is required, particularly in urban areas, where heating networks can play a central role. In addition, legal and economic framework conditions must be created that offer investment security and promote acceptance among the relevant stakeholders.

The expansion of renewable energies and the adaptation of the heating infrastructure require considerable financial resources that exceed the current investment framework. Viable business models must be developed for the supply of heating and cooling and financing models and instruments must be identified that involve both private and public stakeholders and do not overburden social and economic structures.

The project supports the creation of the legal, instrumental, institutional and financial framework conditions for the heat transition. The work is divided into six thematic areas:

• Topic area 1: Goals and pathways 2045
• Topic area 2: Further development of heat planning
• Topic 3: Consumer protection and regulation of grid-based heating and cooling supply
• Topic area 4: Financing the heating transition
• Topic area 5: Further development of heating network funding
• Topic area 6: Overarching activities

The combination of technological innovations, political control and strategic planning is crucial for achieving national and international climate targets. Therefore, a cross-thematic focus of the project is on the scientific analysis of the interactions between the various instruments of the heating transition and their embedding in the energy policy framework.

A consortium led by ifeu is working on the project over its three-year term