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Berlin kicks off €3 billion district heating subsidy scheme

By District Energy posted 09-15-2022 11:23




The German government has announced the start of a €3 billion subsidy scheme put in place until 2026 that will support the construction of district heating grids that use at least 75% renewable energy.

District heating, where pipes are laid from a central heating facility to individual houses, is more efficient than households heating themselves. Towns across Europe rely on district heating to become climate neutral ahead of the continent, like the Danish town of Sonderborg

A majority of district heating is fuelled by coal, gas and waste. Germany hopes to speed up its own path towards climate neutrality by providing generous funding for “green” district heating.

“Heat grids are the key if we want to make heating greenhouse gas neutral. They tap into climate-friendly heat sources that cannot be used by decentralised heating systems in the home – including deep geothermal energy,” explained Robert Habeck, minister of economy and climate action, on Thursday (15 September).

The International Energy Agency considers district heating an “important solution for decarbonising the heating sector.” 

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