Clean Energy Wire
Summary
To supply a sufficient number of homes with district heating, Germany needs to rapidly expand networks, ensure better profitability and double its annual investments in the technology, a report by think tank Agora Energiewende found. The report outlines how climate-neutral heating networks can be economical and affordable.
Looking at the current conditions, the report found that a secure investment framework is important as suppliers face financing needs that far exceed their investment activity until now. It also called for district heating prices to be kept at comparable levels to decentralised systems, especially because district heating is largely used in rented households, many of them with lower incomes.
Investments should double to five billion euros annually in order to supply a third of all homes with district heating by 2045. The current regulatory and funding framework, however, does not make such investments economically viable for district heating companies, the report found. Furthermore, lower electricity costs and more consistent funding are crucial levers for enabling climate-neutral district heating.
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