Plan for the social feasibility of the heating transition

27.06.2025

Source: E & M powernews

The Competence Center for the Municipal Heating Transition (KWW) discussed the feasibility, acceptance and social components of the energy transition in heating at a conference in Halle (Saale).

On June 26, representatives from local authorities, planning, science and the energy industry met in Halle (Saale) for a conference on heat planning. The conference was organized by the Competence Centre for the Municipal Heating Transition (KWW) of the German Energy Agency (Dena). The event could also be followed free of charge via livestream. Discussions focused on the financing of heating networks, the planning of socially acceptable solutions and the feasibility and participation on site.

A central topic of the conference was the financing of heating networks. Representatives from the federal government, federal states, local authorities and the banking industry discussed their approaches to solutions. Stephanie von Ahlefeldt, Head of Department at the Federal Ministry for Economic Affairs and Energy (BMWE), emphasized that heating networks could be supported by cooperative models - "an interesting model" with potential, she said.

Gudrun Gumb from the KfW development bank sees a need for clarification in privately organized heating projects: There is a need for quick contractual solutions between the parties involved here. Uta Schlotfeldt from Stadtwerke Halle also referred to the hurdle of securing long-term investments: "We need reliable framework conditions, otherwise there will be no market." During the discussions, it became clear that financing models and responsibilities have not yet been clarified in many places.

The central challenge of acceptance

Markus Fritz from the Fraunhofer Institute for Systems and Innovation Research ISI, Antje Fritzsche from the Saxon Energy Agency (Saena) and Dirk Neubauer, former mayor, district administrator and current consultant, said that political players, administration and the public must work together to develop viable solutions for the heating transition. In eastern Germany in particular, there is a lack of acceptance for the heating transition if it is imposed from above, said Neubauer, speaking from practical experience.
He advocated developing solutions for the local area and then giving citizens the chance to get involved. "I've never had such a good product that was so hard to sell," he said. The focus should not only be on effort and costs, but above all on the advantages of local value creation and independence. "At district level, revenues of 30 million euros a year are possible if the heat transition is implemented," Neubauer calculated using a Saxon example.

Focus on social aspects

A discussion in the afternoon was dedicated to the social compatibility of the heating transition. The panel included Frederik Digulla from the Social Climate Council, Beatrice Kuhn from Dena and Hartwig Kalhöfer from Stadtwerke Leipzig. Currently, only technical feasibility and economic viability play a role in heat planning, Kalhöfer pointed out. In view of the many low-income tenant households, however, social aspects need to be integrated into the planning processes.

Subsidies should only be available for low-income households, demanded Frederik Digulla from the Social Climate Council. Currently, state subsidies for energy-efficient refurbishment and climate-friendly heating systems mainly benefit homeowners who can afford the measures. However, he criticized that it was also important to provide households in old homes or tenants in poorly renovated buildings with affordable heating in the future.

A local maximum heat price, whether via district heating or other solutions such as contracting, would be one solution. This could then be subsidized by the state for the most vulnerable households, Kuhn suggested. In addition, the legislator would have to ensure that energy-efficient refurbishment is also worthwhile for landlords, even though tenants would have lower operating costs as a result, she said.

Associations call for political clarity

Parallel to the conference, the Association of Local Utilities (VKU) and the Energy Efficiency Association AGFW presented a joint report on the costs of various heating options. It shows that almost all heating options are associated with additional costs - on average around 50 cents per square meter of living space per month.

According to VKU Managing Director Ingbert Liebing, it is essential that the legal and financial framework is designed in such a way that municipalities can also implement their plans. Liebing is particularly critical of the existing regulation in Section 556c of the German Civil Code (BGB), which makes it more difficult to expand district heating in rental buildings. AGFW Managing Director Werner Lutsch sees this as a distortion of competition in favor of heat pumps: "What we need is fair competition between technologies."

VKU and AGFW are therefore calling for the system of the newly introduced modernization levy (Sections 555b, 559e BGB) to be applied to commercial heat supplies. This would both ensure tenant protection and make investments in district heating economically viable.

Author: Susanne Harmsen