86 million for Heidelberg's heat transition

04.12.2025

Source: E & M powernews

Heidelberg's heating transition is picking up speed with new funding. The federal government is providing 86 million euros for heat pumps and the expansion of the district heating network.

The planned heat pump projects and the expansion of the grid-based heating network are making progress in Heidelberg. Stadtwerke Heidelberg has secured funding amounting to 86 million euros. As the municipal utility announced in a press release on December 2, the approval covers three projects: a river heat pump on the Neckar in Bergheim, a wastewater heat pump near the northern sewage treatment plant and measures to expand the network over the next four years. The funding will cover around 40 percent of the required investment, according to the statement.

The Heidelberg city administration wants to convert the local heating sector completely to renewable energy sources. According to the city's environmental department, the municipality plans to achieve climate neutrality by 2030. The target for the entire city is 2040.

The expansion of district heating is a central pillar of this: Stadtwerke Heidelberg aims to generate climate-neutral district heating from 2035. Around 50 percent of heat generation already comes from CO2-free sources, according to the city.

Further generation plants based on renewable energies will gradually increase this proportion. At the same time, the municipal utilities are continuously modernizing the existing grid. The transformation process is cost-intensive: according to the company, it expects total investments in the three-digit million range. Financing is to be provided by a mix of equity, borrowed funds and subsidies.
The funds that have now been approved come from the federal funding for efficient heating networks, a program of the Federal Ministry of Economics. This funding instrument requires transformation plans with concrete potential analyses, technical concepts and economic feasibility studies. Stadtwerke Heidelberg submitted its plan in late fall 2024. Based on this, they submitted several funding applications for key measures.

Further citizen participation planned

According to the utility company, the approval period covers four years and ends in November 2029. Stadtwerke Heidelberg is planning another public participation process in parallel to the public funding. Managing Director Michael Teigeler announced that profit participation rights would once again be issued. According to the company, the "heidelberg KLIMA INVEST" participation model met with great demand in 2024. Within four days, registrations reached the maximum issue amount of 6 million euros. Teigeler expects a similar level of interest for the issue in spring 2026.

The next steps include the construction of the river heat pump in Bergheim at the south-western end of the Ernst Walz Bridge. The wastewater heat pump near the northern sewage treatment plant is also one of the prioritized measures. According to Group Managing Director Rudolf Irmscher, Stadtwerke now has extensive experience with major projects of this kind. He points to the work of the workforce, which has made the current status possible. The detailed planning and preparation of the tenders are to begin soon, according to the statement. The first test drillings in Heidelberg-Bergheim are to take place next year. If the work proceeds as planned, construction of the two plants will start at the beginning of 2027.

Heidelberg's climate protection framework

Heidelberg is one of the most active municipalities in climate protection. According to the city, CO2 emissions per inhabitant have fallen by around 30 percent since 2004. The municipality's climate protection action plan comprises 30 specific measures, ranging from renewable energies and building renovation to mobility and urban design. One of the measures already implemented is the installation of an additional 25 MW of PV power. In addition, according to the city, 83 percent of residents use public transport, bicycles or footpaths for inner-city journeys.

Stadtwerke Heidelberg employs around 1,100 people, including over 200 in the regional transport company Rhein-Neckar-Verkehr GmbH. Turnover in 2024 amounted to 622.2 million euros. The company supplies 200,000 people with electricity, gas, water and heat and also operates swimming pools, mountain railroads and multi-storey parking lots. It is also responsible for coordinating and financing the city's public transport system.

Author: Davina Spohn