District heating prices remain stable

July 23, 2026

Source: E & M powernews

The price transparency platform operated by AGFW, BDEW, and VKU reports stable district heating prices and progress in the decarbonization of heating networks as of April 1, 2026.

The District Heating Price Transparency Platform has further expanded its market coverage. According to the platform, 710 subnetworks are now included. It thus accounts for more than half of Germany’s district heating sales and encompasses approximately 27,000 kilometers of district heating networks, as well as heat sales of approximately 61,500 million kWh. Since the platform’s launch, 158 additional sub-networks have been added.

According to the latest semi-annual report dated July 22, price levels in the district heating market remain stable. The weighted average price for the standardized consumption scenario of a multi-family residence stood at 15.6 cents per kWh (gross) as of April 1, 2026. This figure had already been at the same level a year earlier. Overall, the vast majority of district heating customers benefit from prices around 16 cents per kWh (gross).

The platform is jointly operated by the AGFW, the Energy Efficiency Association for Heating, Cooling, and Combined Heat and Power in Frankfurt am Main; the German Association of Energy and Water Industries (BDEW); and the Association of Municipal Enterprises (VKU). It is intended to provide consumers, businesses, and policymakers with a transparent data foundation on district heating prices and the development of heating networks.

According to the platform, prices for nearly all recorded heat sales fall within a range of 12.5 to 17.5 cents per kWh. Significant deviations occur only in a small portion of the market. According to the data, differences stem primarily from locally available energy sources and their costs.

Compared to heating oil or natural gas, district heating reacts less strongly to short-term price fluctuations, according to the analyses. The associations cite the industry’s price adjustment system as the reason for this. More than 60 percent of utility companies adjust their prices only once a year, predominantly at the beginning of the year. As a result, developments in the energy markets are passed on to customers gradually and with a time lag.

Decarbonization Is Making Progress

In addition to price trends, the platform also tracks progress in the decarbonization of district heating. According to the latest data, 29 percent of heat generation already comes from climate-friendly sources. In addition, 314 of the 710 registered district heating networks already meet the legal requirements for 2030. To qualify, the share of climate-friendly heat must be at least 30 percent.

BDEW Chief Executive Kerstin Andreae believes the industry is on track with its transformation. District heating companies are investing in the expansion and decarbonization of heating networks while simultaneously ensuring price stability, she said. Andreae called on policymakers to use the announced heating network package to create the legal and economic conditions necessary for the transformation to continue moving forward.

Associations Call for More Funding for the Heating Transition

AGFW Managing Director Frank Mattat also points to the progress made in the restructuring of heating networks. At the same time, he calls for reforms to the Ordinance on General Conditions for District Heating Supply (AVBFernwärmeV) and the Heat Supply Ordinance, as well as legal safeguards for federal funding for efficient heating networks (BEW).

The VKU is also calling for further political support. Deputy Executive Director Kai Lobo advocates, among other things, for legal safeguards and an increase in federal funding for efficient heating networks from the current 1.4 billion to 3.5 billion euros per year. In addition, Lobo stated that amendments to the aforementioned heating laws and the Combined Heat and Power Act are necessary to further advance the expansion of district heating.

The latest report from the District Heating Price Transparency Platform is available online.

Author: Susanne Harmsen