Source: Copernicus Project Ariadne Potsdam Institute for Climate Impact Research (PIK)
Converting district heating networks to renewable energy sources reduces carbon emissions in existing buildings.
According to one study, about 90% of heating networks would need to reduce their supply temperatures to about 60 °C to become low-temperature (LowEx) networks. This conversion requires various measures and is estimated to cost around 13 billion euros. Operators bear about 90% of the conversion costs themselves, as refinancing is difficult in the current heating market environment.
A densification of the supply area through additional district heating connections could mitigate an "unrentability". Overall, converting all district heating networks to LowEx requires funding of €12.6 billion, which could be reduced to €11.3 billion if densification occurs at the same time. If the networks were expanded, unprofitable costs of €15.6 billion would be incurred.
Policy makers have launched the "Federal Promotion of Efficient Heat Networks" funding program, but this covers only a small portion of the potential costs. A holistic view and coordinated strategy are important to effectively implement the heat transition and decarbonization of district heating.
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