The transformation towards a climate-neutral heat supply in Germany plays an important role in achieving European and national climate targets. Besides decentralised technologies such as heat pumps, district heating networks are among the key options for a climate-friendly heat supply. The EWI study analyses techno-economic and regulatory aspects of the decarbonisation of heating networks and the associated challenges. The focus is on international regulatory concepts for pricing as well as mandatory connection and use obligations in Denmark, Sweden and the Netherlands. The aim of the analysis is to derive impulses for the further development of the German regulatory framework from international regulatory approaches.
As the study shows, the countries analysed adopt different regulatory approaches to district heating. While Sweden relies on a market-based approach centred on transparency obligations for district heating suppliers and individual negotiation rights for households, Denmark takes a highly regulated, non-profit approach combined with indicative price caps and binding municipal heat planning. Meanwhile, the structure of the district heating sector in the Netherlands is in the process of undergoing a fundamental change, with local authorities being granted more control over the development of the heating network, and the natural gas reference price for district heating being gradually phased out in favour of cost-plus regulation.
In view of the challenges of decarbonisation and expanding heating networks, the current regulatory framework in Germany appears inadequate. Against this backdrop, the amendment to the AVBFernwärmeV provides an opportunity to utilise international regulatory approaches to inform the revision of the existing framework. Approaches such as the more binding heat planning methods employed in Denmark and the Netherlands, the procedural transparency of pricing in Sweden, and indicative price caps in Denmark offer potential models of reference. However, the associated administrative challenges must also be considered during implementation.
