Susanne Wellington Hansen
9 July 2025
District heating: The building block to Germany’s energy independence
Germany’s transition to a resilient and decarbonised heat supply comes with a price tag of more than €40 billion. It is a worthwhile investment to enhance the country’s energy independence by swapping imported fossil fuels with district energy systems powered by locally sourced renewables.
Urban resilience is increasingly tied to the ability to operate independently from imported fossil fuels, relying instead on local renewable resources. This is especially true in the current energy landscape that is impacted by conflict in Europe and the Middle East, and policymakers in the US and the EU slow-walking action on climate.
By contrast, Germany’s ambitious district heating strategy not only aims to cut greenhouse gas emissions, it also underscores the importance of energy independence.
Heat planning is a must
Germany’s target to slash greenhouse gas emissions by 55% by 2030 is intricately connected to district heating. According to the Heat Planning Act (Wärmeplanungsgesetz, WPG) of 2024, municipalities are required to develop comprehensive heat plans, while municipal utilities must create transformation plans promoting the integration of renewables into heating networks.
Today, the share of district heating in German households is about 15%, with 23% covered by renewable sources.
Investing away from natural gas and into local renewables
Natural gas is Germany’s second most important energy source after petroleum, and 94% of it is imported. Most of this imported gas is used for heating. For municipalities, switching to district heating means moving from traditional gas networks to sustainable and locally sourced energy solutions that can adapt to future needs.
Unlike the recurring costs of imported gas, investing in local renewable energy sources will eventually lead to long-term savings and improved energy independence. That transition requires significant investments, estimated at €43.5 billion by 2030, and is a worthwhile one-time expenditure in physical assets.
"Embracing local renewables through district energy not only reduces emissions but fortifies cities against external energy dependencies. While it is tempting to revert to established fossil energy sources for heating, we must remember that renewable energy technologies are increasingly the cheaper, more reliable, and scalable alternative.”
She continues: “The framework and financial incentives are still there, with funding schemes such as Germany’s BEW for decarbonising district heating systems that is set to be further integrated into law. So, you have to find a way to tap into it in the right way and also at the right time.”
UK Energy Act: another approach to district heating
Germany is not alone in advocating for district energy as a cornerstone of urban resilience. The UK’s Energy Act of 2023 sets the stage for a transition to secure, affordable, and low-carbon energy, including district heating networks. By enforcing heat network “zoning” and mandating the connection of certain buildings to these networks, the UK aims to minimise dependency on imported natural gas. This legislative framework exemplifies how urban areas can prioritise resilience through local energy solutions, with the heat network supply projected to increase from less than 3% to 20% by 2050.
Here’s how to approach the energy transition in Germany
Substantial investments require careful consideration – what do you retain or leave out - so, municipalities and municipal utilities across Germany are currently developing detailed roadmaps for the transition to renewables.
Ramboll’s capabilities in leveraging expertise from Denmark – where district heating, 75% of which is renewable, powers over 65% of households nationwide and 98% in the capital, Copenhagen – offer invaluable insights and proven benchmarks. Based on these learnings, Germany’s transition to district heating based on renewables could include the following:
Integrate diverse renewable energy sources – from CHP to waste
Integrating diverse renewable energy sources into district heating networks builds a resilient and independent energy framework.
Ramboll’s experience with Copenhagen’s district heating network showcases the benefits of utilising surplus heat from waste-to-energy, renewable energy sources, and combined heat and power (CHP). These integrations have resulted in carbon emissions three times lower than those from gas-fired boilers, significantly mitigating climate impact while reducing costs for end-users. Technologies such as large heat pumps and pit thermal energy storage (PTES) offer additional flexibility and efficiency, which can be adapted to Germany’s specific regulatory and market demands.
Adopt low-temperature heating solutions for efficient integration
A key aspect of district heating success in Denmark is the adoption of low-temperature heating solutions. Danish district heating networks often operate with flow temperatures below 80°C and return temperatures below 50°C, which allows for efficient integration of locally available renewable heat sources such as solar thermal and geothermal energy.
This reduces energy consumption, enhances system efficiency, and lowers operational costs. German municipalities are slowly starting to adopt similar low-temperature heating techniques, particularly in areas where new networks are planned, optimising heat transfer in buildings and using digital interfaces to monitor and manage consumption.
Collaborate much more with main stakeholders
Early communication and transparent processes ensure smoother decision-making and greater trust among stakeholders.
District energy succeeded in Denmark thanks to close collaboration between utilities, citizens, and municipalities that often join forces in associations to pool resources and know-how, making larger projects more feasible and cost-effective.
Working together helps distribute planning and implementation costs, thereby optimising financial resources and strengthening negotiating positions with suppliers. Collaboration requires meticulous coordination and clear communication to accommodate the varying needs of individual municipalities.
Since the heat transition in Germany will largely be driven by heat pumps and electric boilers, collaboration with power system and electrical grid operators is particularly relevant.
Three top Ramboll district heating projects in Denmark and Germany:
| Waste heat recovery in Copenhagen | Heat planning Stadtwerke Würzburg | Large heat pumps |
| Since 1970, Ramboll has been instrumental in developing Copenhagen’s district heating network, which features a 160 km transmission system that remains a global benchmark. By using surplus heat from waste-to-energy, renewable energy, and combined heat and power (CHP), CO2 emissions are three times less compared to gas-fired boilers, significantly mitigating climate impact while reducing costs for end-users. | Ramboll is developing a heat master plan for Würzburg's heating system up to 2040 for Stadtwerke Würzburg. Key services include current situation and potential analysis, demand scenarios, evaluation of heat generation sources, and heating network transformation paths. The plan includes detailed preliminary planning for the implementation of key measures in the first ten years. | Ramboll's expertise in large heat pumps includes notable projects such as the award-winning Taarnby project in Denmark, which integrates district heating and cooling with wastewater and ground source cooling, featuring a cold-water storage tank for a cost-effective, low-carbon solution. Moreover, the energy centre in Odense redistributes surplus heat from Meta's data centre to the city's district heating network, representing Denmark's largest heat pump installation utilising surplus heat from a data centre. |
Interested in exploring low-temperature heating solutions?
Germany’s district heating goals
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Reduce greenhouse gas emissions by 55% by 2030
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Connect 100,000 buildings annually to district heating
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Required investment: €43.5 billion
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Focus on local renewable energy sources
Want to know more?
Christin Herber
Department Manager
+49 173 8263164