© BMWE

Green light for new heat network law

At the end of August, the Federal Government adopted the key points of its heat network package, paving the way for the energy transition in the heating sector. The key points will provide the foundation for a comprehensive revision of the market rules and the legal framework governing district heating.

The expansion of district heating networks is a cornerstone of the energy transition in the heating sector. In urban centres and high-density rural areas, these networks provide a highly effective solution, especially in locations where alternative systems, such as heat pumps, are not feasible.

These networks provide heating and hot water to connected buildings via pipes and interface units. By integrating locally produced heat or renewable energy, they contribute to security of supply, local value creation, and a reduced dependence on energy imports. Furthermore, they offer significant flexibility for integrating renewable energy into the electrical grid, thereby reducing grid strain and, ultimately, the need for grid expansion. Heat networks also enable the commercial exploitation of climate-neutral energy sources such as deep geothermal energy, large-scale heat pumps and unavoidable waste heat.

Refinancing investments through appropriate price adjustments

Going forward, utilities will be enabled to refinance investments for the development, retrofitting, and expansion of heat networks – all of which are crucial for a climate-friendly energy supply – through appropriate price adjustments. Additionally, customers wishing to reduce their contracted heating capacity will be required to undergo an energy audit first. This ensures that customers make informed decisions, ensuring that heating capacity remains aligned with actual demand, while providing utilities with greater planning security.

To improve price transparency and consumer protection in the district heating market, a mandatory price transparency platform and enhanced price monitoring by a federal agency will be introduced. These efforts will be complemented by the establishment of a new cross-industry arbitration body, enabling the swift and efficient resolution of disputes out of court in specific cases.

Implementation will involve a joint legislative procedure to revise the Ordinance on general conditions for district heating provision (AVBFernwärmeV) and the Ordinance on district heating and cooling consumption metering and billing (FFVAV). These will be consolidated into a single, new heat network law.

The proposal of the key points followed a comprehensive consultation with all relevant stakeholders.