• Exclusive Content
  • Events
  • Endeavor Business Media Energy
    1. Energy Efficiency

    European Commission approves $3B German plan funding District Heating Decarbonization and Expansion

    Aug. 3, 2022
    Overall, the German district heating plan is expected to support installation of about 681 MW of renewable heat generation capacity per year while reducing greenhouse gas emissions by 4 million metric tons annually
    New Marzahn CHP plant in Berlin. Image credit Vattenfall
    Marzahn 1920 62ea8f57ce9fe

    The European Commission this week approved a €2.98 billion ($3.04B U.S.) German plan to expand and decarbonize its district heating through renewable energy and waste heat projects.

    The EU State Aid ruling will contribute to German’s National Energy and Climate Plan. Direct grants will be made available through August 2028 to district heating network operators and prospective market entries.

    Germany mainly relies on natural gas for its heating needs during the winter, with much of that historically coming from Russian pipelines. The backlash over Russia’s invasion and war with Ukraine has pushed European Commission members to seek supplies elsewhere, including liquefied natural gas (LNG) imports from the U.S. and elsewhere.

    German ports, however, are not as ready for LNG import and regasficiation as other nations. The new funding will help finance construction of new district heating plants and increase the participation of renewable and waste heat resources.

    Solar thermal is growing as a resource to support district heating. In fact, more than 30 large-scale solar thermal plants are installed in Germany with a total capacity of more than 44 MW, according to reports.

    “With this measure, German will be able to increase the share of renewable energy and waste heat in the heating sector, thereby decreasing its emissions,” Margrethe Vestager, executive vice president with the EC, said in a statement. “The German aid measure we have approved today will contribute to achieving the EU Green Deal objectives and help Germany meet its environmental targets, while limiting possible distortions of competition.”

    Overall, the German district heating plan is expected to support installation of about 681 MW of renewable heat generation capacity per year while reducing greenhouse gas emissions by 4 million metric tons annually. 

    The nation and European continent are striving for carbon neutral energy goals by 2050 or earlier.

    The grants will cover portions of the feasibility and construction costs. In the case of operating aid, the aid will be calculated based on the amount of renewable heat produced, according to the EC release.

    About the Author

    Rod Walton, EnergyTech Managing Editor | Senior Editor

    For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].

    Rod Walton has spent 15 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.

    He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.

    Email