HOT|COOL NO. 5/2024 "ENERGY STORAGE"

centralized infrastructures. In essence, Germans primarily rely on the state and markets to deliver heat energy carriers to their doorstep and manage heat generation independently within their own premises. This dependence became evident during the recent energy crisis stemming from the Russian invasion of Ukraine, prompting political measures such as the energy price break to protect citizens and businesses and ensure affordable heat supply, production, and employment security. Despite the past success of this system, weaknesses are apparent, especially during times of political uncertainty. Currently, the discussion in Germany revolves around the extent to which the decarbonization of heat supply should primarily occur locally, leveraging local potentials, or by importing climate-neutral energy carriers across national borders. The former would represent a new approach for Germany. Scenario studies suggest that the efficient transformation of Germany’s heat sector should primarily occur through heat pumps and heating networks. Heat pumps can align with the principle of individual decision-making by building owners, enabling them to manage heat generation as their personal choice. Other conditions apply to district heating networks. These require local community support. Currently, Germany lacks a framework that assigns the initiation, organization, and operation of energy supply concepts to local communities, which is crucial for such areas. Neighborhood- based approaches prioritize collective benefits over individual buildings. Key actors within the Heat Networks Sector The aforementioned 15,2% share of district heating indicates that heating networks in Germany already represent a viable supply option. Unfortunately, there is not enough data available for an in-depth analysis of this segment. Therefore, only an overview of the currently involved actors can be provided, with very vague quantitative statements regarding their shares. Private companies hold a significant share of district heating networks in Germany. This includes large energy supply companies as well as smaller private operators. Municipal utility companies (Stadtwerke), often publicly owned, also operate a significant portion of district heating networks in Germany. Municipal utility companies play a central role in the energy supply landscape, especially in the context of municipal heat transition. They have high market shares in heat and gas supply, accounting for 88% of the heat and 60% of the gas business in the end customer sector 2 . In addition, there are other actors with relatively small market shares. Larger industrial companies operate their own district heating networks for industrial processes and heating factory buildings. While their share is relatively small, it is significant in industrial areas. Some public institutions, such as universities, hospitals, and municipal buildings, also operate their own district heating networks. However, their overall share is limited and varies greatly by region. The described actors are characterized by their ability to combine the components of expertise, labor, and capital. With an accessible and economically feasible heat source, they can implement heating networks.

2 Fachrat Energieunabhängigkeit (2024): Sicherheitsorientierte Energiepolitik – Eine Finanzierungsstrategie für die Erdgasunabhängigkeit von Deutschland.

10 HOTCOOL no.5 2024

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