Role and Limits of Cooperatives Cooperatives and citizen energy projects are other actors in the context of local heat network implementation. In rural areas, a mix of expertise, labor, capital, and accessible heat sources can sometimes be found. Here, waste heat from agricultural biogas plants or self-operated biomass plants is often used for heat generation. These solutions are technically less demanding and, therefore, easier to operate, thus requiring less expertise. However, due to the limited availability of the energy source biomass, especially in urban areas, these concepts are less scalable. Future-oriented heat supply strategies are crucial as they integrate electricity, heat, and, ideally, industrial processes to maximize the utilization of renewable energies and promote local value creation. Sector coupling, which enhances efficiency through increased electrification, frequently offers economic benefits. However, implementing sector coupling concepts faces technical challenges and complexity within the German regulatory framework. Due to the described absence of communal utilization of local potentials, there are few established actors capable of initiating such projects. Additionally, there are limited examples of business models that could economically sustain the implementation of these projects. Therefore, expertise might already be described as the missing component here. Moreover, in the traditional sense, cooperatives only make sense where the actual building owners also live in the buildings, meaning that the heat customer and the cooperative member are identical. The Path to Scalable Heat Networks Models Cooperatives offer a model structurally resembling the Danish approach and strongly focuses on local communities and value creation. A central challenge is that cooperatives in Germany need to go beyond their traditional applications to create a scalable option for heating networks in heterogeneous, densely populated areas, which are often characterized by a strong presence of tenants. Furthermore, heat grids are more efficient when combining different demand profiles, such as from the commerce, trade, and services sectors or non- residential public buildings. Here, the one-share-one-vote principle is difficult to accept for larger entities or stakeholders with special interests. The assumption is that in this deviation from the traditional cooperative model, the necessary components (labor, capital, expertise) for successful implementation are not sufficiently available. Additionally, the specific question arises as to who feels responsible for the initiation. In terms of expertise, professional know-how, and consolidated knowledge is important. Non-professional actors cannot provide the required competence everywhere, and it is not feasible for scaling purposes for them to acquire this knowledge. It is to be expected that the realization of heating network projects with local participation will require a broad alliance of local actors working together on implementation. The roles and necessary qualifications of the various parties must be clearly defined according to their competencies.
In this constellation of actors, municipalities play a central role in various areas. They can initiate projects and moderate the development process. Additionally, they can support the planning and development process by implementing necessary measures in urban planning, such as land allocation, permit agreements, and approval procedures. Also, their properties can serve as heat production sites or anchor customers for heat projects. This can lead to greater investment security and engagement from all involved parties. Ultimately, municipalities can also act entrepreneurially, allocate budgetary resources, and thus become investors in heating network projects. However, in fulfilling these tasks, municipalities rely on support from other actors, as they themselves are constrained by limitations such as staff shortages, know-how, and limited budgetary resources. Landkreise (counties) play a crucial role in the context of district heating networks, particularly through their local energy agencies (examples from Baden-Württemberg) and county offices. These institutions are often well-positioned to consolidate the necessary expertise and conduct analyses of local heat potentials. Due to their proximity to the affected communities, they can initiate and coordinate cross-municipal projects tailored to the specific needs and resources of the region. Moreover, counties, as well as municipalities, can act as promoters and supporters by providing financial resources, facilitating approval processes, and promoting acceptance among the population. Their role as regional actors is crucial to maximize local value-added effects. Local potential end users are also key stakeholders in the acceptance and implementation of such projects. A “local advocate” can influence acceptance and help maximize local participation. This role should ideally be filled by someone from the directly affected area and is often based on voluntary work driven by intrinsic motivation for sustainable development of their own neighborhood. It can also be fulfilled by a group of individuals serving as the nucleus for a community energy initiative or cooperative. Local energy generation companies with experience in planning and implementing renewable energy projects also play an important role in tapping regional energy sources and pooling energy generation facilities. The local value- added effects depend significantly on who owns the heat generation plants, where they are built, and which companies are involved. Value-added is significantly increased when the generation plants are owned by local actors or when they are at least involved in them. External capital providers are also necessary, as the minimum equity share required by banks needs to be met. For many local banks, the investments are too high and concentrate too much risk in a specific sector and place, leading to higher needs for equity by the lender. Equity cannot always be brought in by the above-mentioned stakeholders alone, and therefore, the projects need to be opened for other investors if required. Large industries, suppliers of energy sources, waste heat, or grid operators might also be interested and motivated to invest. Another possibility is to bundle investments in a larger number of heating networks within the framework of investment funds.
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