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

Lessons to be learned from the Danish Neighbor: THE MISSING ACTOR IN THE HEAT MARKET: HOW TO FILL THE GAP IN GERMANY

By Susanne Schmelcher, Director of Department for Districts & Cities, German Energy Agency (dena)

With the adoption of the Wärmeplanungsgesetz (WPG) (the Heat Planning Law) in Germany, the regulatory framework for heat planning has been established. In implementing the WPG, German municipalities systematically evaluate which supply variant offers strategic advantages within an overarching sustainable heat supply concept for their municipal area. The question of implementation options within specific spatial contexts and local heat generation is gaining prominence. In the past, this level has played a minor role in Germany because the supply options were usually decided at the individual building level. Even though the entire municipal area is affected by the heat planning, there will still be significant differences in the options that can be drawn for the respective individual neighborhoods. If we set aside the efficiency gains from building envelope renovations, which must be carried out by building owners and are undoubtedly crucial, the situation in municipalities simplifies as follows: For areas currently served by district heating or designated for future expansion, a sustainably implemented heat plan provides a decarbonization service for potential heat customers. District heating companies are legally obliged by the WPG to decarbonize their networks. Therefore, residents of these areas no longer need to concern

themselves with transitioning their heating systems, as this responsibility is outsourced to professional entities such as private companies or municipal utilities (Stadtwerke). In areas designated for decentralized heating, residents must individually select the appropriate heating technology—a process already well-established in Germany due to the high rate of individual supply. While residents of these areas may need to engage more intensively in their own decarbonization path, in the future, the electricity grid will largely serve as the backbone of their heat supply. This infrastructure, too, will undergo decarbonization efforts led by professional entities. A key question arises concerning areas that are unsuitable for individual heat pumps and lack district heating plans: who will organise and implement the transformation within these areas? To establish heating networks in existing neighborhoods, the following components are always required: expertise, labor, capital, and an accessible heat source. Finding an actor who brings all these components together is challenging. Private individuals often lack the necessary expertise, despite their intrinsic motivation and willingness to invest labor and capital, while professional actors lack incentives if the effort is not

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HOTCOOL no.5 2024

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