The European Commission (EC) on Tuesday gave the green light to Germany's EUR-2.98-billion (USD 3.04bn) funding programme meant to support green district heating, paving the way for the start of the scheme in mid-September.
The support will be provided in the form of grants to district heating network operators to finance feasibility studies, the construction of district heating networks powered by at least 75% renewable energy or waste heat and the decarbonisation of existing networks.
The scheme will run until the end of August 2028.
"With this measure, Germany will be able to increase the share of renewable energy and waste heat in the heating sector, thereby considerably decreasing its emissions. 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,” said EU Competition Commissioner Margrethe Vestager.
Commenting on the scheme, Germany's economy minister Robert Habeck said that green district heating networks are key to a climate-neutral heat supply and crucial to cutting the country's dependence on fossil fuel imports. The approved scheme, which is open to energy companies, municipalities, municipal utilities and registered cooperatives, will create incentives and provide financial support for the long-term transition to green district heating, Habeck said.
Under the scheme, subsidies will be provided to cover up to 40% of the investments in infrastructure and heating plants powered by solar thermal energy, large heat pumps, geothermal energy and biomass as well as the integration of waste heat. Additionally, subsidies will be granted to cover the operation costs for heat generation through electricity-based heat pumps and solar thermal systems for a period of ten years.
The decarbonisation of the district heating sector is crucial as heat supply in Germany is still dominated by fossil fuels with almost half of German households still using natural gas and another quarter using oil to heat. According to preliminary figures, heal supply from solar thermal systems in Germany grew 9% in the first half of 2022, while heat generation through heat pumps was up 8% on the year.
(EUR 1 = USD 1.022)
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Solar thermal collectors. Source: Savosolar (Twitter)
