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TiD 15 | Climate-Friendly Heating in Neighborhoods - Successfully Implementing District Heating Networks – A Review

On September 10, 2025, the 15th Transformation Dialogue of the Federal Bauakademie Foundation took place on the topic: “Climate-Friendly Heating in Neighborhoods - Successfully Implementing District Heating Networks"

You can find the video documentation of the event on our YouTube Channel.  

By mid-2026, all larger municipalities in Germany are required to present a municipal heating plan. At the core of these plans are district heating networks, which are set to play a key role in supplying heating and cooling to our neighborhoods — including existing building stock. But how can they be successfully put into practice?

In the Transformation Dialogue “Climate-Friendly Heating in Neighborhoods,” the Federal Bauakademie Foundation explored the key success factors for implementing district heating networks in practice. Using real-world examples, the discussion illustrated how municipalities have approached implementation, how citizen energy cooperatives have contributed to success, the challenges they faced and how they overcame them - and, importantly, how innovative projects are already providing solutions today.

Welcome: Dr. Elena Wiezorek, Director, Federal Bauakademie Foundation
Moderation: Dr. Leslie Quitzow, Transformation Manager for Urban Development and Real Estate Management, Federal Bauakademie Foundation

Based on successfully realized projects, experts from municipal administration, a citizen energy cooperative, and the private sector discussed the following questions:

  • What are the costs of supplying heat through district heating networks, and how do they compare to other solutions?
  • What does the funding landscape look like, and which types of support are still missing?
  • Which renewable energy sources are suitable?
  • How can citizens be engaged and involved in the heating transition?

Tilmann Rave, Head of the “Heating Strategy and Neighborhoods” Department for the City of Munich, presented the current status of municipal heating planning and highlighted the importance of district heating networks for climate-friendly heat supply in Munich. He explained that the successful implementation of district heating networks relies in particular on support for integrated neighborhood concepts, proactive energy consulting, and strong networking among the involved stakeholders.

Stephan Retter, First Mayor of the City of Steinheim an der Murr and Managing Director of Wärmenetz Steinheim GmbH, presented the Steinheim district heating network project. He described how the small town was able to convince its citizens of the benefits of a district heating network. This would not have been possible without the Ludwigsburg Energy Agency, as even applying for funding from the National Climate Protection Initiative was a challenge. As in other cases, an integrated neighborhood concept and extensive communication were essential. The heating plant and pipelines are now under construction, and an additional heat storage facility is planned.

Sabine Drewes, Board Member of Nahwärme Eichkamp eG, shared the many challenges faced by their citizen-led initiative in Berlin. Although energy cooperatives are recognized across Germany as pillars of the energy transition, the cooperative contends with unreliable administrative guidance, halted funding programs, competition for public space, and - last but not least - homeowners who prefer individual heat pumps. Nevertheless, the cooperative remains optimistic and hopes to begin construction in 2026.

Finally, Oliver Zernahle, Managing Director of Blockheizkraftwerks-Träger- und Betreibergesellschaft mbH Berlin, a subsidiary of E.ON and the only private-sector participant in the discussion, spoke. He emphasized that while federal funding programs are important incentives, the implementation of district heating networks will also need to be economically viable in the future. For this to happen, heat prices must be high enough and contract durations long enough.

In the subsequent discussion, moderated by Dr. Leslie Quitzow, the participants explored how district heating networks can be built and operated in a financially competitive way.

Experiences from completed projects also showed that trustworthy partnerships among very different stakeholders are essential. Public-sector actors play a crucial role in establishing this collaboration, bringing the necessary expertise and connections to the table.