Installing heating networks in existing buildings: Operator models and financing

This analysis by the Competence Centre for the Municipal Heating Transition shows how municipalities can finance and operate the construction of climate-neutral heating networks in existing buildings. This analysis provides representatives of municipalities with guidance on the topic of operator models for heating networks. The focus is on local heating networks and microgrids in neighbourhoods and densely populated settlement areas in rural areas. Project-financed development takes centre stage here due to the size of the heating networks. However, the analysis also highlights non-financial criteria.

Key aspects of building a heating network
To summarise, two points are central to building a heating network: 

1. The organisation implementing the project
2. Financing via lenders and the associated profitability analysis 

Nevertheless, it is clear that municipal heat planning and the associated heating network operation for municipalities is not a purely technological/economic issue, but requires the analysis and participation of stakeholders. The stakeholder processes required for this must be prepared and set up at an early stage.

Challenges for the municipality in municipal heat planning
There are both functioning real-world examples as well as failed projects for all of the forms of organisation presented. The challenge for the municipality is to choose the right strategy based on local conditions and requirements and to implement it consistently. Accompanying measures can help react to problems at an early stage.