A leading German association representing numerous energy suppliers is raising concerns that insufficient federal funding could jeopardize the expansion of district heating networks across the country. Ingbert Liebing, CEO of the Association of Municipal Utilities (VKU), stated unequivocally to the Funke-Mediengruppe newspapers that current federal support for district heating infrastructure is inadequate.
Liebing highlighted that while municipalities are currently in the planning phase for heat networks, the crucial next step is their implementation. He emphasized that municipalities are not mandated to execute these plans, underscoring the essential role of private sector utilities. Successful implementation relies on economic viability and affordable pricing for consumers. To facilitate this, VKU estimates an annual federal funding requirement of €3.5 billion specifically for district heating projects.
Further complexities exist within the regulatory framework governing district heating, which VKU argues need to be addressed. The association warns that a failure to increase funding would significantly hinder the expansion of heat networks and impede the broader energy transition, potentially relegating carefully crafted heat plans to merely theoretical exercises. This shortfall, VKU cautions, would ultimately prevent the necessary expansion of district heating to achieve Germany’s climate goals for the building sector.