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The Heat Planning Act: momentum for the local heat transition

The new Heat Planning Act introduces an instrument for strategic planning of the heat transition at local level. It also stipulates for the first time what proportions of renewable energy or unavoidable waste heat need to be achieved by heat networks in future.

Germany is aiming to have a climate-friendly and affordable supply of heat. The adoption of the Act on Heat Planning and the Decarbonisation of the Heating Networks (Heat Planning Act) on 17 November 2023 by the Bundestag follows on from the Buildings Energy Act as a further milestone in the decarbonisation of the heat supply in towns and municipalities. The Heat Planning Act improves planning and investment security for all the stakeholders, and ensures better coordination of the development of the energy infrastructure needed for the heat supply.

Heat plans need to be produced for cities by 30 June 2026. For towns and municipalities with fewer than 100,000 inhabitants, the deadline is 30 June 2028. “Cities and municipalities now have an instrument they can use to develop and expand the heat supply and gradually convert it to renewable energy on their own responsibility,” says Federal Minister Robert Habeck.

The key point is the designation of heat supply areas

The key point in the heat planning is the designation of heat supply areas. This shows which type of heat supply is particularly suitable for the various parts of a municipality. The necessary data and information derive from a stock-taking exercise mapping the existing heat supply, and an analysis of the potential future heat supply.

The Heat Planning Act also sets out for the first time the shares of renewable energy or unavoidable waste heat that have to be achieved in future in each heat network: 30% by 2030 and 80% by 2040. New heat networks are already subject to a 65% share from 1 March 2025.

The decarbonisation of the heat networks can take place in various ways depending on what makes most sense locally, i.e. in particular is economic and efficient: for example with geothermal energy, waste heat or ambient heat fed into the heat networks by large heat pumps. Industrial or commercial waste heat, solar heat and, in certain circumstances, even biomass and green hydrogen can also be used to supply heat networks.

The Heat Planning Act is to enter into force at the same time as the Buildings Energy Act, on 1 January 2024. The two acts are coordinated with each other. The heat planning offers owners of buildings planning a new heating system a good guide as to whether a connection to a heat network will be a possibility, or whether a stand-alone solution is more appropriate for the building.