In cities, municipalities, and various sectors of the economy, concerns are growing that too few customers will opt for newly built district heating networks, leaving utilities trapped by their investment costs.
The Verband kommunaler Unternehmen (VKU) therefore proposes that financial support for heat pumps in these areas be discontinued. “Dual subsidies for district heating networks and heat pumps are not a wise idea” VKU chief executive Ingbert Liebing told “Welt am Sonntag”. “Where the expansion area is defined, subsidies for heat pumps should be eliminated”.
Together with other associations, the VKU is calling for changes to the Building Energy Act (GEG) and heating subsidies. A concept paper-authorised by the GdW (Federal Association of German Housing and Real Estate Companies), the HDB (National Association of the German Construction Industry), and the VKU-argues that the disadvantage of pipeline-based networks over building-specific heating solutions must be removed. It also recommends that the current GEG’s focus on building efficiency be revised.
The German City Association is likewise alarmed by high costs and insufficient returns. “When cities identify areas for new or expanded district heating, owners are not obligated to use that infrastructure” Christian Schuchardt, the association’s chief executive, said to “Welt am Sonntag”. “This uncertainty creates risks for utilities, which face long-term investments in the billions. Cities and suppliers should not advance funds only to find that citizens ultimately choose their own heat pumps instead”.
By the end of June, cities with more than 100,000 inhabitants must submit a complete plan for new district heating networks. The German City Association estimates that expansion costs will exceed €43 billion by 2030.