Transformation Plan District Heating

We assist heating network operators towards net zero with comprehensive transformation planning for district and local heating networks.

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Happy customers, we've already supported on district energy transformation

We provide a broad experience in transformation planning for heating networks of various sizes, from 1.5 km to > 400 km. Here you will find an excerpt of our references.

Stadtwerke Neustrelitz
Logo, Hanseatic and University City of Rostock
Stadtwerke Oranienburg
Neubrandenburg
Stadtwerke Neustadt
Vela Hotels
Fernwaermenetz Karte Kommunale Waermeplanung

District heating - a central element of the heating transition

The supply of district or local heating offers great potential to provide densely populated, urban areas with sustainable heat. At the same time, the centralized supply enables large waste heat and environmental potentials to be tapped and distributed efficiently to buildings with high heat demand. Local and district heating are therefore central elements in shaping the municipal heat transition.

The municipal heat planning or the establishment of the transformation plan often results in a great need for heating network expansion. Even in smaller municipalities, it is not uncommon for 1-2 km of district heating to be laid per year to enable climate-neutral supply in the target year 2045. This poses major challenges for all involved, both in terms of costs and capacities for planning and implementing the infrastructure measure.

The greater challenge is usually the high investment requirement. Therefore, it is crucial to plan the network expansion path efficiently. Of central importance is the development of the best producer portfolio and its expansion depending on ongoing investments, growing consumer structure, and the existing funding landscape. We have extensive experience both in setting up feasibility studies for new local and district heating as well as in transformation planning for existing district heating networks.

One of our core competencies is energy system modeling for the holistic optimization of network and generation structure. We draw on extensive experience from transformation projects with network lengths ranging from 1.5 km – > 400 km.

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Process of Transformation Planning

We routinely begin the creation of the transformation plan with an initial meeting, in which we gain an overview of previous developments and planning statuses regarding district heating and discuss the requirements and expectations for the district heating transformation plan.

Subsequently, data on the current status and any existing planning are first procured. After data acquisition is complete, we start the so-called AS-IS analysis, which outlines the status quo of the area of interest, the heating network, and the existing generation portfolio.

The AS-IS analysis is followed by the potential analysis, which identifies potentials for heat consumers, as well as quantifies and locates renewable potentials and waste heat potentials.

Based on this, the TO-BE analysis follows with a comparison of various supply solutions. Here, the technical and economic comparison of supply solutions in the context of network expansion plays a central role. The focus is on presenting the profitability gap and comparing supply solutions, considering funding and revenue models.

If required, our in-house energy system model can be used to optimize the future generation portfolio with regard to CapEx and OpEx, as well as heat generation costs in the context of ongoing investments.

Depending on the requirements for the transformation plan, a network hydraulic analysis can also be carried out to identify bottlenecks and expansion needs.

Following the TO-BE analysis, the target scenario is defined and supported by a catalog of measures with a timeline. Building on this, a GHG reduction pathway is presented, depending on the measures to be implemented.

Scheme, district energy transformation planning

An energy system model for your heating network creates planning security

We develop an energy system model for your district or local heating to optimize the network topology and producer structure. Our engineers analyze and optimize the producer portfolio using the energy system model in terms of investment costs and operational costs to derive the best heat generation.

Central elements are the establishment of the target producer park including no-regret technologies, setting up a dispatch order, and optimizing the interaction between production technologies and storage in the annual load profile.

Thus, energy system modeling already creates planning certainty in the early phase and supports the decision-making process through system optimization, independently and data-driven.

References for energy system modeling include the Rostock Heat Planning, the Prerow District Heating Feasibility Study, as well as the heat and transformation planning for Neubrandenburg, Oranienburg, and Neustadt an der Weinstraße.

Energy System modelling, district energy optimization, district heating transformation

Services

Here you will find an overview of our services in BEW transformation planning, heating network optimization, and district heating implementation.

Transformationsplan, Machbarkeitsstudie, BEW, Wärmenetz

Transformation Plan

The transformation plan for your heating network from a single source – depending on your needs, from funding acquisition and the preparation of a target price offer, through the TO-BE and AS-IS analysis, to the profitability calculation and the final concept.
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Potential Analysis, District Energy Transformation

Potential Analysis Renewables

Quantification, localization, and evaluation of the technical and economic usability of renewables, as well as unavoidable waste heat and storage solutions.

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Energy System modelling, district energy optimization, district heating transformation

Heating Network Optimization with Energy System Model

Energy system model for the analysis / optimization of various generation and storage portfolios for, among other things, supply security, CapEx, OpEx, heat generation, space requirements…

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District Heating, Economic Comparison

Technical and Economic Consulting

We support you in the decarbonization of your district heating and advise you on technical solutions, economic viability, and funding.

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Questions and Answers (FAQ) regarding District Heating Transformation Plan, District Heating Optimization, and Implementation (Related fo Germany's District Energy Funding)

What is a Transformation Plan for District Heating?

The term “district heating transformation plan” is linked to the Federal Funding for Efficient Heating Networks (Bundesförderung für effiziente Wärmenetze, BEW) of Germany. The transformation plan describes ways in which an existing heating network can be successfully converted from fossil fuel generators to renewables and waste heat, using clear interim targets and measures.

Even though the explanations regarding transformation planning of heating networks on this side is connected to German funding measures, methodology and project structures are likely to be suited to other countries and boundary conditions. The following sections shall be seen as a basic description of transformation planning that could be an initial starting point for discussion about your requirements.

In contrast to the transformation plan, the term feasibility study refers to the climate-neutral design of a newly constructed heating network.

Contents of a Transformation Plan

According to the Federal Funding for Efficient Heating Networks, certain minimum requirements are placed on a transformation plan, which are outlined in the technical data sheet.

In principle, the following contents must be provided:

  1. AS-IS Analysis of the Investigation Area

  2. Potential Assessment of Renewable Energies and Waste Heat

  3. TO-BE Analysis of the Heating Network (incl. primary energy savings and CO2 savings)

  4. Cost Framework

  5. Pathway to Greenhouse Gas Neutrality with milestones (2030, 2035, 2040, and 2045)

Within the AS-IS analysis, the heat demand or heat consumption of connected buildings and those located in the catchment area of future district heating must be presented. Furthermore, the status quo of the heating network and the generation park used must be presented.

Within the potential analysis, large-scale potentials for renewable energies and unavoidable waste heat are analyzed, quantified, and located.

The TO-BE analysis serves to investigate and compare various district heating variants. This includes presenting primary energy savings and GHG savings.

A central aspect in the variant comparison is also the presentation of the cost framework through a profitability comparison and the development of a financing concept.

Finally, a GHG reduction pathway, including measures and a timeline, is derived. Optionally, participation formats for residents are to be carried out.

Why should a Transformation Plan be created?

The transformation plan provides a solid basis for restructuring district and local heating from fossil fuels to renewables and unavoidable waste heat. The transformation is essential to meet the required share of renewable energies in the coming years as per the Heat Planning Act (WPG). This is a crucial prerequisite for heat networks to also comply with the specifications of the Building Energy Act (GEG).

At the same time, the transformation involves high investment needs. Funding helps to make the restructuring economically viable. This is where the Federal Funding for Efficient Heat Networks (BEW) comes into play. The BEW is modular and sequential. With the help of the transformation plan (Module 1, LP 1-4), one gains access to investment and operating cost funding according to Modules 2-4.

According to Module 2, systemic measures are funded with up to €100 million per application. The maximum funding rate is 40%. In addition, individual measures in Module 3 are also eligible for funding up to €100 million per application. Installations, such as heat pumps or solar thermal generators, whose construction has been funded through Module 2 or 3, also qualify for operating cost subsidies according to Module 4 of the BEW.

The phased funding of district heating transformation is a crucial means to represent the transformation economically and to present the heat transition in a socially acceptable manner.

What Milestones Apply to Heat Networks?

By 2030, heat networks must be supplied with at least 30% renewable energy and unavoidable waste heat. By 2040, 80% of the supply must come from renewable energies and waste heat. By 2045, the heat supply via local and district heating should be entirely from waste heat and renewables.

Is the creation of the Transformation Plan funded?

Yes, the preparation of a transformation plan or a feasibility study is funded according to BEW Module 1, provided that the heat network serves more than 16 buildings or 100 residential units.

The maximum funding amount is €2 million. The funding rate is 50% of the eligible costs. It should be noted that a separate transformation plan must be developed for each heating network. An exception is permissible if the separate transformation of individual networks is not possible due to the boundary conditions and decarbonization is very likely to result in an interconnected network.

Is there a mandatory requirement for Transformation Planning?

No. However, according to WPG § 32, operators of heating networks that are not 100% supplied by renewables and/or waste heat are obliged to develop a so-called heating network expansion and decarbonization roadmap. This must be submitted by 2026-12-31 and outline how the transition to climate-neutral solutions will succeed. The required contents largely align with transformation planning. Furthermore, the obligation is considered fulfilled if a BEW transformation plan is available. Therefore, it is advisable to carry out the planning process with funding.

Further Information

Further information on the technical requirements and funding for transformation plans and feasibility studies can be found here.

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