Study: examples from four countries show how to decarbonise the heating sector. Local renewables are the future

More than a half of the energy consumed in the EU is used to heat and cool homes, offices, shops and other premises. In the context of the EU's efforts to reduce emissions, the decarbonisation of the heating sector is therefore inevitable. But how to achieve a successful transformation of the heating sector in the Czech Republic? We have reviewed examples of community heating plants abroad and outlined solutions applicable in CZ as well.

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The majority of the energy for residential heating in the EU still comes from fossil fuels. Building new and decarbonising existing district heating systems therefore has a crucial role to play in the transformation of the heating sector. However, it is not a one-size-fits-all solution; energy communities, together with local authorities, already operate hundreds of community heating plants, using current technologies, to supply households and the industrial sector throughout the year.

The key to success is a long-term support and political commitment

Belgium is the first EU country to complete a coal phase-out, Denmark has been systematically decarbonising since the 1980s due to oil shocks, and in their National Climate Agreement the Netherlands has committed to abandon natural gas as a heating source by 2030. 

Compared to these countries, the Czech Republic is lagging behind in decarbonising the heating sector, lacking strategic documents and the practice is outpacing political will. The high proportion of households connected to district heating (DH) basically precludes massive disconnections from the grid due to the risk of socialisation of heating costs. However, the heating sector is not rushing ahead with decarbonisation plans. These following examples show how the situation can be addressed with the participation of people and communities.

In Denmark, heating plants are owned by consumers and municipalities

Denmark is similar to the Czech Republic in terms of the proportion of the population connected to district heating, that is where all similarities end though. There are more than 400 district heating companies in Denmark and about 350 of them (85 %) are owned directly by the consumers. They then account for 37 % of the total heat supply for households and the industry. The remaining 15 % are owned by local authorities and supply 66 % of the total amount of heat sold. About 60 % of district heating supply comes from renewable sources, a share the country wants to increase to 90 % by 2030. 

An example of a successful community project is Marstal Fjernvarme, where an efficient combination of technologies supplies about 2 300 inhabitants with renewable heat all year long. What is also unique about this project is that the company is a non-profit organization that returns all potential profits back to the local residents in the form of lower energy prices, and all the shareholders in the company have equal voting rights.

Belgium is developing district heating systems in partnership with energy communities

Belgium is also relying on the development of new DH systems as a tool for decarbonisation and is investing EUR 500 million in 20 heating infrastructure projects by 2050. To this day, almost 50 % of the district heating comes from renewable energy sources (RES) and the country completed a coal phase-out in 2016. 

Belgium uses data-based strategic planning to build its new district heating system, which makes it easier to identify investment needs in specific areas. 

Community energy also plays an important role in Belgium. If you've ever heard of an energy community, it was probably Ecopower, formed back in 1991. Today, Ecopower has more than 67,000 members and dedicates itself to various activities, including district heating. Examples of such activities are the new district on the outskirts of Antwerp or the city of Eeklo, where Ecopower enters as a strategic partner of the local self-government and guarantees:

• Electricity and heat supply.
• Direct financial participation of citizens of at least 35% through the energy community.
• A "no-more-than-other" principle that guarantees that citizens connected to the heat network will not pay more than if they were heating with a natural gas boiler.
• Achieving a 100% share of RES (renewable energy sources) in the grid.

Netherlands: District heating as the key tool for decarbonisation

Only 5.5% of the population in the Netherlands is connected to DH, compared to over 40% in the Czech Republic. Building a new DH system is one of the tools for successful decarbonisation of the heating sector. In their National Climate Agreement, the Dutch have even set a target of ending natural gas as the main source of heating in 7 million households by 2030, and 1.5 million of them will be heated completely without gas.

The system of collective ownership of cooperatives in the energy sector has a tradition in the Netherlands and energy communities play a key role in the transformation of the heating sector. In 2022, the Netherlands had 705 energy communities with 120,000 members, represented in 86 % of all Dutch municipalities. 

The Grunneger Power project is an example of an energy cooperative that has been actively involved in the heating transformation in the city of Groningen since 2011 and has over 2500 members. The cooperative has implemented several shared projects and today also acts as a clean electricity supplier and consultant for energy project plans. Coming as next is a pilot project of a thermal energy cooperative called Buurtwamrte in Groningen. The project is to create a sustainable district heating system for a neighbourhood of more than 3,000 inhabitants. The main challenge for successful transformation is to gain the participation of local citizens and households, as the existing natural gas heating systems need to be replaced.

Can we find something similar in the Czech Republic?

However, we do not necessarily have to go abroad for examples of good practice, the NOHO  construction development company is implementing a carbon neutral project called Neighbourhood in the Hradec Králové region. Residential buildings here will function as an energy community and use photovoltaics, heat pumps and smart controls for energy supply. 

What solutions are available?

Energy communities are part of the solution to the transformation of the heating sector and can complement well with district heating systems. In the absence of a strategic document at a national level, we need to look for examples of good practice. 

"Examples from abroad as well as from the Czech Republic, show that energy communities can cope with heat or cold supply and are able to build and operate their own infrastructure. We should look to the future and turn the robust CHP network into an asset for decarbonisation and engage communities in the process" says David Blažek, Policy and Advocacy Officer at Frank Bold.