– Bridging the Gap Between Heat Planning and Implementation in Hessen, Germany
The Plan2Heat project helps German municipalities transition from heat planning to actual district heating project implementation. It focuses on the process a city must follow from having made a finalised municipal heat plan until the actual implementation can take place. The project investigates the role a municipality can take to support both district heating roll-out through a classic German Stadtwerke and through a citizen lead co-operative.
This initiative focuses on the city of Eschwege, located in the State of Hessen, in which DH currently covers just 4% of the housing sector’s heating demand, leaving significant untapped potential. By leveraging Danish expertise in district heating development, Plan2Heat will equip German municipalities with the tools and knowledge needed to make their heat transition a reality. The project has been sponsored by the Danish Energy Agency
Suitability of Potential District Heating Network Areas
Bridging the Gap Between Heat Planning and Project Readiness
Germany has ambitious plans to expand its district heating (DH) infrastructure, but many municipalities struggle to translate their heat plans into ready-to-build projects. While the Heat Planning Act (WPG) mandates all municipalities to develop heat plans, these plans alone do not guarantee implementation. Plan2Heat addresses this challenge by focusing on the three critical phases required to turn a heat plan into a viable DH project:
- Business Concept and Roadmap – Defining objectives, risk management, and initial project structuring.
- Feasibility – Conducting economic, technical, and legal assessments to ensure the project’s viability.
- Development – Finalizing financial models, governance structures, and tender preparations to reach investment readiness.
This project does not cover the actual construction and operation of DH networks but ensures municipalities have the necessary frameworks, business cases, and strategic decisions in place before reaching the building phase.
Project Focus: The City of Eschwege and Two District Heating Approaches
Plan2Heat is designed around the case of Eschwege, a municipality in Hessen that has taking the lead and already completed its heat plan. The city is now at a critical stage, determining how to structure and implement its DH project. The project examines two parallel approaches:
- Municipal-led district heating – Implemented through Stadtwerke Eschwege, a municipally owned utility.
- Citizen-led cooperative model – A grassroots initiative in Oberhone, a district of Eschwege, where local residents are organizing a cooperative heat network to heat 150 homes.
The municipality has a strong interest in supporting the green transition and thus the activities of the citizen initiative. The project thus also examines how a municipality can support the development of co-operative district heating companies. By studying these two distinct models, the project will identify best practices, challenges, and municipal support mechanisms needed for successful implementation.
The findings from Eschwege will be possible to scale to other municipalities across Hessen and Germany. It is the project group’s strong understanding that the learnings from a town with nearly 20.000 inhabitants can easily be scaled down to much smaller towns, that usually do not have any heat network, and upward to much larger cities, which normally would operate with the Stadtwerke approach. This project will help both Stadtwerke and citizen-led initiatives to develop efficient and investable DH projects.
Potential Analysis: Possible District Heating Network Areas
EXPANSION STAGE 1:
- Route Length in km: 12
- Heat Occupancy Density in 2024 in kWh/(m*a): 1,387
- Heat Demand in 2045 in GWh/a: 16
- Connection Power Heat Generation in MW: 9
- Number of Consumers: 740
EXPANSION STAGE 2:
- Route Length in km: 15
- Heat Occupancy Density in 2024 in kWh/(m*a): 1,194
- Heat Demand in 2045 in GWh/a: 18
- Connection Power Heat Generation in MW: 12
- Number of Consumers: 338
EXPANSION STAGE 3:
- Route Length in km: 11
- Heat Occupancy Density in 2024 in kWh/(m*a): 797
- Heat Demand in 2045 in GWh/a: 9
- Connection Power Heat Generation in MW: 5
- Number of Consumers: 268
EXPANSION STAGE 4:
- Route Length in km: 19
- Heat Occupancy Density in 2024 in kWh/(m*a): 622
- Heat Demand in 2045 in GWh/a: 12
- Connection Power Heat Generation in MW: 7
- Number of Consumers: 403
Expansion beyond Stage 4 is also conceivable, but requires further in depth analyses.
Key Activities: From Planning to Implementation
Plan2Heat consists of five interconnected activities, designed to provide practical guidance and capacity-building for municipalities:
1. Study Trip to Denmark
A two-day visit for German municipal representatives, Stadtwerke, and cooperative leaders to experience firsthand how Denmark structures, implement and operates district heating projects. The delegation will visit Danish municipalities, utility companies, and cooperatives to understand governance models, risk-sharing mechanisms, and financing strategies.
2. Three Coaching Workshops in Hessen
Danish and German experts will conduct three intensive workshops in Hessen. There is a special focus on what the municipality can and should do to make sure a fair and substantial decarbonisation of heating will happen through DH. The goal is both to support Eschwege directly and at the same time to extract general knowledge and learning to be used in the state- wide dissemination.
3. Networking Event for Heat and Energy Cooperatives
A large-scale knowledge-sharing event will bring together municipalities, Stadtwerke, and energy cooperatives to explore how citizen-led and municipal-led DH models can complement each other. Approximately 80 cooperatives will be invited to discuss the potential expansion of cooperative-based DH projects.
4. Dissemination and Knowledge Sharing
Project findings will be shared through reports, articles, online events, and conferences, ensuring the lessons from Eschwege are widely distributed across Hessen and Germany.
Scaling Impact: Supporting Germany’s District Heating Expansion
Plan2Heat plays a critical role in helping municipalities move beyond heat planning and towards concrete, investment-ready district heating projects. The assembled team of experienced Danish district heating experts will provide targeted coaching to German stakeholders. This team will support municipalities throughout the project with best practices in business case development, financial structuring, and governance models.
By demonstrating two distinct governance models in Eschwege and refining best practices through workshops and coaching, the project will equip municipalities across Germany with the tools to accelerate DH deployment. The knowledge gained will be disseminated to municipalities, Stadtwerke, cooperatives, and policymakers, ensuring long-term impact beyond the project’s duration.
Ultimately, Plan2Heat contributes to Germany’s broader climate and energy transition goals, strengthening municipal leadership in district heating development and unlocking new opportunities for investment and collaboration.
FACTS ABOUT THE PROJECT
Title: Plan2Heat: Moving German DH projects from Heat Plan to Ready-to-build
In collaboration with:
- Danish Board of District Heating (DBDH)
- LandesEnergieAgentur Hessen GmbH (LEA)
- Municipality of Eschwege
- Stadtwerke Eschwege
- Qoncept Energy GmbH
- Werra-Meißner-Kreis
Funded by: The Energy Export Initiatives Grants Program, the Danish Energy Agency
Duration (status): Q1 2024 – Q2 2025 (ACTIVE)
DBDH contacts: Morten Jordt Duedahl