Municipal heat planning Together towards climate neutrality!
Germany aims to be climate-neutral by 2045. The Climate Protection Act (WPG) emphasizes the central role of local authorities, who will actively pioneer the change. One of the most important elements of this is the heat supply, as it accounts for more than 50 percent of total final energy consumption and causes a large proportion of CO2 emissions. This is because around 80 percent of the demand for heat is currently covered by fossil fuels such as gas and oil, which are sourced from abroad. As heat, unlike electricity and fossil fuels, cannot be transported over long distances, it makes sense to generate it directly in the municipalities. Municipal heat planning is therefore a central element of the transformation. It draws up a plan for heat supply in line with local conditions and thus gives citizens, companies and energy suppliers planning and investment security.
Municipal heat planning is an opportunity to increase efficiency and the use of renewable energies in your municipality. We work with you to develop a strategy for the climate-neutral municipality of the future!
Our roadmap for municipal heat planning
1. Inventory analysis (CURRENT)
- End customers, heating networks and heat generation - balancing
- Spatial representation of the study area
2. Potential analysis
- Savings opportunities
- Local renewable energy sources + waste heat
3. Target scenarios (TARGET)
- Covering the heat demand from renewable energies
- Path to CO2/greenhouse gas neutrality by 2045
4. Implementation strategy
- Concrete proposals for measures
- Focus on sub-areas or projects
5. Completed municipal heating plan
Your advantages
- Increasing efficiency: savings opportunities for municipalities and citizens
- Creating planning security: for investments in the heat supply of energy suppliers, companies and citizens
- Promoting regional value: strengthening the local economy and independence from fossil fuels
- Shaping the future: Developing transformation paths and recommendations for action
- Advancing climate neutrality: An important contribution to the sustainable and resilient municipality of the future
Every heating network must be supplied entirely with heat from renewable energies, unavoidable waste heat or a combination thereof by December 31, 2044 at the latest.
The body responsible for planning is obliged to review the heat plan every five years at the latest and to monitor progress in implementing the strategies and measures identified. If necessary, the heat plan must be revised and updated.
Municipal heat planning must be carried out by June 30, 2028 at the latest for all existing municipal areas in which 100,000 inhabitants or fewer are registered as of January 1, 2024.
Municipal heat planning must be carried out by June 30, 2026 at the latest for all existing municipal areas in which more than 100,000 inhabitants are registered as of January 1, 2024.
Questions and answers on municipal heat planning
Municipal heat planning at a glance
- Planning basis for a climate-neutral heat supply
- Objective: to develop realistic and economical transformation paths to a greenhouse gas-neutral heat supply by 2045 at local level and then implement them together with local stakeholders
- Content: Increase in energy efficiency and energy-saving measures, localization of future heating networks, renewable heat sources and unavoidable waste heat
- Updating the planning every 5 years
- Results not legal obligations but rather scenarios and potentials
What impact does municipal heat planning have on citizens?
Municipal heat planning is a fundamental planning process for the municipality. It provides guidance on the localization of future heating networks. It also provides information on what local energy potential is available. However, this has no legal implications for citizens and companies.
How does the federal government support municipal heat planning?
To support the initial creation of heat plans, the federal government will provide the federal states with financial resources totaling 500 million euros until 2028 via an increased share of the sales tax paid by the federal states. The federal funding will flow into the respective state budgets in this way. The financial support will then be passed on to the municipalities by the federal states.
What subsidies are available for the KWP?
As described in the section “How does the federal government support municipal heating planning?”, 500 million Euros are distributed to the federal states. These in turn regulate the distribution to the municipalities. You can find more detailed information for Thuringia below.
There are also other funding programs. In Thuringia, for example, the Thüringer Aufbaubank has a funding program:
https://www.aufbaubank.de/Foerderprogramme/Investitionsberatung-fuer-Kommunen
Simplified procedure for small municipalities
The federal states can provide for a simplified procedure for areas with fewer than 10,000 inhabitants. In particular, the cost of the participation procedure can be reduced there. The WPG only names possible approaches here. These include reducing the number of people to be involved or excluding sub-areas for a hydrogen network. State law can also stipulate that the heat planning for several municipal areas can be drawn up jointly (so-called “convoy procedure”).
Shortened heat planning
With the suitability test and the option of shortened heat planning based on this, the Act on Heat Planning and Decarbonization of Heat Networks (Heat Planning Act/ WPG) offers municipalities an opportunity to reduce the scope of the CHP under certain circumstances. The aim is to reduce the effort and costs of the CHP, particularly for smaller municipalities, and to take into account the service provider market, which is still being developed.
As part of the suitability test, a series of test criteria are used to identify sub-areas that are highly unlikely to be suitable for supply by a heating network or hydrogen network. For such a sub-area, the body responsible for planning can decide to carry out abbreviated heat planning.
In this case, the inventory analysis is omitted and only the potentials that are suitable for a decentralized supply are determined in the potential analysis. The sub-area is shown in the heating plan as a prospective area for decentralized supply.
Source: https://www.kww-halle.de/kwp-prozess/eignungspruefung-verkuerzte-waermeplanung#c721
Link to WPG: https://www.gesetze-im-internet.de/wpg/BJNR18A0B0023.html
Guidelines for municipal heat planning
With the Heat Planning Act (WPG), the German government has formulated a uniform strategy for the heat transition. These working documents are intended to show how these regulations can be implemented in practice:
Guide to municipal heat planning Federal Government
Practical guide from AGFW and DVGW
What proportion of renewable energies must heating networks have?
New heating networks are required to have a 65 % percentage of renewable energies, unavoidable waste heat or a combination thereof from March 2025. Existing heating networks need to have a percentage of 30% by 2030 and 80% by 2040.
Source: https://www.bmwsb.bund.de/Webs/BMWSB/DE/themen/stadt-wohnen/WPG/WPG-node.html?cms_gcp_20705442=4
Sample list of services for the tendering for heat planning in accordance with WPG
Legal framework
KWP regulations
These regulations apply at EU level:
- EU Building Efficiency Directive: Energy Performance of Buildings Directive (EPBD)
- EU Energy Efficiency Directive: Energy Efficiency Directive (EED)
- Renewable Energy Directive: Renewable Energy Directive (RED III)
- EU emissions trading: EU Emissions Trading System (EU ETS)
These regulations apply at federal level:
- Building Energy Act (GEG)
- Act on Heat Planning and the Decarbonization of Heating Networks (WPG)
- Act to Increase Energy Efficiency and to Amend the Energy Services Act (EnefG)
- Federal funding for efficient heating networks and buildings (BEW, BEG)
Federal Climate Protection Act (KSG)
These regulations apply at state level:
https://www.kww-halle.de/praxis-kommunale-waermewende/waermeplang-regulierung-bundeslaender#c657
Source: https://www.kww-halle.de/fokusthemen/gesetzgebung-im-waermesektor
The Heat Planning Act (WPG) summarized
The Heat Planning Act :
- obliges all federal states nationwide to carry out municipal heat planning
- creates the basis for the introduction of binding and comprehensive heat planning in Germany
- For municipalities with more than 100,000 inhabitants, a heat plan must be drawn up by June 30, 2026
- For municipalities with fewer inhabitants, the heat plan must be drawn up by June 30, 2028
- Smaller municipalities have the option of joining forces to draw up a joint heating plan in a so-called “convoy procedure”
- Targets for the generation of heat in heating networks:
- From March 1, 2025, new heating networks must be supplied with at least 65% of their annual net heat generation from renewable energies, unavoidable waste heat or a combination thereof
- By 2030, for existing networks this share must be increased to 30 percent and
- up to 80 percent by 2040
- The goal is a completely fossil-free heating network by 2045
Quelle: https://www.kww-halle.de/fokusthemen/gesetzgebung-im-waermesektor
Link zum WPG: https://www.gesetze-im-internet.de/wpg/BJNR18A0B0023.html
Translation of the Heat Planning Act (WPG) into national law
Among other things, state law defines the body responsible for planning, i.e. which local authorities are obliged to draw up the municipal heating plan (KWP). In most cases, these will be municipalities or associations of municipalities. In addition, the federal states can, for example, also stipulate regulations on inter-municipal heat planning and define a “simplified procedure” for the CHP for municipalities with fewer than 10,000 inhabitants.
Thuringia was the first federal state to pass a corresponding state law in June 2024. The other federal states should follow suit by 2025 at the latest.
Source: https://www.kww-halle.de/praxis-kommunale-waermewende/waermeplang-regulierung-bundeslaender#c655
EU thresholds for the award of public tenders
The threshold value for the award of public contracts in the area of supplies and services is EUR 221,000 (net).
Background: Before commencing procurement, the contracting authority must realistically estimate the expected contract value. If the economic volume of the contract reaches or exceeds the specified threshold, there is an obligation to put the public contract out to tender throughout the EU. National contracts may only be awarded if the (estimated) contract value is below the current EU thresholds.
Sub-threshold procurement regulations - UVgO
The contracting authority may award contracts by negotiated award with or without a call for competition if the contract involves conceptual or innovative solutions. In the case of a negotiated award without a call for competition, the contracting authority invites several companies, generally at least three, to submit a tender or to participate in negotiations.
https://www.verwaltungsvorschriften-im-internet.de/bsvwvbund_02022017_IB6261902.htm
Thuringia
Thuringian Implementation Act for the Heat Planning Act
The Thuringian Implementation Act for the Heat Planning Act can be found here:
https://landesrecht.thueringen.de/bsth/document/jlr-WPGAGTHpP1
There is currently no definition of the simplified procedure.
Reimbursement of planning costs by the state of Thuringia
The state shall reimburse the bodies responsible for planning in accordance with Section 2 (1) ThürWPGAG for the reasonable costs associated with the initial preparation of the heat plans.
- Costs for the commissioning of external services or for expert reports for the preparation of heat plans, in particular expert costs for externally commissioned planning or analyses, printing costs for publications and room rental costs for the participation processes,
- Costs for the procurement of the data required for heat planning, in particular the data in accordance with Annex 1 of the Heat Planning Act, and
- Personnel expenses of the offices responsible for planning
- up to an amount of EUR 112,500 for planned areas with a population of up to and including 10,000,
- up to an amount of 225,000 euros for planned areas with a population of more than 10,000,
- up to an amount of 225,000 euros in administrative communities and fulfilling municipalities, irrespective of the number of inhabitants of the planned area.
Source: https://landesrecht.thueringen.de/bsth/document/jlr-WPKostErstVTHpP1
Annual lump-sum advance payments in accordance with ThürWPKEVO Section 3 (1) to the planning authorities
Size class:
a) independent cities and municipalities with a population of | b) Administrative communities c) fulfilling municipalities | |
| Size class 1 | up to and including 10 000 | |
| Size class 2 | more than 10 000 and up to and including 45 000 | up to and including two member municipalities |
| Size class 3 | more than 45 000 and up to and including 100 000 | with more than two up to and including nine member municipalities |
| Size class 4 | more than 100 000 | b) from 10 member municipalities c) with three up to and including nine member municipalities and a population of 10,000 or more |
Overview: flat-rate annual advance payments by size category and year:
Year | Size class | |||
1 | 2 | 3 | 4 | |
2024 | 23 595 Euro | 46 930 Euro | 59 410 Euro | 68 250 Euro |
2025 | 36 300 Euro | 72 200 Euro | 91 400 Euro | 105 000 Euro |
2026 | 36 300 Euro | 72 200 Euro | 91 400 Euro | 105 000 Euro |
2027 | 36 300 Euro | 72 200 Euro | 91 400 Euro | 105 000 Euro |
2028 | 36 300 Euro | 72 200 Euro | 91 400 Euro | 105 000 Euro |
Quelle: https://landesrecht.thueringen.de/bsth/document/jlr-WPKostErstVTHpP1
What if funding has already been applied for from the federal government (NKI - National Climate Initiative)?
There is a grandfathering provision for municipalities that have already applied to the federal government for funding for heat planning before 01.01.2024. According to Section 3 ThürWPGAG, these municipalities are exempt from the obligation to carry out heat planning in accordance with the Heat Planning Act if they meet the requirements of Section 5 (2) WPG, e.g. have already started heat planning before 01.01.2024. This means that the funding can be used in full and the own contribution will be reimbursed by the state after the final audit by the funding provider (verification of use) in accordance with the Heat Planning Cost Reimbursement Ordinance (ThürKEVO).
Source: https://umwelt.thueringen.de/themen/energie/waermeplanung
Can municipalities plan together and join forces?
Yes, municipalities can carry out heat planning jointly. In this case, one of the municipalities in the association assumes the rights and obligations of the body responsible for planning.
Administrative community (VG)
A VG is responsible for all matters within the delegated sphere of activity for its member municipalities, including heat planning, which is currently to be transferred to the municipalities as a task within the delegated sphere of activity.
Performing municipality
The performing municipality assumes the task of heat planning for the municipalities commissioning it.
In addition, all legally permissible forms of inter-municipal cooperation are possible in order to jointly carry out heat planning in the so-called convoy procedure (see external link Thuringia Act on Municipal Joint Cooperation (ThürKGG)).
Source: https://umwelt.thueringen.de/themen/energie/waermeplanung
Sample list of services for the invitation to tender for heat planning in accordance with WPG
KWW Sample service specifications Thuringia
Handout on the KWW model service specifications for Thuringia
