EU OK €2.98B German Scheme To Promote Green Heating

The European Commission has approved, under EU state aid rules, a €2.98 billion German scheme to promote green district heating based on renewable energy and waste heat. The measure will contribute to the implementation of Germany‘s National Energy and Climate Plan and to the EU’s strategic objectives relating to the EU Green Deal, in particular the EU’s 2050 climate neutrality target.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “This €2.98 billion scheme will contribute to greening the district heating sector in Germany, by supporting the construction of more efficient district heating systems and the decarbonisation of existing ones. With this measure, Germany will be able to increase the share of renewable energy and waste heat in the heating sector, thereby considerably decreasing its emissions. The German aid measure we have approved today will contribute to achieving the EU Green Deal objectives and help Germany meet its environmental targets, while limiting possible distortions of competition.”

The scheme, which will run until 30 August 2028, will be open to district heating network operators and operators not currently providing this service on the market. The aid will take the form of direct grants. The measure will support feasibility studies and transformation plans respectively for the construction and the decarbonisation of district heating networks

In June 2022, Germany notified the Commission of its intention to introduce a scheme to promote green district heating based on renewable and waste heat.

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