Expertise

Heat Market

A key sector for the energy transition.

More than half of the final energy consumed in Germany is used to generate heat: for heating buildings, for hot water preparation, for process heat. The heating market is an important economic factor and crucial for a successful energy transition. Currently, fossil energy sources dominate heat generation: they have a share of over 70 percent. Renewable energies with a share of just under 12 percent and district heating with around 10 percent are still "playing on the side-lines".

Energy transition in the heating market: sector coupling and district heating play a central role

The climate goals affect the heating market in several ways. By 2050, buildings will be energetically renovated and industrial processes will be designed much more efficiently. This will lead to greater energy efficiency - the demand for heat will fall in all sectors. The remaining heat production will be increasingly decarbonised through renewable energies. Sector coupling  will play an important role due to the use of heat pumps. To tap the potential of industrial waste heat or geothermal energy and to make use of renewable heat generation, expanding the district heating supply is an option in many cities. Hydrogen produced from renewable sources will also play a role in future heat generation: This fuel is particularly suitable for process heat in some branches of industry.

Investments under scrutiny

The challenge: climate goals in the heating market can only be achieved if decarbonisation goes hand in hand with increased energy efficiency. However, investments in the infrastructure for the production, distribution and consumption of heat are under particular scrutiny resulting from the overall decline in demand for heat.

Heat Market: A selection of our services

Forecasts & Scenarios

Based on model-based forecasts and scenarios, we develop strategies in the field of energy and climate protection.

Potentials of technical measures in the heating market

We identify and analyse the potential of technical measures in the heating market and assess their macroeconomic impact.

Evaluation of energy policy instruments

We evaluate energy policy instruments for our customers, further develop them and assess their impact.

Monitoring

We provide scientific guidance for energy and climate policy. We provide monitoring and prepare standardised reports.

Our work on this topic

Take a look at our latest projects and activities.

Policy Paper MEPS: Minimum efficiency standards for existing buildings

2023
| Project

Energy-efficient building renovation is an important part of achieving climate protection goals in the buildings sector. A brief summary of the role of MEPS within this context.

Regulation of third-party access to heating networks

2022
| Project

The EU Commission wants to make third-party access to district heating networks mandatory. We assessed the consequences for Germany and the possible contribution to decarbonisation on behalf of the BMWK.

Evaluation and further development of the national Emissions Trading System (nETS)

2022
| Project

On behalf of the Federal Environment Agency, we are developing suitable approaches for the impact assessment of the nETS together with the FÖS and the DIW.

The world negotiates on climate

2022
| News

On Sunday, the 27th UN Climate Change Conference (COP27) begins. Various media sources have picked up on Prognos’ studies and expertise.

Eleven measures to achieve 2030 climate target

2022
| Project

Germany risks not hitting its 2030 climate objectives. The Forum Ökologisch-Soziale Marktwirtschaft proposes eleven measures. We assessed their impact on climate protection in the transport and building sectors.

Close-up on heat pumps

2022
| Project

Due to increased gas prices, heat pumps are significantly more economical than fossil fuel heaters for average renovated apartment buildings.

Comparison of the "Big 5" climate neutrality scenarios

2022
| Project

Transparency in the climate neutrality debate. A comparison of the "Big 5" climate neutrality scenarios.

Decentralised heat supply in a climate-neutral Germany

2022
| Project

What role does the heat pump play in a 100-percent renewable electricity system compared to hydrogen heating? An analysis for the Climate Neutrality Foundation.

Green Finance's contribution on the way to climate neutrality

2021
| Project

On the way to climate neutrality, green finance gains importance. For the first time, the total climate protection investments required to achieve the climate targets in Germany have been quantified by Prognos.

The future of construction

2021
| Project

For the building industry, climate protection is moving into the centre. Because it is one of the largest consumers of resources and energy. Study for the Future Council of the vbw.

Do you have questions?

Your contact at Prognos

Nils Thamling

Principal

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Marco Wünsch

Principal

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Dr Alexander Piegsa

Senior Expert Models and Industry

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About us

Prognos – Providing Orientation.

Prognos is one of the oldest economic research centres in Europe. Founded at the University of Basel, Prognos experts have been conducting research for a wide range of clients from the public and private sectors since 1959 – politically independent, scientifically sound.

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