all projects

Regulation of third-party access to heating networks

Client

Federal Ministry for Economic Affairs and Climate Protection (BMWK)

Year

2022

Partner

Öko-Institut (Institute for Applied Ecology), Becker Büttner Held, Institute of Energy Economics and Rational Energy Use at the University of Stuttgart


Our mission

In July 2021, the EU Commission presented a draft amendment to the European Renewable Energy Directive (2018/2001). Article 24 of the Directive is to be modified to make third-party access to heating networks mandatory in the EU.

In a short report, together with partners, we evaluated the EU Commission’s proposal on behalf of the Federal Ministry for Economic Affairs and Climate Protection (BMWK).

Our approach

Firstly, the Commission's proposed amendments are presented. The next step is to discuss the technical challenges associated with the opening up of heating networks. Then we give a cursory overview of the regulation of third-party access in other EU Member States. Among other things, it has been examined whether and in what form a correlation can be detected between the regulation of third-party access and the share of renewable heat or waste heat in the respective district heating sectors.

Step four is an overview of the regulatory requirements associated with the transposition of the EU Commission's proposal into German law. In the last step, the report discusses how suitable a lever regulated third-party access is for the decarbonisation of the heating network.

Core results

The Commission’s proposal for an opening up of the heating networks proposes two variations for implementation: the transition model and the single-buyer model. The latter is the simplest to implement. The single-buyer model obliges district heating and cooling operators to purchase heating or cooling from renewable sources or waste heating or cooling from third-party suppliers and to feed it back into the grid.

Until now, in Germany, there has been no regulated third-party access to the heating and cooling supplies on a national level. While the antitrust claim (according to § 19 of the law against competition restrictions) does represent a basis for this, the network access claim is weak and does not apply to the single-buyer model.

Those EU Member States with regulated third-party access all pursue a single-buyer model. In those countries, with the exception of Lithuania, there is no recognisable correlation between the opening of the grid and the share of renewable energy/waste heat.

Regulated third-party network access in Germany will not be sufficient for the decarbonisation of the grid-based heating supply. This is the result from a comparison between the regulatory burden and the incentive effect of third-party access to connect additional capacities for renewable energy and waste heat generation to the existing heating networks. Setting an ambitious long-term decarbonisation target, coupled with a decarbonisation roadmap that will require regular adjustment, would probably be a more effective lever.

Links and downloads

To the study (PDF in German)

More about our work on this project (in German)

 

Project team: Nils Thamling, Dominik Rau

 

Last update: 05.01.2022

Do you have questions?

Your contact at Prognos

Nils Thamling

Principal

View profile

Dominik Rau

Senior Project Manager

View profile

Mehr Studien & Projekte zu diesem Thema

More studies & projects on this topic

Electricity grid expansion makes headway

2020
| Project

For over 15 years now Prognos has been bringing together the actors concerned by the expansion of the electricity grid and facilitating dialogue between them – from the Danish to the Swiss bor-der.

12th Energy Transition Monitoring

2024
| Project

The energy transition is still lagging behind its goals – such are the findings of our 12th Monitoring Report. In two of the four areas, the lights remain on red.

Annual Energy Transition Monitoring

ongoing
| Project

What is the status of the energy transition in Germany? Since 2012, Prognos has been monitoring the energy transition in Bavaria and Germany on behalf of the vbw.

German energy market design

2024
| Project

In the coming years new renewable power plants will have to be built – but also flexible gas power plants, which can be used when required. We examined various incentive instruments on behalf of the vbw.

Natural gas as a bridge to climate neutrality in Germany

2023
| Project

How has the role of gas changed as a result of the gas crisis? Our energy team explored this question on behalf of the KfW.

Communication support for the building of the 380 kV West Coast Line

2023
| Project

The extension of the energy network lays the foundation for the energy transition. Since 2019, Prognos has been supporting transmission system operator TenneT TSO GmbH with their project communication concerning the establishment of the new West Coast transmission line in Schleswig-Holstein.

Energy prices for industry, an international comparison

2023
| Project

Our study for the vbw compares electricity and gas prices for industry worldwide and provides a price development outlook up to the year 2030.

Supply chains: no climate neutrality without raw materials

2023
| Project

Crises continue to put global trade routes at risk. This study by Prognos and partners indicates the measures necessary to secure strategically important supply chains.

Electricity price forecast 2023

2023
| Project

In the medium and long term, average wholesale electricity prices are above the 2019/2020 level. Our updated scenarios for the vbw.

Gas balance: Saving efforts must be intensified

2023
| Project update

If savings continue to be as low as in January and February, the risk of a gas shortage will in-crease in the coming winter.

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.

Learn more