Euroheat & Power's DHC Market Outlook 2025 confirms a decisive turning point: the shift towards renewable heat sources is accelerating, while relying on flexible and intelligent solutions.
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Trends 2025: the heat network between energy resilience and decarbonized acceleration
As Europe accelerates its energy transition, district heating is emerging as a key component of the continental strategy. Euroheat & Power's DHC Market Outlook 2025 confirms a decisive turning point: the shift toward renewable heat sources is accelerating, while relying on flexible and smart solutions.
In 2023, despite a drop in heat consumption of more than 3% (due to a milder winter and improved energy efficiency), network length increased by 1.8% in Europe. The number of connected customers continues to grow, with notable increases in Germany (+31,200 buildings) and France (+2,200).
The network is becoming denser and more extensive, demonstrating growing political commitment and a desire to achieve the climate targets set for 2030 and 2050.
The most striking change in 2023? The share of renewables and waste heat in the energy mix reached 44.1%, up 9.4 percentage points year-on-year. Natural gas and coal declined, while:
Countries like Finland and Sweden are leading the way with networks already relying mainly on renewable sources.
District heating systems are also becoming a lever for flexibility for electricity grids. By exploiting peaks in low-cost renewable electricity production, electric boilers and heat pumps can store energy in the form of heat and reduce pressure on the electricity grid.
An emblematic example: in Cologne, RheinEnergie is developing a 150 MW river heat pump installation powered by the Rhine, to heat 50,000 homes from 2027.
Faced with record heat in 2024, the need for cooling is becoming urgent. Cooling networks are expanding rapidly (+3% in 2023), particularly in large cities. The future European "Heating & Cooling" strategy plan planned for 2026 must take this reality into account.
The challenge remains investment. While momentum is there, it is hampered by regulatory uncertainties and complex procedures. The report highlights the importance of measures such as the "Affordable Energy" action plan, the simplification of the state aid framework, and the "industrial decarbonization bank" to support large-scale projects.
Conclusion
The 2025 report outlines an energy future resolutely focused on efficiency, decarbonization, and resilience. Heating networks are becoming hybrid and intelligent, playing a strategic role at the intersection of energy efficiency and industrial sovereignty.
At Dyneo, we are proud to contribute to this transformation by supporting operators in optimizing and decarbonizing their networks.
To explore these trends further or discuss them for your projects, contact us.
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