Planning Renewable District Heating

District heating systems play a central role in the decarbonisation of the building sector, yet many systems in Eastern Europe remain dependent on fossil fuels. The European Union addresses this challenge through the Energy Efficiency Directive, which requires Member States to develop local heating and cooling plans aligned with the National Energy and Climate Plans.

The project is implemented in Romania and Latvia, where district heating could be an important source of energy, but faces structural, regulatory and capacity-related barriers. Romania lacks mandatory local heating and cooling planning and continues to prioritise fossil gas as a transition fuel. Latvia has a high district heating share, but decarbonisation is slowed by continued reliance on natural gas and peat and by limited incentives for renewable solutions.

The project supports national climate and energy objectives by strengthening local planning capacity, improving alignment with European Union legislation and enabling municipalities to transition towards renewable and efficient district heating systems.

The project supports municipalities in Romania and Latvia in developing and adopting heating and cooling plans that enable the transition to renewable district heating systems. It facilitates knowledge transfer through a comparative study, thematic workshops and peer exchanges that showcase best practices from Western Europe.

Municipal representatives receive targeted capacity building to assess renewable energy potential, plan district heating upgrades and align local strategies with national and European requirements. The project provides direct technical and administrative support to a municipality in Gorj County, Romania, to plan a geothermal district heating system and to prepare for accessing public funding.

By strengthening institutional capacity, improving coordination between local authorities and operators and fostering regional cooperation, the project creates replicable models for renewable-based district heating. These actions reduce dependence on fossil fuels, improve energy security and support long-term decarbonisation of heating systems.