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Status of municipal heat planning in Germany: progress, challenges and outlook

Introduction
Germany's path to climate neutrality is gathering pace - and municipal heating planning has become one of the decisive elements for a sustainable energy future.
Since 1 January 2024, the Heat Planning Act has obliged every municipality to draw up its own heating plan. This process not only lays the foundation for a decarbonised heat supply, but also creates the basis for long-term infrastructure planning, investment security and citizen participation.

M&P Energy - Member of the SIERA Alliance, supports local authorities, municipal utilities and private stakeholders in the planning and implementation of sustainable energy systems. With comprehensive expertise in the fields of engineering, sustainability consulting and environmental planning, we bridge the gap between political requirements and practical implementation - and ensure that heat planning becomes a real opportunity for transformation.

Legal framework and deadlines
The Federal Ministry of Housing, Urban Development and Building (BMWSB) and the German Association of Energy and Water Industries (BDEW) have set clear deadlines for municipal heating planning.
To ensure nationwide harmonised implementation, the municipalities were divided into two groups:

  • Cities with more than 100,000 Inhabitants: deadline until 30 June 2026
  • Municipalities with fewer than 100,000 inhabitants: deadline until 30 June 2028

These structured schedules create uniformity and predictability in the implementation of the German heating transition.


Current progress (as of May 2025)

  • Momentum is increasing in Germany, but progress is being made at different speeds. Current data shows that almost half of all local authorities have already started the heat planning process:
  • Round 5,085 municipalities - about 47 % - have started to draw up their heating plans.
  • About 488 municipalities (4,5 %) have already finalised their plans.
  • A total of around 66 % of the population (≈ 55.8 million people) in municipalities where planning has already started.

This early commitment shows the growing awareness of the importance of local measures for achieving national climate targets.


Feasibility and assessment of the municipalities

Municipalities throughout Germany are not only evaluating the technical aspects of heat planning, but also its feasibility in the local context.
According to Asew (2025) applies:

  • 56 % of the municipalities consider the planning process to be fundamentally Feasible
  • 44 % see however Time and personnel resource bottlenecks as major hurdles.

Among the municipalities with a finalised plan 9 from 10 this as Strategic basis for the long-term heat transition, and 77 % are satisfied overall. This illustrates the growing appreciation of structured planning as a driver of the energy transition.


Why heat planning is important

Heat planning is far more than a legal obligation - it is a strategic measure.

Control instrument.
By analysing local needs, existing infrastructure and potential renewable sources, municipalities can determine the most efficient way to decarbonise the heat supply.

These include, among others:

  • the Expansion of district heating networks,
  • the Integration of heat pumps and Geothermal systems,
  • and the Construction of local low-temperature networks.

How the Federal Geothermal Energy Association emphasises, these municipal plans are crucial for the design of future heating systems - and for investor confidence and strengthening regional resilience.

For M&P Energy this is fully in line with our mission: to develop customised energy concepts that are technically sound, economically viable and ecologically responsible.


Challenges and unanswered questions

Despite the positive start, the road ahead remains challenging.
The central challenges are

  • Smaller municipalities often have limited budgets, incomplete data bases and too few specialised staff.
  • In several federal states Implementation guidelines and state laws still need to be specified.
  • With the transition from planning to implementation, the need for integrated data platforms and technical expertise.

This reality shows how important it is to co-operate with experienced consulting and engineering partners such as M&P Energy are - in order to fulfil political realisable, data-based solutions to translate.


Outlook and the role of M&P Energy

The coming years will show whether the Heat Planning Act will become a real driver of transformation or whether it will remain merely an administrative task. Success depends not only on compliance with legal requirements, but also on the Quality, depth and flexibility of the respective heating plans.

M&P Energy supports local authorities and municipal utilities throughout Germany:

  • Data-based heat demand analysis
  • Integration of sustainable technologies
  • Feasibility and investment studies
  • Implementation support and project monitoring

As part of the SIERA Alliance - our approach combines strategic advice, technical engineering and environmental expertise to ensure that every heat plan delivers measurable climate benefits.


Conclusion and call to action

Municipal heat planning marks a milestone on Germany's path to climate neutrality - it opens up the opportunity to rethink energy supply at a local level and create resilient, sustainable systems for future generations.

M&P Energy - Member of the SIERA Alliance is ready to support municipalities and partners in this endeavour, Turning heat planning into tangible progress - with expert guidance, data-based insights and customised technical support.

  • Contact our team, to actively shape your city's heating transition.
  • Find out more about our Services and Projects.