26/06/2025: DHC Market Outlook 2025: The heat transition in action

Over the past three years, concerns about energy security and rising energy prices have dominated the European headlines.

The new DHC Market Outlook 2025 provides an overview of the heat market in Europe based on national data for year 2023. One year after the publication of REPowerEU, we are seeing an acceleration in the growth and decarbonisation of this energy infrastructure, which is essential for the future of the EU.

Although heat supplies fell by over 3 % on largest markets in 2023 (due to a combination of climatic effects and energy efficiency measures in response to energy prices), the number of users of heating networks and the length of the networks continue to increase. In 2023, we note an expansion of trench length by 1.8%.

In 2023, the share of renewable energy and waste heat sources went up to reach 44.1%, an increase of 9.4% since 2022. The use of fossil fuels has decreased, substituted with higher shares of renewable sources, including large heat pumps and electric boilers whose share increased by nearly 60%.

Looking to the next 5 years, growth is accelerating. Only looking at countries with most potentials (Germany, France, the Netherlands, Poland..) governments are forecasting to connect over 8.5 million new households to align with European energy and climate objectives. However, it is also clear that regulatory uncertainty is holding back investment in some countries. The right political signals and financing instruments are needed, sooner rather than later.



Speakers:

Eloi Piel, Market Intelligence Director, Euroheat & Power
Lorraine Devouton, Business Development Executive, ENGIE
Olaf Litwiakow, Senior Manager European Heat Policies and Regulation, BEW Berliner Energie und Wärme GmbH
Emanele Pingaro, Heat Electrification Sales Manager, Turboden
Moderated by Pauline Lucas, Policy Director, Euroheat & Power