Heating and cooling networks are twice as greener as they were 2 years ago, but the challenges remain numerous

2009 - 2019: a metamorphosed sector with twice the amount of renewable and recovered energies

The 2020 edition (2019 data) of the survey^[1] reveals that the share of green heat, through renewable and recovered energies (EnR & R), has doubled in the energy mix of district heating networks, going from 31% in 2009 to 59,4% in 2019 thanks to the greening of existing networks and the creation of new virtuous networks.

This significant greening of heat and cold deliveries has had the effect of considerably improving the carbon footprint of the networks with a decrease of 44% during this period. Today, the average CO content² of networks amounts to only 0,107 kg / kWh.

Real support from the ADEME Heat Fund

This change can be explained in particular by the support of the Chaleur Fund of ADEME, which, in 11 years, has invested nearly € 900 million to support the creation, greening and extension of more than 1000 heating and heating networks. cold. This tool, which has become essential for accelerating the launch of low-carbon projects, has thus made possible the production of more than 31 TWh of EnR & R.

For Fabrice Boissier, “Almost 40% of Chaleur Fund aid is allocated to networks, excluding production facilities, and ADEME has increased its support to the sector in recent years. One of the major challenges is to continue the dynamic of greening networks. Since this year, the networks assisted by the Heat Fund must - with some exceptions - reach a minimum rate of 65% of RE & R ».

Virtuous heating networks maintain their competitiveness, but the balance remains fragile in the context of the historically low cost of fossil fuels

The average sale price of heat distributed by network was € 74,6 excl.taxes / MWh in 2019 and therefore remains stable compared to 2018 (+ 1,2%). Thanks to the reduced rate VAT, virtuous networks are competitive compared to networks which are not yet supplied to more than 50% by renewable and recovered energies (EnR & R).

Considering the annual global heating cost of an average home (energy bill + maintenance cost + amortization of investments), district heating networks remain competitive compared to electric and gas heating solutions in 2019. Heating an average powered home by a district heating network with an RE & R rate greater than 50% costs € 1.238 per year. In comparison, the overall annual cost of heating for similar accommodation supplied with collective gas is € 1.443 and that of a home supplied by an individual heat pump is € 2.028.

2020-2030: the achievement of objectives remains subject to economic and regulatory conditions

Despite the very good results posted by the sector in 2019, the current rate of development of district heating networks is twice lower than that which would be necessary to achieve the objective set for 2030, namely the fivefold increase in the quantities of heat delivered. since 2012. This amounts to tripling renewable heat deliveries over the next ten years.

The entire sector mobilized in 2019 within the framework of the ministerial working group and is now carrying a certain number of measures aimed at continuing the deployment of virtuous networks in the territories. This is in particular the meaning of the action co-piloted by AMORCE, Cerema and ADEME with towns with more than 10.000 inhabitants not yet benefiting from the advantages of a heating network, which is already showing initial results.

For Nicolas GARNIER, General Delegate of AMORCE “We are also proposing the implementation of a“ Factor 5 ”plan in metropolitan areas and urban communities where renewable heat networks can still develop. AMORCE welcomed the increase in the Chaleur Fund envelope and the development of support rules within the framework of the ministerial working group, which are essential given the current economic situation and the drop in gas prices. It is indeed essential that all the lights remain green in order to meet the objectives set for 2030. But above all, renewable heat and heating networks must be well integrated in the trade-offs that will be taken as part of the reforms in force. course, at the risk of being to the detriment of the territories mobilized to develop a heating solution that is more economical, more local and more respectful of the environment ”.

For Aurélie LEHERICY, President of SNCU “Given the proliferation of technologies available over the past 10 years (biomass, geothermal energy, etc.), the entire sector, together with all communities, intends to accelerate the transition to ever more renewable heat. This objective will probably involve the development of existing heating networks in large cities but also, a key issue of the decade, by the multiplication of new virtuous networks in cities of more than 10 inhabitants. To date, more than half of them are still not equipped! These ambitions will be achieved under certain conditions: the budget and the conditions for granting assistance from the Heat Fund must follow the ambitions of the sector; renewable heat will have to remain competitive with fossil fuels; the legislative and regulatory framework will also have to remain stable and coherent; without forgetting the fact that the realization of a carbon trajectory will have to be socially just. All the players in the sector are determined to move forward and support communities in the deployment of the technology best suited to the needs of their territories. ".

Urban cooling networks: reach 3 TWh by 2028

The decade of 2020 will be the decade of the necessary development of cooling networks. According to the objectives set by the PPE 2028, their cold delivery must reach 3 TWh at the end of the next 8 years. Indeed, while heatwave episodes will become frequent in a context of an aging population, urban communities will have to offer effective and sustainable solutions in a limited and extremely constrained space in urban areas in order to counter the phenomenon of islets. heat. It is no longer a matter of comfort for the occupants but a health issue for the populations.

According to the President of SNCU “In order to achieve the objectives of the PPE, it is important to define at European level what is meant by renewable cooling. This common definition will make it possible to initiate the collective switch to cooling networks, a technical solution that is still too discreet. In addition to European support and the necessary stable regulatory framework that does not discriminate against stand-alone solutions, the support of the Chaleur Fund is essential. While the cooling networks have been present in its scope since 2018, only half of the projects have indeed received assistance from it. The industry is ready to accelerate, it is only waiting for favorable conditions for that! ".

Key figures 2019 vs 2009

District heating 2009 - 2019

• 798 networks surveyed (418 in 2009) + 90%
• 5 km of length served (964 km in 3) + 321%
• 25,6 TWh of heat delivered (23,4 TWh in 2009) + 10%
• 40 buildings connected (993 in 24) + 061%
• 2,37 million connected housing equivalents (2,04 million in 2009) + 22%
• 59,4% of EnR & R in the energy mix (31% in 2009) + 91%
• 0,107 kg / kWh of CO2 content (0,190 in 2009) -44%
• Average selling price of renewable and recovery heat delivered by the networks: € 74,6 excl.tax / MWh (€ 60,2 excl.tax / MGh in 2009) + 24%

Refrigeration networks 2009 - 2019

• 24 networks (14 in 2009) + 71%
• 0,96 TWh of cold delivered (0,93 TWh in 2009) + 3%
• 239 km length served (131 km in 2009) + 82%
• 1 buildings connected (339 in 870) + 2009%

^[1] The annual survey on heating and cooling networks is a statistical survey carried out each year by the National Union of District Heating and Urban Air Conditioning (SNCU) with the support of the AMORCE association, on behalf of the Service de la data and statistical studies (SDES) from the Ministry of Ecological Transition. This year, the survey suggests a parallel between the 2009 and 2019 data, corresponding to the tenth anniversary of the Chaleur Fund managed by ADEME