Over the past three years, concerns about energy security and rising energy prices have dominated the European media. The continent has been particularly affected by geopolitical events, mainly due to its dependence on imported fossil fuels—especially for heating. This has accelerated a dual crisis—both social and industrial.
According to Eurostat, in 2023, 10.6% of the European Union’s population struggled to keep their homes warm. Compared to 2022, an additional six million citizens are now facing energy insecurity.
At the same time, the Draghi Report, published in September 2024, highlighted the risks posed by rising energy prices, insufficient investments in energy infrastructure, and administrative complexity—threatening the competitiveness and economy of the EU.
The European Association of District Heating Companies, Euroheat & Power, recently published a report (DHC market outlook 2025) that provides an overview of the district heating market in Europe, based on national data from 2023 and forecasts for its future development.
Although heat supply decreased by over 3% in the largest markets in 2023 (due to a combination of weather conditions and energy efficiency measures prompted by high prices), the number of customers and the total network length continue to grow.
In 2023, the share of renewable energy sources and waste reached 44.1%, representing an increase of 9.4 percentage points compared to 2022. The use of fossil fuels declined, replaced by a greater share of renewables, including large heat pumps and electric boilers, whose share increased by nearly 60%.
Looking to the next five years, growth is accelerating
Countries with the greatest potential—Germany, France, the Netherlands, Poland, and others—project that over 8.5 million new households will be connected to district heating systems to meet European energy and climate goals.
However, regulatory uncertainty continues to hinder investment in some countries. Clear policy signals and appropriate financial instruments are urgently needed.
And What About Cooling?
2024 is the hottest year in Europe since records began. Data from 2023 show that district cooling infrastructure grew by over 3%, and even more ambitious expansion is expected in major cities.
Sales of district cooling systems in Europe have increased by 10% over the past five years, with the customer base expanding by 27% in the two largest markets—Sweden and France.
The European Union can no longer ignore the need for a solid cooling strategy, and the stakes go far beyond climate and energy security.
Looking Ahead
Perhaps 2025 will bring change. Against the backdrop of the publication of the Affordable Energy Action Plan and the Clean Industry Deal, the European Commission has announced that it will present a revised Heating and Cooling Strategy in the first quarter of 2026.
