EHP Report: Renewables, waste heat are leading energy source for District Heating and Cooling

KRAKOW, Poland, 10 June 2026: Euroheat and Power (EHP) launched its market report, revealing that renewable and waste heat are now the sector’s number one energy supply source, placing District Heating and District Cooling networks at the forefront of the EU heating and cooling transition.

Making the announcement through a June 10 Press Release, EHP said fossil fuels still represent more than 70% of EU heating and cooling supply, but the European District Heating and District Cooling sector leads the race toward decarbonisation. EHP said the share of renewable and waste heat sources in EU District Energy systems reached a record high of 46.2% in 2024, overthrowing fossil fuels for the first time.

EHP said this good performance is largely due to the growth of “power-to-heat” technologies and the momentum surrounding waste heat recovery. Between 2023 and 2024, EHP said, large heat-pump installation capacity grew by 19.6% in surveyed counties, while e-boilers supply increased by 26%.

EHP said IEA’s report on Renewable District Energy, also published on June 10, described the EU as a “global leader in renewable District Energy”, also referring to the increasing availability of large heat-pumps and ability to recover low-temperature waste heat in urban areas as “structural shifts”.

Paolo Frankl, Head, Renewable Energy Division, IEA, said: “District Energy networks contribute to stronger energy security by facilitating the integration of waste heat and locally available renewable heat sources. The new IEA report highlights this valuable opportunity and provides insights for governments in Europe and beyond who are aiming to accelerate the uptake of renewable and recovered heat sources.” 

Aurélie Beauvais, Managing Director, Euroheat & Power, said: “These reports show that District Heating and Cooling is a beacon of hope to de-fossilise heating and cooling quickly, and cost-efficiently. We already contribute to reducing Europe’s fossil fuels dependence, protecting EU citizens and industries from devastating energy price shocks. With a proper EU strategy in place, focusing on heat planning, financing and re-risking, we could achieve so much more.”

Eloi Piel, Market Intelligence Director, Euroheat & Power, said: “Our report demonstrates continued progress in the decarbonisation of  District Heating and the ongoing expansion of networks: 1,559 kilometres of new District Heating infrastructure were added in 2024. However, the pace must accelerate to fully harness the potential of renewable and waste heat as mainstream energy sources.”