Urban networks/EU: +9.4% of RE and waste heat in the energy mix by 2023 (EuroHeat report)

Coal down 12.3% and natural gas down 3.7%: in 2023, for the first time, the share of fossil fuels in the European energy mix for district heating and cooling systems has fallen substantially, with 44.1% of the supply for these systems now coming from renewable energies and waste heat recovery, an increase of 9.4% since 2022. These are the main trends highlighted in the Market Outlook 2025 for district heating and cooling systems, published by EuroHeat & Power on 04/06/2025.

With a 44% increase in large heat pumps and an 80% increase in electric heat pumps, the district heating sector is growing and decarbonising, with a 20% increase in waste heat recovery, which now accounts for 4.1% of the energy mix.

"This year's figures show that our sector is on the cusp of a revolution, with a real breakthrough in waste heat recovery and electrification. It also demonstrates the importance of stable regulatory frameworks that are conducive to on-the-ground projects and investments.

The next EU strategy on heating and cooling must now support the implementation of the Fitfor55 package…