FinWW

At the national level, the Heat Planning Act (WPG) and the Building Energy Act (GEG) form the legal framework for expanding renewable energies in the heating sector and increasing energy efficiency. These laws are supplemented by support programs that promote investment in efficient heating networks and energy-efficient buildings.

The transformation of the heating sector poses considerable challenges, particularly the technological switch to renewable energies and infrastructure development in urban areas. In addition, legal and economic frameworks must be created that offer investment security and promote acceptance.

Financing is a key aspect of this transformation. Considerable financial resources must be mobilized without overburdening the economy. New business and financing models are needed to involve both public and private investors. There is a considerable need for research into these issues, which this research project aims to address.

Eleven institutes have formed a consortium to address the complex technical, economic, financial, legal, and instrumental research issues involved in this research project. The Institute for Energy and Environmental Research (ifeu) is leading this research project, while Fraunhofer ISI is coordinating the work on financing the heat transition and developing financing models. The participating researchers are free to choose their research methods.

This research project aims to provide scientific foundations for shaping the legal, instrumental, institutional, and financial framework conditions for the heat transition. The work is divided into six work packages (WP):

• WP 1: Goals and paths for 2045
• WP 2: Further development of heat planning
• WP 3: Consumer protection and regulation of district heating and cooling
• WP 4: Financing the heat transition
• WP 5: Further development of heat network promotion

• WP 6: Cross-cutting activities

   

The Center for Sustainable Economics and Management (ZNWM) at Stuttgart Technical University of Applied Sciences is primarily involved in WP 4.

Success in achieving national and international climate targets depends largely on a combination of technological progress, political guidance, and strategic planning. A central, overarching focus of this research project is therefore on investigating the interactions between the various instruments of the heat transition and their integration into the energy policy context.

Key research questions, which should lead to immediate research results, include: (1) What innovative financing models, approaches, instruments, etc. are needed? (2) How can the interaction between public funds and private investor funds be designed to promote transformation? (3) What are the implications of the different (regulatory) framework conditions and how should these be designed? (4) Which investors could be attracted to finance heating networks and how? 

• Systematization and development of an analytical methodology for evaluating financing models and instruments (e.g., using morphological boxes)
• Overview of existing financing models and instruments and their evaluation
• Development and evaluation of alternative financing models
• Identification of financing instruments or combinations of instruments for heat transition projects
• Analysis of approaches for (equity-enhancing) measures and possibilities for financing heat transition projects
• Analysis of sustainability requirements in the financial sector and their influence on the heat transition
• Analysis of legal and economic framework conditions for case groups
• Cross-cutting: stakeholder analyses, expert interviews, workshops

• Financing models, approaches, concepts, and instruments for heating networks
• Policy recommendations
• Publications