Modernizing District Heating Networks: A Strategic Decision-Support Framework for Sustainable Retrofitting

Reza Bahadori, Matthias Speich () and Silvia Ulli-Beer
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Reza Bahadori: Institute for Sustainable Development, ZHAW Zurich University of Applied Sciences, Technoparkstrasse 2, 8401 Winterthur, Switzerland
Matthias Speich: Institute for Sustainable Development, ZHAW Zurich University of Applied Sciences, Technoparkstrasse 2, 8401 Winterthur, Switzerland
Silvia Ulli-Beer: Institute for Sustainable Development, ZHAW Zurich University of Applied Sciences, Technoparkstrasse 2, 8401 Winterthur, Switzerland

Energies, 2025, vol. 18, issue 14, 1-25

Abstract: This study explores modernization strategies for existing district heating (DH) networks to enhance their efficiency and sustainability, focusing on achieving net-zero emissions in urban heating systems. Building upon a literature review and expert interviews, we developed a strategic decision-support framework that outlines distinct strategies for retrofitting district heating grids and includes a portfolio analysis. This framework serves as a tool to guide DH operators and stakeholders in selecting well-founded modernization pathways by considering technical, economic, and social dimensions. The review identifies several promising measures, such as reducing operational temperatures at substations, implementing optimized substations, integrating renewable and waste heat sources, implementing thermal energy storage (TES), deploying smart metering and monitoring infrastructure, and expanding networks while addressing public concerns. Additionally, the review highlights the importance of stakeholder engagement and policy support in successfully implementing these strategies. The developed strategic decision-support framework helps practitioners select a tailored modernization strategy aligned with the local context. Furthermore, the findings show the necessity of adopting a comprehensive approach that combines technical upgrades with robust stakeholder involvement and supportive policy measures to facilitate the transition to sustainable urban heating solutions. For example, the development of decision-support tools enables stakeholders to systematically evaluate and select grid modernization strategies, directly helping to reduce transmission losses and lower greenhouse gas (GHG) emissions contributing to climate goals and enhancing energy security. Indeed, as shown in the reviewed literature, retrofitting high-temperature district heating networks with low-temperature distribution and integrating renewables can lead to near-complete decarbonization of the supplied heat. Additionally, integrating advanced digital technologies, such as smart grid systems, can enhance grid efficiency and enable a greater share of variable renewable energy thus supporting national decarbonization targets. Further investigation could point to the most determining context factors for best choices to improve the sustainability and efficiency of existing DH systems.

Keywords: district heat (DH); retrofitting; modernization strategies; TOWS analysis; portfolio analysis; fuel diversification; thermal energy storage; smart metering; net-zero emissions (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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