District heating systems consist of a series of underground pipes and integrated heaters that provide heat to a network of buildings in a given area. In 2022, district heating provided about 9% of global heating demand for buildings and industry. However, 90% of district heating comes from fossil fuels.
Zero-carbon options for district heating systems include the direct use of renewables. For example, geothermal district heating systems have long existed in countries such as China, Iceland and the United States, while Denmark uses solar thermal energy for district heating. Powering a district heating system with electricity made from renewables can be an option as well.
The global share of renewables in district heating increased from 5.2% in 2010 to 7.1% in 2021. This is well off track to meet the goal of 17% by 2030. The share of renewables in district heating needs to increase over 10 times faster compared to the last five years to meet this goal. Ultimately, this should increase to 100% by 2050.