Decarbonization of District Heating
Decarbonization of district heating is a complex transformation process aimed at the gradual transition away from coal as the primary fuel in heat production. It encompasses not only the reduction of greenhouse gas emissions, but also tangible improvements in air quality and increases in the energy efficiency of district heating systems.
A key role in this transition is played by the development of modern heat generation systems – based on cogeneration, renewable energy sources, and the utilization of waste heat.
Transitional fuels also fulfill an important function in the move away from coal – primarily natural gas, as well as locally available resources such as biomass.
The transformation of district heating ultimately leads to the deployment of fully zero-emission technologies. In intermediate stages, however, lower-emission solutions are also employed – solutions that, while not fully emission-free, are less carbon-intensive than traditional coal-based systems and allow the sector to progressively reduce its carbon footprint.
Drawing on advanced technologies and extensive project design experience, Electrum supports this process as an experienced EPC partner, helping to develop more sustainable district heating systems across Poland.
The heating and cooling sector is the largest energy segment in the European Union, accounting for approximately 50% of final energy consumption. At the same time, Europe has adopted the ambitious target of achieving climate neutrality by 2050.
Realizing this goal requires a profound transformation of district heating systems – from solutions based on fossil fuels to systems utilizing renewable energy, waste heat, and low- and zero-emission technologies
The role of natural gas in the decarbonization of district heating
Natural gas is viewed primarily as a transitional fuel – a bridging fuel – on the path to full decarbonization. Gas-based sources emit approximately half as much CO₂ as coal-fired units, enabling a rapid reduction in emissions intensity when transitioning away from coal. Natural gas is today widely used in cogeneration units – which generate heat and electricity simultaneously – helping district heating systems achieve “efficient” status.
In accordance with Article 7b(4) of the Energy Law Act, a district heating system is considered energy-efficient if at least 50% of the energy used to generate heat or cooling comes from renewable sources, 50% from waste heat, 75% from cogeneration, or a minimum of 50% from a combination of these energy and heat sources. It should be noted that a district heating system encompasses not only the heat generation source itself, but also the heating network together with the associated equipment and installations used for heat production and consumption.
After 2040, a transition from natural gas to decarbonised gases – such as biomethane or hydrogen – is anticipated.
Decarbonization of district heating in practice - step by step
From 2026, Electrum is participating in the delivery of a new gas-fired cogeneration system that will bring Gdańsk’s district heating system significantly closer to a low-emission future. The investment involves the construction of a high-efficiency installation generating heat and electricity simultaneously, enabling more efficient fuel use and a reduction in emissions.
The installation being built will consist of eight identical gas engines with a combined capacity of 35 MWe and 39 MWt. By operating in cogeneration mode, the unit will play an important role in the transition from solid fuels to significantly lower-emission solutions. Gas combustion enables CO₂ emission reductions of up to approximately 50% compared to traditional coal-based sources.
The role of renewables in the decarbonization of district heating
Renewable energy sources form the ultimate foundation of district heating decarbonization, and their importance is growing steadily as successive EU regulations are implemented – including the RED III directive. In Polish district heating, biomass currently remains the most significant renewable energy source, accounting for over 97% of renewable heat production in 2023. However, other technologies are beginning to play an increasingly prominent role – among them geothermal energy, solar energy, and large-scale heat pumps.
The growing share of renewables simultaneously requires the modernization of district heating systems. The direction of change is towards the development of low-temperature networks – so-called fourth- and fifth-generation systems – which facilitate the integration of distributed green energy sources. Thermal storage also constitutes an important element of this transformation, both short-term (daily) and seasonal. These systems allow the moment of energy production to be decoupled from current heat demand, and increase the flexibility of the system as a whole.
In the long term, the direction of transformation is clearly defined. In accordance with the EED directive, by 2050 district heating systems across Europe should be based exclusively on renewable energy, waste heat, or a combination of the two.
Digitalization of district heating
Since 2025, Electrum has been carrying out the EMACS Heat research project, the aim of which is to develop and pilot-test a software environment for the monitoring, control, and protection of thermal energy systems – encompassing heat generation, distribution, storage, and use. The solution is designed to support the integration of green heat with the energy system and the development of sector coupling between electricity and heat, contributing to the construction of a more sustainable energy system.