Project Description

Fictitious project profile and development of a project idea

A municipality is planning to set up a CO₂-neutral local heating network to supply residential areas, public facilities and commercial premises. The aim is to reduce fossil heating systems in the long term and install reliable renewable energy systems. The project is part of the municipality’s local climate protection concept and is being implemented as a PPP or municipal minority shareholding with an experienced private partner.

The following project parameters are developed as a project idea:

  • Project name: Municipal local heating network “Climate Neutral 2030”

  • Investment volume: up to € 10 million
  • Units supplied: approx. 300 subscribers incl. municipal facilities, total heat requirement of 15 – 20 GWh/a, route length 8 – 12 km

  • Tariff structure: basic price (grid connection + output) + energy price (heat supplied), stable indexed in the long term

  • Heat source and generation concept: Combination of generation technologies from decentralized heat pumps (n × approx. × kWth), a solar thermal system (2500 kWp) with seasonal heat storage (1-2 GWh), a heating center with base load, peak load and redundant safety boilers (biomass/electric/gas, H₂-ready) and testing of waste heat recovery from wastewater plants/routes.

  • Route concept: network length 8-12 km of routes, 10% co-laying with road construction, 15% synergy with wastewater construction, co-laying of fiber optics and marketing to network operators

  • Power source & generation concept: PV on roofs of municipal facilities, 100 kWp

  • Sustainability: CO₂ savings > 70 % compared to individual fossil fuel heating; transformation plan; sustainability strategy and annual report, key figures via API from IoT and control systems or business management surveys

  • Derived cost & business case model: investment requirements, operating costs, life cycle costs, LCOH, CAPEX/OPEX

  • Funding: Federal funding for efficient heating networks (BEW), KfW 271/281, state funding programs, federal funding for efficient buildings (BEG) (heating system replacement)

  • Project duration: Start of project development to commissioning: 30 months

  • Financing and equity: EXAVY, municipality; debt capital: bank; subordinated equity: option for participation via a local energy cooperative.

  • Operating model: Contracting/PPP with municipality and possibly energy cooperative; operating period of at least 20 years with expansion options

Special features

Exavy creates a complete feasibility analysis based on structured data, plausibility checks and legal requirements.
The results provide the business case, ensure eligibility – and prepare well-founded decisions.

  • Sector coupling: waste heat utilization from local industries and integration of PV electricity for heat pumps.

  • Digitalization in the operating phase:smart grid, energy infrastructure management including IoT, intelligent energy management with load forecasts and grid optimization, flexible electricity procurement

  • Structure and scalability: cascade connection of generation plants, greater grid stability and control over energy consumption through smart grids, possible use of renewable energy sources due to lower grid temperatures.

  • Optional heat sources: Examination of the use of waste heat from wastewater treatment plants and geothermal energy in the project outline

  • Cost structure & business case: Initial evaluationof the project idea with business case via software

Decision criteria from the municipality’s perspective

  • Project idea specifies the measures for operationalizing the municipal heating and climate strategy: implementation of the municipal heating planning measures and compliance with the requirements of the Federal Climate Protection Act, communication in the report.

  • Increase attractiveness: Modern, future-proof supply system increases location value for citizens and companies, opportunities for citizens to participate

  • Economic security and attractiveness: planning security for local authorities, citizens and companies thanks to a transparent concept, long-term price stability and integration of subsidies.