Smart thermal networks in the European Union : status report on technology development, trends, value chains and markets : 2023

This report is part of the 2023 Clean Energy Technology Observatory series and is focusing on smart thermal networks within the European Union (EU). It provides an overview of the current status, emerging trends, and the potential of this sector integration technology. Smart thermal networks offer a significant advancement compared to conventional district heating systems, operating with higher intelligence and efficiency while maintaining lower temperatures. This enables the integration of a larger share of renewables and positions these networks as versatile assets, offering balancing services to the wider energy system. An increasing number of district heating and cooling systems in the EU are transitioning towards becoming smart thermal networks. Numerous cities are investing in expanding and modernising their existing systems to align with future energy needs, characterised by a growing reliance on variable renewables. Smart thermal networks encompass a variety of technologies, most of which are technologically mature, including intelligent control systems with sensors, waste heat, high-efficiency cogeneration, large heat pumps, and thermal energy storage systems. One of the most promising avenues for further innovation lies in digitalisation, which allows for seamless integration and control of energy flows. By fostering intelligent control and data-sharing across the entire system, smart thermal networks can optimise their operation in the short and medium term. The EU is a global leader in this field and well-positioned to lead the transition towards smart thermal networks, showcasing their value in the context of the low-carbon transition.