Towards a climate neutral EU:
efficient allocation of EU funds

Modernisation of district heating distribution networks

Organisation: Centre for Transport and Energy Website: Added: March 14, 2023
Project start date: May 05, 2022
Project end date: December 31, 2025


This scheme aims to replace the thermal energy supply systems that currently use coal to with another (less emission-intensive) fuel (biomass, waste or natural gas) by 2038. This is the case for 45 heat plants. The main part of the district heating renovation is supposed to be financed by the Modernisation Fund, and the Recovery and Resilience Facility (RRF) will mainly finance distribution infrastructure (i.e., the Modernisation Fund will finance the generation infrastructure and RRF the distribution infrastructure). The development of new heating infrastructure is included within component 2.3 Transformation of industry and transition towards cleaner energy sources within the Czech Recovery and Resilience Plan.

Financial data

CZK 1.660 billion (EUR 70.5 million)


This subcomponent's problematic aspect is that it is projected to contribute 100 per cent to the green agenda. Although more efficient district heating networks are needed, at the moment, the heat will still be generated mostly by coal, with a plan to switch to gas. Therefore, it is wrong to claim a 100 % positive climate impact if it will lead to an increase in greenhouse gas emissions. We, therefore, recommend excluding the support of gas.

Information sources

Ministry website

Other info

European Climate Initiative (EUKI)
This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.