Municipal heat planning from 2025: data-centre waste heat as mandatory component
WPG deadlines, the 65 % requirement for new networks, BEW funding — why municipalities should put data centres on the agenda now.
TL;DR
- Municipalities > 100,000 inhabitants must submit a heat plan by end of June 2026; smaller municipalities by end of June 2028.
- The heat plan mandates a potential analysis — including unavoidable waste heat from data centres.
- From 1 March 2025, new heat networks must source at least 65 % of their heat from renewables or unavoidable waste heat.
- BEW (Federal Funding for Efficient Heat Networks) finances feasibility studies and investments.
- Delays in planning jeopardise the later economics of heat networks.
1. Background
The Heat Planning Act (WPG), in force since 1 January 2024, obliges all German municipalities for the first time to systematically plan their heat supply by 2045. Unavoidable waste heat — e.g. from industrial processes or data centres — is explicitly recognised as a possible heat source and must be included in the potential analysis.
2. Data
| Municipality size | Heat-plan deadline | New networks from March 2025 | BEW funding |
|---|---|---|---|
| > 100,000 inhabitants | 30 June 2026 | ≥ 65 % RE / waste heat | Modules 1–4 (BAFA) |
| < 100,000 inhabitants | 30 June 2028 | ≥ 65 % RE / waste heat | Modules 1–4 (BAFA) |
Since 1 January 2024, municipalities have been obliged under the WPG to produce a municipal heat plan. By 2045, large heat pumps, deep geothermal energy and industrial waste heat — increasingly including data-centre waste heat — will gain in importance.
3. Implications for municipalities and energy providers
The heat plan has a clear strategic effect: anyone identifying a data centre with significant waste-heat potential in their potential analysis can designate it as a heat-network-suitable area. This triggers GEG-relevant deadlines for building owners. The longer an area remains in the review status, the lower the chance of later building an economic heat network there — buildings will have migrated to individual renewable heat solutions.
BEW funding (BAFA) provides module 1 funds for feasibility studies — a sensible entry point for municipalities exploring a local data centre as a heat source. Anyone who has applied for a BEW module 1 grant by 31 December 2025 or had a BEW transformation plan approved by 31 December 2026 is exempt from the separate WPG decarbonisation-roadmap duty.
4. Where P2H connects
P2H supports municipalities in this planning phase with pre-structured feasibility analyses that consolidate technical suitability, hydraulic baseline parameters and revenue structure in one document. This reduces the effort for potential analyses in the heat plan and accelerates BEW applications.
5. Outlook
The quality of municipal heat plans will determine the distribution of heat-transition investments over the next ten years. Municipalities that incorporate data-centre waste heat into their heat-network areas early secure a cost-efficient, continuous base-load source — and make their location more attractive for new data-centre investments.
Sources
- BMWK / energiewechsel.de: Heat Planning Act FAQ. https://www.energiewechsel.de/KAENEF/Redaktion/DE/FAQ/Waermeplanung/faq-waermeplanung-wpg.html
- WPG (BGBl. 2023 I No. 394), in force since 1 Jan 2024. https://www.gesetze-im-internet.de/wpg/BJNR18A0B0023.html
- TÜV Rheinland Consulting (Nov 2025): From suitable area to realised heat network. https://consulting.tuv.com/aktuelles/kommunale-waermeplanung-waermenetzeignungsgebiet-waermenetze
- ENERKO (Nov 2025): BEW transformation plan or WPG decarbonisation roadmap. https://enerko.de/2025/11/17/foerdermoeglichkeit-oder-pflicht-bew-transformationsplan-oder-wpg-dekarbonisierungsfahrplan/