Upper Austria: Over 70 % heating from renewables and waste heat  

Upper Austria has established itself as one of Europe’s frontrunners in the decarbonisation of heating and cooling. In a highly industrialised region of 1,5 million inhabitants, over 70% of space heating already comes from renewables and waste heat, while greenhouse gas emissions from buildings have fallen by more than 30% over the past decade. This transformation did not happen overnight: It is the result of more than 30 years of consistent regional policy, strategic market development and citizen engagement, driven by the regional Energy Agency, OÖ Energiesparverband (ESV).  

 At the core of this success lies a simple but powerful principle: energy efficiency and renewable heating must progress together. In Upper Austria, roughly half of the emissions reductions achieved in buildings come from improved efficiency, and the other half from renewable heat, a balance that has proven both technically effective and socially acceptable.  

 A diversified renewable heating mix, rooted in local strengths  

Upper Austria’s heating transition stands on three complementary pillars: clean bioenergy, heat pumps, and district heating based on bioenergy and waste heat. Bioenergy plays a particularly central role. Today, 15% of the region’s primary energy comes from sustainable biomass, and 35% of all dwellings are heated with modern bioenergy systems. More than 350 bioenergy district heating networks operate across the region, most of them owned by cooperatives of farmers and forest owners, generating local income and jobs.  

 This strong market position is underpinned by a thriving industrial ecosystem. Upper Austria is home to leading biomass boiler manufacturers, accounting for over 25% of all modern small-scale biomass boilers installed in the EU. Through the Cleantech-Cluster, managed by ESV, around 250 partner companies active in energy and environmental technologies cooperate across the value chain, from technology providers and installers to ESCOs and construction companies, supporting innovation, skills development, and market uptake.  

 Turning strategy into action: carrots, sticks, tambourines and skateboards  

Credit: OÖ Energiesparverband.

Upper Austria’s approach is often summarised as a combination of ”carrots, sticks, tambourines and skateboards”: financial incentives, regulation, information, and innovation support. Investment grants support renewable heating, with up to 100% funding for low-income households. At the same time, strict emissions and efficiency standards ensure that only high-performance technologies enter the market. Oil and gas heating have been banned in new buildings since 2019.  

 Information and activation complete the picture. Every year, ESV delivers around 20,000 energy advice sessions, alongside training programmes, outreach campaigns and targeted communication. Innovation and market development, the “skateboard”, are addressed through structured support to companies and installers, ensuring that policy ambition is matched by real-world delivery capacity.  

A flagship example is AdieuÖl (“Goodbye oil”), a large-scale campaign launched in 2019 to accelerate the replacement of oil and gas boilers. Rather than focusing on climate arguments, it addressed late adopters with messages around convenience, modernity and simplicity. The result: more than 21 000 oil boilers replaced in the last two years.  

From regional leadership to European inspiration  

Upper Austria’s experience shows that decarbonising heating and cooling is not about a single technology or instrument, but about building coherent policy packages, strong local markets and trusted advisory structures over time. As Christiane Egger, Deputy Manager of OÖ Energiesparverband, puts it: “Successful heating transitions depend on good narratives, clear market segmentation and close cooperation with installers and businesses. People need to see tangible benefits, economic, social and practical, if we want change to happen at scale.”  

With rising ambitions under EU climate and energy legislation, Upper Austria shows how climate action, energy security, industrial leadership and social acceptance for the energy transition go hand in hand.   

This best practice is extracted from our publication ‘Sustainable Regions in Action‘. Discover more best practices here!