Warmer (and cooler) together: Position Paper on Renewable Heating & Cooling for Energy Communities

Heating and cooling (H&C) account for more than 50% of Europe’s final energy use, yet it remains underrepresented in both policy and implementation efforts. In particular, Renewable Energy Communities (RECs) — despite their transformative potential — are still predominantly focused on electricity, leaving thermal energy out of the picture.

To bridge this gap, ConnectHeat published a new position paper advocating for stronger integration of renewable H&C into community-led energy initiatives. The paper outlines the immense potential of H&C communities to decarbonise local energy systems, combat energy poverty, and empower citizens through collective ownership and governance.

Why it matters?

• Around 75% of H&C in the EU is still fossil-based.
• Efficient and renewable-based District Heating & Cooling (DHC) networks can become a cornerstone of decarbonised urban energy systems.
• RECs that include H&C can deliver social, economic, and environmental benefits while promoting energy democracy and empowering citizens.

What is a Renewable H&C Community?
These are local initiatives where citizens, municipalities, and businesses cooperate to produce, consume, share, or sell thermal energy from renewable sources. They promote inclusive governance, economic redistribution, and a strong sense of ownership. Activities can range from community heat production and storage to collective purchasing of energy-efficient technologies.

Real-life inspiration
Despite regulatory delays, many successful H&C communities are already operational across Europe — from Sweden to Spain. They often rely on cooperatives, multi-source renewable supply, and participatory governance models. An interactive map showcasing these initiatives is available here.

Policy recommendations
To scale up renewable H&C communities, the paper presents concrete proposals in three areas:

• Legislation & Regulation: Explicitly include thermal energy in REC definitions, enable heat prosumers, and open access to DHC networks.
• Financing & Incentives: Deploy risk reduction tools, public funding, and business models like “H&C-as-a-service,” including crowdfunding and co-investment instruments.
• Awareness & Capacity Building: Expand support services, empower local authorities, and promote best practices to drive acceptance and replication.

Thermal energy must be fully integrated into the energy community movement if we are to achieve Europe’s climate and energy goals. With technologies in place and communities ready to act, policy must now catch up.