Supporting district heating and cooling networks

The LIFE-2025-CET-DHC grant is a funding opportunity under the EU's LIFE Programme aimed at accelerating the transition to sustainable district heating and cooling networks. Applicants must form a consortium consisting of at least three entities from three different eligible countries, and these can include municipalities, energy agencies, utilities, research institutes, NGOs, and private entities involved in energy transition.

The funding type is classified as an action grant, which provides a co-funding rate of 95% for eligible costs. The total budget allocated for this grant is €6 million, with individual project contributions from the EU reaching up to €1.75 million. This opportunity is open to applicants from EU Member States and countries associated with the LIFE Programme.

The grant supports projects focused on the development and modernization of district heating systems to improve efficiency and integrate renewable energy, aligning with the EU's Clean Energy Transition goals. It encourages innovative solutions to modernize existing infrastructure or develop new systems using renewable resources and waste heat, thus contributing to carbon neutrality and reducing reliance on fossil fuels.

The application process is a single-stage open call, with a submission deadline of September 23, 2025. While not explicitly stated, a 5% co-funding requirement is inferred from the 95% funding provision. The success rates for applications have not been disclosed.

Proposals should involve significant stakeholder collaboration and detail the intended methodology, project scope, financial strategy, and expected outcomes, including potential carbon savings and renewable energy generation. The projects are anticipated to not only improve heating and cooling efficiency but also ensure affordability for end-users.

In summary, the LIFE-2025-CET-DHC grant represents a strategic investment in sustainable energy infrastructure across Europe, facilitating the transition to greener energy solutions through collaborative applicant efforts.

This EU funding opportunity, LIFE-2025-CET-DHC, aims to support the transition towards efficient district heating and cooling networks and the integration of renewable energy and waste heat. It falls under the LIFE Clean Energy Transition (LIFE-2025-CET) call within the Programme for the Environment and Climate Action (LIFE). The action type is a LIFE Project Grant (LIFE-PJG) with a LIFE Action Grant Budget-Based [LIFE-AG] model grant agreement.

The call adopts a single-stage submission process. The opening date for submissions is April 24, 2025, and the deadline for submission is September 23, 2025, at 17:00:00 Brussels time. The funding rate is 95% for Other Action Grants (OAGs). The Commission considers that proposals requesting a contribution from the EU of up to EUR 2 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

The objective of this funding opportunity is to advance towards carbon neutrality and phase out EU dependence on fossil fuel imports by reducing fossil fuel consumption for heating and/or cooling. Modern and efficient district heating systems are crucial in connecting local demand with renewable and waste energy sources, optimizing supply and demand across energy carriers. The call supports the REPowerEU Plan, the revised Energy Efficiency Directive (EED), and the revised Renewable Energy Directive (RED), which include measures to increase the share of renewable energy and waste heat in district heating systems.

The scope of the call requires proposals to address one of the following aspects:

1. Providing technical support to operators/owners of existing district heating systems for preparing investment plans for fuel switch to meet the criteria for "efficient district heating and cooling" as defined in the Energy Efficiency Directive. This can include extending existing networks fully based on renewable energy or waste heat.

2. Supporting municipalities and key stakeholders in developing investment plans for new district heating and/or cooling networks fully based on renewable energy or waste heat, with attention to existing buildings.

For both aspects, the focus should be on identifying ways to integrate renewable energy or waste heat, assessing investments, and ensuring affordability for residents and businesses.

The investment plans should include:

Technical requirements and concepts.
Detailed identification of investments and pre-feasibility studies.
Timing and required resources.
Public and private funding sources.
Potential identification of alternative funding sources and models.

Proposals should clearly describe the methodology and planned activities regarding:

Identification of local energy resources, infrastructure, and investment costs.
Assessment of compatibility with existing building stocks.
Involvement of local stakeholders, including waste heat suppliers and customers.
Preparation of a business plan with projected revenues, costs, and return on investment.
Identification of funding sources and a strategy to secure capital.
Official endorsement process for investment plans.
Compliance with local, regional, and national laws and regulations.

The investment plans should enable the targeted district heating system to meet the criteria for "efficient district heating and cooling" as specified in the Energy Efficiency Directive Recast within 10 years. Actions may also include assessing the potential to participate in electricity markets.

Proposals should support the development of a substantial number of investment plans in at least 3 eligible countries and work with follower cases for knowledge transfer. Commitment from district heating network operators/owners is essential, and proposals should explain the support to be provided on the ground.

Expected impacts include:

Number of endorsed investment plans for efficient district heating and/or cooling systems.
Number of follower cases with effective knowledge transfer.
Number of local and regional authorities integrating project outcomes in energy planning.
Investments in energy efficiency and renewable energy sources triggered by the project.
Quantified impacts related to primary and final energy savings, renewable energy generation, and reduction of greenhouse gas emissions.

Actions should provide risk assessments, identify barriers, recommend regulatory changes, and promote replication. The call does not finance equipment or new tool development; applicants are encouraged to use existing commercial software.

Proposals must be submitted by at least 3 applicants from 3 different eligible countries.

Conditions for participation include:

Admissibility conditions related to proposal page limits and layout.
Eligibility of participating countries.
Other eligibility conditions as specified in the call document.
Financial and operational capacity and exclusion criteria.
Evaluation and award processes.
Award criteria, scoring, and thresholds.
Indicative timeline for evaluation and grant agreement.
Legal and financial setup of grants.

Relevant documents include the call document, application form templates, model grant agreements, LIFE Multiannual Work Programme, LIFE Regulation, EU Financial Regulation, rules for legal entity validation, and guidelines for financial capacity assessment.

In summary, this funding opportunity aims to drive the decarbonization of heating and cooling systems in the EU by supporting the development and implementation of investment plans for efficient district heating and cooling networks that integrate renewable energy and waste heat. It targets existing and new systems, emphasizing technical support, stakeholder involvement, and compliance with energy efficiency directives. Successful projects will contribute to energy savings, renewable energy generation, and greenhouse gas emission reductions, aligning with the EU's broader climate and energy goals.

Eligible Applicant Types: The eligible applicant types include operators/owners of district heating systems, municipalities, local authorities, and other key stakeholders. The call specifies that proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.

Funding Type: The funding type is a grant, specifically a LIFE Project Grant (LIFE-PJG) under the LIFE Clean Energy Transition (LIFE-2025-CET) call. The grant is budget-based (LIFE Action Grant Budget-Based [LIFE-AG]). The funding rate is 95% for Other Action Grants (OAGs).

Consortium Requirement: A consortium is required. Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility is at least 3 different eligible countries. The specific eligible countries are described in section 6 of the call document.

Target Sector: The target sector is energy, specifically district heating and cooling networks, renewable energy integration, and energy efficiency. It also touches on climate action and the transition to carbon neutrality.

Mentioned Countries: The opportunity mentions the requirement for proposals to support the development of investment plans in at least 3 eligible countries, indicating a focus on the EU or associated countries.

Project Stage: The project stage is development and implementation of investment plans, modernization, and fuel switch of existing systems, or development of new systems. The projects should aim to enable the targeted district heating system to fulfill the criteria for "efficient district heating and cooling" as specified in the Energy Efficiency Directive Recast within a timeline of 10 years.

Funding Amount: The Commission considers that proposals requesting a contribution from the EU of up to EUR 2 million would allow the specific objectives to be addressed appropriately. However, this does not preclude submission and selection of proposals requesting other amounts. The total budget for the LIFE-2025-CET-DHC topic is EUR 6,000,000. Other topics under the same call have varying budgets, ranging from EUR 4,000,000 to EUR 15,000,000.

Application Type: The application type is an open call, with a single-stage submission process.

Nature of Support: The beneficiaries will receive money in the form of a grant to support the preparation and implementation of investment plans, technical support, and enabling frameworks. The grant does not finance equipment or the development of new tools.

Application Stages: The application process is a single-stage process.

Success Rates: The funding rate is 95% for Other Action Grants (OAGs). This refers to the percentage of eligible costs that can be covered by the grant. The actual success rate of applications is not specified.

Co-funding Requirement: Co-funding is not explicitly mentioned as a requirement, but the funding rate of 95% implies that the applicants or other parties need to cover the remaining 5% of the eligible costs.

Summary: This opportunity is a call for proposals under the LIFE Clean Energy Transition program, specifically targeting the development and modernization of district heating and cooling networks. The goal is to support projects that will help transition existing systems to more efficient and renewable energy sources, or to develop new systems based on renewable energy and waste heat. The call is open to consortia of at least three applicants from three different eligible countries, including district heating operators, municipalities, and other relevant stakeholders. The EU contribution is expected to be up to EUR 2 million per project, with a 95% funding rate. The projects should focus on providing technical support for investment plans, integrating renewable energy and waste heat, and ensuring affordability and accessibility for residents and businesses. The call aims to advance carbon neutrality and reduce dependence on fossil fuels by promoting efficient and sustainable district heating and cooling solutions. The deadline for submission is September 23, 2025.