By: Evan Bernardi

As winter approached, many people started to look forward to the holidays. While millions planned holidays in the mountains or a trip to the local Christmas market, a significant percentage of the European population had only one thing in mind: how to keep energy bills low and their houses warm.

In 2024, nearly 1 in 10 households in Europe struggled to keep their houses warm. While registering an improvement when compared to 2023, it still shows the challenges and national divides when it comes to access to affordable (and sustainable) heating.

In total, 9.2% of the EU population (more than 40 million people) faced energy poverty in 2024. The number, however, is not even across Europe. Data from Eurostat also shows significant contrasts between countries in access to affordable heating; while in Finland, only 2.7% of the population faced such a challenge, in Lithuania, the number reached 18%. Other countries, such as Bulgaria, Greece, Spain, Portugal, and France, also marked double digits in the analysis.

What drives the prices up?

There is no single explanation for the stark differences in access to affordable heating across Europe. Instead, the issue is shaped by a combination of structural and socio-economic factors. Building insulation is one of the most decisive elements: well-insulated homes can maintain comfortable indoor temperatures without driving energy bills to unsustainable levels. Income also plays a crucial role. In lower-income countries and households, energy costs account for a much larger share of monthly expenses, making adequate heating far less affordable.

The type of heat supply is another key part of the picture. In many countries where more than 10% of the population struggles to keep their homes warm, heating relies predominantly on individual solutions such as gas or oil boilers. As these systems are powered by fossil fuels, they expose households directly to fuel price volatility. Given that the EU depends heavily on imported energy, ongoing geopolitical tensions further amplify the risk to heating affordability across the continent.

A solution to a continental challenge

District heating offers a compelling alternative. As a highly flexible system, it can integrate locally available energy sources such as geothermal energy, waste heat from industry or data centres, and sustainably sourced biomass. A district heating network can also be coupled with large thermal storage facilities, creating buffers for times of high demand, helping keep prices down in moments of strain.

Expanding, decarbonising, and improving the efficiency of district heating networks is therefore central to the efforts of the European Union to achieve climate neutrality by 2050 while simultaneously addressing energy poverty. To unlock the full potential of district heating, however, it must be allowed to compete on equal terms with individual heating solutions. Reducing taxes and levies, de-risking investments, and streamlining permitting procedures are all essential steps.

The way forward

A study conducted by Aalborg University in Denmark analysed different scenarios for heating decarbonisation in Europe. In the most feasible and realistic scenarios observed, district heating needs to represent 55% of the heating sector on the continent, up from the 13% share it holds today. Coupled with that, increased efficiency is needed. The Energy Efficiency Directive (EED) set out the pathway for the full decarbonisation of networks for the coming decades. The challenge now lies in ensuring operators have a sound plan for investing in renewable energy sources and waste heat coupling, ensuring they remain economically competitive while providing green heating to their consumers.

From the consumers’ point of view, both operators and public authorities will need to ensure a close presence. For many, district heating can sound foreign or even disadvantageous when compared to individual alternatives. By providing price stability, use of renewable energy sources and waste heat, and by remaining close to the community it serves, district heating can significantly lower heating costs and contribute to a fairer, more resilient energy system for households across Europe.