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District Heating vs. Local Heating – Differences and Benefits

In Germany there is a symantic difference between Fernwärme and Nahwärme, although they are technically almost identical. Fernwärme is district heating for large areas and Nahwärme is district heating for small areas (in the following "local heating"). The following article explains the difference between district heating and local heating.

Difference between Local Heating and District Heating

There is no clear distinction between local and district heating systems. Typically, local heating networks are smaller, local networks supplied by on-site heating plants. District heating networks are often large-scale networks with thousands of connected buildings, usually powered by waste heat from large power plants.

What is District Heating?

District heating refers to heat supply over long distances, mainly in cities or metropolitan areas. It uses central heating plants that generate heat from combined heat and power (CHP), waste incineration, geothermal energy, industrial waste heat, or other generation technologies. The water is transported through insulated pipelines at high temperatures (up to 120 °C) to consumers.

What is Local Heating?

Local heating works similarly to district heating but is used in smaller areas – e.g., for a residential district or a municipality. The heat sources are often local renewable energies such as solar thermal energy, wood pellet heating plants, or waste heat from biogas plants. The transport distances are shorter, and the network temperatures are lower (about 50-80 °C).

Main Differences between District Heating and Local Heating

There is no strict distinction between the terms district heating and local heating. However, in practice, the two systems differ in several aspects:

Table 1: Comparison of District Heating and Local Heating
Feature District Heating Local Heating
Supply Area Cities, metropolitan areas Neighborhoods, municipalities
Typical Heat Sources Waste incineration, industry, large power plants Geothermal energy, solar thermal energy, wood
Transport Distance > 10 km < 5 km
Temperature Range 80-120 °C 50-80 °C
Economic Viability Profitable with high connection density More flexible, also for smaller areas
Are you planning a local or district heating network? Use the nPro tool for district and network simulation.

Advantages and Disadvantages of District Heating

Advantages

  • High efficiency due to centralized heat generation
  • Possibility to use industrial waste heat
  • Supply security through large, interconnected networks

Disadvantages

  • High investment costs for infrastructure
  • Dependence on a few large producers
  • Less flexibility in choosing energy sources

Advantages and Disadvantages of Local Heating

Advantages

  • High flexibility in choosing energy sources
  • Lower heat losses due to shorter transport distances
  • Ideal for decentralized renewable energy sources

Disadvantages

  • Limited scalability
  • Economic viability depends heavily on connection density

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