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Legal and municipal framework conditions

Find out about the most important laws and regulations on the heat supply of buildings - from GEG to the Heating Costs Ordinance - to keep an eye on the legal framework for your project.

September 2023: Municipal heat planning starts in Dresden

From September 2023 to February 2026, the state capital of Dresden, together with SachsenEnergie AG and STESAD GmbH, drew up a plan for the future heat supply throughout the city. The heating plan is an important instrument for shaping an affordable, secure and climate-neutral heat supply locally and improving planning and investment security. Challenges were identified and solutions developed with the involvement of numerous stakeholders and the public. The first draft of the heating plan was completed and published in autumn 2025.

The updated Integrated Energy and Climate Protection Concept (IEK) forms the basis for the climate protection strategy of the state capital of Dresden. Important analyses of the future heat supply had already been prepared by the end of 2023. The municipal heating plan picks up on these results and develops them further.

Among other things, it incorporates findings from the electricity grid expansion plan (2024), assumptions on hydrogen grid development by SachsenNetze GmbH and plans for the expansion of heating and energy grids. In addition, heat supply areas are defined as a guide for future infrastructure development.

As the figure shows, the IEK forms the overarching framework. The heating planning combines the detailed planning for the decarbonisation of district heating, neighbourhood and local heating network concepts and the gas network transformation plan.

KI generiert: Das Bild zeigt das "Integrierte Energie- und Klimaschutzkonzept (IEK)" der Stadt Dresden. Der Hauptinhalt umfasst die Pläne und Verantwortlichkeiten für den Strom-Netzausbau (NAP), kommunale Wärmeplanung, Wärmetransformationsplan, Gasnetzgebietstransformationsplan (GTP), Mobilitätskonzept (DMP 2035+) sowie Quartierskonzepte und Energieberatung, wobei verschiedene Zuständigkeiten wie Sachsen Netze, Sachsen Energie und die Landesdirektion (LHD) genannt werden.
Übersicht der energie- und klimaschutzrelevanten Konzepte in Dresden© Landeshauptstadt Dresden
KI generiert: Das Bild zeigt das "Integrierte Energie- und Klimaschutzkonzept (IEK)" der Stadt Dresden. Der Hauptinhalt umfasst die Pläne und Verantwortlichkeiten für den Strom-Netzausbau (NAP), kommunale Wärmeplanung, Wärmetransformationsplan, Gasnetzgebietstransformationsplan (GTP), Mobilitätskonzept (DMP 2035+) sowie Quartierskonzepte und Energieberatung, wobei verschiedene Zuständigkeiten wie Sachsen Netze, Sachsen Energie und die Landesdirektion (LHD) genannt werden.
Übersicht der energie- und klimaschutzrelevanten Konzepte in Dresden© Landeshauptstadt Dresden

January 2024: Legal background changes

In 2020, the Building Energy Act (GEG) was introduced to achieve the national climate protection targets in the building sector. On 1 January 2024, the second amendment to the GEG came into force at the same time as the Heat Planning Act (WPG). The aim of the WPG is to make heat planning binding and to use it as a central planning instrument for the decarbonisation of the local heat supply. The starting point for municipal heat planning is an inventory and potential analysis. This involved determining the building stock, current heat requirements, existing heat supply infrastructures and neighbourhood structures as well as local potential for renewable energies and waste heat. Based on the analysis of existing buildings and potential, a target scenario was developed that identifies heat supply areas for the suitability of heating networks, hydrogen or decentralised technologies. This also includes the expansion of district heating. On this basis, measures and instruments for implementing the municipal heating plan are developed.

The relevant laws relating to the supply of heat to and in buildings are presented below.

Relevant laws

As part of the energy transition, there are various laws that are important for building owners and companies. The following laws and regulations are the most important principles to be observed:

The Building Modernisation Act (GModG) sets out binding standards for the comprehensive energy-efficiency modernisation of the existing building stock, regulates minimum energy efficiency requirements for existing buildings in accordance with the ‘worst-first’ approach, and promotes the use of technology-neutral solutions for heat supply. The Act aims to significantly increase the renovation rate and thus make a decisive contribution to achieving a climate-neutral building stock by 2045. Upon its entry into force in 2026, the strict 65 per cent requirement for renewable energy when replacing heating systems was abolished and replaced by a mandatory ‘bio-staircase’ for fossil fuel heating systems, and a Germany-wide solar obligation was introduced.

Further information on the GModG is available at www.bmwsb.bund.de.

The Heat Planning Act forms the legal basis for the nationwide and binding introduction of heat planning. The aim is to convert the generation and provision of space heating, hot water and process heat to renewable energies and unavoidable waste heat. The responsible authorities, in cooperation with relevant local stakeholders, are to develop concepts on how this changeover can be implemented by 2045 at the latest in a cost-efficient, sustainable, energy-saving, affordable, resilient and greenhouse gas-neutral heat supply.

Further information on the WPG can be found at www.bmwsb.bund.de.

The Climate Protection Act forms the basis of German climate policy. It sets clear, legally binding climate targets and ensures that Germany will be greenhouse gas neutral by 2045. The Act also includes a comprehensive climate protection programme with concrete measures that the federal government is taking to significantly reduce CO2 emissions in this decade. At municipal level, companies and building owners must also contribute to achieving the climate targets by adapting their heat supply to climate-friendly standards.

Further information on the Climate Protection Act can be found at www.bundesregierung.de.

The EEG is the most significant reform of energy policy for many years. It creates the basis for Germany to become climate-neutral. The share of renewable energies in gross electricity consumption is to be increased through a determined and significantly faster expansion.

Further information on the EEG can be found at www.bundesregierung.de.

With the Energy Efficiency Act, the German government is creating an overarching framework for energy saving in all sectors for the first time. The Act sets specific energy efficiency targets for primary and final energy by 2030 and thus makes a significant contribution to Germany's climate targets. It also implements important requirements from the revised EU Energy Efficiency Directive (EED). The federal government, federal states and local authorities are obliged to implement their energy measures quickly in order to achieve the climate protection targets by 2030.

Further information on the EnEfG can be found at www.bundesregierung.de.

The Heating Costs Ordinance (Heizkostenverordnung - HeizkostenV) regulates the distribution of heating and hot water costs in buildings with a centralised supply and at least two units. It stipulates the obligation to record consumption and the provision of corresponding technical devices. The aim of the ordinance is to motivate users to save energy by basing a large proportion of the costs on actual consumption. The Heating Costs Ordinance takes precedence over other provisions in tenancy agreements.

Further information on the Heating Costs Ordinance can be found at www.bbsr-geg.bund.de.