The International District Energy Association (IDEA) and the German Energy Efficiency Association for District Heating, Cooling and CHP, Germany (AGFW) Sign Memorandum of Understanding

International agreement Includes joint development of standardized global technical guidelines and operational best practices and collaboration on outreach and advocacy

ORLANDO, Fla.--(BUSINESS WIRE)--The International District Energy Association (IDEA) and the German Energy Efficiency Association for District Heating, Cooling and CHP, Germany (AGFW) announced the signing of renewal of a memorandum of understanding (MOU), updating and extending a previous agreement.

The agreement will extend the term for another five years and strengthen the ties between the two district energy industry organizations for international collaboration on technical guidelines, operational best practices and outreach and advocacy.

Both IDEA and AGFW are actively engaged in education, advocacy, promotion and training in best practices in the district energy sector, and this agreement will strengthen collaboration between the two organizations. It will also help streamline efforts to grow the industry and ensure that people around the world, and policy makers and government officials, in particular, recognize district energy’s importance to the energy transition as a means to increase energy efficiency, reduce harmful emissions, and strengthen local economies through utilization of local, low carbon, and renewable energy sources.

“District energy is a modern, reliable, efficient and proven approach to provide critical heating, cooling and power to people in cities, communities and campuses, all around the world,” said Rob Thornton, President & CEO, IDEA. “Using economies of scale, it can be easier and faster to modernize and de-carbonize a central plant to deliver lower-carbon heating and cooling to a vast connected network of buildings, rather than upgrade HVAC systems one single building at a time. District energy networks have the unique ability to aggregate low carbon heating, cooling and power for dozens, or even hundreds, of structures – and can accelerate decarbonizing of central business districts, entire neighborhoods, college and university campuses, hospital complexes or military installations.”

Germany is a global leader in recognizing the advantages and benefits of district energy and has adopted policies and strategies that feature deploying the technology in plans to reach its net-zero goals. In fact, in 2023, the German government said it planned to connect 100,000 buildings per year to district heating networks, as part of its climate action plan. The 2023 Heat Planning Act will further mobilize cities and towns to designate heat supply areas, outlining which type of heat supply is particularly suitable for the various parts of a municipality along with analysis of the potential future heat supply from renewable sources or recovery of surplus heat from industry.

“District energy is a technology that is key for cities to make their goals of becoming climate neutral a reality,” said Werner Lutsch, CEO & Managing Director, AGFW. “We applaud the German government’s plan to connect 100,000 buildings to district energy systems annually, and the technology could be utilized further to help decarbonize nearly half of Germany’s approximately 43 million households, especially when connected to apartment buildings and other buildings in densely populated city centers.”

The MOU was signed at the 115^th Annual Conference & Trade Show for IDEA in Orlando, FL.

About IDEA

The International District Energy Association (IDEA) is a 501(c)(6) nonprofit industry association founded in the United States in 1909. IDEA now has a membership of nearly 3,000 industry professionals representing more than 30 countries around the world. IDEA’s mission is to actively foster the success of its members as leaders in providing reliable, economical, efficient and environmentally sound district heating, district cooling and combined heat and power to optimize energy efficiency, emissions reductions and sustainable solutions for mission-critical and community-scale markets.

About AGFW

AGFW is the independent efficiency association that for the past 50 years has supported the development and expansion of district energy and combined heat and power (CHP) in Germany, Austria and Switzerland using renewable energies for heating as well as district heating networks. Its more than 700 members are operators of district energy and CHP plants, as well as service companies and technology companies in the field. AGFW represents approximately 95% of the heat load connected to German district heating systems – the largest scale in Western Europe.