Stories
Success story: A German cooperative pioneers geothermal heating and cooling
Community energy is key to action on the climate crisis. It can empower people, boost local economies, and reinvigorate communities. Community-led initiatives play an important role in the transition towards a 100% renewable and just energy future. Success stories of community energy projects can be found all over the world. At REScoop.eu we want to highlight these stories to further accelerate the movement towards a cleaner and democratic system. This month, we travel to Bavaria, Germany, to learn more about a cooperative operating an innovative heating system that kept citizens cool during this summer’s heat waves.
Bürger-Energie-Genossenschaft Neuburg-Schrobenhausen-Aichach-Eichstätt eG (BEG), is an energy cooperative operating in Bavaria, counting more than 900 members. It was set up in 2013 to initiate, finance and operate new renewable energy installations, including energy generation, storage and distribution in the region. After setting up several wind and solar generation projects, their newest field of work is renewable cold heating and cooling, allowing people to heat their homes in winter and stay cool in the summer.
Renewable heating and cooling using geothermal energy
BEG’s first cold heating and cooling project was initiated in 2022 in collaboration with the local council of Königsmoos, a town of 5,000 inhabitants. The municipality wanted to implement a sustainable energy supply for a new housing development without relying on fossil fuels, due to rising gas prices and the need to reduce greenhouse gas emissions. The new system now provides renewable heating and cooling for 40 homes and 160 residents. Since, the same system has been set up for 65 homes in the city of Schrobenhausen.
The cold heating and cooling district heating system was chosen for its sustainability, its adaptation to new residential areas, and its affordability and scalability. To minimise the installation’s environmental impact, the cooperative opted for an approach mixing different renewable technologies: shallow geothermal energy, decentralised heat pumps, and rooftop PV installations for self-consumption.
In an underground grid, water circulates at a temperature of around 8-12 °C. Heat pumps powered by renewable energy heat water for the building, including for heating in the winter. In the summer, buildings are kept cool by taking advantage of the water’s low temperature. In ideal conditions, rooftop PV panels generate enough energy to supply the heat pump. When electricity generation is insufficient, the heat pump is supplied with renewable energy produced by the cooperative.
This hybrid approach ensures nearly zero-emission heating and cooling. “It allowed us to tailor heating solutions to local conditions while increasing energy efficiency, and reducing dependency on single sources of energy, enhancing resilience and acceptance among residents,” Muhammed Kurtoglu, project engineer in BEG, explained.
Improving energy efficiency while maximising comfort
To minimise energy demand, the project also works to improve home insulation in the area. The new homes that were connected to the grid were built to high efficiency standards, significantly reducing heating and cooling demand.
In practical terms, residents pay a one-time connection fee, which includes the installation of a ground-source heat pump and the connection to the cold district heating grid. After the installation, they pay a monthly basic fee and additional costs based on their consumption. In the long run, heating costs are on average 10% lower than average heating and cooling bills, as the system is more efficient and does not depend on volatile fossil fuel prices.
To help bring down costs for residents, 50% of the initial investment was covered by a public subsidy from the German Federal Ministry for Economic Affairs and Climate Action, through two programmes supporting the development of innovative and efficient heating networks.
An inclusive approach, based on local needs
Local residents and other stakeholders were involved from the start, actively supporting the initiative. “The trust of the community was key to realising the project,” Muhammed highlighted. “We organised information events, workshops, and personal consultations. Residents were invited to join the cooperative and take part in planning and decision-making.” This approach has paid off: residents are very satisfied with the project.
Residents were motivated by different factors: while many valued the environmental aspects of the project, Muhammed also noticed price stability and achieving energy independence as important elements. The cooperative strives to communicate transparently, and encourages participation regardless of age, income, or background. To ensure inclusivity, shares to join the cooperative were kept low, at 100 euros.
Overcoming challenges
Of course, the path to success wasn’t always easy. Muhammed identified different technical challenges that delayed the project, including the need for detailed feasibility studies, hydrogeological assessments, and economic modelling. Planning for geothermal boreholes, grid infrastructure, and individual heat pump solutions for each household also added to the complexity of the project.
Coordinating with different stakeholders required a slow approach in the early stages of the project. Initial skepticism in the community was resolved through dialogue facilitated by the energy community, the involvement of experts, and close cooperation with the local government.
Although the German Renewable Energy Heat Act created a favourable legal context, Muhammed also mentioned bureaucratic hurdles and lengthy approval processes that delayed the implementation. Building a heating and cooling network requires coordination with the water management office and the environmental agency, and alignment with the hydraulic grid planning.
Planning for the future
Today, BEG is expanding their cold heating and cooling model in the region, with new initiatives already under development in other municipalities. “We’re proud to enable a fully renewable and locally-owned heat supply system that sets a national example. We see the Königsmoos model as a blueprint for replication,” Muhammed stated.
The cooperative is also actively supporting other municipalities and citizen groups interested in renewable heating and cooling solutions through consultations and knowledge sharing. On the technical side, BEG is exploring ways to integrate battery storage, and further improvements to the system’s efficiency.
Based on BEG’s experience, Muhammed shared a piece of advice for citizens working on community-led heating and cooling projects: “Build a strong technical and economic foundation, and ensure early engagement with local authorities”.