The decarbonization of the electricity sector is progressing rapidly in many European countries. The heating sector, however, is lagging behind. In Germany, for example, over 50% of electricity now comes from renewable sources – according to Fraunhofer ISE, the share in 2024 was 62% in the public electricity mix (or about 55% of total electricity consumption).

By Jan Nintemann and Jochen Siegle; Photo: Nat, Unsplash

In the heating sector, however, the share of renewable energies is currently only 18.1% (2024), as reported by the Federal Environment Agency. Since over half of the total energy consumption is accounted for by heating and cooling, it is clear: Without a smart, digitally supported heat transition, climate goals are hardly achievable.

Digital Technologies as Key to Transformation

Therefore, large technology providers like Siemens are focusing on a combination of:

• digital twins that simulate real networks, detect bottlenecks early, and optimize operating conditions.
• smart grids with AI-driven load management that automatically regulates consumers like heat pumps as needed. According to simulations, such technologies could theoretically double the transferable amount of energy.
• financing models like “Pay as you save” or contracting, which lower entry barriers – especially for municipalities and small and medium-sized enterprises.

These digital tools enable double-digit percentage efficiency gains and facilitate resource-efficient heat supply while maintaining grid stability.

Hybrid Concepts and Smart Coupling

The holistic approach flexibly combines heat pumps, district heating, PV systems, and battery storage. Such hybrid systems make companies more independent from volatile energy markets and reduce CO₂ emissions – as successful practical examples in the Siemens ecosystem show.

International Studies: Insights for Europe’s Heat Transition

However, international research shows that technology alone is not enough:

• The study “Understanding Intention to Adopt Smart Thermostats” (2025) examines the willingness to use smart heating technologies in five EU countries. Finding: Besides functionality and price-performance, social norms and trust play a central role – technology must be communicated in an understandable and accessible way.
• The analysis “Mitigating heat demand peaks in buildings” (2020) illustrates how hybrid heat pumps, storage solutions, and building insulation can work together to reduce winter peak loads. According to simulations, this combination can reduce energy costs by up to 17% and simultaneously stabilize grids.

Why International Cooperation is Essential

The heat transition is therefore by no means a national project. Energy infrastructures, digital platforms, and standards operate across borders. International cooperation is therefore indispensable to develop scalable system solutions, establish Europe-wide compatible standards and interfaces, share best practices, and harmonize regulatory frameworks.

Platforms like TransformIT Europe play a key role in this: They serve as a neutral infrastructure for knowledge exchange, pilot projects, and international networking between municipalities, technology providers, research, and energy suppliers at a European level.