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Decarbonising Italy's district heating and cooling sector: drivers, barriers, and opportunities from stakeholder perspectives

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Listed:
  • Caputo, Paola
  • Ferla, Giulio
  • Mura, Benedetta
  • Di Nunzio, Nicola Cesare

Abstract

Even if in Italy district heating and cooling (DHC) accounts for only a small share of thermal energy demand, the sector, primarily based on fossil fuels, is expected to grow. Therefore, increasing the share of DHC and decarbonising the DHC sector are crucial for Italy's climate targets. This paper identifies the main barriers and drivers for Italy's DHC sector through a hybrid approach combining a normative review with direct engagement. Among others, the EU-funded SupportDHC project includes activities to highlight technical and non-technical barriers, supported by a structured capacity-building programme with key Italian operators and stakeholders, such as local administrators, associations, and authorities. Results underscore regulatory uncertainty, fragmented planning processes, insufficient economic incentives, technical integration issues, and limited public awareness as major obstacles. Stakeholders' collaboration proved effective in shaping consensus-based solutions, such as clearer policy frameworks, streamlined procedures, and enhanced investment mechanisms. The study concludes that integrating structured stakeholders' participation into policy and planning processes can substantially accelerate the expansion and decarbonisation of Italy's DHC systems.

Suggested Citation

  • Caputo, Paola & Ferla, Giulio & Mura, Benedetta & Di Nunzio, Nicola Cesare, 2026. "Decarbonising Italy's district heating and cooling sector: drivers, barriers, and opportunities from stakeholder perspectives," Utilities Policy, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:juipol:v:98:y:2026:i:c:s0957178725002309
    DOI: 10.1016/j.jup.2025.102115
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    References listed on IDEAS

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