In local heating networks, heat is transported centrally via a heat generator to several consumers. However, the distances involved are relatively short and, in contrast to district heating, are usually less than one kilometer. For this reason, local heating is particularly suitable for supplying heat within industrial areas or districts. As with district heating, it is usually distributed via hot water and underground pipes. Here too, users no longer need their own heating system. Biomass, coal, gas, waste or combined heat and power (CHP) can be used as central heat generators. The only difference between district and local heating is the distance between the consumer and the central heat generation system.
Local and district heating are particularly profitable when a large number of users are connected to the heating network. This can offset the high costs of expanding the network. Depending on the energy source, local heating can reduce the use of fossil fuels and CO2 emissions and lead to improved energy efficiency for entire neighborhoods. Local heating can also be used for water heating and industrial processes.