Stakeholder Perspectives on District Heating and Cooling for Climate-Neutral and Smart Cities: A Romanian Analysis

Abstract

District heating and cooling systems represent a great pillar of European cities aiming to achieve climate neutrality. This study investigates stakeholders’ perspectives on district heating and cooling to analyze the challenges, barriers, and potential accelerators of a sustainable low-carbon energy transition in urban areas. This study was performed via a survey-based approach, targeting multi-level stakeholders, both from the supply and demand side. This study employed a structural methodology involving customized surveys tailored to different stakeholder groups, aiming to understand challenges, advancement, and opportunities in Romania’s district heating systems. The results highlighted the diverse interests of stakeholders, emphasizing the need for financial support to reduce reliance on fossil fuels from the supply side while addressing concerns about infrastructure and current operations from the demand side. This study laid the groundwork for shaping national and regional policies and promoting local partnerships to reduce fossil energy demand and support the transition to renewable energy sources. Using a multi-stakeholder, cross-sectorial approach, and SWOT analysis in Romania, it systematically addresses technical, financial, and regulatory challenges for the greater sustainability of these systems in the urban environment.

1. Introduction

1.1. Actions for Decarbonized Urban Energy Supply

In the European Union (EU), the target is to become a net-zero greenhouse gas emissions continent by 2050 [1], and the related climate law [2] is supported, at the subnational level, by the Mission of 100 Climate-Neutral and Smart Cities. This Mission allows cities to guide the way by realizing climate neutrality in their jurisdictions with an earlier timeframe of 2030 [3].

The European initiative Climate Neutral and Smart Cities Mission adopts a methodical strategy to speed up decarbonization and accelerate the process for 100 cities, targeting climate neutrality by 2030. To overcome challenges, this systematic approach involves cooperating and integrating technical solutions with tailored-made finance, governance, democratic participation, and social innovation. Every city has a different road towards complete decarbonization, which is guided by context-specific strategies and supported by NetZeroCities [4].

One of the key comprehensive frameworks that advance the efficiency of district heating and cooling systems is Article 26 of the Energy Efficiency Directive (EED) [5]. This aims to increase renewable energy and reduce reliance on fossil fuels. According to Article 26, district heating systems must use at least 50% renewable energy, waste heat, or high-efficiency cogenerated heat by 2027. These requirements will progressively become stricter, with the goal of transitioning entirely to renewable or waste heat sources by 2050.

Member States may also adopt alternative sustainability criteria based on the greenhouse gas (GHG) emissions per unit of heat or cold delivered. This method sets progressively stricter emission reduction targets, from 200 g per kWh in 2025 and decreasing to zero by 2050.

1.2. Decarbonization of the District Heating Sector

For a district heating system to be considered efficient, any new investment or major refurbishment must meet the criteria in place at the time of operation. Additionally, from 2025, operators of larger district heating systems that do not yet meet the required standards must develop and implement plans to improve energy efficiency and increase the use of renewable energy.

Utilizing waste heat and renewable energy sources, new-generation DHC networks lower primary energy consumption and emissions while also providing multiple benefits in economic, social, and health dimensions. By this, the new generation stimulates technological innovation, increases energy security, and improves air quality, all of which contribute to a smoother shift towards climate neutrality. Additionally, such transitional approaches help address energy poverty by providing more affordable and cleaner energy [6].

Particularly, district heating and cooling systems in the Eastern Danube Region face significant environmental and financial challenges caused by outdated infrastructure, a lack of interested clients, reliance on imported fossil fuels, and high energy poverty. This requires supply and demand-side upgrades to ensure a smooth energy transition towards clean energy and enhance overall sustainability.

1.3. Scope of This Study

Anchoring in this framework, this study, developed as part of the European project REHEATEAST, aims to analyze the challenges and opportunities related to district heating systems. By conducting a stakeholder analysis applied in Romania, this study identifies key actors, their roles, and their interactions within the system.

Building on the central hypothesis that different stakeholders’ groups identify various challenges and opportunities within the district heating system (DHS), this study aims to showcase how these perceptions influence their engagement in sustainability efforts and the system’s overall capacity for transformation. Based on this, it proposes an integrated approach considering a multi-stakeholder analysis in Romania, addressing technical, economic, and regulatory barriers.

Prior to the stakeholder analysis, an overview of the DHS in Romania is presented, aiming to establish a contextual understanding and identify multiple forms of barriers.

1.4. Overview of the District Heating and Cooling System in Romania

Centralized heat supply services play an essential role in ensuring the provision of thermal energy for residential, public, and economic sectors in Romania, as defined by the Law on Community Service of Public Utilities no. 51/2006 [7]. The service operates continually and usually under monopoly conditions defined by its economic, social, and technical nature. However, Romania’s DH regulation is currently in transition, requiring significant legal improvements, better regulatory coordination, and new legislation for gaps like third-party access and service quality [8]. The production, transportation, distribution, and supply of thermal energy within various administrative-territorial units rely on a complex technical infrastructure that includes thermal power plants for energy production, distribution networks for transport and distribution, and other auxiliary facilities managed by local public authorities. Based on the data from 2022, the district heating systems (DHSs) in Romania were managed by 49 operators, covering 50 systems in 51 localities. With a total installed capacity of 7501 MW, these systems provide heating and hot water in urban areas. The cumulative length of the district heating network in Romania is 4624 km, which is a specific indicator of a 2.42 km pipeline per capita. The neighbor country Hungary has a specific indicator of 2.27 km per capita, while, in Bulgaria, this indicator reaches the value of 3.92 km per capita. The total heat sales per kilometer of pipeline in Romania vary from 1600 GJ/km to 10,000 GJ/km.

The breakdown of energy resources used for district heating and cooling (DHC) from renewables and fossil fuels is illustrated in Figure 1 as follows: natural gas accounts for the largest share at 79.94%, followed by coal at 14.36%, biomass at 2.26%, fuel oil at 2.1%, nuclear energy at 0.72%, and geothermal sources at just 0.63% [9]. When looking at the temperature levels and heat distribution losses, the system is a third-generation one, with temperature below 100 °C, and the average heat losses are 35%.

In Romania, the district heating infrastructure serves more than 1 million residential clients, representing over 11% of Romania’s overall housing inventory [10], which includes approximately 9.6 million apartments and houses. Additionally, the DH system provides thermal energy to public institutions and various commercial establishments.

In terms of the type of clients, the majority, 81.4%, is represented by collective residential buildings, while 9.35% is represented by public institutions and only 9.23% by economic operators, which means both commercial buildings and industrial facilities, as illustrated in Figure 2. The Romanian Energy Strategy emphasizes the target of at least 1.25 million apartments connected to DH by 2030 [11]. An analysis of the 2017–2021 period reveals a decrease in the number of residential clients connected to district heating, as illustrated in Figure 3. However, recent regional trends, as illustrated in Figure 4, indicate a decline in the number of dwellings disconnected from the DHS across all regions between 2020 and 2021.

The highest number of dwellings connected is in the Bucharest/Ilfov Region, where 25% of the population is connected to the system. When looking at the number of dwellings disconnected and reconnected in the different regions, in the same period of 2020–2021, it can be seen from Figure 4 that the highest number of dwellings disconnected in this period was in the south-east region, where the number increased with 46% in 2021 compared to 2020. The total number of disconnected dwellings is 17 times higher than the total number of reconnected end users.

The decrease in the number of thermal energy consumers in centralized systems in Romania can be attributed to various factors, including the following:

(a)

The cost of thermal energy

Some district heating systems continue to rely on outdated boilers or cogeneration plants, characterized by their low efficiency and inability to comply with contemporary environmental regulations. Furthermore, thermal losses in the distribution network, estimated to average approximately 35%, are also reducing the system’s overall efficiency and resulting in higher costs for thermal energy.

(b)

Reliability of district heating systems

In some Romanian district heating systems, users often experience supply interruptions and face challenges in attaining the desired temperature within their buildings or hot water needs.

(c)

Inadequate policy frameworks

The lack of standardized policies facilitating centralized thermal energy systems encourages consumers to transition to individual systems.

(d)

Improved building performances and nZEB regulation

Local efforts to renovate buildings have resulted in a reduction in the thermal energy demands of older properties. New constructions must be designed accordingly to comply with the nearly Zero Energy Building (nZEB) standards. As a result, property owners are giving greater importance to choosing the most suitable solutions for heat supply.

(e)

Consumers’ perception

The communist legacy in Romania presents both a technical foundation for district heating systems and structural challenges to their modernization, factors which may influence consumer perceptions [8].

(f)

The use of individual heating solutions

The implementation of tailored solutions, including gas or electric boilers, stoves, or heat pumps, allows consumers to modify their comfort levels and manage their energy consumption effectively.

These factors are summed up in Figure 5.

Investment in DHS infrastructure has been a key focus, with regions like the north-east and south-east making significant progress in modernizing and expanding their networks. For example, investments in insulation restoration and primary network expansion have been reported, alongside efforts to enhance system efficiency and attract new customers. However, despite these efforts, the sector faces ongoing challenges, including further modernization to meet energy efficiency targets and the transition to renewable energy sources. The European Union’s RePowerEU Plan, launched in 2022, underscores the urgency of these transitions, aiming to reduce dependence on fossil fuels and accelerate the shift towards clean energy. This plan aligns with Romania’s broader goals within the Integrated National Plan in the field of Energy and Climate Change 2021–2030, which prioritizes the replacement of outdated energy production capacities with high-efficiency, renewable-based systems.

The centralized heat supply service is also intertwined with broader economic and environmental goals, including improving air quality and energy security. Based on the “beneficiary pay” principle, the service’s operational framework ensures that costs are recovered through tariffs or budgetary allocations, considering state aid where necessary. As Romania continues to align with EU energy and climate objectives, the centralized heat supply service remains a critical component of its strategy, requiring ongoing investment, policy support, and technical innovation to achieve sustainable and efficient energy delivery [12].

2. District Heating and Cooling System in the Climate-Neutral Urban Framework

The integration of district heating and cooling (DHC) systems within Europe’s energy infrastructure is central to achieving climate neutrality and energy efficiency. Various studies have emphasized the evolution of centralized heating systems towards integrated energy systems, highlighting the critical role of cyber-physical systems in making these systems more efficient and capable of integrating renewable energy sources within broader innovative city initiatives [13]. This transformation is part of a larger trend where district energy systems are becoming more advanced, incorporating hybrid renewable energy sources, diversified energy storage, and sophisticated energy conversions to create resilient, innovative district energy systems capable of managing power supply and demand fluctuations [14].

Achieving energy efficiency, in the first place, and climate neutrality targets, several key steps should be taken, and the integration of district heating and cooling systems within Europe’s energy infrastructure is one of them.

A significant aspect of this transition is the paradigm shift required for district heating (DH) systems to meet future climate and energy goals. Studies call for a move away from traditional large-scale systems towards decentralized, diverse energy sources that operate at lower system temperatures, which are more adaptable to the emerging demands of modern energy networks [15]. This shift is particularly relevant in the context of fifth-generation district heating and cooling (5GDHC) systems, which are critical for decarbonizing the thermal grid through the efficient integration of low-temperature renewable energy sources and waste heat [16,17]. 5GDHC refers to a modern district energy system that provides heating and cooling using a low-temperature, bidirectional network and allows decentralized energy exchange, including RES integration and waste heat usage [16]. The widespread adoption of 5GDHC systems, however, faces challenges, including higher pumping energy requirements and the complexity of optimal control due to bidirectional energy flows and decentralized configurations. These operational hurdles point to the need for continued innovation and research to enhance the performance and deployment of these systems [16].

The decarbonization of DHC systems is closely tied to integrating renewable energy sources (RESs) and improving energy efficiency (EE). Policy and regulatory support are critical in this context, as they facilitate the adoption of these technologies and the transition towards more sustainable energy systems [18]. However, significant techno-economic and market challenges persist. For instance, the coordination of new technologies, such as heat pumps, requires the development of novel business models and tariff structures that can incentivize the broader adoption of these systems [19]. The identification of RES availability and site specificity are key components of low-carbon DHS [20]. Additionally, regulatory adjustments are necessary to create frameworks that encourage customer participation in providing system flexibility without compromising comfort or increasing energy poverty [21]. A country-specific approach is needed when adapting DH policies including consumer participation, to address challenges of market power and economic viability [22].

The need for inclusive climate governance and cross-sectoral collaboration is another recurring theme in the literature. Studies stress the importance of transforming siloed approaches into integrated strategies that couple urban planning with climate action, thereby enhancing carbon sinks, promoting social equity, and ensuring more cohesive governance structures. This holistic approach is essential to overcoming the fragmented responsibilities that often hinder the effective implementation of climate initiatives at the city level. For example, by promoting cross-departmental cooperation and aligning incentives across scales, cities can enhance their capacity to achieve climate neutrality and sustainability goals [3].

District heating systems are also pivotal in mitigating energy poverty, particularly in vulnerable regions. Targeted policies that diversify heat sources and strengthen the resilience of DH systems are necessary to reduce energy vulnerability and ensure that these systems can provide a reliable alternative to low-cost, high-polluting heating methods [23,24]. The introduction of Positive Energy Districts (PEDs) presents another potential avenue for addressing energy vulnerability, as these districts are designed to be highly energy-efficient and powered entirely by renewable energy. Authors in [22] investigate how energy vulnerability and inclusivity are perceived and addressed by professional stakeholders involved in Positive Energy District (PED) implementation across multiple European countries. The challenge lies in balancing the technological goals of achieving net-positive energy within PEDs with the social goals of inclusivity and energy vulnerability mitigation [25].

In addition to the social and regulatory aspects, technological advancements in DHC systems are also a key focus. The transition from traditional heating methods to smart integrated energy systems is essential for achieving climate neutrality, and this transition is supported by the adoption of innovative technologies that enhance system efficiency and reduce emissions [26]. For instance, the integration of machine learning in district energy systems offers significant potential for optimizing these systems, including demand prediction, energy dispatch, uncertainty analysis, and the development of robust models for energy management and control [14]. However, the successful deployment of these advanced systems faces challenges, including a lack of established planning guidelines and know-how in regions where these systems are most needed. Further research is recommended to explore innovative business models, peer-to-peer energy trading schemes, and methods to build investor and consumer confidence in this emerging technology [17].

Furthermore, the literature also highlights the potential for DHC systems to contribute significantly to reducing greenhouse gas emissions and improving local air quality. Studies demonstrate that district heating systems offer substantial environmental advantages over standalone heating solutions, particularly in their ability to reduce climate change impacts and respiratory inorganics. The environmental benefits are especially pronounced in biomass-based district heating scenarios, which outperform standalone biomass installations in terms of climate change mitigation. This highlights the advantages of centralized energy management in optimizing the performance and sustainability of heating systems [27]. A previous study [28] demonstrates the effective operation of a local-scale energy planning model in a Dutch context.

A key factor in maximizing the potential of DHC systems is the integration of various energy sources and the modulation of these sources to enhance overall efficiency. For example, the integration of solar thermal technology with seasonal storage, particularly when coupled with heat pumps, is identified as crucial for maximizing the use of renewable energy within fourth-generation district heating systems. However, the successful integration of these technologies requires addressing the challenges associated with each energy source, such as the logistical difficulties of biomass and the need for additional technologies to utilize low-temperature waste heat and geothermal sources effectively [29].

The stakeholder perception of district heating systems is studied within various frameworks [30]. In the study of [23], a survey is conducted to investigate stakeholders’ perceptions and motivations regarding smart district heating (DH) grids using the energy flexibility of buildings in Austria. The responses reveal substantial political and economic barriers to implementing energy flexibility in DH systems. Additionally, while stakeholders demonstrate awareness of the energy flexibility concept, their limited engagement suggests that the DH flexibility market is still in its early stages of development. Overall, the state of the art in European district heating and cooling systems reveals a complex interplay of technological innovation, policy development, and social considerations. The studies reviewed emphasize the necessity of continued research and coordinated efforts across all levels of governance to achieve the ambitious climate and energy goals set by the European Union. As the energy landscape continues to evolve, the successful integration of smart, flexible, and resilient DHC systems will be crucial in driving the transition towards a sustainable and climate-neutral future.

Considering the above-mentioned context, this study addresses the key research question: How can fossil fuel usage in DHC systems be reduced while increasing RES integration through multi-stakeholder, cross-sectoral, and public–private cooperation? Using Romania as a case study, this research aims to explore collaborative approaches that could accelerate the decarbonization of DHC systems.

To achieve this, a stakeholder survey is conducted to gather insights from key actors, including energy producers, utilities, policymakers, technology providers, financiers, and consumers. The survey identifies the barriers and opportunities related to reducing fossil fuel dependency and increasing RES usage. Based on these insights, this study will propose strategies to enhance stakeholder cooperation by addressing different groups’ distinct needs and priorities. This research focuses on fostering stronger collaboration between public and private entities, improving communication, and creating partnerships to drive systemic changes in Romania’s DHC systems. The findings from this case study will offer valuable insights applicable to the broader Eastern Danube Region, contributing to the acceleration of sustainable energy transitions in DHC systems.

3. Materials and Methods

The current study builds on the status quo analysis of challenges and gaps among key stakeholders of the Romanian district heating system aiming to develop local partnerships for reducing the fossil energy demand of district heating systems in the Eastern Danube Region.

This analysis was conducted in the framework of the REHEATEAST project, an Interreg Danube Region Programme project co-funded by the European Union [31]. The REHEATEAST project aims to reduce the fossil energy demand of district heating and cooling (DHC) systems in the Eastern Danube Region, by minimizing energy waste and integrating renewable energy sources, focusing on geothermal and waste heat. It fosters multi-stakeholder cooperation to develop and promote adaptable solutions for large-scale system rehabilitation and climate adaptation. The project addresses regulatory, financial, and technical challenges for sustainable DHC transformation through knowledge sharing, awareness raising, and stakeholder engagement. The project is implemented in eight countries: Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Romania, Serbia, Slovakia, and Slovenia.

The methodology for this study was developed to address critical research objectives related to DHC systems. The primary focus areas include identifying current challenges and barriers within DHC systems, forecasting potential advancements, analyzing renewable energy source (RES) use, evaluating emerging technologies’ applications, determining necessary changes for system improvement, and exploring future trends and opportunities. The research design primarily includes qualitative analysis completed by qualitative data collected through a standardized questionnaire. This was designed to capture a multi-stakeholder perspective on the current challenges and opportunities of the DHS while also facilitating the adaptation of RES solutions.

Additionally, the standardized questionnaires were designed to ensure the data’s consistency and reliability. These questionnaires were tailored to specific stakeholder groups, allowing for region-specific modifications where necessary while maintaining a uniform structure across this study. The development process aimed to gather a comprehensive range of insights from diverse stakeholders to form a holistic view of the current and future DHC landscape in the Eastern Danube Region [32,33].

A diverse set of relevant stakeholders was identified to capture various perspectives on DHC systems. The stakeholder categories were selected to ensure a multi-perspective approach to DHS, encompassing technical, financial, policy, supply, and demand dimensions of DHS.

Stakeholder categories included the following (Figure 6):

• Energy stakeholders, such as heat producers and utility companies.
• Policymakers, including authorities and regulatory bodies.
• Technology suppliers and contractors.
• Financiers and investors.
• Consumers and media [32].

Figure 6. Stakeholder categories [32].

Figure 6. Stakeholder categories [32].

The engagement of the stakeholders involved developing communication strategies and ensuring clear survey instructions, fostering participation from their side.

Five distinct questionnaires were developed, each customized for the specific stakeholder groups identified earlier. This customization allowed for capturing highly relevant data for each group while maintaining consistency in the core questions to facilitate cross-regional comparison. In general, all five versions of the questionnaire were designed using a mixed-response format, including multiple-choice and open-ended questions. Specifically, each questionnaire was adapted based on the targeted stakeholder.

All five versions of the questionnaire employed a mixed-response format, combining multiple-choice and open-ended questions, and were tailored to the specific roles and contexts of each stakeholder category. The questionnaire for heat producers and utility companies gathered key operational and efficiency-related data, including the share of heat purchased, heat volume sold during the peak and off-peak seasons, number of consumers, building types, and total heated area or volume. It also addresses installed thermal energy production capacity, distribution network length, and recent modernization efforts. Respondents were asked to describe ongoing initiatives aimed at reducing heat losses and improving system efficiency. The survey concluded with a closed-ended ordinal question measuring the respondent’s level of agreement with response (from “very positive” to “very negative”) and an open-ended question qualitatively assessing the response’s proposal for improvement.

The version provided to authorities and regulators included open-ended questions about regulatory barriers and challenges that hinder the development of DHS infrastructure. It also addressed the need for regulatory or legislative support and potential incentive mechanisms. Additionally, this group was asked for their perspective on how different stakeholders—such as existing consumers, the general public, and policymakers—perceive district heating.

The questionnaire distributed to technological suppliers and contractors asked them to provide their opinions on various topics using a scale from 1 to 5, where 1 represented “Not relevant for us”, 4 represented “Very important”, and 5 corresponded to “I don’t know”. Similar to other respondent categories, this group was also asked about strategic priorities, obstacles, and potential areas for collaboration.

Financiers and investors received a survey based on investment opportunities, challenges, and regulatory needs in the DHC sector. Respondents were asked to specify the types of DHC projects suitable for financing, such as new facilities, reconstructions, large infrastructure investments, or projects with significant decarbonization benefits. Additionally, respondents were asked to identify regulatory barriers or challenges hindering DH infrastructure development and to suggest the types and scales of financial investment required to support system improvements, enhance operational efficiency, and enable the integration of low-carbon energy sources. Consumers and media, as representatives of the demand side, were questioned about perceptions, information needs, and experiences with the district heating providers. Their survey included closed-ended questions aiming to determine interest in learning about DHCS, with yes or no options and updates about modernization initiatives. It also featured a Likert-type ordinal question evaluating perceptions of district heating services on a scale from “Very positive” to “Very negative”. Additionally, another open-ended question aimed to find out the experiences with malfunctions and service interruptions, while a Likert-type question assessed the perceived transparency and accessibility of information provided by the service providers.

The surveys were all translated into the national language to enhance representativeness and inclusivity, ensuring that stakeholders could engage with the material without language barriers. This was essential for maximizing response rates and the reliability of the data collected.

The survey distribution process was conducted through digital platforms. Each respondent was required to confirm their compliance with the General Data Protection Regulation (GDPR) through written or verbal consent, following the GDPR guidelines. This step was essential to ensure responsible data processing and to foster trust with the participants, which, in turn, increased their willingness to contribute to this study.

A set of procedures was followed to ensure consistency and high-level data collection, which involved the following steps:

• Clear and standardized instructions for survey completion.
• Regular updates on stakeholder engagement.
• Data handling procedures aligned with GDPR.

These measures ensured that the data collected across all regions were consistent, reliable, and comparable, enabling robust cross-regional analysis.

The methodology outlined above reflects a structured and scientific approach to stakeholder engagement in the context of DHC systems. By standardizing survey instruments, ensuring regional customization, and adhering to stringent data protection measures, this study aims to provide a comprehensive understanding of the current state and future potential of DHC systems. The ongoing analysis of the data will yield valuable insights into the perspectives of diverse stakeholders, contributing to the broader goals of improving and advancing DHC systems across regions.

The data collection was conducted from May to July 2024.

Following the processing of the responses, a qualitative and quantitative analysis was performed for each stakeholder group. Multiple choice and open questions allowed respondents to provide detailed answers to the various topics including barriers, lack of technological advancement, financial support, and policy framework. Results were gathered using an Excel tool, and numerical answers were categorized accordingly.

In the following section, the perspective of the Romanian analysis is presented, highlighting the choice of stakeholders and key qualitative and quantitative results derived from their responses.

4. Results and Discussion

4.1. Stakeholder’s Selection and Profile

4.1.1. Heat Producers and Utilities

This study firstly targeted heat producers and utility respondents, selected based on several criteria, including geographical position in relation to Romania’s winter climate regions, the technology and fuel employed for thermal energy generation, and the amount of energy produced versus the quantity purchased and trends over five years in the number of dwellings connected to DH.

The five respondents are representative of this study from the perspective of climate zones. Romania is divided into five climate zones, characterized by conventional outdoor temperatures [34]:

• Zone 1: −12 °C.
• Zone 2: −15 °C.
• Zone 3: −18 °C.
• Zone 4: −21 °C.
• Zone 5: −24 °C.

The selection of respondents was conducted to ensure representation in as many of these climate zones as possible. Thus, one respondent falls within climate zone 2, which has a total of 190 heating degree days. The second respondent resides in zone 3 characterized by 198 heating degree days. The third and fourth respondents are both situated in zone 4, where the number of heating degree days is higher (219 and 224, respectively), and the last respondent is positioned in zone 5, which features very low average winter season temperatures and high heating degree days, totaling 248.

The respondents use a diversity of technologies and fuels in the thermal energy production process. In terms of technology, traditional equipment such as steam and hot water boilers, as well as cogeneration systems including steam turbines, gas turbines, and gas engines, are used in selected stakeholders’ DH systems. The thermal energy production process incorporates both fossil fuels, predominantly natural gas, and renewable energy sources, including geothermal energy and biomass.

For two of the respondents, there is a trend of increasing connected dwellings over the five-year period analyzed. This growth is attributed to investments in the distribution network, the development of new capacities, advancements in digitalization, and the use of renewable energy sources in the thermal energy production process.

The information related to the heat producers and utilities is summarized in Figure 7.

4.1.2. Authorities and Regulators

The selection of stakeholders within the category of authorities and regulators includes a diverse range of participants essential to the operation of district heating systems. These stakeholders comprise local government bodies, energy organizations, and various ministries.

4.1.3. Technology and Contractors

Several key players in the technology and contractor’s category have been identified as significant contributors to the development and improvement of district heating and cooling (DHC) systems. These include manufacturers of essential equipment such as burners, boilers, heat pumps, and cogeneration units; producers of heat distribution systems like pipelines and fittings; and providers of integrated solutions for district heating and cooling infrastructure.

Consumers and media: The consumer and media category comprises local publishers with a focus on energy-related content and schools connected to district heating systems. Their input is valuable both for this study to learn their perceptions and experiences with district heating systems and for helping district heating providers improve their services and enhance customer satisfaction.

4.1.4. Financiers and Investors

The financier and investor category includes an infrastructure of investor and heat providers for district heating operators.

4.1.5. Summary

The distribution and response rates for the categories involved in this study are summarized in

Table 1. Overview of the respondent profile of energy producers.

Category	Distributed	Responses	Response Rate (%)
Heat producers and utilities	7	5	71.4
Authorities and regulators	8	4	50
Technology and contractors	13	8	61.5
Consumers and media	10	4	40
Financiers and investors	5	3	60
TOTAL	43	24	55.8

. While overall stakeholder engagement was relatively balanced, slightly lower response rates from demand-side and regulatory bodies suggest a need for awareness raising and more tailored engagement and motivation.

4.2. Challenges and Perception About DHS in Romania

The Romanian survey data interpretation provides a comprehensive overview of the current and future outlooks for DHC systems. It covers various topics, including heat production and sale volumes, and the potential role of renewable energy sources in the decarbonizing of Romania’s district heating systems. Also, perceived challenges and anticipated advancement in this sector were identified through the questions.

The survey provides the perspectives of various stakeholders on district heating systems (DHSs), highlighting both ongoing and planned technological innovations in this sector, as well as strategies for optimizing system operations and addressing associated barriers.

Using the results, several key challenges are identified, including regulatory barriers, funding gaps, and infrastructure limitations. It also provides an insight into the financial landscape of the DH system, to encourage potential investors.

The most significant challenge for these systems is transitioning away from fossil fuels, as also stated in the National Energy Climate Plan (NECP) [35], including the shift to new technologies and alignment with EU energy policies. Among the less concerning barriers are establishing an appropriate legal framework and persuading policymakers, according to Ref. [36].

Table 2. Challenges identified and perceived by different stakeholders in the survey.

Challenge Description	Energy Providers	Decision-Makers	Technology and Contractors	Financiers and Investors	Mean Rank	Standard Deviation
Lower future demand	4.5	4.9	4.0	4.3	4.61	1.95
Transition from fossil fuels	3.3	3.3	3.2	3.1	3.15	1.39
Alignment with EU policies	4.1	3.5	4.3	4.5	4.11	1.92
Establishing legal framework	4.3	4.0	5.5	5.1	4.94	2.01
Convincing decision-makers	5.5	5.5	6.4	4.3	5.39	2.00
Attracting new consumers, network expansion	4.1	5.1	4.2	4.6	4.19	1.89
Ensuring consumer loyalty	5.4	5.5	4.6	5.6	5.06	1.60
Technological transition	4.7	5.0	3.4	2.4	3.76	1.81

presents the overall result in terms of challenges identified and how it is perceived by each stakeholder category engaged in this study. The participants were asked to indicate, using a five-point Likert scale, how they perceive different challenges of the DHS. Overall findings suggest a perception gap between stakeholders, highlighting the importance of targeted communication strategies to enhance public understanding of DHSs.

This rank is linked with the energy mix used in the generation of thermal energy; four out of five respondents rely almost entirely on this fossil fuel. Meanwhile, only one respondent relies entirely on renewable energy, specifically geothermal energy.

Figure 8 offers an insight into the perceptions of those responsible for creating policies, the general public, and existing consumers towards DH systems. This representation employs a scale ranging from “very negative” to “very positive” to facilitate a comparative analysis of the perceptions held by each group. The data suggested that the consumer stakeholder category has the most positive perception of DH systems, as evidenced by their scores concentrated at the highest positive end of the scale.

A neutral position suggests that the stakeholder is not yet convinced either way or simply does not have sufficient information to form a concrete opinion about DH systems.

4.3. Stakeholders’ Perspective

4.3.1. Heat Producers and Utilities

In the heat producer and utility category from Romania, there were five respondents. All of them rated the following six topics as very important from a technical, funding, and strategic perspective:

• Installing or improving heat metering in centrally supplied buildings.
• Using EU funds for energy efficiency projects in the district heating sector.
• Preventing the disconnection of existing customers.
• Billing consumers according to the actual heat consumption of their building
• Improving the image of district heating and consumer satisfaction.
• Support for more favorable regulations and national funding conditions.

The fact that five out of six themes are related to financing and strategy, including customer relations, shows the focus on a consumer-centric strategy but also the strategic focus on financial support for energy efficiency, aiming at sustainability and energy waste in the district heating sector.

From the opportunity’s perspective and communication with the stallholders, all respondents agreed that EU funding for energy efficiency is one of the top priorities, highlighting the importance of working together to identify and engage the right stakeholders. These can be either fund operators, investment banks, or even government agencies.

Other topics considered important by at least 80% of the respondents in relation to stakeholders include the installation of digital technologies to reduce heat losses and operational costs of district heating, the efficient usage of waste or ambient heat, and support for more favorable regulations and national funding conditions. Once again, the need for stakeholders from the financial sector is highlighted, along with the need for suitable technology providers to fulfill the technical requirements.

Figure 9 offers an illustration of the number of clients connected to the DH system for each heat supplier. One provider has a notably large client base, with over 10,000 clients. Two providers operate in a mid-range category, serving between 3000 and 10,000 clients. The remaining two providers have fewer than 3000 clients each.

The revealed findings about the heat provider category are summarized in

Table 3. Overview of the respondent profile of energy producers [36].

General Data for 2023	Respondent 1	Respondent 2	Respondent 3	Respondent 4	Respondent 5
Total heat supply in 2023 [GWh]	>500	50–100	50–100	0–50	0–50
Share of RES in the primary energy mix	5%	100%	0%	4%	0%
	Heat sales in the heating season
Residential	80%	99%	69%	64%	34%
Municipal institutions	9%	0%	23%	36%	66%
Other non-residential	11%	1%	8%	1%	1%
Total installed DH generation capacity (MWth)	500–1000	N/A	50–100	50–100	50–100
Carbon footprint (CO2 equivalent) [tCO2/year]	100,000–150,000	-	20,000– 50,000	5000– 10,000	5000– 10,000
Annual number of supply outages	>100	<10	50–100	1–50	<10
Share of heat purchased from third parties	<25%	0%	>75%	25–75%	0%

, highlighting information such as the volume of heat sales, the percentage of RESs in the primary energy mix, heat sales during the heating season, energy purchased from third parties, as well as the installed capacities.

One of the DH system’s representatives reported sales over 500 GWh per year, emphasizing a large coverage area and customer, while two others reported lower sales between 50 and 100 GWh per year. Two respondents declared sales of less than 50 GWh per year. Of these, one of the DH operators relies exclusively on geothermal energy, demonstrating a renewable energy share of 100%.

Three of the five respondents indicated that they are reliant on third-party heat purchases.

Two energy producers estimated their carbon footprint to be between 5000 and 10,000 tons of CO₂ per year. Another respondent reported a carbon footprint between 20,000 and 50,000 tons of CO₂ per year, while another respondent indicated a higher level of CO₂ emissions, exceeding 100,000 tons of CO₂ per year. Heating season sale data, categorized by customer type—residential, municipal, or other—indicated that the largest end-user category is residential, with a value between 64% and 90%. However, it is worth noting that, for one respondent, the largest category is municipal, accounting for 66%.

Figure 10 illustrates the share, number of mentions, and standard deviation of preferred renewable energy sources, as identified by energy experts, policymakers, technology providers, and contractors, for integration into Romania’s district heating system. The most promising sources include heat pumps, biomass, geothermal energy, and solar energy.

Table 4. Stakeholder prediction on district heating and cooling development [36].

Respondent	Development by 2030				Development by 2050
	Consumption		RES		Consumption		RES
1	-	5%	10%	-	10%	-	20%	-
2	-	-	-	-	100%	-	10%	-
3	10%	-	70%	-	25%	-	90%	-
4	-	-	-	-	30%	-	70%	-
5	-	-	-	-	15%	-	30%	-
6	-	-	-	-	20%	-	40%	-
7	-	-	-	-	30%	-	30%	-
8	7%	-	5%		20%	-	35%	-
9	-	-	-	-	25%	-	25%	-

shows an evaluation of predictions from various stakeholder groups (excluding consumers) concerning the evolution of district heating and cooling systems. It emphasizes expected consumption growth and the forecasted adoption of renewable energy sources (RESs) by the years 2030 and 2050.

Projections indicate a significant uptick in the use of district heating and cooling by both 2030 and 2050. There is a marked trend towards integrating renewable energy within these systems. Surveyed stakeholders foresee a substantial integration of RESs by 2050, within estimates varying between 30% and 90%.

The survey of energy stakeholders also identified the specific individual heating solutions that are becoming increasingly popular in Romania in comparison to district heating (DH) and the factors that contribute to this attractiveness.

• Individual gas plants are driven by affordable natural gas costs, personalized comfort, and adjustable consumption.
• In rural areas, wood-burning boilers and terracotta stoves are on the rise due to their cost-effectiveness compared to other fuels and technologies; also, the availability of firewood vouchers for forest owners contributes to their popularity.
• An increasing option involves integrating air-to-water heat pumps with photovoltaic technology.

4.3.2. Authorities and Regulators

Taking into account the responses of policymakers, it is understandable that both technical and financial-strategic aspects are essential for the further development of DHSs. Key technical aspects include the installation of digital technologies to reduce heat losses and operational costs, the replacement of district heating networks, the development of sectoral projects for coupling with the electricity sector, the expansion of storage capacities, the use of geothermal energy, and the efficient use of waste or ambient heat. Financial, communication, and strategy aspects are highly important for the respondent decision-makers, as all of them considered six out of seven topics listed in this category as important. Similar to the heat producer and utility sector, maintaining strong relationships with consumers is considered essential. These connections are essential to securing customer satisfaction, building trust and encouraging the adoption of new technologies or services. In addition, securing funding from the European Union is also considered essential. The main reason for this is that EU funding supports innovation, infrastructure development, and sustainability initiatives, enabling businesses to improve their operations and effectively meet regulatory requirements.

Authorities and regulators prioritize several key topics when it comes to engaging other potential stakeholders. From their perspective, one of the most important preoccupations is increasing storage capacity, which is essential for ensuring energy reliability and serving peak demand. Another important area of interest is the more efficient use of geothermal energy, either from surface or deep geothermal sources. In addition, they identified the creation of sectoral coupling projects, particularly in the electricity sector, as a high priority, as these projects facilitate the integration of different energy systems, promoting overall grid stability and efficiency.

Overall, these priorities reflect a comprehensive strategy to increase energy efficiency, resilience, and sustainability. By focusing on these areas, authorities and regulators aim to encourage innovation, optimize the use of resources and build a more interconnected and resilient energy infrastructure. Respondents from this category had outlined multiple energy policy initiatives to enhance its district heating (DH) systems. These include the following: the 2021–2030 Integrated National Energy and Climate Plan, the Energy Strategy of Romania 2025–2035, with the perspective of 2050 and alignment with European Union directives on energy efficiency. Such plans are substantially supported by several financial supports available at national level. Romania has allocated EUR 388 million from the National Recovery and Resilience Plan (NRRP) and EUR 361 million from the Modernization Fund for achieving DHS-related goals. These strategies and financial schemes demonstrate a strong commitment from national authorities to leverage the DHS and a key component of their energy strategy and substantial component in the energy transition.

The majority of respondents from the policymakers, heat producers, financiers and investments, and technology and contractors’ groups believes that there is a need for regulatory or legislative support to accommodate the future expansion of the DHC sector. In light of the responses, it may be beneficial to consider some of these regulations: developing local heating system strategies; modifying, completing, and adapting the technical regulations and norms concerning the design, construction, and operation of central heating systems; ensuring compliance with EU legislation, leveraging international experience, and adopting best practices in urban heating and cooling; implementing strict energy efficiency requirements and green construction certification; promoting renewable energy sources, and supporting intelligent infrastructure.

4.3.3. Technology Suppliers and Contractors

Eight technology suppliers and contractors participated in this study. They share similar interests with decision-makers, focusing on increasing storage capacities, geothermal energy use, optimizing waste heat, and sectoral coupling with electricity, as shown in Figure 11. Key strategic priorities include preventing customer disconnections, improving the district heating’s image, and enhancing customer satisfaction. They aim to strengthen ties with existing clients and attract new ones. The most influential emerging technologies identified are heat pumps, hydrogen-based technology, and cogeneration.

This study also aimed to gain insight into the potential applications of digital technologies within the DH field. Those participating in this category were able to identify a number of digital technologies that could potentially enhance efficiency and sustainability in DH systems. These technologies should be further investigated:

• Using centralized management platforms (SCADA);
• Monitoring energy consumption in real time using smart meters;
• The use of AI and machine learning to forecast heat demand;

The potential obstacles to the uptake of new technologies within the DH sector in Romania were also considered. Some of the main obstacles that were brought to light by our research included the following:

• High upfront expenses associated with adopting new technologies.
• Insufficient subsidies and financing for the adoption of new technologies.
• Specialized skills are necessary for implementing and operating new technologies effectively.

Feedback from this stakeholder group emphasizes the importance of collaboration with industry partners, research institutions, and other stakeholders to foster technical innovation. Below are some of the types of collaboration that they mentioned:

• Communication is crucial for adhering to current legislative and technical requirements in project execution.
• Partnering with up-to-date technology suppliers and manufacturers.
• It is essential that staff keep up to date with new technologies and work practices through continuous professional development (attending industry-led workshops and seminars featuring experts, researchers, and stakeholders).

4.3.4. Financiers and Investors

Three out of five organizations in this category group responded to the questionnaire. The results confirm that there is a strong institutional interest in the district heating and cooling (DHC) sector as a viable financial market (three out of three respondents).

Figure 12 explores what DHC projects are considered eligible for financing. Regarding financial viability, it appears that 40% of respondents view new production capacities and infrastructure development as potentially eligible projects for financing.

To address how district heating (DH) systems are funded and maintained, respondents highlighted several financing methods that can boost the economic sustainability of DH systems. These include municipal budgets (providing operational and price subsidies), national co-financing programs, European Union funds, and private investments through bank loans.

Significant financial investments are required to upgrade existing DH systems. According to stakeholders, these investments should focus on the following:

• Modernizing infrastructure.
• Addressing insolvency and financial difficulties of some operators.
• Supporting high-efficiency cogeneration through incentives and shared funding.
• Developing thermal energy storage.
• Implementing digital solutions for monitoring and controlling heating systems.

4.3.5. Consumers and Media

There are a total of four respondents categorized as consumers or media representatives. On the one hand, all of them are interested both in learning more about district heating and cooling and in being informed about ongoing DH modernization incentives and projects. The results are shown in Figure 13 as well. The results reflect the high need for informational and awareness campaigns dedicated to this category.

Consumer and media representatives strongly agree on the need for more incentives for district heating and cooling, with most favoring state subsidies to support both energy consumers and producers, emphasizing environmental benefits. Responses to the quality of district heating services were uniformly positive, citing convenience, reduced personal responsibility, competitive pricing, and renewable energy use as key factors. However, users also expressed concerns about potential service interruptions, system breakdowns, and the reliability of aging infrastructure, highlighting worries about future costs and the continuity of service.

Figure 14 shows how the respondents rated the accessibility and transparency of the information provided by the district heating or cooling service provider as “good”. Meanwhile, one out of four respondents remained neutral, and one responded with a rating of “poor”, which also suggests the need to improve the communication services.

The use of renewable energy sources in district heating systems is considered very important by all respondents. This shows that users are already aware of the need to integrate RESs in such systems.

Part 3 or 4 of the questionnaire was designed to identify some examples of good practices in our region.

There were a few examples of good practices mentioned by the respondents.

One example of good practice is a city in Romania that is almost 75% heated by geothermal energy; the extension of the network is planned to lead to full coverage of the thermal needs of the city.

Another example of good practice is a new district heating project with a capacity of about 20 MW, designed and implemented by one of the respondents (a contractor).

5. Extracted Remarks

The stakeholder perspectives on the district heating system (DHS) in Romania reveal both agreements and disagreements across different groups of stakeholders, highlighting key areas of alignment and conflicts that impact future policy and operational decisions, along with transitioning to a sector with significantly reduced emissions in the urban areas.

Across stakeholders reached—heat producers, authorities, technology suppliers, financiers, and consumers—several common themes emerged. As demonstrated by a common emphasis on integrating RESs such geothermal energy, heat pumps, and biomass into DHC systems, moving toward more sustainable methods is a top priority. Nearly all stakeholder groups agree on the need to lessen dependency on fossil fuels, aligning with broader EU policies such as the European Green Deal and the Renewable Energy Directive (RED II). Additionally, increasing storage capacities and promoting energy efficiency through digital technologies like SCADA and smart meters are widely regarded as crucial technical priorities.

From a financial point of view, heat producers and financiers emphasized the importance of securing funding for infrastructure modernization. State subsidies and EU funding for energy efficiency initiatives are thought to be crucial for guaranteeing the long-term viability of DHC systems and boosting their adoption. This indicates a consensus on the need for substantial financial investment to upgrade aging infrastructure and implement new technologies.

Furthermore, consumer-centric strategies also resonate across various groups. Heat producers, technology suppliers, and authorities all stress how important it is to maintain strong relationships with consumers aiming to enhance customer satisfaction and build trust in DHC systems. Increased consumer engagement and the adoption of new technologies are also seen to require more information and transparency regarding system reliability, modernization initiatives, and incentives.

Although most people believe that modernity and sustainability are necessary, there are some areas where people disagree, especially between authorities and heat producers as well as between consumers and service providers. The main goals of heat producers are operational and financial sustainability, with a focus on enhancing regulatory frameworks and obtaining EU funding. On the other hand, government and regulators prioritize long-term energy reliability, supporting sectoral coupling with electricity and increasing the use of geothermal energy.

Consumers and media representatives, on the other hand, express concerns about the aging infrastructure and potential service interruptions, which are not as strongly prioritized by service providers, or at least have not been addressed in responses. Although consumers generally have a positive perception of district heating, concerns about future costs and system dependability could prevent wider implementation.

These differences in focus can create both opportunities for collaboration and areas of conflict. For instance, while heat producers are driven by profit motives and operational efficiency, authorities may push for stricter regulatory measures to ensure system resilience and sustainability. Similarly, consumers’ demand for reliable service may conflict with the slower pace of infrastructure modernization due to funding limitations.

Despite these differences, there are significant areas for synergy, particularly between technology providers and investors. Both groups recognize the need for investment in emerging technologies like hydrogen-based systems, cogeneration, and digital solutions that can enhance the efficiency of DHSs. Collaboration between technology providers and financiers could accelerate the adoption of these innovations, especially if supported by EU funding and national co-financing programs.

Moreover, authorities and consumers share a common interest in promoting renewable energy and ensuring the sustainability of DHSs. By fostering greater engagement with consumers, authorities can increase public awareness of the environmental benefits of DHC and build support for policies that promote RES integration and connection with other utilities, ensuring system resilience.

The findings from this study provide important insights for shaping national and regional policies on DHSs in Romania. The alignment of stakeholder goals with EU policies such as the European Green Deal and RED II highlights the potential for Romania to leverage EU funding and incentives to accelerate the transition to renewable energy. However, the gaps identified—such as the reliance on fossil fuels and the slow pace of digitalization—underscore the need for more coordinated policy efforts at the national and local levels.

One of the key policy recommendations emerging from this analysis is the need to develop a comprehensive national strategy for DHSs that addresses the specific needs of each stakeholder group. This could involve offering targeted incentives for technology adoption, particularly for heat producers and technology suppliers, and increasing consumer protection measures to ensure reliable service. Additionally, regulatory frameworks should be adapted to support the rapid integration of renewable energy and digital technologies along with other utilities, such as street lighting, water and sewage, while also addressing the financial sustainability of service providers.

Based on the results and knowledge previously presented, as well as the projections of energy strategies aimed at achieving carbon neutrality, a SWOT analysis was conducted for the district heating system (DHS) in Romania, as detailed below.

Among the strengths of the DHS in Romania is the legislative framework, as the production of electricity and heat in high-efficiency cogeneration is supported by decision no. 409/2022. This decision establishes the eligibility criteria for accessing financial support schemes.

Among other strength points also considered was that DHSs provide high-energy security through their ability to utilize a variety of fuels as sources, decreasing the dependence on any one source. In the context of a city with ambitious energy efficiency and emission reduction targets, centralized generation also enables easier monitoring and the control of environmental indicators. Another advantage of the Romanian context is the professional expertise available within the utility companies. The DHS can also be integrated with other city utilities, such as street lighting, water and sewage systems, and renewable energy sources, demonstrating its versatility and positioning it as a sustainable energy solution by supplying both electricity and heat.

Moving to its weaknesses, DHSs in Romania have significant energy and mass losses in the transmission and distribution network as well as in the heating substations, as shown in the previous section. Besides this, there is a significant difference in the efficiency of the energy source, CHP or boilers, and the efficiency of the related transmission and distribution networks. Considering the infrastructure, the DHSs in Romania have long pipeline routes, both under- and over-ground. There are increased losses and high costs generated by the continuous decrease in the number of users

The significant decline of disconnected users lowers the DHS energy efficiency by increasing the heat losses, reducing the system flexibility and decreasing investment interest in efficiency improvements.

As already highlighted, having strong financial and legislative support through the National Integrated Energy and Climate Change Plan (2021–2030) represents an opportunity. Within the National Recovery and Resilience Plan (NRRP) and the Modernization Fund, there is funding for modernization, rehabilitation, retrofitting and extension, or the establishment of centralized heat supply systems for localities. Considering the importance of the DHS with the building sector, the supply of green heating to the residential sector thus represents an opportunity to contribute to their nearly Zero Energy Building (nZEB) achievements.

One of the main threats, as identified by this questionnaire-based study, is the challenge of changing the mindset of potential consumers. End-users are often reluctant to give up control, making the switch from a user-controlled energy source to a less controllable system difficult. Overcoming past negative experiences is also a significant challenge, particularly for those who have previously decided to disconnect from a DHS—a group that is significantly large in the case of the Romanian DHS. One of the main vulnerabilities of such systems is that they are dependent on subsidies; therefore, the risk for insolvency is an external threat. These findings are summarized in the illustration from Figure 15.

The results of this study also highlight the need for more integrated stakeholder engagement to address systemic issues in the DHS sector. While there is consensus on the importance of collaboration, current efforts appear fragmented, with stakeholders operating in silos. Engaging all relevant parties, including consumers, technology providers, and policymakers, in a more coordinated dialogue could help bridge the gaps between profit-driven motives, regulatory priorities, and demand perspectives. Regular stakeholder forums, workshops, and public consultations could foster a more collaborative approach to DHS modernization and sustainability efforts. Also, this form of dissemination can boost the interest of the disconnected or those who are thinking of disconnecting from the system.

Also, there are several gaps in knowledge and representation that are open for further research perspectives. For instance, the perspectives of underrepresented groups, such as rural communities and small-scale heat producers, were not part of the current survey. Future research should aim to include a broader range of stakeholders, particularly those affected by DHS policies but not actively involved in decision-making processes. Additionally, more focused research on emerging trends such as hydrogen-based technology and AI-driven energy management could provide valuable insights into the future evolution of DHSs in Romania.

6. Conclusions and Author Contributions

This study highlights the importance of the various stakeholders’ perspectives for reducing fossil fuel use in the district heating systems to achieve climate neutrality.

This research confirms the central hypothesis by demonstrating through an extensive survey-based approach that stakeholder groups indeed perceive the district heating system in different ways, influenced by their role—as demand or supply side—interest, and exposure to specific challenges and opportunities. The different perceptions directly influence how stakeholders engage in sustainability efforts and drive the systematic energy transition of the district heating system. A key finding shared across stakeholder groups is the common prioritization of integrating renewable energy sources (RESs)—such as geothermal energy, heat pumps, and biomass—into district heating and cooling (DHC) systems. This shared vision highlights a collective move toward sustainable energy practices and aligns closely with broader EU policies.

This study provides the perspective of both the supply and demand sides, allowing policymakers and regulatory bodies to gain insight into the various needs highlighted in the SWOT analysis, such as consistent financial support for modernization and higher-generation technology. Also, the DHS offers strength in terms of data monitoring for various strategies. In terms of managerial implications, business and industry leaders could impose more pressure from a demand perspective for modernization and increased RES integration, favoring a better price, higher reliability, and energy security.

While this study provides important insights, it is limited by the presentation of only the Romanian perspective. Moreover, the findings may be widely replicable in other Eastern European contexts and potentially in regions with similar socio-technical conditions.

Despite its limitations, this study provides an overview of how the stakeholders can influence the acceleration of DHS development, and its applicability is contoured in the Romanian context, where the DHS plays a crucial role in national climate neutrality.

Ultimately, this article provides both a conceptual and practical contribution. Conceptually, it highlights the necessity of various stakeholders’ perspectives to tackle multiple types of barriers faced in energy transitions. Practically, it offers a replicable framework for assessing and engaging stakeholders in DHS transitioning strategies.