DHC networks can help strengthen energy autonomy also in small and rural areas
The MUSE DHC’s partner Engreen strives to turn sustainability goals into real projects in Europe and beyond. It supports public and private actors from strategy to implementation-designing, building, and scaling solutions that make the green transition tangible and lasting.
Francesco Roncallo, Head of Business Development, tells us about the diffusion of DHC in Italy and about the setup of a new network in the northern Italian village of Coggiola.
Are DHC networks popular in Italy?
District heating and cooling networks are well established in Italy, especially in northern regions such as Piedmont, Lombardy and Trentino-Alto Adige. They currently cover about 2.3% of the national heating demand, with Piedmont ranking among the top regions for energy supplied to DHC networks. Most networks are powered by cogeneration plants and increasingly integrate biomass, waste heat, and renewable sources. However, DHC diffusion remains limited outside urban centers and industrial areas, leaving significant room for expansion in small and rural municipalities like our case study Coggiola (Province of Biella, Piedmont Region), which largely rely on wood/gas stoves.
How can DHC networks help your country achieve climate neutrality?
Efficient DHC networks are crucial for decarbonising the heating sector, which in Italy is largely based on natural gas. By coupling renewable and local heat sources (biomass, waste heat, geothermal, solar) with energy-efficient distribution, they enable collective solutions that reduce fossil fuel dependence, cut emissions, and improve air quality, while making the energy system more efficient and less expensive, supporting national and EU climate-neutrality targets.
In contexts such as Coggiola, these networks could also help establish local value chains based on sustainable biomass management, which could reduce hydrogeological risks affecting remote forestry areas in alpine valleys.
What challenges do you face in developing a DHC network?
Key barriers include high initial investment costs, complex permitting procedures, and limited incentives for medium-scale projects in small municipalities.
Technical challenges concern the integration of fragmented biomass supply chains, the aging of existing heating systems, and the need for skilled operators. Socially, promoting awareness and trust in cooperative or public ownership models is essential to ensure broad participation and long-term sustainability.
Tell us about Coggiola, your MUSE DHC case study
The Coggiola case study focuses on the creation of a biomass-fueled DHC network to serve public buildings, local businesses, and residential users. The initial phase foresees connections for the municipality, schools, health center, and around 150 households, with a potential expansion to 600 users through a 1-km main pipeline. The project aims to replace fossil-fuel boilers, reduce energy costs and emissions, and revitalise the local forest economy by using sustainable biomass from nearby woodlands. The initiative has already gained interest from neighboring municipalities and the local Mountain Union of Municipalities for replication.
Why is engaging with citizens key to success?
Citizen engagement ensures social acceptance, co-ownership, and long-term commitment to the network. In Coggiola, local residents, cooperatives, and SMEs will be directly involved through interviews, focus groups, and information campaigns. The upcoming Living Lab will formalise this collaboration, enabling participatory decision-making. This inclusive approach aligns with MUSE-DHC’s mission to build community-led, resilient energy systems.
Why did you choose to be part of MUSE DHC?
Engreen joined MUSE-DHC to build on its experience in establishing Renewable Energy Communities (RECs) in the nearby Valsesia valley and transfer that know-how to the thermal energy domain. Through the Coggiola case study, the team aims to integrate heating supply into the business model of RECs, demonstrating how collective and renewable heat can complement shared electricity generation.
A key objective is to create a local biomass value chain that turns what is now an underused resource—abundant forest residues—into a sustainable economic asset. By doing so, the project will also address critical challenges in alpine valleys, such as land abandonment, poor forestry management, and hydrogeological risk, fostering a circular local economy.
In a territory marked by deindustrialisation but rich in material and natural resources, Engreen seeks to design a viable and replicable business model that revitalises local production chains, strengthens energy autonomy, and supports community participation.
The long-term expectation is to demonstrate how small mountain municipalities can combine environmental stewardship, citizen engagement, and innovative models to achieve just and resilient energy transitions.