EDF’s Dalkia wins 15 bn EUR Paris district heating contract, ending Engie’s long tenure in Europe’s second largest DHC network • Saint-Lô signs €45.5 million biomass district heating contract with Idex • Grand Poitiers expands district heating network with new biomass plant and connects 2,500 additional homes • Read more about the developments in sustainable heating and cooling in this month's news update from France
The Paris City Council has selected Dalkia, a subsidiary of EDF, to operate the capital’s district heating network from 2027, ending nearly a century of management by Engie. The 25-year concession, valued at 15 billion EUR, covers France’s largest urban heating system and marks a significant shift in the sector.
The Compagnie Parisienne de Chauffage Urbain (CPCU), an Engie subsidiary in which the City of Paris holds a 34% stake, has managed the network since 1927. CPCU currently supplies heat to around 6,000 buildings, including all Paris hospitals. The network serves approximately one million residents across Paris and 16 neighbouring municipalities and comprises more than 500 kilometres of underground pipelines, making it the second-largest in Europe after Berlin.
The tender process, launched two years ago, concluded after 27 months of consultation. The city’s Concessions Commission decided to award the contract to Dalkia, which submitted its bid in partnership with Eiffage and RATP Solutions Ville. The consortium reportedly offered highly competitive pricing compared to CPCU’s proposal. Dalkia will lead a semi-public entity created for this purpose, with 51% owned by Dalkia and 49% by public stakeholders.
Dalkia plans to invest 3.4 billion EUR to increase the share of renewable energy in the network to 76% by 2034, up from 50% today. The long-term objective is to achieve 100% renewable energy by 2050 through expanded geothermal capacity and a new plant using recovered fuels. This transition will allow an additional 200,000 homes to connect to the network, replacing individual gas and oil boilers. From 2027, 69% of users are expected to benefit from lower tariffs, with an average price 16% below that of gas. The agreement aims to reduce reliance on imported fossil fuels, ensuring greater price stability over the 25-year term.
Some analysts suggest the financial impact on Engie will be limited despite the loss of a historic contract. CPCU was delisted in 2018 and represents a relatively small portion of Engie’s overall business. Engie will receive 3 million EUR in compensation for bid-related expenses and has not indicated whether it will contest the decision. The Paris Council is expected to formally approve the award between 16 and 19 December. The contract will take effect on 1 January 2027 following a one-year transition period.
Read more in article from Les Echos
The city of Saint-Lô has signed an agreement with energy group Idex to build and operate a new district heating network, primarily powered by a biomass boiler. Construction is scheduled to begin in April 2026, with commissioning planned for the end of 2027.
The project will supply heat to around 100 buildings, including the public and private hospitals and the social housing provider Manche Habitat. The system will consist of a central heat production facility and a 16-kilometre network of pipes connected to 61 substations. A solar power unit will also be installed at the production site to provide electricity for the boiler’s own consumption.
The investment amounts to 45.5 million EUR. The municipality intends to include a crowdfunding component of 250,000 EUR to encourage local participation in the energy transition. The network will be powered by 91% renewable and recovered energy sources, including 78% wood and 13% heat pumps. Biomass supply will be sourced within a 100-kilometre radius, partly from hedgerows.
Idex will operate the network for 25 years and create four full-time jobs locally, including one apprenticeship, as well as two indirect jobs. Construction will start in April 2026, and the network is expected to be operational by late 2027.
Grand Poitiers has taken a major step in its energy transition by expanding its district heating network in the Poitiers-Biard area. On 28 November, the community inaugurated a new biomass heating plant and a 13-kilometre underground pipeline. This facility will supply heating and hot water to a growing district, including social housing, public facilities such as schools, and businesses. The wood fuel will be sourced within a 100-kilometre radius, and a poly-fuel boiler capable of using miscanthus grown locally is planned for future installation.
The extension will be connected to the existing network serving Poitiers, Saint-Benoît and Buxerolles by summer 2026. Operated by Dalkia, a subsidiary of EDF, the project aims to stabilise energy costs and reduce reliance on imported fossil fuels, particularly gas. It is part of Grand Poitiers’ strategy to increase the share of renewable energy in its heating mix to 80% by 2030, compared to 70% before the expansion.
The first phase of works, involving the installation of 13.5 kilometres of pipelines, has already been completed. This phase connected 2,500 additional homes to the network, bringing the total to around 15.000 households supplied with heating and hot water. Users will benefit from low-carbon energy sourced locally, including biomass and recovered heat from waste incineration. A new biomass boiler has entered service, and a poly-fuel unit will complement the system next year.
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