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Covenant of Mayors - Europe

Lyon's district heating expansion for more resilient communities

Lyon Metropole, France

With a clear vision to achieve climate neutrality through the collective engagement of all its citizens, Lyon Metropole has made it a priority to decarbonise energy consumption, particularly in heating and cooling sectors responsible for a significant portion of the energy usage.

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heating and cooling
Mitigation
Green City Accord Signatory

Lyon Metropole is a unique local authority in France stemming from the merger of the Lyon Urban Community and the Rhône General Council on the territory of the 58 municipalities that make up the Greater Lyon area (i.e. a surface area of 534 km2 and 1.4 million inhabitants). It also ranks among the leading French local authorities in climate action, as part of the Green City Accord. With a clear vision to achieve climate neutrality through the collective engagement of all its citizens, Lyon has made it a priority to decarbonize energy consumption, particularly in heating and cooling—sectors responsible for a significant portion of the city’s energy usage.

District Heating: the key to decarbonisation

For Lyon Metropole, district heating and cooling networks are considered an essential tool to achieving their heat detox, decarbonising the city's energy supply. Between 40% and 50% of the city’s energy needs come from heating alone, making it a critical target for reducing greenhouse gas emissions. In 2020, already 60% of Lyon Metropole’s district heating energy mix came from renewable or recovered sources. That share has since increased to 66%, and the Metropole is aiming for 80% by 2030.

The ambition goes beyond greening the energy mix. Lyon Metropole is rapidly expanding its district heating network, which has already grown from serving 80,000 homes in 2020 to 120,000 today. The city plans to connect up to 200,000 homes by 2026, a 2.5-fold increase in just 6 years. For this, all the existing heating networks are being expanded or densified, with the plan of creating 3 to 4 new networks: one for hot and cold, and two or three large-scale new heating networks. This expansion will allow households previously reliant on fossil fuels like gas and oil to switch to a greener, more stable, and affordable energy source.

The social benefits of district heating

The expansion of district heating is not just about reducing emissions; it is also designed to alleviate energy poverty, for more resilient communities. Thanks to support from national schemes such as the ADEME’s heat fund, Lyon Metropole’s district heating networks benefit from subsidies, which help lower costs for consumers. This combination of financial support and a greener energy mix enables Lyon Metropole to offer stable and affordable energy prices. Energy prices are reduced, sometimes by hundreds of euros compared to alternatives like fuel or gas. 

Additionally, district heating offers more stability to households, as a highly reliable system: any incident can be addressed quickly, ensuring minimal disruption. If there is a problem, the heating is restored within minutes or hours, sparing residents the headaches that can come with traditional heating systems.

A cocktail mix of detox ingredients

To support its district heating networks, Lyon Metropole is increasingly relying on renewable energy sources. The Metropole is diversifying its energy mix to include geothermal energy, industrial heat recovery, heat from household waste and wastewater, solar panels, and heat pumps. This multi-source approach ensures resilience while reducing the need for more traditional fuels like biomass, which, although renewable, is not the first choice for Lyon Metropole. While burning wood for heat is necessary, Lyon Metropole wants to explore more innovative, efficient, and resource-conscious systems.

For example, Lyon Metropole has already signed an agreement to recover 30 GWh of heat from an industrial site in Vénissieux. Additionally, the Metropole is using wastewater heat recovery, where wastewater at temperatures between 15°C and 25°C is used to heat entire neighbourhoods. One particularly innovative project involves circulating water beneath a neighbourhood undergoing urban regeneration. This water loop, combined with heat pumps, will produce both heating and cooling, while the electricity needed to power the system will came from a local hydroelectric dam. These efforts contribute to Lyon Metropole’s goal of creating an integrated, resilient, renewable system with zero combustion and zero harmful pollutants.

Main challenges to detoxify heat:

  1. Integrating heating plants into the urban landscape: Unlike hidden fossil fuel systems, district heating requires visible infrastructure, such as heating plants and solar panels. Public acceptance is key, and Lyon Metropole aims to make these systems architecturally appealing, potentially turning them into symbols of sustainable living.
  2. Strategically expanding district heating: Lyon Metropole is mapping out priority areas for district heating and determining where other renewable solutions like biogas, solar thermal, or geothermal are more suitable.
  3. Reducing consumption: The 2019 energy plan set targets for a 30% reduction in energy use and 43% in greenhouse gas emissions by 2030. However, updated European goals now require a 55% cut, pushing Lyon Metropole to accelerate efforts through new networks and efficiency measures.

Next steps by 2026:

  1. To have 200,000 dwelling-equivalents contracted for connection to one of the metropolitan area's heating networks.
  2. An average rate of 75% renewable and recovered energy across all of the networks.

Where they are in the heat strategy

Lyon's Heat Detox

Key Heat Figures:

  • Energy consumption of heating 40-50%
  • Percentage of renewables in heating system: 66%
    • Aiming at 75-80% by 2030
  • Km of DHC currently:
    • Heating network - 293 km (spread over the 7 existing heating networks in Lyon Mtropole)
    • Cooling networks - 17 km (2 networks in Lyon Metropole)
  • Km of DHC planned: 42.5 km
    • The heating and cooling network in La Saulaie: 2.5 km
    • South-West Lyon heating network: 40 km

Covenant Figures:

  • Signatory to the Covenant of Mayors since 2008
  • Emission reduction ambitions:

    % GHG emissions reductions by 2030: 30%

    % GHG emissions reductions by 2050: 63%

  • Green City Accord signatory

Financing your heat strategy

Budget for heating networks as a whole (investment and operation combined):

  • Decisions made during the current term (€432m)
  • Follow-up to decisions made during the previous term (€357m)
  • Studies in progress (€252m)
  • Connection to the urban heating network for the city's assets  (€825k)

Sources of funding: ADEME heat fund and investment from public service delegates.

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