Funds transformation plans for existing networks as well as feasibility studies for new networks. The goal is a comprehensive, actionable plan that integrates technology, the expansion path, climate goals, and economic viability. Half of the eligible costs are subsidized; a project outline is required. A transformation plan for an existing network is often also required by regulators. Alternatively, heat network expansion and decarbonization roadmaps must be developed.

Addresses systemic expansion: heat generation, distribution networks, storage, and transfer stations. It builds on Module 1 and provides a 40 percent grant to cover investment costs.

It also offers a 40 percent subsidy, but focuses on individual measures. These include, for example, solar thermal systems, large-scale heat pumps, biomass boilers, thermal storage systems, piping for renewable energy generators, and the integration of waste heat.

Provides operating cost subsidies for certain systems (e.g., solar thermal systems, heat pumps) for up to ten years after commissioning, limited to the economic gap.