More than a third of German municipal utilities want to shut down gas grids fully or partially, VKU survey shows

More than a third of Germany’s municipal utilities (Stadtwerke) intend to decommission their local gas distribution grids fully or partially, according to a survey published on 9 November by their association, VKU. Of the 757 companies invited, 225 responded between 3 August and 1 September 2026.

The figures. 13% of respondents plan a complete shutdown of their grid, while 25% plan a mix of shutdown and conversion or continued operation of some sections. 7% want to continue with biomethane, 1% to switch to hydrogen or other green gases, and 14% have no gas grid. The share of undecided companies fell to 38% from 46% a year earlier.

Heating. Asked which technology will dominate in their area (multiple answers possible), 50% of the companies point to a combination of district heating and heat pumps, 37% mainly to electricity and heat pumps, 15% mainly to district heating and 4% to green gases. According to VKU, 56% of German households still heat with gas and 19% with oil.

Context. VKU says uncertainty among the companies is lower than last year but essentially persists, and calls for an amendment to the energy law (EnWG) to allow an orderly exit from natural gas. On the same day, Öko-Institut and Fraunhofer ISE published a study finding that Germany’s technical potential for biomethane from residues is about 105 TWh a year, of which roughly 57 TWh could be additionally mobilised, while the scenario analysed puts methane demand at 187 TWh in 2045. No region could fully cover its demand from its own resources, the authors conclude.

What comes next. According to Clean Energy Wire, large cities had until the end of June to submit municipal heating plans, while smaller municipalities have until mid-2028.

Real-time data for the country are on the country page