In the market town of Falkenstein, the construction of a new, climate-friendly local heating network is beginning. BayWa Energie Dienstleistungs GmbH (EDL) is responsible for planning, construction and subsequent operation. The company belonged to BayWa AG for many years and was sold to the Düsseldorf-based energy service provider EGC at the end of 2025 as part of the Group's strategic realignment.
With the integration of EDL, EGC is strengthening its role as a nationwide decarbonisation partner to the real estate industry and at the same time expanding its presence in southern Germany. The project in Falkenstein is one of the first examples of how the new ownership structure mobilises additional investment power for municipal heating solutions.
The project is an example of how the heating transition can succeed locally: with the investment power of strong energy partners, the political will and foresight of the municipality, as well as targeted funding from the federal government.
At the heart of the new heating system are two biomass boilers based on wood chips, each with an output of 450 kilowatts. The plant is operated entirely regeneratively – deliberately without fossil peak-load boilers. In addition, the existing heat production of a local forestry company, Fries Strom- und Wärme GbR, will be integrated into the grid. The company already uses a wood gasifier and another biomass boiler.
In the first stage of expansion, more than 20 buildings will be connected to the new heating network. These include private households, commercial enterprises and central municipal facilities such as schools and town halls. They benefit from the price stability of regional biomass.
Modern measuring, control and regulation technology ensures efficient operation of the plant. An intelligent control system continuously adapts heat generation and distribution to actual demand.
Construction will start in March 2026, with the main work scheduled to be completed by October of this year. The first heat deliveries are planned for the course of the year.
"For Falkenstein, this project is an important step towards a sustainable and regionally anchored energy supply," emphasizes Heike Fries, 1st Mayor of the market town of Falkenstein. "The use of regional biomass not only strengthens climate protection, but also local value creation. As a municipality, we are pleased to have a reliable and competent partner at our side in the EDL team."
"New climate-friendly local heating networks are a central component of the energy transition – at the same time, they require long-term investments and strong partnerships," adds Dr. Carsten Schaefer from EDL. "With the new ownership structure and EGC as a strong partner in the background, we have the economic strength to develop and implement projects like the one in Falkenstein in the long term."
With the integration of EDL, EGC is strengthening its role as a nationwide decarbonization partner to the real estate industry. The company is thus expanding its technology portfolio in the field of biomass and further expanding its activities in the municipal heating market.
"The heating transition needs investments, technological diversity and long-term partnerships. With EDL, we are strengthening our expertise in the field of biomass in a targeted manner and further expanding our range of climate-friendly heating solutions," says Jean-Marc Bazenet, Managing Director of the EGC Group. "Projects like the one in Falkenstein show that sustainable energy supply and regional value creation can be successfully combined. We are happy to be a reliable partner of the municipalities and municipal utilities in Bavaria for this purpose."
The project is funded by the Federal Ministry for Economic Affairs and Energy (BMWE) as part of the Federal Funding for Efficient Heating Networks (BEW).
The local heating project is an example of the successful implementation of the energy transition at the municipal level: With financially strong partners in the background, local political support and targeted funding from the federal government, a sustainable heating infrastructure is being created that combines security of supply, climate protection and regional value creation in the long term.
