Paris district heating network : signing of the new concession contract

The City of Paris, the Banque des Territoires and the Dalkia/Eiffage/RATP Solutions Ville Consortium announce the signing of the constituent and contractual instruments of the Single-Purpose Public-Private Company (Société d’économie mixte à opération unique – SEMOP), holder of the new concession contract. A decisive step towards transforming France’s leading district heating network into a model of decarbonisation and affordable energy, accessible to as many people as possible.

The concession contract was signed on Friday 10 April 2026 between the City of Paris and a SEMOP combining the City of Paris (34%), the Banque des Territoires (15%) and the econo­mic operator formed by the Consortium of Dalkia, Eiffage and RATP Solutions Ville (51%). It entered into force on 23 April upon notification by the City of Paris.

On 17 December 2025, following a tender procedure launched in 2023, the Council of Paris approved the selection of the winning Consortium comprising Dalkia, Eiffage and RATP So­lutions Ville to renew its concession contract for the production and distribution of the Paris urban heating network. Operated since 1927 by the Compagnie Parisienne de Chauffage Ur­bain (CPCU),  this  essential  public  service  expires  on  31  December  2026.

The newly established SEMOP will ensure the continuity of the public service from 1 January 2027 for a period of 25 years.

Created specifically for the performance of the contract, this SEMOP will oversee the opera­tion, modernisation and decarbonisation of the Paris district heating network—a major urban infrastructure at the metropolitan scale, currently supplying nearly one million people in Paris and 16 neighbouring municipalities.

This new concession meets three objectives set by the City of Paris:

  • Accelerate the ecological transformation of the network and strengthen the energy soverei­gnty of the region at the metropolitan scale;

  • Guarantee subscribers and users an affordable heating tariff that is controlled over time, with a reduction as of 2027 for nearly 70% of network users;
     
  • Strengthen public governance of the network.

A dual ecological and social ambition: greening the energy mix to phase out fossil fuels, strengthening regional sovereignty to control heating costs

By 2034, the share of renewable and recovered energy (RES&R) will increase from 50% to 76% of the energy mix, thanks to the use of more than nine low-carbon energy sources: geo­thermal energy, heat recovery from the River Seine, recovery of waste heat from the under­ground network (metro), energy recovery units, pellets, Grade B wood, refuse-derived fuels, biofuels, and electricity through the installation of heat pumps and two electric boilers. The goal is to reach 100% renewable and recovered energy by 2050, in accordance with the Cli­mate Action Plan of the City of Paris.

Furthermore, in an uncertain geopolitical climate that increases the volatility of fossil fuel prices, drastically limiting the use of gas by diversifying the energy mix will ensure long-term control of heating and hot water bills.

Overall, this expanded and modernised heating network will reduce CO2 emissions by 50% by 2034, avoiding 12 million tonnes of CO2 compared to the use of fossil fuels over the entire duration of the concession. The share of gas in the energy mix will be reduced by 50% by 2034.

A massive investment programme dedicated to energy transition and re­sidents

This major project to green and expand the network will involve a substantial investment plan of   nearly   €3.4   billion   over   25   years,   funded   by   the   SEMOP.

Public authority control supporting territorial cooperation

By rethinking governance balances within the SEMOP, the City of Paris sought to strengthen the role of public authority in strategic decisions over the next 25 years, while ensuring grea­ter transparency in the delegated public urban heating service.

Placing the role of the served neighbouring municipalities and stakeholders concerned by the network’s challenges at the heart of its approach, the City also requested the creation of a territorial committee acting in a supervisory/advisory capacity (censeur) within the gover.

A pioneer in the fight against climate change, the City of Paris is pursuing an ambitious pu­blic policy to achieve its carbon neutrality targets by 2050 under its Climate Action Plan. The signing of this contract with…

Emmanuel Grégoire,,

Mayor of Paris

Banque des Territoires is proud to contribute to the transformation of the Paris urban heating network. This project brings to life our shared ambitions with the City of Paris: ecological and energy transformation,…

Marie-Laure Gadrat,

Regional Director for Île-de-France at Banque des Territoires

The trust placed in us by the City of Paris through the signing of this contract honours us as much as it commits us. As a co-shareholder of the SEMOP alongside our partners, we are very proud to contribute to the…

Sylvie Jéhanno,

Chairwoman and Chief Executive Officer of Dalkia

Transforming this century-old urban heating network into a resilient and high-performing in­frastructure represents a challenge we are ready to take on. Eiffage will deploy all its exper­tise to implement this works and…

Benoît de Ruffray,

Chairman and Chief Executive Officer of Eiffage

The RATP Group is proud to put its expertise in developing and managing complex urban infrastructure at the service of transforming and decarbonising the urban heating network of the City of Paris and the sixteen…

Xavier Piechaczyk,

Chairman and Chief Executive Officer of RATP

Key figures for the heating network trajectory up to 2051

  • 1st district heating network in France
  • 16 Île-de-France towns and cities supplied: Asnières, Aubervilliers, Boulogne-Billan-court, Charenton-le-Pont, Choisy-le-Roi, Clichy-la-Garenne, Gennevilliers, Gentilly, Île-Saint-Denis, Issy-les-Moulineaux, Ivry-sur-Seine, Le Kremlin-Bicêtre, Levallois-Perret, Saint-Denis, Saint-Ouen, and Vitry-sur-Seine
  • From 6,330 to 9,100 subscribers (+43%) over 25 years
  • 40% of new subscribers connected in off-grid/unserved areas (zones blanches)
  • From 534 km to 750 km of steam and hot water network (+40%)
  • As of 2034, from 50% to 76% renewable and recovered energy (RES&R) in the energy mix and a 50% reduction in CO2 emissions
  • From 550 to 617 employees under the IEG (Industries Électriques et Gazières) status
     

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