In 2017, 63% of all municipalities with district heating (DH) had energy efficient DH systems, i.e. systems that meet one of the criteria defined in the Article 322 of the Energy Law. Compared to the previous year, the share decreased by 4 percentage points and was lagging behind the 2020 target by 37 percentage points. In energy efficient systems, 77% of all heat from DH systems was produced in comparison to 84% the year before. In the fuel consumption structure, the dominance of coal and natural gas increased from 81 to 84%. GHG emissions from these systems are high and their reduction can only be achieved by replacing old coal units and gradually replacing fossil fuels with RES.