Abstract—: The article examines the dynamics in indicators of the centralized heating sector in Russia over 2000–2020 and the prospects for its development, taking into account the application of the model of an alternative boiler house. The analysis covers interrelated balances of heat energy production and consumption, the balance of fuel for heat production, and the financial balance of the industry. The second part of the article provides an overview of projects implemented using the alternative boiler house method. A scheme of the balance model for analyzing and forecasting the development of the district heating sector is proposed. © 2022, Pleiades Publishing, Ltd.