Many strategies have already been proposed for the decarbonisation of the EU energy system by the year 2050. These typically focus on the expansion of renewable energy in the electricity sector and subsequently, electrifying both the heat and transport sectors as much as possible. In these strategies, the role of district heating has never been fully explored system, nor have the benefits of district heating been quantified at the EU level. This study combines the mapping of local heat demands and local heat supplies across the EU27. Using this local knowledge, new district heating potentials are identified and then, the EU27 energy system is modelled to investigate the impact of district heating. The results indicate that a combination of heat savings, district heating in urban areas, and individual heat pumps in rural areas will enable the EU27 to reach its greenhouse gas emissions targets by 2050, but at a cheaper price than a scenario which focuses primarily on the implementation of heat savings.