Abstract. In mild climate regions Directive 27/2012 EU application for developing sustainable district heating networks in consolidated urban nucleus is a challenge. In Spain most of the municipalities above 5,000 inhabitants have a reliable natural gas network and individual heating systems at homes. In this work a new heating network paradigm is proposed, the biomass universal heating network in rural areas. This model involves all the economic, legal and technical aspects and interactions between the different agents of the systems: provider company, individual and collective end-users and local and regional administration. The continental region in Spain has 588 municipalities with a population above 1,500 inhabitants close to forest biomass with renewable use. In many of these cases the regulation identifies the ownership of the forest resources use. The universal heating networks are a great opportunity for energy saving of 2,000 GWh, avoiding 2.7 million tons of CO2 emissions and with a global annual savings for end users of 61.8 million of euros. The presented model is easily extrapolated to other small municipalities in Europe. The real application of the model is presented for three municipalities in different locations of Spain where Universal Heating Networks are under development. The analysis show the interest of the integrated model for the three cases with different structural agents and relationships between them. The use of sustainable forest resources, extracted and managed by local companies, strengths circular economy in the region with a potential global economic impact above 200 M€.