Optimization and Enhancement of DHC networks to reduce (a) fossil fuel consumption, CO 2 emission, and heat losses across the network, while (b) increasing return on investment, forming key challenges faced by decision makers in the fast developing energy landscape. While the academic literature is abundant of research based on field experiments, simulations, optimization strategies and algorithms etc., there is a lack of a comprehensive review that addresses the multi-faceted dimensions of the optimization and enhancement of DHC systems with a view to promote integration of smart grids, energy storage and increased share of renewable energy. The paper focuses on four areas: energy generation, energy distribution, heat substations, and terminal users, identifying state-of-the-art methods and solutions, while paving the way for future research.