AS Narva Elektrijaamad owns two the world's largest oil shale-fired power plants - Balti Elektrijaam (Balti Power Plant) and Eesti Elektrijaam (Eesti Power Plant). The new fluidized-bed energy block No. I I of Balti Power Plant is operated in cogeneration mode to provide the district-heating system of Narva. The energy market prices of heat for all consumer groups have increased significantly. High heat losses and poor technical condition of the old district-heating networks decrease the future of centralized heating, and consumers make choice in favor of local heating. High heat losses of Narva district heating are caused by poor thermal insulation and over-dimensioning of pipes. Objective estimation of actual conditions of district-heating networks and technical-economical argumentation for renovation and expansion of networks should be carried out to increase the share of heat production based on CHP and to decrease fuel consumption. For minimization of heat distribution expenses DH network should be optimized. The opportunities of building heat supply alternatives in Narva are also investigated. Four scenarios of heat supply alternatives were analyzed using energy planning models.