He's not talking about distribution inside your house from a central heating point, but for distribution to your house from a central heating point in the city. Like here in Gothenburg(pop ~0,75 million).
Total heating capacity for the central system here is a bit over 2000MW, our (clean*)garbage power plant provides 28% of the city's heating & hot water, and 5% of electricity needs. Among other providers is a biogas furnace from the sewage treatment plant, waste heat from industries like refineries, and Volvo, also about 150MW is recovered with heat exchange from the sewage. About 80% of the heat provided used to be waste in some form.
*meets future EU-demands on cleaning. First electro filter, then wet cleaning which removes particles and condenses acid gases, then a textile filter which removes almost all dioxin and most of the sulfur.