The targets of global CO2 reduction outline the importance of decarbonizing the heating and cooling sector, which consume half of the final energy in the European Union (EU). Consequently, heating network operators must adapt to growing requirements for carbon neutrality. Energy system modeling allows the simulation of individual network compositions and regulations, while considering electricity market signals for a more efficient plant operation. The district heating model, programmed for this work, covers a measured heat demand with peak load boiler, biomass-fired combined heat and power (CHP) plant, and biomass heating plant supply. The CHP plant reacts to electricity prices of the European Power Exchange market and uses a long-term heat storage to decouple heat and electricity production. This paper presents the results of three annual simulation scenarios aimed at carbon neutrality for the analyzed heating network. Two scenarios achieve a climate-neutral system by replacing the peak load boiler generation. The exclusive storage capacity expansion in the first scenario does not lead to the intended decarbonization. The second scenario increases the output of the CHP plant, while the third simulation uses the biomass heating plant supply. This additional heat producer enables a significant reduction in storage capacity and a higher CHP plant participation in the considered electricity market.