Electrification of final use sectors such as heating and mobility is often proposed as an effective pathway towards decarbonization of urban areas. In this context, power-driven heat pumps (HP) are usually strongly fostered as alternatives to fossil-burning boilers in municipal planning processes. In continental climates, this leads to substantially increased electricity demand in winter months that, in turn may lead to stress situations on local power distribution grids. Hence, in parallel to the massive implementation of electric HP, strategies must be put in place to ensure the grid stability and operational security, notably in terms of voltage levels, as well as transformer and line’s capacity limits. In this paper, three such strategies are highlighted within the specific situation of a mid-sized Swiss city, potentially representative of many continental, central Europe urban zones as a test-case. The hourly-based power flow simulations of the medium- and low-voltage distribution grids show the impact of various future scenarios, inspired from typical territorial energy planning processes, implying various degrees of heat pumps penetration. The first strategy relies on the implementation of decentralized combined heat and power (CHP) units, fed by the existing natural gas network and is shown to provide an effective pathway to accommodate heat pump electricity demand on urban power distribution grids. Two alternative solutions based on grid reinforcements and controlled usage of reactive power from photovoltaic (PV) inverters are additionally considered to ensure security constraints of grid operation and compared with the scenario relying on CHP deployment.