We study the magnetospheric structure and the ionospheric Joule Heating of planets orbiting M-dwarf stars in the habitable zone using a set of magnetohydrodynamic (MHD) models. The stellar wind solution is used to drive a model for the planetary magnetosphere, which is coupled with a model for the planetary ionosphere. Our simulations reveal that the space environment around close-in habitable planets is extreme, and the stellar wind plasma conditions change from sub- to super-Alfvenic along the planetary orbit. As a result, the magnetospheric structure changes dramatically with a bow shock forming in the super-Alfvenic sectors, while no bow shock forms in the sub-Alfvenic sectors. The planets reside most of the time in the sub-Alfvenic sectors with poor atmospheric protection. A significant amount of Joule Heating is provided at the top of the atmosphere as a result of the planetary interaction with the stellar wind. For the steady-state solution, the heating is about 0.1-3% of the total incoming stellar irradiation, and it is enhanced by 50% for the time-dependent case. The significant Joule Heating obtained here should be considered in models for the atmospheres of habitable planets in terms of the thickness of the atmosphere, the top-side temperature and density, the boundary conditions for the atmospheric pressure, and particle radiation and transport.
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