Denmark Leads the Way in Heating Transition, Integrating Renewables Like Photovoltaics
Denmark is setting an example in the heating transition, with district heating playing a pivotal role. Christian Bjerrum Jorgensen, Embassy Counsellor for Energy, shares insights into the country’s progress and future plans, emphasizing the increasing integration of photovoltaics.
Progress in the Heating Transition
Denmark has been at the forefront of the heating transition for many years, with a robust district heating system at its core. Currently, two-thirds of Denmark’s 3 million households benefit from district heating, with 75% of that energy derived from renewable sources. Certified biomass, primarily wood, makes up over half of the district heating supply, but the government aims to reduce this to 35% by 2035. By 2030, Denmark plans to achieve 100% climate-neutral district heating by focusing on electrification and the adoption of large heat pumps. The strategy also includes increasing the use of geothermal energy, waste heat from industry, and surplus solar power, combined with seasonal storage solutions.
Decarbonizing Heat Supply for Unconnected Buildings
Denmark is also addressing the approximately 400,000 households still reliant on gas. The government’s strategic plan, "Denmark can do more - two," adopted in 2022, targets a complete switch to 100% biogas by 2030 and aims to phase out gas in buildings entirely by 2035. The solution will involve either heat pumps or district heating connections, with an accelerated heat planning process underpinning this transition. Denmark's municipal heat planning, mandatory since 1979, serves as a critical tool for achieving these climate goals.
Accelerated Municipal Heat Planning
As part of the accelerated heat planning initiative, all Danish municipalities were required to inform homeowners who still rely on gas heating about their district heating options by 2028. Those who will not receive a district heating connection must opt for other fossil-free solutions. Municipal utilities are now creating detailed implementation plans to outline when and where district heating connections will be available.
Broad Consensus and Cost Efficiency
Denmark’s approach is characterized by broad political consensus, known as "politisk forlig," where climate policies enjoy cross-party support. This consensus has facilitated a shift away from fossil fuels, supported by energy and CO2 taxes that make gas heating the most expensive option, while district heating remains significantly cheaper.
Currently, the average cost of district heating in Denmark is about 2,000 euros per year for a standard house consuming 18.1 megawatt-hours annually. Danish district heating companies are required to submit their prices to the Danish Utility Regulatory Authority twice a year, ensuring transparency. Profits from district heating are reinvested into the system or returned to customers, with many district heating companies organized as cooperatives or owned by municipal utilities.
Collaborating with Germany and Expanding Photovoltaics
Denmark actively shares its expertise in heat planning and municipal heat supply with Germany, working closely with federal ministries, associations, and local authorities. The collaboration is a two-way street, with Denmark also learning from Germany’s experience in areas like geothermal energy and waste heat recovery.
A solid data foundation is crucial for municipal heat planning, but authorities are encouraged to adopt a pragmatic approach, recognizing that plans can evolve over time. Transparency, investment security, and suitable frameworks for local authorities are key lessons learned in Denmark's heating transition. Diversifying energy sources, including the expansion of photovoltaics and large-scale solar thermal plants, enhances the resilience and security of Denmark’s energy system. Seasonal storage systems further support the efficient use of solar and wind power, adding value to the overall energy system.
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