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District heating drives natural gas phase-out

74.5 percent of terminated gas contracts in 2024 switched to district heating
3. MAR 2025 13.59
Erhverv
Gas
Onshore

District heating is the primary replacement for natural gas in Danish homes. According to a new status from Evida, 74.5 percent of consumers who terminated their gas contract in 2024 have chosen district heating as an alternative. This is what Dansk Fjernvarme writes in a press release.

The figures show that the district heating rollout is happening as planned, with large areas being disconnected from the gas grid at the same time. The municipal heating plans and the district heating companies' conversion projects are contributing to a stable transition from gas to district heating.

- We can see that district heating is delivering exactly as promised. Natural gas boilers are being scrapped, and district heating is moving in. What is unique about district heating is that it is phasing out gas in bundles, where large areas and many customers can be disconnected from the gas grid at the same time. This is a huge advantage for the gas phase-out and for Denmark's ambition to get natural gas out of space heating, says political head of Dansk Fjernvarme Rune Moesgaard.

Evida reports continued great interest in district heating in 2025 and 2026. According to the status report, 93.8 percent of homeowners who plan to terminate their gas agreement in 2026 expect to switch to district heating.

- This shows exactly what the climate benefit of district heating is. That there is constant work to roll out more green and cheap district heating to the Danes. And it is happening at a pace where the market and society can participate. We saw during the energy crisis that there was an increased demand for individual solutions, which put enormous pressure on prices and delivery times. Now the demand has practically disappeared, because an investment of over DKK 150,000 for the individual homeowner is not seen as profitable, says Rune Moesgaard.

Danish District Heating points to the need for political initiatives that can strengthen the incentive to phase out natural gas.

- The natural gas price has reached a stable high level, but gas consumers cannot see their annual expenses, as they receive 8 bills per year. 4 quarterly bills from Evida and the gas seller respectively, and the lack of transparency removes a strong incentive from consumers to change heat sources, says Rune Moesgaard and concludes:

- If Christiansborg could clearly announce an end date for the delivery of gas in the gas network, both consumers and district heating companies have a goal to work from in relation to rolling out district heating and converting. In addition, we believe that there should be price transparency for the consumer, who should instead receive an annual statement of the total costs of their gas supply.

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https://www.doi.dk/en/innovation/artikel/fjernvarme-driver-naturgasudfasning

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