A new coalition between Danish District Heating, the Confederation of Danish Industry, Intelligent Energy and Synergi is launching five proposals for better utilization of surplus heat from industry with the campaign "From black waste to green resource", informs the interest organization Synergi.
The coalition believes that the price cap for surplus heat in particular, which the Danish Utilities Authority announces every year, prevents district heating plants from investing in surplus heat projects. According to the organizations, only around 13 percent of the surplus heat is utilized today.
The price cap is a ceiling on the total costs of utilizing surplus heat that a heat supply company must include in its prices. Among other things, it is intended to protect consumers against price increases if, for example, a district heating plant wants to invest more than its equity in new projects. But consumers are already well protected, the new coalition believes.
- Because district heating is already subject to consumer protection through the Heat Supply Act and the Project Executive Order, the utilization of surplus heat will not be a burden on consumers' heating prices. Therefore, the price cap should be abolished so that we can utilize an important green resource in Denmark, says Director of Dansk Fjernvarme Kim Mortensen.
According to the parties, the regulated price cap from 1 January 2024 also applies to existing surplus heat projects. For example, Fjernvarme Fyn has invested 400 million DKK in facilities to utilize surplus heat from, among other things, Meta's data center in Odense, but the price cap may prevent surplus heat from being utilized.
The new coalition has five proposals for better utilization of surplus heat:
- Abolish the price cap
- National strategy for surplus heat
- Better strategic planning
- More knowledge, better tools
- Ambitious implementation of EU requirements
Read the coalition's entire proposal here.
cwa
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