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IDA on the removal of the price cap: A milestone for the green transition

The Danish Engineers' Association, IDA, looks forward to the abolition of the price cap on surplus heat, so that surplus energy from, for example, data centers can be put to good use.
17. JAN 2025 10.47
Energi
Politik
Økonomi

It is an important milestone for the green transition that a broad majority in the Danish Parliament on Friday decided to remove the much-maligned price cap, which makes it difficult to utilize surplus heat from, among other things, the many data centers that are springing up in Denmark. This is according to the Danish Engineers' Association, IDA, which is pleased that it will now be much easier to integrate green surplus heat into the district heating network.

- From a climate perspective, it is foolish that on the one hand we have allowed the expansion of extremely energy-consuming data centers at record speed, while on the other hand we have blocked the utility companies from utilizing surplus heat effectively, says Jens Dahlstrøm, chief consultant for climate and energy at IDA.

The price cap was introduced in 2018 to prevent energy companies from developing unprofitable projects that will result in higher heating costs for consumers. But it largely affects data centers, where the temperature of the surplus heat is relatively low, and where investments must therefore be made in heat pumps that boost the temperature to an appropriate level to be included in the district heating network. The price cap has, among other things, stood in the way of utilizing the surplus heat from Apple's data center near Viborg, even though Apple offered the heat for free at the opening in 2020.

- Surplus heat from industry and data centers has the potential to heat hundreds of thousands of single-family homes. Therefore, it has been absolutely imperative for us to remove the barriers that prevent us from utilizing the surplus heat to the maximum, says Jens Dahlstrøm, who emphasizes that the EU is also pushing for member states to utilize the potential of surplus heat to a greater extent.

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https://www.doi.dk/en/vindkraft/artikel/ida-om-fjernet-prisloft-en-milepael-for-den-groenne-omstilling

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