New white paper on district energy: The backbone of a futureproof energy system

In an era where flexible, resilient, and green solutions are imperative for a sustainable energy future, State of Green is proud to announce the launch of a new white paper on district energy.

This publication presents district heating as a cornerstone of the green energy transition, highlighting its versatility, economic efficiency, and environmental benefits in addressing global heating demands.

With contributions from several key Danish energy sector players, including the Danish Energy Agency, Danish Board of District Heating, and Danish Industry, the white paper explores district heating’s potential to mitigate climate impacts and bolster energy security. Denmark’s experience serves as a global model, showcasing how district heating has evolved from a local solution to a national infrastructure that powers over two-thirds of Danish homes, with a rapidly increasing share derived from renewable sources​.

Key points and benefits

District heating, which centrally sources and distributes heat to buildings, presents several core advantages in terms of energy security, emissions reduction, and cost-effectiveness:

• Environmental Impact: Heating accounts for half of the world’s energy consumption and over 40% of global energy-related CO₂ emissions. The flexibility of district heating allows it to incorporate renewable energy sources, such as surplus electricity from wind power, helping to reduce carbon emissions and enhance the use of clean energy. Today, over 75% of Denmark’s district heating is renewable, underscoring its potential as a sustainable heating solution.
• Fuel Flexibility and Cost Stability: Unlike individual heating systems, which may rely on specific fuel sources, district heating systems can quickly adapt to changes in energy supply, allowing for smoother integration of renewable sources and maintaining stable prices for consumers. This flexibility has proven especially beneficial in response to recent energy price fluctuations across Europe.
• Sector Coupling and Storage: Danish district heating systems increasingly incorporate digital tools and sector coupling, integrating surplus heat from industrial processes and other sources. Thermal storage options also enable heat production when energy costs are low, thus maximizing efficiency across the system.

Danish expertise and European momentum

In light of recent energy challenges, district energy is gaining traction across Europe as a reliable solution for the future energy landscape. Initiatives like REPowerEU and the Fitfor55 package have encouraged more countries to explore heating and cooling networks as essential components of resilient energy systems. Denmark’s white paper on district heating aims to share the country’s insights, offering practical guidance for implementing district energy systems that meet both environmental and socio-economic goals.