HOT|COOL NO. 4/2023 "Technology and Sustainability"

What are the implications for the district heating sector

Energy efficiency first in heating The heating supply must now adhere to the Energy Efficiency First principle. This signifies a critical shift towards promoting energy-efficient solutions in all planning, policy-making, and significant investment processes. It means that heating solu- tions will be assessed based on their environmental impact, and only those that meet stringent energy efficiency standards will be encouraged. Data centers to utilize waste heat Data centers that consume more than 1 MW of power are now obligated to use their surplus heat unless they can prove that it is not feasible from a technical or economic standpoint. This measure will help reduce energy wastage and thereby pro- mote its utilization through DH networks. 4 th generation heat planning Heating plans have become mandatory in all cities with pop- ulations exceeding 45,000 inhabitants. These plans will adhere to the Energy Efficiency First principle and assess factors such as low-temperature readiness, co-generation, waste heat re- covery, and renewable energy sources. Replacing fossil fuels in the energy mix There are stringent measures in place to phase out fossil fuels in DH. By 2027, 50% of all heat generated must come from renewable or waste heat sources. Additionally, the CO2 content of the delivered heat must follow strict guidelines, as specified in the table below.

The new Energy Efficiency Directive from the EU has set the stage for swift implementation, with Member states need- ing to integrate the Directive’s policies by 2024. This urgency stems from the EU’s desire to reach climate targets and reduce greenhouse gas emissions, which necessitates the immediate adoption of energy-efficient solutions.

DK

Table 1: Allowed CO2 in district heating.

Year

Max CO2 content

2025

200 g/kWh

2026

150 g/kWh

2035

100 g/kWh

2045

50 g/kWh

2050

0 g/kWh

The DH sector is expected to face a surge in demand for such solutions in the short term. The Danish energy consultancy firm, EA Energianalyse, estimates that the sector’s energy-efficient exports could increase by approximately 60-80 billion DKK (€ 8-10.7 billion) by 2030 to around 260 billion DKK 4 (€ 34.7 bil- lion) in total. These projections were made prior to the recent energy crisis, and as demand for natural gas-free heating tech- nologies is rising, even higher numbers may be expected. New enhanced governance structure with the National Energy & Climate Plans will increase the effectiveness of the directive’s implementation. They will ensure continuous Member State contributions to EU-targets.

Increased ambitions and governance structure The recast directive places a greater emphasis on energy ef- ficiency, with raised ambitions to achieve energy savings of 11.7% on energy end-use by 2030, compared to a reference scenario from 2020. The governance structure in the Directive has also been strengthened, enabling the Commission to im- pose stronger sanctions on member states that fail to deliver these savings. These measures are set to significantly enhance the Directive’s effectiveness and drive greater energy efficiency in the member states.

4 EA Energianalyse (2021) , Analyse af betydningen af mere ambitiøse EU klimamål frem mod 2030 for dansk eksport af energiteknologier (synergiorg.dk)

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