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

energy poverty rates, with the ability to lower the energy need- ed for supplying heat. Grundfos estimates that up to 800,000 homes in Europe can be supplied with “free” heat if the existing DH grids run by a maximum of 70 degrees C temperature. That’s why we’re promoting the need for low-temperature ready buildings in the recast of the Energy Performance of Build- ings Directive. By increasing focus on building readiness, we can achieve a cost-efficient roll-out of energy-efficient heating technologies like 4 th generation DH or heat pumps. Therefore, we strongly encourage the European Union to integrate regu- lations that promote a zonal approach for building renovation to low-temperature readiness. This will drastically increase the ability for energy-efficient improvements in Europe’s DH grids. It’s time for governments, municipalities, heat planners, and utilities to implement concrete plans to roll out low-temper- ature DH zones. For example, The Albertslund Municipality in Denmark is leading the way, already starting this transition years before the new Directive was implemented. Their am- bitious plan to deliver only low-temperature DH to municipal residents by 2026 8 is an excellent example of how we can lower heat losses and integrate waste heat and renewable energy sources already today. Enough talk. Time for implementation The time for action is now. After a lengthy process of recasting the new Energy Efficiency Directive, we must swiftly move to- ward its implementation. Climate change is not slowing down, and neither should we. It’s crucial that we rapidly increase the sustainability of the heating sector. Thankfully, both the sector and its users are embracing this op- portunity for change, recognizing its positive impact on the de- livery of heat to Europe’s population. Let’s take this chance to strengthen the role of district heating in promoting a greener and more sustainable future for all.

Germany has already planned its own Energy Efficiency Act, which, according to leaked documents, closely aligns with the Energy Efficiency Directive. However, since the Directive repre- sents the minimum requirements for national legislation, Ger- many has ample room to elevate its energy-saving ambitions further. Therefore, it is crucial that the sector advocates for higher ambitions as the Directive is implemented in Member states, which will lead to even more significant climate mitigation im- pacts and demand for energy-efficient solutions. Additionally, the new Directive will heavily influence the future of large subsidy schemes for DH in Europe. Any national sub- sidy schemes must comply with the new demands outlined in the Directive and gain approval from the EU. For example, Germany’s 3 billion € DH scheme, which is applicable only for energy-efficient DH running on waste heat or renewable ener- gy and runs until 2028, aligns with the new Directive 5 . Demand-driven temperatures as a key enabler As we strive toward a greener future, low-temperature DH zones have emerged as a key focus area. Therefore, we warm- ly welcome the integration of mandatory municipal heating plans that assess low-temperature readiness in the Directive. This is an important step towards reducing CO2 emissions, in- creasing energy efficiency levels, and integrating more waste heat and renewable energy sources into our DH energy mix. The amount of waste heat in the EU is almost equal to the needed energy for Europe’s residential and service sector buildings 6 , illustrating the vast potential. However, to fully un- lock this potential, we must focus on lowering temperatures to a maximum of 70 degrees C. Lower temperatures are more efficient for utilizing renewable energy and waste heat in DH grids, making low-temperature DH one of the cheapest technologies for achieving 100% renew- able heating 7 . This is an important step in combatting the rising

For further information please contact: Carsten Østergaard Pedersen, cpedersen@grundfos.com

“Saving energy is absolutely the best we can do to reduce carbon emissions and secure our independence! By adjusting temperatures in de-centralized city zones, you can get a much more flexible and energy-efficient district heating grid that delivers the heat energy according to the exact consumer demand. New solutions from Grundfos and other suppliers make it possible to deliver competitive heat prices for most buildings in the cities – also for areas with a low heat demand (e.g., domestic houses) and areas with a high heat demand (e.g., industrial process heating) – which increase the reach of green district heating grids. Earlier, you would typically say no to customers that did not match the conditions in the delivery system, or you would increase temperatures and thereby also increase the heat losses. Now, we need to utilize these more flexible solutions. This is of key importance in our future carbon-neutral energy systems!” Kamma Holm, Former CEO of CTR (the biggest heat supplier in Denmark) and now Founder of KH RELATION

5 EU State Aid (2022) https://ec.europa.eu/commission/presscorner/detail/en/ip_22_4823 6 Danfoss (2023), “The worls largest untapped energy source – excess heat”

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