If authorities want to help communities establish and develop new district heating networks, it is essential that the community can get the first investigations financed. This can be obtained by loans from future suppliers and private funds that must only be paid back if the district heating network is established. Alternatively, the money must be given to the community from public funds or energy suppliers without conditions. If investigations show that a district heating network is the best solution, the government can help community-owned companies establish the district heating network system by guaranteeing the needed loans.
technologies will reduce demand for capacity investments. At the same time, the security of supply and comfort can be increased without additional costs. If management focuses on efficiency, a part of this is also to attract new consumers. If the existing supply becomes more efficient, capacity is released and available for new consumers who can share some costs with existing consumers, lowering the heating price. In the same way, insulation and energy conservation inside buildings indirectly benefit all if they allow the district heating network company to expand to new areas and to connect new consumers not yet connected. Low carbon objectives can then align with heat pricing objectives. The same incentives could be present in private district heating network companies. Still, investments in energy conservation and saved investment costs are often converted to increased profit, which does not incentivise connecting new consumers and lowering prices by sharing costs. Expanding district heating networks requires a burning platform. This chapter explores how district heating networks were established in Denmark. The very first district heating networks in Denmark were established due to common sense! The waste heat from city power plants was collected and used to heat nearby buildings. It was built because heat was available, and the companies were owned mainly by local authorities. At that time, it was about eliminating individual coal, coke, and oil polluting the cities with dust and smog. The ‘burning platform’ was the pollution from individual heating solutions. Many of these companies were established in the 60s, and the ‘driver’ was
have to generate a profit for an owner. The profit can be used to lower heat prices. The precondition is that the driver for both the board and the management of the company is to achieve the lowest heat price possible. If low heat prices are not the ‘driver,’ there is a monopoly risk with community ownership if managers work for their benefit, accumulate capital for no reason, use it for purposes unrelated to heating, and do not develop efficient, low-cost solutions. If the company board is elected among consumers, the board will probably require management to prioritise affordable heat prices, avoid accumulating capital, and stick to the main business – heat supply. Local Involvement When consumers are involved in their own heat supply company and benefit from good company management, they will require management and the board to work for consumer benefits. Local engagement also makes it easier to get solutions approved and accepted locally, which benefits everyone. Long-term planning and investments The combination of monopoly, non-profit, and community ownership requiring low prices makes management prefer implementing long-term planning and investment strategies. These will include long-term loans and low-risk loans with low interest and long depreciation time according to technical lifetime. All this will support low heat prices compared to a profit-based and short-term approach. Focus on efficiency, energy security, and comfort. Consumer-owned companies will focus on energy-efficient solutions because saved fuels and purchased heat will decrease heat prices for all. High efficiency and combining heat source
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