P26
All investments in district heating and waste to energy plants the Greater Copenhagen district heating system have been financed 100% by the most competitive loans on the world market. This has increased the efficiency significantly and been an important precondition for implementing the most cost effective solutions for the consumers and the society.
Municipal heat supply planning, based on national regulations, guidelines
National support to implement the policy The main aim of The Heat Supply Act and the Gas Supply Act from 1979 was to save oil in a cost effective way for the society, mainly by implementing a new natural gas infrastructure and by doubling the market share of district heating based on CHP and waste heat. By the time these infrastructure projects were almost fully implemented, the oil price dropped to the level before the oil crisis. In order to encourage all consumers to support the energy policy and save fossil fuels, the Government introduced substantial oil taxes, to compensate for this drop. This saved the gas companies from bankruptcy, created a stable environment for investment and helped to repay the investments in the district heating systems. Investment subsidies To speed up completion of the infrastructure plans and the connection rate to district heating, the government increased the energy tax further and allocated the revenue from this tax to various investment subsidies, e.g. co-financing up to 40% of investments in installation of central heating pipes within old apartment buildings, provided the building is then connected to the district heating system
Heat Supply Planning of district heating and natural gas infrastructure has since 1979 been an integrated part of urban planning creating zoning of gas and district heating. Competition between the supply grids has taken place in the planning stage dividing the city into districts of natural monopoly grids for either district heating or gas. Additionally the municipalities were given the power to decide on obligatory connection to the district heating or gas grid for new and for existing buildings. In order to speed up the connection to both district heating and gas, the parliament requested that all municipalities use the power in the Act for obligatory connection of all buildings larger than 250 kW heat capacity within one year – provided that the heat price did not exceed the price of individual supply. This also helped to secure the pay-back of loans in both district heating and gas grids as it provided a constant demand for the respective networks supply within one year.
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