HOT|COOL NO. 1/2019 - "District Heating Finance and Economy"

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The aforementioned SDG Investment Fund made its first investment in a 19.1 MW Ukrainian solar park developed by the Danish company ‘Better Energy’ through a Power Purchase Agreement with the Ukrainian authorities in January. While the project was not articulated as a PfPPP-project it is nonetheless a PPP, designed in direct support of goal 7 (Affordable and Clean Energy). DE harmonises nicely with several of the SDGs, particularly goal 7 and goal 11 (Sustainable Cities and Communities), why a first DE PfPPP could be on the horizon. It would be interesting to explore the possibilities for Denmark to open a Specialist Centre in one of its areas of specialty. One area where Denmark has many years of institutional knowledge and where it could be argued to be in a position to develop good standards is in integrated energy designs. It would provide Denmark with an interesting position in the design of global standards and allow for further promotion of its expertise, moving beyond already existing export promotion platforms.

Going forward, projects will need to incorporate the SDG- thinking from an early stage and to work closely with civil society, governments and other stakeholders to identify what constitutes good impact in the local context and to then incorporate this in the project. Time will tell how these new standards will affect and impact government decisions. However, if the strong welcome of and supportive approach to the SDGs by governments is any indication, it is reasonable to suggest that the PfPPP-framework will become a standard mechanism in future PPPs. IMPACT ON DISTRICT ENERGY HOT COOL has in earlier publications touched upon how the DE industry synergises with international development. In the Stan-countries and in Eastern Europe, several energy efficiency projects are carried out with funding from development banks. The World Bank is an ICoE partner, and it can be speculated that the PfPPP terminology will anchor itself onto projects around energy efficiency when public funds are involved.

Torkil Hvam Sørensen, torkil_sorensen@outlook.com For further information please contact:

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