A recent report from Euroheat & Power underlines the key role of digitalisation in European district heating, which is no longer an optional benefit but a necessary means for utilities to survive. By putting into play the different perspectives and concrete learn- ings of utilities and suppliers across Europe, the report is a testa- ment to the importance of international collaboration from both sides of the table – and the shared responsibility of realising the ongoing paradigm shift in district heating. DIGITALISING DISTRICT HEATING REQUIRES A PARADIGM SHIFT, BUT YOUR NEXT STEP IS THE MOST IMPORTANT
By Steen Schelle Jensen, Head of Business Development – Heat/Cooling Solutions, Kamstrup
In May of this year, DHC+ Platform – the technology branch of Euroheat & Power – published their report ‘Digitalisation in District Heating and Cooling Systems,’ highlighting the impor- tant role of digitalisation in modern district heating. This report is especially relevant because it does this based on the two- fold recognition that digitalising district heating is widely recognized as a key part of the solution to the challenges facing today’s utilities – but that the status quo varies signifi- cantly from country to country. This taps into the underlying paradox of how in some Euro- pean markets, utilities have genuinely seized the opportunity to use digitalisation as the lever to optimise their entire value chain and gain a stronger position in an increasingly volatile energy market. Meanwhile, in other markets, most utilities have just begun their digitalisation journey – and in others still, digitalisation remains somewhat of a foreign concept because utilities don’t feel they have the necessary resources and com- petencies, or they are not yet fully convinced that new is better. The report is based on a survey sent out to European utilities and suppliers to uncover how the industry is coping with the challenge of digital innovation. It, therefore, aims to shed a holistic light on the state of digitalisation in district heating
across Europe – addressing both opportunities and obstacles – and secondly, to sum up, the options available to inspire util- ities that either want to speed up their journey or have yet to get started. The following reflects on three central findings.
From optional to mandatory
One of the key takeaways from the report is that digitalisation of district heating utilities can no longer be considered an optional benefit. In the digitalisation debate, we often – and rightfully – discuss its potential regarding our shared energy system, ambitious climate targets, and the decarbonisation challenges of the energy sector. However, the fact is that the benefits digitalisation brings to the individual utility are even more substantial. Today, with increasing legislative demands, complexity, and competition, utilities simply cannot afford not to digitalise their operations. The report outlines how the application of technologies available today can prove effective – and in many cases even required – to ensure heat supply’s long-term sus- tainability and reliability on the transition to 4th generation district heating (4GDH).
36 HOTCOOL SPECIAL COLLECTION no.2 / 2023
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