HOT|COOL NO. 5/2023 "HOW TO ESTABLISH A DH COMPANY?"

A DISTRICT HEATING COMPANY

such as many volunteer hours from local enthusiasts to con- tact neighbors and dialogue with advisors and the munici- pality. Preparing a project proposal and technical, economic, and legal screening and preparation for a completely new DH company also requires financial resources.

At an early stage in the process, it is also recommended to in- itiate a dialogue with major heat consumers such as industry/ commerce, municipal buildings, property associations, hous- ing cooperatives, etc. to gauge their interest Also, preliminary considerations of potential heat sources/production - the pos- sibility of surplus heat from industry, data centers, wastewater, water purification, or similar should be investigated. The mu- nicipality is an essential sparring partner in this process. The re- sult is a very early assessment of the opportunities and interest.

A good starting point for a group of persons who want DH is to gather information:

From the municipality regarding climate plans, green transition, or heat planning.

“Investigate start-up capital and cooperation with the municipality.”

From existing similar district heating companies from other places.

If there is no DH planned for your area, you should contact the municipality and gain insight into local climate, energy, and heat plans. It is always a good idea to involve the municipality from the beginning if you consider establishing your own DH company. The municipality can assist with various aspects, in- cluding organizing public meetings. One challenge in the start-up phase is often financing, and a 360-degree advisory approach - technical, economic, and le- gal - is recommended. However, a group of citizens rarely has the financial resources to pay for expert advice and other costs. Screening and establishing a company (technical, econom- ic, legal assistance) cost €15,000-17,000 in Denmark, while a project proposal costs €10,000-15,000. Again, the municipal- ity can often be a good partner and source of support. Some- times, the municipality may support advisory services and

From private companies that establish DH systems as turnkey projects.

Planning and rolling out collective heat supply takes time. Ex- pect a minimum of 1.5-2 years for processing in the municipal- ity, excavation work, etc., before DH is established in a new area.

“Start an initiative group.”

It needs to be investigated whether the area is suitable for DH. Are the properties reasonably close to each other? How many could be expected to connect to DH? If it is believed that there is a basis for a company, the "enthusiasts" can convene a found- ing general meeting to elect a board.

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