The Danish Energy Agency launches a new tool to evaluate costs and benefits of district heating compared to individual heating. Using the Danish experience and lessons learned in district heating this tool is a key instrument in transferring knowledge on heat planning to the rest of the world.
Denmark’s leading position in terms of renewable energy, energy efficiency and environmentally friendly heating systems is amongst others due to its extensive use of district heating, covering two thirds of the heat demand in Denmark. To apply and share Danish experiences Ramboll developed a new tool for the Danish Energy Agency named District Heating Assessment Tool (DHAT). The Danish Energy Agency uses the tool in its collaborating partner countries to support the green transition by drawing upon the Danish experience regarding cost-effective district heating with low carbon emissions.
DHAT analyses will provide important insights to carry out the recently initiated district heating pilot project between the Danish Energy Agency and the China National Energy Conservation Center. One of the pilot project’s main goals is to engage local authorities and energy companies in DHAT in order to provide a concrete planning tool that shows them how much lower consumer costs can be achieved with district heating compared to individual heating. As part of the collaboration with China, DHAT will be adjusted to local conditions regarding heat production and consumption.
The tool is now publicly available to everybody interested in evaluating district heating projects based on Danish experiences. Possible interest groups are consultants, citizens, or authorities that consider establishing district heating.
About the District Heating Assessment Tool
DHAT performs an economic feasibility study and indicates environmental impacts by comparing district heating to individual heating, and can be adjusted to local conditions worldwide.
The main results from DHAT are comparisons, shown as:
- The cost expressed as both Net Present Value (NPV, total discounted lifetime cost) and Levelized Cost of Energy (LCoE, discounted cost by unit of energy)
- The comparison of CO2, CH4, N2O and NOx emissions
- Socioeconomics based on Danish methodology
DHAT can be used for screenings as well as deeper analyses of district heating projects and support for policy makers. It shows marginal costs for different technology choices, company and consumer economics at different heating prices as well as levies and taxes.
Tel: +45 3395 4275