Case

The energy Agency: Heating on demand

Insero

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Challenge

The Danish Energy Agency is working to reduce CO2 emissions and make Denmark independent of fossil fuels. Such an ambition requires visionary solutions that are able to combine comfort, economy and sustainability.

The market for heating in Denmark has historically been dominated by technology fright and a notion that you need to be an engineer to buy a heat pump. Compared to other heating sources, heat pumps are also still an expensive solution. Consequently, the Energy Agency needed a new business model that could help the roll-out of heat pumps and make them a credible alternative to fossil heating sources.

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Solution

To break down these barriers, we defined, demonstrated and developed a new business model for the Energy Agency, where a heating company sells the heat from the heat pump. As a result, the consumer avoids the big initial investment as well as the hassle of operating and maintaining a heat pump.

Based on extensive professional knowledge in the field of energy and heat pumps, Insero assembled a consortium of Danish companies and utilities, including Brædstrup District Heating, Niras and EA Energy Analysis. Through a series of reports, this consortium developed and defined the new business model which offers homeowners easy, cheap and energy efficient heat based on renewable energy.

Subsequently, the solidity of the business model was demonstrated in practice, where e.g. 19 homeowners and a school purchased heat from heat pumps.

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Result

Ultimately, Insero delivered a complete playbook for the roll-out and commercialisation of the business model for the Energy Agency.

Using the reports and the manuscript, the Energy Agency has since then invested DKK 25 million in the commercialisation and roll-out of the business model, which makes it possible to phase out oil burners and replace them with heat pumps running on electricity. As a result, building owners across Denmark now have the possibility of subscribing to heat from heat pumps – e.g. from the Insero-owned company Best Green.

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