District heating organisation

Tuesday, April 24, 2007   (updated Wednesday, August 01, 2007)

The regional utility company NRGi organizes all their heating plants in the same way. In collaboration with a local group of interested citizens, NRGi disseminates general information about local district heating plants. The consumers in question also receive direct mail with relevant information. These letters contains forms which can be signed and sent in to sign up for district heating. This response costs 100 Danish crowns, about 20 dollars US.

The principal arguments in support of local district heating systems are environmental improvements (one efficient central boiler and one central chimney with efficient cleansing systems) and the ease of operation for each household. Normally the price of the delivered heat also means saving money on your heating bill. The actual planning process is first begun when 70% of the area’s consumers using regular oil furnaces or boilers have signed up for the conversion to district heating. The detailed project specifications are presented to the municipal authorities who can help the project financially by guaranteeing for the loans necessary to finance the project. The consumers repay the loans over a 20 year period, as money for the instalments is included in the heating prices.

At the national level, the Department of Energy has had funding available to alliviate the initial costs involved in starting new district heating projects. The project’s planning and economy is evaluated again and hopefully extra funding made available. After a public call for tenders, and subsequent bids that match the budgets, the district heating system is established.