Building confidence: lessons from Denmark on district heating
Across the Netherlands, there is a lack of confidence in district heating, but also in the approach which is being used. How can we build our confidence, ensure we make the right choices and move forward?
There is a reason why this project is called Confidence: it represents the necessary confidence to be sure that this is the right path and approach, as well as the confidence from all stakeholders that this is the best course of action. Therefore, this project is also about trust, which we aim to build through collaboration with all parties across society.
Danish lessons
For district heating to be successful, there is a need for political will and consumer interest. As a municipality, there is a strong need for a political figure who are willing to set their political capital towards this goal. The road to construction of district heating is long and filled with challenges, but these challenges are worth overcoming – and it can be done.
Denmark’s district heating networks have enabled them to decarbonize heating at a scale and cost that would have been impossible in any other way. This is a crucial lesson to keep in mind.
Inhabitants must also see the value of district heating. Involving them early on is important to explore demand and to ensure that the benefits of district heating are well understood.
The key is to tell the right story: district heating is not just about pipes in the ground, but about creating a shared, community-driven solution for local heat production that serves societal goals. It should be presented as a system built around comfort, affordability, reliability and sustainability. While price will always be a deciding factor, focusing only on cost ignores other important factors that influence decision-making.
For municipal officials, understanding what happens beyond the walls of their office is key to understanding the interest of different groups within their community. Homeowners, renters, social housing residents and private property owners, each have distinct perspectives and concerns. The same is true for businesses, shops, companies, organizations, non-governmental organizations (NGOs) and all professional stakeholders. Municipal officials have to go out and get to know the community and find out about their challenges, wishes, limitations, conditions and needs. Only then is it possible to present these large projects in the right way.
To build the necessary confidence, there is no need to become an expert in all technical fields. The most important thing is to be critical. Ask the right questions and question the answers received. Starting a new venture like district heating is always complicated. Municipal leaders have to go out and seek knowledge and understand their limitations and keep improving their approach.
The Dutch context
Across the Netherlands, there is a strong willingness to decarbonize. The Dutch institute PBL found in a study that 76% of people believe climate change is a serious issue, while 88% of inhabitants want to be less dependent on foreign nations for energy. Their concerns are driven by a lack of confidence in the government, affordability, and fair distribution. However, the same study does indicate that people would find it more legitimate for a district heating network to be owned by a government rather than a company. In the Netherlands, the perception is that transitioning entire neighborhoods to district heating is both uncertain and costly. At the same time, residents tend to view neighborhood-wide plans as more legitimate when costs are shared transparently, and affordability is a priority. Historically district heating has been offered by private companies in the Netherlands, who hold a monopoly position. Customers have no insights into why their prices are so high and lack alternatives, unlike in the electricity market. This combination has led to customer alienation. The same study also indicates that people would find it more legitimate for a district heating network to be owned by a government rather than a company.
Public district heating offers a solution to these concerns. Publicly owned heat companies can ensure transparency in cost distribution while prioritizing affordability. This shows that large-scale conversions from natural gas to district heating are not only feasible but also beneficial for entire communities.
Building Confidence at the national level
Restoring confidence is essential. In Denmark, heating companies are publicly owned, meaning their goals align with those of the people they serve. The Danish heat law ensures a extremely high level of transparency as residents can clearly see where costs originate and why prices fluctuate. The same openness in the Netherlands can rebuild trust in district heating.
“In Denmark, district heating is boring, that’s where we need to get to. Like drinking water in the Netherlands: publicly owned and operated, unquestioned, and affordable, even cheap. That kind of boring.”
To demonstrate the viability of the Danish approach, municipalities like Súdwest-Fryslân must take the lead in proving that publicly owned district heating can succeed. By sharing these successes, we can show that this model works. The more projects developed under this approach, the stronger the trust in public ownership will become. Each successful initiative expands our knowledge, strengthens the system, and fosters public confidence.
In Denmark there are many district heating companies, and they work together, sharing knowledge on sources and strategies. They are also able to discuss financial offers whenever they are considering the construction of a new district heating network. As a result, district heating companies have access to full information. We need similar cooperation in the Netherlands, where district heating companies freely share knowledge and help each other to deliver district heating at the best price.
Building Confidence at the local level
Sudwest-Fryslan has attempted to incorporate the lessons from project Confidence, leading to the municipal council agreeing to create a municipal district heating company. Key in this process was the series of information evenings we organized, where council members could ask questions and express their concerns. This was part of understanding their hesitations and building confidence in this new direction. Another key moment was several face-to-face meetings between council members and municipal officials which further strengthened trust in the approach.
Part of our new approach has been how we tell our story. Ensuring that our story is not just facts and figures but also explains the broader outcomes of district heating. The municipality of Sudwest-Fryslan suffers from power grid congestion, which hinders housing development, business expansion, and economic growth. By introducing district heating, we aim to ease the strain on the electricity grid, enabling further development in areas that matter to all citizens of Fryslân: councilors, local entrepreneurs, and residents alike.
Additionally, we highlight the opportunity to harness local energy sources instead of relying on imported gas. Our industries generate vast amounts of heat every day, why not use it? The same applies to the thermal energy in our rivers and underground.
Effectively communicating this vision to all our stakeholders so that they understand the technical and financial aspects, the societal benefits and long-term goals is what this project aims to achieve.
