BARRIERS TO DISTRICT HEATING DEVELOPMENT IN SOME EUROPEAN COUNTRIES
BARRIERS TO DISTRICT HEATING DEVELOPMENT IN
SOME EUROPEAN COUNTRIES
Abstract
District heating (DH) offers low primary energy demand, high security of supply and small CO 2
emissions. Barriers to DH in the UK, Ireland, France, Romania and the Czech Republic have
been compiled through publications and interviews.
DH systems require large investments, have negative initial cash flow and long payback time,
which obstructs financing. One actor should control DH from source to consumption. If the
value chain is fragmented, contracts are required between the links. It increases risks and
financing costs, like in the UK and Ireland, where DH is not established. There are few multi-
family houses with central heating and it is expensive to build DH networks in built areas.
Most French DH systems are operated according to long-term concessions by companies that sell
electricity and gas. No strong actor provid...