334 L. BOSCÁN ET AL.
the Baltic countries (Estonia and Latvia) and Russia (International Energy
Agency, 2017; Danish Council on Climate Change 2018). Relying on
biomass creates competition among countries for an exhaustible resource,
which may make Denmark vulnerable to price and supply-side swings
(Hvelplund et al. 2017). Ensuring diversity and quality of biomass
supplies is crucial to minimize the vulnerability and the environmental
impact of Denmark’s district heating sector.
More generally, the convenience of biomass usage is a priority topic in
Denmark’s public policy debate. Proponents of biomass admit that it is a
temporary greener alternative to coal usage for both baseload electricity
and heat generation, given the intermittent nature of variable renewables,
like wind power. They also suggest that alternative heating technologies, such as large-scale heat pumps, solar and geothermal heating, or
the large-scale usage of excess industrial heating require further time to
mature (Danish Energy Association and Danish District Heating Association 2017). Opponents, on the other hand, consider that recently
proposed policy changes may erode the economic viability of the Danish
district heating sector and that these may prove insufficient to promote
true decarbonization of district heating.
Decarbonization through district heating electrification is a goal of the
2018 Energy Policy Agreement and is part of a broader effort to “modernize” Denmark’s district heating sector (Danish Ministry of Energy
Utilities and Climate 2018a). A central measure is to eliminate the longstanding cogeneration requirement (introduced in 1986), which has been
a cornerstone of Danish energy efficiency, and the obligation to use
natural gas in the “minor” district heating areas. 2 Through 2018, the
establishment or expansion of district heating in an area had to comply
with the fuel choice constraints imposed by law. If the project involved
cogeneration, essentially all fuel types could be chosen. However, if the
project was for exclusive heat production and the area is served by the
natural gas network, then natural gas must be the chosen fuel. Otherwise, biomass, waste, biogas, landfill gas, and other gasified biomass
were the available options (Danish Energy Agency 2017). Since January
2019, district heating companies operate under new regulatory conditions which make it easier for district heating firms to switch to renewable
sources—heat pumps in particular—from natural gas. In line with the
centralized, socio-economic planning model that has existed for decades
in Danish district heating, firms wishing to switch from natural gas into a
the Baltic countries (Estonia and Latvia) and Russia (International Energy
Agency, 2017; Danish Council on Climate Change 2018). Relying on
biomass creates competition among countries for an exhaustible resource,
which may make Denmark vulnerable to price and supply-side swings
(Hvelplund et al. 2017). Ensuring diversity and quality of biomass
supplies is crucial to minimize the vulnerability and the environmental
impact of Denmark’s district heating sector.
More generally, the convenience of biomass usage is a priority topic in
Denmark’s public policy debate. Proponents of biomass admit that it is a
temporary greener alternative to coal usage for both baseload electricity
and heat generation, given the intermittent nature of variable renewables,
like wind power. They also suggest that alternative heating technologies, such as large-scale heat pumps, solar and geothermal heating, or
the large-scale usage of excess industrial heating require further time to
mature (Danish Energy Association and Danish District Heating Association 2017). Opponents, on the other hand, consider that recently
proposed policy changes may erode the economic viability of the Danish
district heating sector and that these may prove insufficient to promote
true decarbonization of district heating.
Decarbonization through district heating electrification is a goal of the
2018 Energy Policy Agreement and is part of a broader effort to “modernize” Denmark’s district heating sector (Danish Ministry of Energy
Utilities and Climate 2018a). A central measure is to eliminate the longstanding cogeneration requirement (introduced in 1986), which has been
a cornerstone of Danish energy efficiency, and the obligation to use
natural gas in the “minor” district heating areas. 2 Through 2018, the
establishment or expansion of district heating in an area had to comply
with the fuel choice constraints imposed by law. If the project involved
cogeneration, essentially all fuel types could be chosen. However, if the
project was for exclusive heat production and the area is served by the
natural gas network, then natural gas must be the chosen fuel. Otherwise, biomass, waste, biogas, landfill gas, and other gasified biomass
were the available options (Danish Energy Agency 2017). Since January
2019, district heating companies operate under new regulatory conditions which make it easier for district heating firms to switch to renewable
sources—heat pumps in particular—from natural gas. In line with the
centralized, socio-economic planning model that has existed for decades
in Danish district heating, firms wishing to switch from natural gas into a