First, district heating companies that are democratically owned by consumer cooperatives or local municipalities tend to offer lower prices for households. This has significant implications for the green transition. If decarbonizing heat becomes a burden on low- and middle-income communities, it risks eroding public support. By keeping clean energy affordable, democratic ownership helps ensure that the transition is not only green but also fair. Second, collective ownership structures allow for more long- term strategic thinking. District heating systems require substantial up-front investment and involve infrastructure that may last for 50 years or more. Private companies focused on short-term returns may struggle to justify such timelines. In contrast, public or cooperative ownership can align with the long-term interests of communities by planning for climate goals, energy security, and fairness. To expand district heating in a way that is both affordable and supports climate goals, we must take ownership seriously. Democratic ownership models have proven to be more effective in maintaining low prices and planning for the long term. Let’s now take a closer look at these two claims, examining the evidence behind each and considering what they could mean for the future of district heating. Democratic ownership lowers your heating bill. District heating companies that are democratically owned by either consumers or municipalities are generally more
affordable for consumers than those that are commercially owned. Several studies conducted in various countries support this finding. In Denmark, the evidence is particularly striking. While almost all district heating utilities in Denmark are owned by consumers and municipalities, a few utilities have historically been owned by commercial entities. A 2012 analysis by the Danish Energy Regulator Authority examined the price disparities between these ownership structures. Even after adjusting for differences in energy sources, urban density, and the scale of the utility, the study found a clear cost advantage for democratically owned utilities. Specifically, households paid, on average, District heating is increasingly viewed as a key tool in addressing some of the world’s most significant challenges. It plays a crucial role in the green transition of the heating sector, as it can replace fossil fuels with cleaner sources, such as electricity, surplus heat, waste- to-energy, and even geothermal energy. In Europe, heating and cooling make up around half of total energy consumption 1 . As a result, district heating is increasingly becoming a cornerstone in promoting energy security by reducing dependence on geopolitical rivals like Russia. Countries like Ireland, Germany, and the Netherlands have already set ambitious targets to significantly expand district heating. Fact
1 https://energy.ec.europa.eu/topics/energy-efficiency/heating-and-cooling_en
39 www.dbdh.dk
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