District Heating Can Save CO₂ Emissions and Money Through Digitalization

Better data sharing and common standards can significantly improve the efficiency of Danish district heating - benefiting both the climate and heating bills. At the same time, it is the key to taking sector coupling to the next level.

Lower CO2 emissions and reduced heating bills.

These will be two very tangible outcomes of the digital efficiency improvements being explored in the district heating sector through the innovation project HeatSync.

In this project, several district heating and utility companies are collaborating with Center Denmark, Energy Cluster Denmark, Aarhus University, and a number of businesses to standardize the sharing of district heating data. This will both simplify data exchange between individual heating companies and ease collaboration across sectors.

“There are at least three good reasons to standardize data,” says Steen Kramer Jensen, Chief Digital Consultant at Danish District Heating Association (Dansk Fjernvarme):

“Firstly, it makes it easier for district heating companies to share data internally and use it for operational optimization. Secondly, it improves customer service by standardizing access to data. And thirdly, it’s a major help when it comes to reporting and meeting the growing demand for data for ESG and CSR reporting,” he says.

Pooling Knowledge and Development

Billund District Heating already uses data for most operations - from billing and maintenance prioritization to plant optimization.

Even so, Director Jens Enevoldsen sees major benefits in incorporating even more data into daily operations.

“Data is the key to shared sparring, standardization, and learning between district heating companies. We can learn a lot from gaining insight into each other’s figures and having comparable data. If the neighboring municipality is getting 2 percent better efficiency out of a straw boiler than we are, of course we want to know what they’re doing differently,” he says.

When Laura Møller took up the newly created position of Chief of Data and Digitalization at Silkeborg Utility three years ago, her task was to increase data usage focused on customer needs and expectations, internal operational optimization, and to enable better knowledge sharing and efficiency improvements. That’s exactly what HeatSync supports:

“Standards uplift the entire industry and benefit the greater good,” says Laura Møller.

“We’re not in competition, so it makes perfect sense to give each other insight and share what we know. At Silkeborg Utility, we have one solution architect employed, which limits what we can take on - but if we pool more resources across utility companies, we might have 5-10 experts working together on a task. That means we can achieve much more, like developing a shared algorithm,” she says.

A More Robust Energy System

The gains in terms of optimized production and delivery for district heating companies are just one aspect of the HeatSync innovation project, says Lau Holm Albertsen, Project Manager at Energy Cluster Denmark:

“Increased knowledge sharing within the district heating sector offers clear efficiency benefits for operations and better customer service. Not least, it’s also an important step toward greater sector coupling with electricity and water supplies, which will significantly benefit the green transition,” he says.

That perspective is shared by Søren Skov Jakobsen, Director at Center Denmark:

“Sector coupling requires easy access to data and the ability to connect that data across different sectors. The district heating system is a crucial part of our green transition, and with HeatSync we aim to develop varmeoverblik.dk as a concrete example of how district heating data can be shared seamlessly and support real-world use cases. If we can develop standards and systems that interact across all utilities and consumers, it will support the green transition, improve the overall robustness of the energy system — and not least, save money,” he says.

HeatSync Facts

HeatSync is an innovation project funded by EUDP, running from 2024 to 2026. The partner group includes Billund Varmeværk a.m.b.a, Albertslund Forsyning, Trefor Varme A/S, Silkeborg Forsyning A/S, Hvide Sande Fjernvarme a.m.b.a, Aarhus University, Neurospace, Klappir, Center Denmark, and Energy Cluster Denmark.

The project focuses on developing and demonstrating a common data model across the district heating sector, as well as a data broker to make it easier for service providers to access data.

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