New buildings use up to twice as much heat as calculated: Expert panel presents its full recommendations

Many newer multi-storey residential buildings use far more heat than expected - in some cases up to twice the calculated values. At the same time, data from district heating companies show that these buildings often utilize district heating inefficiently and return high temperatures of up to 60°C back into the system.

To understand the causes and find shared solutions to the problem, Digital Energy Hub and HOFOR have over the past year brought together district heating companies, researchers, consultants, and building owners in a joint innovation process. The aim was to identify how the industry can better use real data to assess energy consumption in new buildings—without changing the existing energy labeling scheme.

Now the results are ready: a broadly composed expert panel has put forward a number of recommendations that together set the direction for a new national approach to data-driven energy benchmarking of buildings.

Broad agreement: Denmark needs a supplementary, data-driven benchmarking model

The expert group concludes that Denmark needs a voluntary benchmarking model based on actual heat consumption, utilization of district heating, and the technical operation of buildings. The model should function in parallel with the energy label and provide building owners and utilities with a more accurate picture of real building performance.

“As a utility company, we can clearly see the challenge in our measurement data, but today we lack a common language for what ‘good performance’ actually means in new buildings. A voluntary benchmarking model based on real data will provide much greater transparency and make it easier for building owners, consultants, and utilities to work in the same direction,” says Kristian Honoré, energy planner at HOFOR.

Recommendations from the sprint point toward a new national direction

The expert panel highlights three key areas that can form the foundation for future efforts. First and foremost, it recommends developing a voluntary, data-driven benchmarking model that operates alongside the energy label. The model should be based on actual heat consumption and show how buildings truly utilize district heating—thereby providing a more accurate picture of energy performance than theoretical calculations alone.

In addition, the panel sees an urgent need to strengthen data infrastructure across district heating companies and building types. Together with a transition to evidence- and data-based energy labels, this will provide significantly better conditions for successfully implementing the new EU directive (EPBD 2024/1275), which requires member states to renovate the most energy-consuming buildings.

“With the current theoretical energy labels (BE18/BE26), which Denmark has chosen to maintain, we unfortunately risk renovating good buildings while poor-performing buildings avoid renovation. The EU directive opens up for data- and evidence-based methods, and with frequent meter data available at Center Denmark, these methods can easily be established and automated—for the benefit of building owners, who will receive fair energy labeling, and for the green transition, which will gain maximum value from the billions that must be invested in renovation under the EU directive,” says Henrik Madsen, member of the expert panel and professor at DTU.

To meet these needs, this will require improved access to metering data, integration of more types of meters, and expansions of the Danish Building and Dwelling Register (BBR), so that operational conditions and technical installations are documented in much greater detail than today.

Finally, the panel recommends bringing the work to life through a large-scale pilot program. It proposes testing the data-driven benchmarking model in more than 100 multi-storey residential buildings constructed after 2015, allowing the industry to validate the method in practice and document its value across major urban areas.

A shared data foundation across district heating companies will strengthen further efforts

During the process, district heating companies, building owners, consultants, and researchers agreed that a shared, representative data foundation will be crucial for developing a new benchmarking model. Several district heating companies indicated that they could potentially provide data from 20–50 newer multi-storey residential buildings for a future pilot program.

Naturally, this will take place in close dialogue and collaboration with customers, who must also grant permission for their data to be used and shared.

Although the data has not yet been collected, these commitments demonstrate a strong willingness across the sector to jointly address the challenge and establish a foundation for more precise analyses across urban areas.

“This is the first time we have brought together so many stakeholders to analyze the performance gap in new buildings based on actual operational data. This means we now have such a strong foundation for the next steps that the proposed initiatives could set the framework for how Denmark benchmarks building energy performance in the future—on a data-driven and transparent basis,” says Michael Sørensen, Head of Innovation at Center Denmark.

Facts

The expert panel’s overall recommendations:

  1. Establishment of a voluntary, data-driven benchmarking model based on real measurements rather than theoretical calculations, operating alongside the energy label
  2. Expansion of data infrastructure, including improved access to district heating data, integration of more meters, and extensions to the BBR
  3. A national knowledge and methodology platform with shared calculation methods, weather correction, and open documentation across stakeholders
  4. An open national portal displaying anonymized benchmarks and providing an overview of performance across buildings
  5. Pilot program: proposal to conduct practical demonstration projects in 100+ multi-storey residential buildings constructed after 2015
  6. Gradual scaling: starting with new buildings and then expanding the model to the entire Danish building stock

Facts about the innovation sprint

  • The sprint was carried out by Digital Energy Hub in collaboration with HOFOR
  • The expert panel included representatives from district heating companies, building owners, consulting firms, DTU Compute, technology providers, and knowledge institutions
  • The focus was on multi-storey residential buildings constructed after 2015

Facts about Digital Energy Hub

Digital Energy Hub is an innovation hub funded by the Danish Industry Foundation from 2025–2028 with DKK 19.7 million. The project is facilitated by Center Denmark, DigitalLead, and Energy Cluster Denmark.

Read more at the Digital Energy Hubs website

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