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Figure 1. Integrated district heating systems in Greater Copenhagen, 2009. By 1976, Denmark passed the Electricity Supply Plan to establish a national policy that electricity generating stations would be required to recover and reuse waste heat, rather than simply exhausting useful thermal energy to the oceans and atmosphere, thus establishing combined heat and power (CHP) as the standard for electricity generation. CHP systems can reach 90 percent energy efficiency, compared to less than 40 percent for electricity-only production, because the "waste" heat is used to heat and cool nearby buildings. Denmark then passed the first Heat Supply Law in 1979, which contained regulations for heat planning in Denmark, launching a new public planning approach for municipalities to optimize investments in energy infrastructure. While the Heat Plan effectively diminished customer choice by mandating heating supply options, similar to zoning in the US where municipal sewer and water districts assess betterment fees to contiguous properties regardless of whether they hook up or not, the Heat Plan also served to reduce development risk and resulted in uptake rates of nearly 100% and even lower costs for customers. Consequentially, planners were able to optimize around environmentally desirable heat sources, such as co-generation of heat and electricity to exploit surplus heat from electricity generation. Denmark still relies on coal for 52 percent of its electricity, but the efficiency gained through CHP has allowed the country to Copyright ©2009 International District Energy Association. All rights reserved. 2PDF Image | Copenhagens District Heating System
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