District Heating - Pros and Cons

Pros and Cons

District heating has various advantages compared to individual heating systems. Usually district heating is more energy efficient, due to simultaneous production of heat and electricity in combined heat and power generation plants. The larger combustion units also have a more advanced flue gas cleaning than single boiler systems. In the case of surplus heat from industries, district heating systems do not use additional fuel because they use heat (termed heat recovery) which would be dispersed to the environment.

District heating is a long-term commitment that fits poorly with a focus on short-term returns on investment. Benefits to the community include avoided costs of energy, through the use of surplus and wasted heat energy, and reduced investment in individual household or building heating equipment. District heating networks, heat-only boiler stations, and cogeneration plants require high initial capital expenditure and financing. Only if considered as long-term investments will these translate into profitable operations for the owners of district heating systems, or combined heat and power plant operators. District heating is less attractive for areas with low population densities, as the investment per household is considerably higher. Also it is less attractive in areas of many small buildings; e.g. detached houses than in areas with a few much larger buildings; e.g. blocks of flats, because each connection to a single-family house is quite expensive.

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