Danish communities struggle with heating transition as political decisions hinder progress

Although phasing out oil and gas heating systems in Danish homes is a top priority, political decisions in rural areas are hindering progress. A recent political move effectively prevents many small communities, unable to access district heating, from developing alternative collective ground heating systems. These initiatives often rely on municipal loan guarantees and favorable loans, which a majority in Parliament decided against over the summer.

Residents in various towns have spent the last two years volunteering to establish collective geothermal heating for about 75 households, which has been calculated to be cheaper and more sustainable than individual heat pumps. However, Jørn Eskildsen, chair of a local heating project in the small town of Hjortsvang, fears their efforts are in jeopardy. Hjortsvang is among many “oil villages” that cannot connect to district heating and continue to rely heavily on oil boilers.

The collective ground heating projects have faced setbacks following a political agreement that clarifies such initiatives do not fall under the heating supply law, meaning they cannot secure the necessary favorable municipal loans. The Council for Rural Districts argues this decision significantly undermines collective heating solutions, describing it as a neglect of rural areas.

Critics express concern about the implications of this decision in a time when accelerating the green transition is crucial to meet ambitious climate targets. Currently, around 100,000 homes in Denmark still use oil for heating, with an additional 300,000 using gas. Experts suggest that without support for projects like collective ground heating, environmental and climate benefits will be forfeited. Meanwhile, the government claims the rationale is to prevent financial risks to municipalities and ensure competition among heating solutions.