Denmark municipalities debate geothermal heating solutions amidst climate concerns

In the pursuit of a greener Denmark, municipalities are becoming embroiled in a controversy over heating solutions that could ensure environmentally friendly futures for several villages and remote areas. The Danish Municipalities Association has expressed concerns regarding a new legislative proposal that would effectively block small communities from acquiring district heating based on geothermal energy. This system, referred to as termonet, aims to heat multiple homes in areas not served by district heating.

Critics, including Birgit S. Hansen, chair of the Climate and Environment Committee of the Municipalities Association, argue that the proposal could lead to communities being left behind. It would prevent them from accessing municipal guarantees for loans that offer better interest rates and security compared to market-funded alternatives. Hansen emphasized that this goes directly against the government’s goal of phasing out oil and gas heating.

Professor Birgitte Bak-Jensen from Aalborg University supports these criticisms, calling the exclusion of termonet from municipal guarantees a significant barrier. She indicated this could delay or even prevent projects necessary for the transition to greener energy.

Meanwhile, residents like Christian Jacobsen in Aarøsund are frustrated, having pursued geothermal heating solutions for years. Jacobsen pointed out the contradiction in the government’s decision, especially when gas and oil heating systems are being phased out.

The Minister for Climate, Energy, and Utilities, Lars Aagaard, defended the proposal, stating it aims to protect taxpayers from footing the bill for unsuccessful projects. He disagreed with claims that the bill would accelerate rural depopulation, asserting that changes would facilitate termonet projects without municipal financial backing.