Danish government criticized for neglecting EU signals on climate-friendly geothermal projects
The Danish government is facing criticism for disregarding clear EU signals to promote climate-friendly district heating systems, specifically those using geothermal energy, which could accelerate the phase-out of oil and gas in rural areas. The criticism arises after a new bill excluded these so-called “termonet” projects from obtaining a municipal guaranteed loan, which offers better interest rates and security compared to private market financing.
According to Termonet Denmark, the European Parliament has indicated through a resolution that termonet is one of the most promising geothermal solutions that can be implemented nearly anywhere. The Parliament recommends public loan guarantees for such significant investments, noting their long-term durability and low operating costs.
Local authorities are now engaged in the debate, arguing that the government’s approach contradicts its aspirations to eliminate oil and gas heating, risking the depopulation of rural areas. Experts emphasize the importance of local energy communities and highlight that the theoretical benefits of termonet indicate it is a viable option for resource-limited communities.
Critics in the Danish Parliament are expressing disappointment that EU signals were not taken more seriously during negotiations, calling it unacceptable to be uninformed about such strong indications. They argue that rural areas need alternative solutions where district heating is economically unfeasible.
The Minister for Climate, Energy and Utilities, Lars Aagaard, dismissed the strength of the EU’s signals, comparing the resolution to an opinion piece and asserting that financial risks should be borne by consumers themselves. However, he acknowledged the government’s willingness to support termonet projects, stating that it is crucial for customers to assume financial responsibility to encourage engagement from heating companies. A parliamentary committee has agreed there is a need for more clarity regarding the potential of termonet, prompting plans for an expert meeting.