11-09-2008 European district heating experts call for fair market conditions in Central and Eastern Europe.

At its meeting in Budapest today, the Energy Policy Working Group of Euroheat & Power, the Brussels-based lobby organisation for district heating and cooling, discusses the situation and prospects for district heating and cooling in Central and Eastern Europe.
“District heating and cooling are proven technologies that in terms of greenhouse gas reduction potential, in both the shorter and longer term, should be core elements of the policymaker’s toolbox for responding to climate change”, underlines Euroheat & Power’s Vice-President Birger Lauersen. “In Denmark, district heating has been the central instrument in shaping one of the most efficient energy sectors in the world. While natural gas and oil prices have been soaring over the last decade, district heating customers have benefi tted from green comfort at very stable prices.”

Euroheat & Power’s Director, Sabine Froning adds: “It is especially in the new EU Member States, that the large market penetration of district heating offers tremendous opportunities for supplying customers with not only affordable but also environmentally sustainable comfort. We call upon governments and regulators to seize this opportunity and set the right conditions for their district heating systems to improve to the most modern standards and to expand further. In many countries, it is evident that heat tariff regulations and undue subsidies continue to give perverse incentives to high-carbon heating methods instead of district heating. This needs to be remedied, not only for the benefit of reducing climate change but also to make Europe more independent from energy imports.“

“Unfortunately, rather than taking district heating as an element of sensible energy policy, crucial in responding to the challenges of climate change, Hungarian public and politicians consider it as technology of the past suitable only for heating of panel buildings. At present, a significant part (70-80%) of the district heating is at high-rise housing blocks, and these buildings don’t meet the exigencies of the time with excessive consumption and little or no individual heat regulation. These, together with the social problems (difficulty in paying the bills), are real and important issues that we are looking to resolve. However, we should make sure not to confuse these problems with the discussion over contribution of district heating and cooling towards sustainable energy market in Hungary, throwing out the baby with the bath water,” notes György László, Vice-President of the Hungarian District Heating Association.

Download press release here (pdf, 1.1Mb).