Denmark ends district heating heat pump grants

By Charlotte McLaughlin, Jan 10, 2019, 16:38 1 minute reading

Denmark has ended its support for heat pumps in district heating, having awarded grants to 33 projects last year.

Copenhagen, Denmark.

The Danish Energy Agency, having awarded 33 heat pump projects a total of DKK 51.3 (€6.87) million from 2017 to 2018, is now ending its grants for district heating heat pumps.

“This was the last round of applications to the subsidy for large heat pumps for district heating,” Michele Rosa, an advisor in the supply centre at the Energy Agency, told this website.

The heat pump projects, likely to be completed by 2020, will most likely use ammonia as the refrigerant due to Denmark’s strict f-gas legislation. The Scandinavian country began to phase down HFCs in 2001, five years earlier than the EU as a whole (see Accelerate Europe Issue 7 to learn more).

Speaking at the Chillventa Congress (in October 2018), Lars Ove Reinholdt, product manager, refrigeration and heat pump technology at the Danish Technology Institute (DTI), based in Aarhus, said these Danish government grants to encourage district-heating plants to install large heat pumps had played a crucial role in their proliferation. 

Denmark, according to Reinholdt, boasts 41 large natural refrigerant-based heat pumps, most of which use ammonia and most of which are for district heating projects. The heat pump capacities range from 0.2 to 10 MW.

Part of the motivation for offering district heating heat pump grants was the anticipation of new EU rules prohibiting the continuation of current subsidies for natural gas heating.

Denmark will now continue to keep district heating prices low by reducing the tax paid on electrically produced heating (instead of natural gas). “There is no new direct subsidy for large heat pumps for district heating. It is true that there is a gradual reduction of the tax rate on electricity for large heat pumps,” explained Rosa from the Danish Energy Agency.

By Charlotte McLaughlin

Jan 10, 2019, 16:38

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