The European Commission has been recognized DH technology of essential importance to reach the sustainability. A flexibility in the fuel mix, and possibilities of industrial waste heat utilization, combined heat and power (CHP) production and energy recovery through waste incineration, are only some of the benefits which characterize DH technology.

The aim of this study is to provide an overview of the possible business strategies which would enable for DH to have an important role towards future sustainable energy systems. The study includes a system approach where DH is seen as a part of an integrated system which consists of transport‑, industrial-, and electricity sectors as well.

Converting energy for running the industrial processes from fossil fuels and electricity to DH and delivering excess heat from industrial processes, would make the industry less dependent on fossil fuels and fossil fuel-based electricity, as well as increase energy efficiency and reduce production costs. Reducing the electricity use in the industry sector while at the same time increasing the CHP production in the local DH systems would (1) replace fossil-based electricity production with electricity in biomass- or waste-fueled CHP plants, and reduce the capacity requirements from the national electricity grid (i.e. it would reduce the pressure on the bottle necks in the grid). Furthermore, by operating their central controlled heat pumps and CHP plants depending on the intermittent electricity production variation the DH companies may enable an increased share of intermittent electricity production in the national electricity grid.