The Energy Agency: Heating on demand

The Energy Agency: Heating on demand


The Danish Energy Agency is working to reduce CO2 emissions and make Denmark independent of fossil fuels. Such an ambition requires visionary solutions that are able to combine comfort, economy and sustainability.


The market for heating in Denmark has historically been dominated by technology fright and a notion that you need to be an engineer to buy a heat pump. Compared to other heating sources, heat pumps are also still an expensive solution. Consequently, the Energy Agency needed a new business model that could help the roll-out of heat pumps and make them a credible alternative to fossil heating sources.  





To break down these barriers, we defined, demonstrated and developed a new business model for the Energy Agency, where a heating company sells the heat from the heat pump. As a result, the consumer avoids the big initial investment as well as the hassle of operating and maintaining a heat pump.


Based on extensive professional knowledge in the field of energy and heat pumps, we assembled a consortium of Danish companies and utilities, including Brædstrup District Heating, Niras and EA Energy Analysis. Through a series of reports, this consortium developed and defined the new business model which offers homeowners easy, cheap and energy efficient heat based on renewable energy.


Subsequently, the solidity of the business model was demonstrated in practice, where e.g. 19 homeowners and a school purchased heat from heat pumps.  





Ultimately, we delivered a complete playbook for the roll-out and commercialisation of the business model for the Energy Agency.


Using the reports and the manuscript, the Energy Agency has since then invested DKK 25 million in the commercialisation and roll-out of the business model, which makes it possible to phase out oil burners and replace them with heat pumps running on electricity. As a result, building owners across Denmark now have the possibility of subscribing to heat from heat pumps – e.g. from the Insero-owned company Best Green. 

The long-term ambition is to base the Danish energy supply on renewable energy [...] But we also know that a lot of people find it difficult to determine, which solution is the best for their house, and they are unsure about the economy and the maintenance of a heat pump. That is why it is important with initiatives like these, which make it simpler and safer for the individual homeowner to get rid of the old oil burner in favour of a modern heating source

Henrik Andersen, Head of Division at the Danish Energy Agency