Developing innovative business models for reducing return temperatures in district heating systems: Approach and first results

Temperature reduction plays a key-role in increasing the energy efficiency of existing European district heating (DH) systems and, most important, in allowing a higher and more cost-efficient integration of sustainable low-temperature sources. However, technical, economical and legal barriers hamper the necessary investments. Purpose of this study is the elaboration of business models encouraging a substantial temperature reduction in existing DH systems and enabling the transition towards the 4GDH. Particular focus is paid on solutions incentivizing the deep implementation of measures on the demand side to reduce the network return temperatures. The information collected through the review of international success stories and through interviews with stakeholders is used to derive recommendations for business models and propose new ideas for Austrian DH utilities, though the replicability in other countries is not excluded. The elaborated solutions are intended to overcome the main barriers acting in synergy on three levels: 1) customers’ engagement in fault detection and in temperature reduction; 2) financing of fault detection and optimization measures through strategic partnerships and crowdfunding platforms; 3) Energy Saving Contracting, especially (but not only) to solve the split incentive issue in rental homes.