Subsidy (Investments in Electric Heat Pumps for District Heating Production)

Executive Order on District Heating Heat Pump Subsidisation

This scheme aims to displace fossil fuels from the heat production of district heating companies by subsidising investments in electric heat pumps at such companies. A total of EUR 8.2 million (DKK 61 million) will be allocated through the scheme in two application rounds in 2021 (Executive Order on District Heating Heat Pump Subsidisation)

The subsidy covers up to 15 % of the eligible costs, including the purchase of the heat pump, environmental studies and construction and installation services, not exceeding EUR 672,371 (DKK 5 million) per undertaking (§ 3 Executive Order on District Heating Heat Pump Subsidisation).

The target group is district heating companies where at least 50 % of the existing heat production in the district heating network is based on coal, oil or natural gas (§ 5 District Heating Heat Pump Subsidisation).

An application must be sent to DEA through an online platform within the set deadline. The application must include i.a. a description of the project, a budget and a timetable. DEA assesses the eligibility of all applications. If it is not possible to meet all the eligible applications within the budget, DEA will give priority to projects that have the lowest amount of subsidy in DKK/MW and the lowest subsidy intensity calculated as a percentage of the total eligible costs (§§ 6-10 District Heating Heat Pump Subsidisation).

DEA