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MODULE 10.2: District Energy in Cities

Key Issues

Exploring key issues relevant to local governments - aspects for consideration when dealing with district energy:

    • Reducing risks

      • Investing in district energy requires a long-term commitment
      • National climate or energy vision that explicitly addresses heating and/or cooling is essential
      • Coherent accounting principles: energy efficiency labels and standards

        • District energy interacts with other areas of energy production, supply and consumption that are regulated

          • This makes it vulnerable to legislative inconsistencies

        • Cities themselves cannot remedy this challenge, although they can advocate for changes in standards

    • Economic Competitiveness

      • Pricing-in combined heating and power (CHP) benefits is important to creating a level playing field
      • Offering better rates for electricity produced in CHP plants can enhance revenue and reduce public funding requirements for district energy networks

    • Vertical Integration

      • Effective vertical integration is needed to optimize planning, coordination and monitoring of developments between different levels of government
      • Each level of government has its specific mandates, making vertical integration increasingly important


    Note: Information presented on this page was based on the UNEP's District Energy in Cities publication





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