This analysis compares the competitiveness of newly established district heating and individual heating by doing calculations on a Danish case. In the analysis it is explained which parameters affect the price of district heating and individual heating as well as what kind of influence the heat demand has regarding costs.

The overall outcome of the analysis is that a new district heating system is highly competitive with respect to heating price when compared to individual heating solutions, when the district heating system is established in cities and towns. This is the case for both the state of buildings as of today and for new areas with low-energy buildings.

The competitiveness between individual heating and district heating is very relevant to examine regarding newly established district heating systems outside of Denmark and because of this, the results from this analysis are relevant concerning an export perspective.