Two-way district heating

Can customers also become producers in the heating market? We studied how an open district heating market could work in Finland.


Closed project: January to October 2016

Competition for customers in the heating market has become much more intense in recent years. This is due to the technological development of different forms of heat production, as well as Finland’s current energy policy and building regulations. District heating companies must actively develop their operating models and seek the most competitive heat production and procurement methods possible.

One possibility is to start developing the heating market towards two-way heat trading. Two-way heat trade refers to a situation in which the district heating company opens up its network to the heat generated by customers or third parties.

What was achieved?

We studied two-way heat trading and investigated different market models for the purchase, by district heating networks, of small-scale heat production and customers’ excess heat. The study helps district heating companies to create the basis for establishing two-way trade, thereby improving the ability of the district heating sectors to respond to the growing climate challenge and expand the heating market’s customer-oriented approach.

The project explored the roles of the different parties, their revenue logic and the interests involved in two-way heat trading. The report (available in Finnish only) answers the following key questions.

Who participated?

The project involved a separate general study funded by Finnish Energy (ET) and Sitra, as well as a company-specific case study funded by Turku Energia. Both studies were implemented by Pöyry.


Interesting viewpoints to this project


Two-way district heating creates a heat trading market for the customer


Customers become sellers: exploring opportunities for two-way heat trading


Tuula Sjöstedt
Communications and Public Affairs Lead

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