Digitalization in District Heating : Comparative Insights from Denmark and Sweden on Adoption, Barriers, and Value Creation
(2026) 1st Nordic Energy Informatics Academy Conference, EIA Nordic 2025 In Lecture Notes in Computer Science 16095 LNCS. p.79-94- Abstract
Digitalization holds significant potential to improve the efficiency, flexibility, and sustainability of District Heating (DH) systems. However, the transition toward digitalized DH is often constrained by challenges beyond technology—such as regulatory uncertainty, unclear business models, fragmented organizational capacity, and misaligned stakeholder incentives. This paper offers a comparative, qualitative analysis of how digitalization is adopted, perceived, and implemented in DH systems in Denmark and Sweden—two of the most mature DH markets globally. Based on expert survey data collected under the IEA DHC Annex TS9 initiative, the study explores adoption trends across operational, customer-facing, and strategic domains. Findings... (More)
Digitalization holds significant potential to improve the efficiency, flexibility, and sustainability of District Heating (DH) systems. However, the transition toward digitalized DH is often constrained by challenges beyond technology—such as regulatory uncertainty, unclear business models, fragmented organizational capacity, and misaligned stakeholder incentives. This paper offers a comparative, qualitative analysis of how digitalization is adopted, perceived, and implemented in DH systems in Denmark and Sweden—two of the most mature DH markets globally. Based on expert survey data collected under the IEA DHC Annex TS9 initiative, the study explores adoption trends across operational, customer-facing, and strategic domains. Findings reveal that while digital tools like smart meters, Supervisory Control and Data Acquisition (SCADA) systems, and AI-based analytics are being introduced, systemic barriers, such as General Data Protection Regulation (GDPR) related constraints, lack of clear return on investment, and digital skills gaps, continue to slow progress. Denmark’s strengths in infrastructure and coordination contrast with Sweden’s more diverse but fragmented innovation landscape. The study identifies key enablers: tariff reform, regulatory sandboxes, and capacity building, and offers context-sensitive policy and strategic recommendations. These insights contribute to advancing digitalization in the DH sector and to shaping future research and policymaking in smart energy system transformation.
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- author
- Ma, Zheng ; Billanes, Joy Dalmacio and Lygnerud, Kristina LU
- organization
- publishing date
- 2026
- type
- Chapter in Book/Report/Conference proceeding
- publication status
- published
- subject
- keywords
- Barriers, Business model innovation, Denmark, Digitalization, District heating, Energy policy, Smart energy systems, Sweden
- host publication
- Energy Informatics - 1st Nordic Energy Informatics Academy Conference, EIA Nordic 2025, Proceedings
- series title
- Lecture Notes in Computer Science
- editor
- Martinac, Ivo ; Jørgensen, Bo Nørregaard ; Ma, Zheng Grace ; Unnþórsson, Rúnar and Bordin, Chiara
- volume
- 16095 LNCS
- pages
- 16 pages
- publisher
- Springer Science and Business Media B.V.
- conference name
- 1st Nordic Energy Informatics Academy Conference, EIA Nordic 2025
- conference location
- Stockholm, Sweden
- conference dates
- 2025-08-20 - 2025-08-22
- external identifiers
-
- scopus:105021821928
- ISSN
- 0302-9743
- 1611-3349
- ISBN
- 9783032031006
- DOI
- 10.1007/978-3-032-03101-3_5
- language
- English
- LU publication?
- yes
- id
- 3dd6778d-018f-4419-9065-d7c6c14e0c27
- date added to LUP
- 2026-02-11 11:55:32
- date last changed
- 2026-02-11 11:56:30
@inproceedings{3dd6778d-018f-4419-9065-d7c6c14e0c27,
abstract = {{<p>Digitalization holds significant potential to improve the efficiency, flexibility, and sustainability of District Heating (DH) systems. However, the transition toward digitalized DH is often constrained by challenges beyond technology—such as regulatory uncertainty, unclear business models, fragmented organizational capacity, and misaligned stakeholder incentives. This paper offers a comparative, qualitative analysis of how digitalization is adopted, perceived, and implemented in DH systems in Denmark and Sweden—two of the most mature DH markets globally. Based on expert survey data collected under the IEA DHC Annex TS9 initiative, the study explores adoption trends across operational, customer-facing, and strategic domains. Findings reveal that while digital tools like smart meters, Supervisory Control and Data Acquisition (SCADA) systems, and AI-based analytics are being introduced, systemic barriers, such as General Data Protection Regulation (GDPR) related constraints, lack of clear return on investment, and digital skills gaps, continue to slow progress. Denmark’s strengths in infrastructure and coordination contrast with Sweden’s more diverse but fragmented innovation landscape. The study identifies key enablers: tariff reform, regulatory sandboxes, and capacity building, and offers context-sensitive policy and strategic recommendations. These insights contribute to advancing digitalization in the DH sector and to shaping future research and policymaking in smart energy system transformation.</p>}},
author = {{Ma, Zheng and Billanes, Joy Dalmacio and Lygnerud, Kristina}},
booktitle = {{Energy Informatics - 1st Nordic Energy Informatics Academy Conference, EIA Nordic 2025, Proceedings}},
editor = {{Martinac, Ivo and Jørgensen, Bo Nørregaard and Ma, Zheng Grace and Unnþórsson, Rúnar and Bordin, Chiara}},
isbn = {{9783032031006}},
issn = {{0302-9743}},
keywords = {{Barriers; Business model innovation; Denmark; Digitalization; District heating; Energy policy; Smart energy systems; Sweden}},
language = {{eng}},
pages = {{79--94}},
publisher = {{Springer Science and Business Media B.V.}},
series = {{Lecture Notes in Computer Science}},
title = {{Digitalization in District Heating : Comparative Insights from Denmark and Sweden on Adoption, Barriers, and Value Creation}},
url = {{http://dx.doi.org/10.1007/978-3-032-03101-3_5}},
doi = {{10.1007/978-3-032-03101-3_5}},
volume = {{16095 LNCS}},
year = {{2026}},
}