Vattenfall suspends new city heating projects in existing buildings

Energy giant Vattenfall will stop installing district heating systems in existing residential properties due to costs and the possible impact on consumers. telegraph reported Friday.

The company, a Swedish state-owned enterprise, told The New York Times that it was forced to make the decision due to “deteriorating market conditions.” A spokesman said the cost of heating the city was too high and unattractive for consumers.

Amsterdam recently had to spend €4 million to compensate 2,000 households facing rising heating costs in the city because they had no other choice. District heating schemes have also been halted in the Dutch capital and Rotterdam.

Urban and district heating schemes that use excess heat from industry or burning waste are seen as an important part of the transition to clean energy.

The previous cabinet wanted to double the number of homes connected to city heating systems to one million within the next seven years. City heating plans at the heart of Dutch transformation plan leave Natural gas is used as energy source.

However, the new government has said it will abandon its previous government’s commitment to phase out gas central heating boilers.