A comprehensive five-year plan for a number of provinces focuses on providing major cities with district heating, partly because the Chinese have begun to think more about the environment and financially viable solutions, as well as a sharp rise in coal and gas prices over the past six years.
Tried and tested
COWI, Denmark's leading district heating consultant, is now advising the Beijing District Heating Group (BDHG), which wants to introduce systems on a par with European ones.
The BDHG is one of the biggest district heating companies in the world, supplying heat to the majority of private homes and companies in Beijing. It is just one of many firms interested in upgrading traditional systems to Western European standards.
"We notice Danish district heating technology increasingly being exported to China. So today the Chinese are investing in both Danish equipment and consultancy," remarks Søren K. Christensen, project manager at COWI. The greatest challenge
He predicts that the greatest challenge facing China's district heating market is when customers eventually have to pay according to usage. Currently, customers who are in many cases are the employers of workers, pay on the basis of how many square metres are to be heated, with the district heating plants turning it on and off to coincide with the seasons.
"The political process towards a consumer-oriented market has started. But it's going to be a huge upheaval, involving citizens regulating their own heat and determining when to shut it off. It will also mean district heating companies installing meters in every building and charging non-subsidised prices," Søren K. Christensen says.
District heating is a system, not an energy source. In principle, a district heating system can use any energy source, be it biomass, gas or coal. China uses mainly coal and gas.
Heat is produced at power plants outside a city, then piped in to individual homes.