District heating in Norway has developed to become a pillar in the Nordic country’s heating mix, promoting reliable heating in the freezing winter temperatures and a feasible alternative to fossil fuels.
A number of reasons explain the growing importance of district heating in Norway in recent years, with the regulation banning the use of mineral oil for heating buildings from 2020 marking a key milestone.
Considering Norway has the most heat pumps per capita in all Europe (632 for every 1,000 households, according to EHPA figures), the outlook for district heating in Norway that puts renewable, clean energies to the forefront is outstanding.
But what are the particulars of district heating in Norway and the foreseeable trends? Here’s a look at some data and findings.
Why heating in Norway matters today
In the movement towards decarbonized economies, the Norwegian parliament has agreed to augment Paris Agreement goals: the aim in the Nordic country is a reduction of CO2 emissions of 55% by 2030 compared to 1990 levels, and of 90-95% for 2050.
Heating in Norway represents a key sector in the country’s advances in this terrain, as heating takes on a large proportion of the country’s energy consumption.
Norway presents a series of particularities in this endeavour. For instance, electricity is today the main energy source for heating, according to the Norwegian Ministry of Energy. What’s more, this electricity is mainly produced through renewable and low emissions sources, such as hydropower, achieving “98% zero emissions electricity generation in 2020”, as published by the IEA.
This is a major departure from the heating landscape in other European countries in which, according to Eurostat data, more than 70% of energy consumed for heating still comes from fossil fuels (mostly natural gas).
This has implications in Norway’s model for moving forward in decarbonizing heat: while other countries are focused on the task of removing fossil fuels from their energy mixes, Norway is in a fundamentally different stage of the energy transition.
As such, Norway faces particular energy-related challenges: in 2030, Norway’s emissions are projected to fall only around 27% from 1990 levels (CCPI), falling behind the country’s expectations and the Paris Agreement figures. Meanwhile, demand for electricity is expected to experience a 10% growth by 2030, without taking into account potential increases by “new consumer groups, such as data centers and hydrogen production.” (NVE)
This data points towards heating in Norway becoming a key strategic sector not just in the present but in the near future, in efforts to achieve decarbonization.
As such, recommendations issued by the energy and environment committee in the Norwegian Parliament have been signaling curbing emissions in transport and the industry, while continuing to address the importance of targeting heating in Norway. Limiting energy consumption in households, extending the incorporation of renewable energy sources for heating purposes and increasing efficiency in the electricity grid have been discussed as specific measures to achieve so.
The evolution of district heating in Norway
When looking at the evolution of district heating in Norway, official data showcases its expansion: in 2024, district heating delivered to consumers was 6810 GWh, growing from 4893 GWh in 2015, which accounts for around a 39% increase. Of this total amount, 53.7% is delivered to services, 27.2% to households, and 15.7% to manufacturing.
This growth has been accompanied by a boost in investment efforts for district heating: from 1 481 574 NOK in 2015 to 2 289 413 in 2023, approximately a 54% increase.
Looking at the history of regulating heating in Norway also provides perspective. The first legislation on district heating prices dates back to 1986 and included among its key provisions that prices for district heating should not be higher than prices for electric heating. A 2024 proposal to reform this norm represents the most recent change, in which the Norwegian Water Resources and Energy Directorate (NVE) recommended a new system for price regulation.
Meanwhile, the ban of mineral oil (oil produced from fossil fuels) for heating purposes from January 2020 (with exceptions until 2025) marked a move forward to incorporate renewable, clean energies and a major transition for the heating in Norway landscape.
Current technologies powering district heating in Norway today
A look at the types of energy powering district heating offers a more detailed landscape of how Norway’s model differs from other district heating models, including Finland’s district heating, Denmark’s or Canada’s.
In 2022, waste incineration covered about 45%, with the share of bioenergy increasing over the last ten years and fossil fuels accounting for 3.3% of production, according to the Norwegian Ministry of Energy.
As such, the main technologies and energy sources are:
Bioenergy and waste-to-heat systems
Bioenergy can be defined as the use of any biological material as a fuel source. In Norway, bioenergy largely refers to the use of wood and forestry residues, as well as biogas.
More specifically, the Norwegian Ministry of Energy describes the annual use of bioenergy in Norway to have increased “from 10 TWh in 1990 to 16 TWh in 2022”, with “wood burning in households” accounting for “just over 6 TWh in 2021.”
On the other hand, waste-to-heat strategies have also been introduced in district heating initiatives, including:
- Surplus heat from waste incineration, including projects in Oslo, as well as in Trondheim and Bergen. By type of heat central, the refuse incineration plant was responsible for producing 2 675.5 GWh in 2015 and 2 891.4 GWh in 2024, according to official data, which translates to almost half of total net production.
- Waste heat from other sources, such as data center operations. Waste heat as a fuel for district heating amounted to 181.1 GWh in 2015, growing to 270.5 GWh in 2025, according to the official source cited above.
Geothermal heating and heat pumps
Geothermal systems are based on employing heat from beneath the Earth’s surface to provide heating. This involves the use of ground-source heat pumps, which are able to upgrade this heat and feed it into district heating systems.
As mentioned in this article’s introduction, Norway presents outstanding heat pump per capita numbers. Numbers that have aided in having heat pumps become a major player in district heating in Norway, upgrading both geothermal heat as well as heat from other sources, such as waste heat.
This capacity has turned heat pumps into “a central technology for decarbonizing heat”, according to the IEA as they offer outstanding energy efficiency and the incorporation of renewable energy sources. In fact, additional findings by the IEA mention how “heat pumps, alongside solar PV, wind, EVs, and nuclear, are already avoiding 2.6 billion tonnes of CO₂ annually.”
This potential has meant sales of heat pumps in Norway have increased as the country continues moving towards decarbonization: 48 heat pumps were sold for every 1,000 households in 2024, according to EHPA figures.
A growth that is also reflected in official numbers by the Norwegian Government: heat pumps were responsible for 542.8 GWh of district heating net production in 2015, escalating to 791.2 in 2024 and becoming the fourth most used heat type.
Key trends shaping the future of heating in Norway
Decarbonization and green transition efforts
As seen above, movements surrounding heating in Norway in the following decades will be greatly shaped by decarbonization efforts.
With Norway’s ambitious climate targets and the ban on fossil fuels for heating, the country has shown clear intentions on cutting emissions.
The following years in district heating will likely see technological advancements in the direction of continuing to integrate diverse, locally-available heat sources (from data centers to seawater), while also enhancing efficiency in electricity consumption.
These technological improvements towards efficiency are expected to be able to cope with the foreseeable increases in electricity demand.
In fact, the Norwegian Water Resources and Energy Directorate (NVE) mentions how “better buildings and better heating solutions (including heat pumps) will (...) slow down the growth of electricity in buildings.”
This positions district heating in Norway as a key strategic actor in the country’s low-carbon energy system in the future.
Urbanization and expansion of district heating networks
District heating in Norway is a notably urban phenomenon, offering economic benefits for densely populated areas.
In the next two decades, metropolitan regions in Norway are predicted to increase their populations by 14%, according to figures by the OECD. An expansion that is likely to drive an increase in district heating demand.
Challenges faced by district Heating in Norway
Regulatory and financial barriers
Energy policies in Norway have been largely positive for district heating projects that support renewable and low emission energies. Such is the case of support provided by Enova, a state enterprise owned by the Ministry of Climate and Environment.
However, price regulation models for district heating had been described as challenging and as causing uncertainty around revenue for district heating companies.
For instance, a report produced by Thema on behalf of Hafslund Celsio cited “barriers to the socially beneficial expansion of district heating and cooling include the licensing process, district heating companies’ and customers’ incentives to develop and use district heating, and inadequate coordination between different stakeholders within the energy sector.”
Movements to introduce a new price regulation system in 2024 by the Norwegian Water Resources and Energy Directorate (NVE) have been described as an effort to overcome some of these challenges.
Climate adaptation and energy security
District heating in Norway might need to navigate foreseeable changes in climate: as milder winters can be expected due to climate change, a reduction in annual heating demand might take place, which could entail new challenges for district energy providers.
Additionally, technologies will need to continue offering flexibility and improving efficiency levels in order to guarantee reliance on electricity doesn’t translate into power grid issues. The incorporation of thermal energy storage (TES) solutions as well as smart grid technologies represent two valid pathways in this context.
ARANER: an ally to develop future district heating in Norway
At ARANER, we offer cutting-edge district heating solutions that align with Norway’s focus on top efficiencies and sustainability goals.
Learn more about our district heating solutions and get in touch with us to discover how we help district heating developments achieve their full potential while meeting regulatory and environmental requirements.
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