Swedish energy utility E.ON Sverige AB, a subsidiary of Germany-headed energy utility major E.ON SE is investing close to SEK 500 million (≈ EUR 46.1 million) in strengthening district heating in Malmö, Sweden's third-largest city.
E.ON’s extensive investment in district heating in Malmö includes several key projects to strengthen the city’s heat and energy supply.
The investments include a new pumping station for district heating distribution in the Malmö/Burlöv network, backup boilers at Heleneholmsverket that can support during cold winter days, and a new main line in western Malmö.
These investments will strengthen Malmö’s district heating system and show the way for sustainable energy solutions in Sweden, said Charlotte Reidhav, District Heating Manager at E.ON Sverige.
In addition to securing the heat supply for Malmö residents, the district heating investments also provide significant benefits for the electricity system in southern Skåne.
In 2023, district heating reduced the load on Malmö’s electricity system by 345 megawatts, which is equivalent to the electricity consumption of 69,000 electrically heated homes on a cold winter day. This is a significant relief for the electricity system and leads to major savings on necessary grid reinforcements, which are costs that would otherwise have been burdened by electricity consumers, said Charlotte Reidhav.
Improve dispatchable energy capacity
For Malmö, the investments mean an improved capacity to meet the city’s growing energy needs, especially during the cold winter months.
Unlike electric heating, which is affected by price fluctuations, district heating offers stable and predictable heating costs.
District heating accounts for 90 percent of space heating in Malmö’s apartment buildings.
Nationally, cogeneration contributes up to 3 GW of dispatchable electricity production – equivalent to three nuclear reactors.
In addition, district heating reduces the load on the electricity system by seven gigawatts during cold periods. This relief is crucial for Sweden’s electrification and transition to fossil-free energy, said Charlotte Reidhav.
The report “Proposal for a district heating and cogeneration strategy” from the Swedish Energy Agency underlines the importance of district heating for the country’s energy supply.
Failure to invest in district heating and cogeneration would lead to a sharp increase in electricity demand, which risks overloading the electricity system and increasing the risk of power outages.
Replacing district heating with heat pumps would mean electricity system costs of between SEK 100–150 billion (≈ EUR 9.2–13.8 billion).
District heating’s ability to recover and use waste and residual heat makes it a central part of E.ON’s sustainability strategy.
By recovering energy from industries, data centers, and wastewater, we create a resource-efficient heat source. In Malmö, district heating is based on renewable and recycled energy sources, which reduces the city’s dependence on fossil fuels and contributes to reduced carbon dioxide emissions, ended Charlotte Reidhav.
