Sweden-headed energy utility Vattenfall AB has announced that it has started a process to assess the ownership of its district heating portfolio. This means that, as part of its continuous portfolio evaluation, Vattenfall will assess future options for its district heating operations in the UK, Sweden and the Netherlands, including potential divestment. This process also includes future ownership options for the electricity distribution business in the UK.
Vattenfall is a provider of district heating to the equivalent of approximately 550,000 households in multiple European markets.
It supplies both B2B and B2C customers in large metropolitan areas. District heating is an important part of the energy transition, and has the potential for efficient, cost-effective and flexible large-scale use of low-carbon energy for heating and cooling.
The energy transition is essential for society, and offers many opportunities for integrated energy companies.
However, given the large capital investments required, Vattenfall says it must “prioritise its activities carefully, also taking into account the need for fossil-free electricity generation like wind and nuclear power, as well as distribution and storage solutions to meet future energy demands.”
After the recent sale of Heat Berlin in Germany, Vattenfall is looking into the remainder of its district heating portfolio. Affected employees in all markets have been informed.
Vattenfall continuously prioritises and weighs investment opportunities to contribute to the energy transition in the best way. There is no doubt that there is a sustainable future for district heating in all three markets and for the electricity distribution business in the UK. Our assessed businesses will continue to operate as normal, working alongside our partners in all our markets. This process of assessing the most suitable ownership will take time, and we will provide a further update if there is news to share, explained Alexander van Ofwegen, SVP and Head of Business Area Customers & Solutions, which includes heat operations.
Vattenfall says that it is committed to the energy transition and will continue to make extensive investments in fossil-free electricity generation, distribution and storage solutions to a total of SEK 170 billion (≈ EUR 15.3 billion) between 2025 and 2029.
