The fundamental idea behind modern district heating is recycling of surplus heat that would otherwise be wasted – heat generated in power stations, fuel refineries and various industrial processes.

The Swedish model sets focus on end-user demand and on the option to use fuel from multiple sources. Thus the heat supply model is transformed from being production-driven to being demand-driven. Only the needed volume of heat will be accepted by the system. Consequently, residents will have to pay only for the energy actually used. The heat is typically produced in a combinated heat and power plant (CHP). Thanks to advanced technology, fuels from a wide span of sources can be used.

The most cost-efficient Swedish solutions frequently have a combination of features in common: two-pipe network systems, a substation in every building and individual metering in every household. It is important that both radiators and tap-water systems are performing satisfactory and that buildings have acceptable insulation. Functionality and component performance within the entire system are key parameters.