Guarantees of origin for district heating and cooling – documenting renewable energy

Dansk Fjernvarme has been in dialogue with the Danish Energy Agency since March 2026 on forthcoming guidance on guarantees of origin for district heating. This page will be updated with references to Dansk Fjernvarme’s industry guidance once it is available.

What is a guarantee of origin?

A guarantee of origin for district heating or district cooling is an electronic certificate documenting that an equivalent quantity of energy has been produced from renewable energy sources. For district heating and cooling, the guarantees are issued by the Danish Energy Agency, and one guarantee corresponds to 1 MWh as standard. The guarantee does not change the physical heat supply, but it can be used as documentation when it is used and cancelled in accordance with the rules.

Which energy sources are covered?

Guarantees can be issued for district heating and cooling from renewable energy sources such as biomass, biogas, geothermal energy, ambient energy and the biogenic fraction of waste, provided the plant is registered and the production can be documented in accordance with the rules. Special documentation requirements may apply to mixed fuels, liquid biofuels and energy conversion. Surplus heat is not in itself covered by the scheme as a renewable energy source.

Specific to district heating and cooling

District heating differs from electricity and gas. Guarantees of origin for electricity and gas can be traded freely across EU countries, but for district heating and cooling, the current rules tie the use of a guarantee to consumption taking place in a network with the same identity as the network in which the guarantee was issued. In addition, the heat in a district heating network is mixed in the shared pipe system, so the individual customer does not receive physical heat from one specific plant.
Businesses should therefore ask their supplier to confirm that the guarantees can be linked to the specific agreement, the specific consumption and the relevant network.

How it works

1. Production. A registered district heating or district cooling plant produces energy from renewable energy sources.
2. Issuance. The Danish Energy Agency issues guarantees of origin for the documented quantity.
3. Transfer. The guarantee can be transferred between account holders in the digital registry, for example under an agreement between a district heating company and a business.
4. Use. The guarantee is used as documentation for an equivalent quantity of district heating or cooling delivered to an end customer.
5. Cancellation. The guarantee is cancelled so that it cannot be used again. The cancellation is the key documentation step for the customer.

Under the current rules, a guarantee must be used no later than 12 months after the end of the production month and expires no later than 18 months after production if it has not been cancelled.

What can the guarantee be used for?

Guarantees of origin can be used as documentation of the renewable origin of the energy – for example in procurement policies, ESG work and documentation towards customers and business partners. The specific implications for a company’s CO₂ accounting depend on the reporting standard and methodology applied by the company and should be quality-assured separately.

What does it not document?

A guarantee of origin does not document which heat physically flows through the company’s installations. Nor does it in itself document that the district heating is CO₂-neutral, climate-neutral, sustainable or emission-free. Such claims require separate documentation and must be assessed against the rules and standards the company applies in its reporting and marketing. Climate and environmental claims must be capable of substantiation and must not overstate the significance of guarantees of origin.

What the company should obtain documentation for

The company should obtain documentation – for example a cancellation statement – showing:

• how many MWh have been cancelled,
• which period the guarantees cover,
• which energy type and energy source the guarantees relate to,
• in which district heating or district cooling network the guarantees were issued and used,
• on whose behalf the cancellation was made,
• and that the guarantees cannot be used again.

Examples of wording

More precise: “For this agreement, [x] MWh of guarantees of origin for district heating from renewable energy sources have been cancelled for the period [period].”

Less precise: “Our heat is 100 per cent green.”

More precise: “The guarantees of origin document that an equivalent quantity of district heating has been produced from renewable energy sources and cancelled on behalf of the company.”

Less precise: “We only receive renewable heat in our buildings.”

Disclaimer

This page provides general industry information from Dansk Fjernvarme and is not a statement by a public authority. It cannot replace specific legal, accounting or audit advice. The examples of wording on this page are for guidance only and do not constitute legal approval of specific marketing; responsibility for marketing and reporting rests with the individual company.