Analyzing variables for district heating collaborations between energy utilities and industries

One vital means of raising energy efficiency is to introduce district heating in industry. The aim of this paper is to study factors which promote and inhibit district heating collaborations between industries and utilities. The human factors involved showed to affect district heating collaborations more than anything else does. Particularly risk, imperfect and asymmetric information, credibility and trust, inertia and values are adequate variables when explaining the establishment or failure of industry-energy utility collaborations, while heterogeneity, access to capital and hidden costs appear to be of lower importance. A key conclusion from this study is that in an industry-energy utility collaboration, it is essential to nurture the business relationship. In summary, successful collaboration depends more on the individuals and organizations involved in the relationship between the two parties than on the technology used in the collaboration.