Digital Transformation of District Heating: A Scoping Review of Technological Innovation, Business Model Evolution, and Policy Integration

Zheng Grace Ma () and Kristina Lygnerud
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Zheng Grace Ma: SDU Center for Energy Informatics, Maersk Mc-Kinney Møller Institute, The Faculty of Engineering, University of Southern Denmark, Campusvej 55, 5000 Odense, Denmark
Kristina Lygnerud: Efficient Energy Systems, Lund University, P.O. Box 118, SE-221 00 Lund, Sweden

Energies, 2025, vol. 18, issue 22, 1-36

Abstract: District heating is critical for low-carbon urban energy systems, yet most networks remain centralized in both heat generation and data ownership, fossil-dependent, and poorly integrated with digital, customer-centric, and market-responsive solutions. While artificial intelligence (AI), the Internet of Things (IoT), and automation offer transformative opportunities, their adoption raises complex challenges related to business models, regulation, and consumer trust. This paper addresses the absence of a comprehensive synthesis linking technological innovation, business-model evolution, and institutional adaptation in the digital transformation of district heating. Using the PRISMA-ScR methodology, this review systematically analyzed 69 peer-reviewed studies published between 2006 and 2024 across four thematic domains: digital technologies and automation, business-model innovation, customer engagement and value creation, and challenges and implementation barriers. The results reveal that research overwhelmingly emphasizes technical optimization, such as AI-driven forecasting and IoT-based fault detection, whereas economic scalability, regulatory readiness, and user participation remain underexplored. Studies on business-model innovation highlight emerging approaches such as dynamic pricing, co-ownership, and sector coupling, yet few evaluate financial or policy feasibility. Evidence on customer engagement shows increasing attention to real-time data platforms and prosumer participation, but also persistent barriers related to privacy, digital literacy, and equity. The review develops a schematic conceptual framework illustrating the interactions among technology, business, and governance layers, demonstrating that successful digitalization depends on alignment between innovation capacity, market design, and institutional flexibility.

Keywords: district heating; business model innovation; digital transformation; scoping review; artificial intelligence (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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