Vattenfall is to investigate options for its district heating operations in the UK, Sweden and the Netherlands, including potential divestment. The process will also assess future ownership options for the electricity distribution business (IDNO) in the UK. 

Vattenfall currently provides 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. 

After the recent sale of Heat Berlin, Vattenfall is now looking into the remainder of its district heating portfolio.

Vattenfall Heat UK has customers in London, Bristol and Midlothian in Scotland, supplying the equivalent of over 6,000 households, as well as a pipeline of further opportunities. Vattenfall IDNO, the IDNO electricity distribution business, has energised over 50 grid connections for large commercial projects.  

Jenny Curtis, MD of Vattenfall Heat UK, said: “District heating and electrification are fast-moving growth markets and are essential to help meet the UK’s net-zero ambitions. There is a significant opportunity for investment in long-term, regulated, sustainable infrastructure for the right owner.”

Vattenfall will remain in the UK, and its onshore and offshore wind businesses are unaffected by this announcement, with operations continuing as normal. 

Employees in all markets were informed this morning. 

---