District heating and economic analysis — the French case

The aim of this paper is to examine the role of economic analysis in making decisions about district heating. It is argued that economic considerations have not been very important in the French context. This view rests on an apparent paradox: although energy price rises should favour district heating, there has been a considerable slowing down of its development in France. Also, no French combined heat and power projects have come to fruition in the last six years — despite their potential for efficient use of fossil fuels. The author aims to provide a basis for understanding this lack of progress.