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Over the last two years, the U.S. Department of Energy funded a project to survey and evaluate the research and development (R and D) activities and needs of district heating and cooling (DHC) technology in preparation for the initiation of an R and D program in this field. This project found that the dual impact of increased energy prices and interest rates over the last five years has spurred a substantial amount of R and D. This activity has been most in evidence in Sweden, Denmark, Finland, and West Germany.

New technologies, still in the process of development or just emerging into the marketplace, evidence significant potential for making DHC both less capital-and-energy-intensive (and thus, more competitive) and more widely applicable than conventional steam or hot water technologies. R and D has focused on lowering the costs of each of the major components of DHC systems including consumer, distribution, and thermal production technologies. The major findings of this survey and evaluation of DHC R&D in each of these categories are summarized in the following paper.