District heating (DH) enables the utilisation and distribution of heating from sources unfeasible for stand-alone applications and combined with cogeneration of heat and power (CHP), has been the cornerstone of Denmark’s realisation of a steady national primary energy supply over the last four decades. However, progressively more energy-efficient houses and a steadily improving heat pump (HP) performance for individual dwellings is straining the competitive advantage of the CHP–DH combination as DH grid losses are growing in relative terms due to decreasing heating demands of buildings and relatively high DH supply temperatures.