Heat networks

Around forty percent of Dutch energy demand stems from the need for heat. Currently, foreign natural gas is the main fuel used in Dutch heat generation. If the country adapted to heat networks running on locally sourced heat, such as geothermal energy, the Netherlands could become less dependent on foreign sources for its heat. Heat networks also significantly contribute to achieving the Dutch climate goals for 2050. Under a proposed new Collective Heat Act, Dutch municipalities and provinces can establish majority publicly owned heat companies. EBN, with the Dutch State as its sole shareholder, is envisaged to assist municipalities and provinces in these endeavors by taking on the role of National Heat Investor (Dutch: Nationale Deelneming Warmte) from 2026 onwards.

The development of heat networks aimed at making existing Dutch housing more sustainable is currently at a standstill. Even when considering new building developments, the number of connections is growing only limitedly. The main challenges for heat networks in the Netherlands are financing, ensuring affordable rates for customers, and a generally negative image of heat networks. The stated goal by the Dutch government to connect 500,000 existing households by 2030 and 2.6 million households by 2050 to a heat network is currently out of sight.

• Publicly owned heat networks

  To accelerate the construction of heat networks, the Dutch House of Representatives is discussing a proposed Collective Heat Act (Dutch: Wet collectieve warmte) during spring 2025. This law, in combination with additional measures, will only allow for heat networks that are majority publicly owned. Additionally, the law will enforce new tariff oversight, stricter sustainability regulations for heat sources, and create the possibility of a National Heat Investor. With majority publicly owned heat networks, trust between residents, municipalities, social housing corporations, and heat companies can be restored. The expectation is that publicly owned heat companies will start quickly building heat networks again, even in places where it is currently unattractive for privately owned heat companies to do so

• National Heat Investor

  EBN is the designated Dutch National Heat Investor under the proposed new Collective Heat Act. At the request of the Dutch Minister of Climate Policy and Green Growth, EBN has been preparing for this additional role since 2024. Starting January 1, 2026, EBN, in the capacity of National Heat Investor, will become a publicly owned co-investor in majority publicly owned local and regional heat companies. Control over local heat transition planning remains with the local municipalities. With the National Heat Investor participating in a portfolio of local and regional heat companies, various advantages arise for these companies in terms of financing, planning, development, and procurement. This should translate into lower costs across the board. Ultimately, these lower costs should benefit the heat customers of publicly owned heat networks, as fewer costs should result in lower heat rates.

• Guiding principles

  In developing the National Heat Investor, EBN is guided by the following principles:
  
  1. Affordable heat, healthy business operations – The National Heat Investor should not aim for short-term profits or high returns. Instead, we focus on healthy business operations with profitable heat companies in the long term and with end-user rates as low as possible.
  
  2. Financing – The National Heat Investor should take on a significant portion of the equity financing needed for local/regional heat companies. Participation of the National Heat Investor is envisaged to also make attracting external financing easier.
  
  3. Scale – The National Heat Investor ‘thinks big', preferably at the level of regional heat companies. For this, we work closely with municipalities, provinces, and other publicly owned partners such as network companies. Current local/municipal initiatives can be the stepping stones to a desired regional scaled heating company.
  
  4. Standardization – With the National Heat Investor’s planned portfolio of (regional) heat companies, standardization between these companies becomes more feasible. Thus, scarce capacity (especially labour and money) can be more optimally utilized for the heat transition.
  
  5. Knowledge sharing – The National Heat Investor will gather knowledge and expertise throughout the entire heat sector and with actors in the sector, our shareholder, the Ministry of Climate Policy and Green Growth, policymakers, and other involved organizations such as the Dutch Consumer Authority (ACM) and the National Program Locale Heat Transition (NPLW).
  
  6. Locally sourced heat – The National Heat Investor also aims to contribute to the accelerated deployment of local, sustainable heat sources (such as geothermal energy or wastewater affluent) in the Netherlands to reduce the existing dependence on foreign natural gas.
  

• Contact us

  If you’d like to know more about the plans of the Dutch National Heat Investor, please contact us via the contact form.

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