District heating and energy security
Heat accounts for a large share of total energy consumption in the Netherlands. Around 40% of energy consumption is used for heat. The way we heat homes and buildings is therefore highly important for Dutch energy security.
Energy security is about the extent to which a country can rely on sufficient, reliable and affordable energy, now and in the future. For the Netherlands, this includes reducing dependence on imported natural gas, creating an energy system that can withstand price and supply shocks, and ensuring reliable supply, even during peak demand or geopolitical tensions. Through a broad range of activities, EBN contributes to energy security in the Netherlands.
District heating networks are playing an increasingly important role in Dutch energy security. They provide a stable and affordable heat supply. Because they often use local heat sources, e.g. geothermal energy, to reduces dependence on foreign energy sources.
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Dutch District Heating and Energy Security
Why is energy security important?
Energy security refers to the extent to which a country can rely on a sufficient, reliable and affordable supply of energy, both now and in the future. For the Netherlands, this means:
- Reducing dependence on imported natural gas.
- Maintaining an energy system that is resilient to price and supply shocks.
- Ensuring reliable energy delivery, even during periods of peak demand or geopolitical tensions.
Energie Beheer Nederland (EBN), the parent organisation of the National Heat Investor (Nationale Deelneming Warmte, NDW), contributes to energy security in the Netherlands through a wide range of activities, e.g. gas storage and the development of green gas production facilities.
What is the role of district heating in energy security?
District heating networks contribute to the Netherlands’ energy security in three ways:
- Less dependence on imports: An important aspect of energy security is reducing dependence on foreign fossil fuels. District heating networks use local and regional heat sources, which reduces demand for imported natural gas and makes the Netherlands less vulnerable to international market developments.
- More stability in the energy system: As part of the energy transition, district heating contributes to a more stable energy system by helping to reduce congestion on the electricity grid. Instead of thousands of individual electric heat pumps, heat can be generated centrally through a collective heat source or sources. This has a positive effect on grid congestion.
- Reliable long-term supply: District heating networks have a long operating life. By investing in district heating that uses local, sustainable sources, areas can rely on a heat supply for decades to come.
Public governance of district heating strengthens energy security
The 2027 Collective Heat Act (Wet collectieve warmte) stipulates that new district heating networks in the Netherlands must be majority publicly owned. This new market framework also contributes to improving energy security because:
- Continuity becomes a higher priority.
- Public authorities take the lead in long-term investment decisions.
- Public values, such as affordability and reliability, are placed at the centre of decision-making.
Through the National Heat Investor (Nationale Deelneming Warmte, NDW), the Dutch State contributes to energy security by investing in heat companies and accelerating the rollout of district heating networks. One of NDW’s key activities is supporting the establishment of new regional heat companies. NDW is currently part of Energie Beheer Nederland (EBN).