Public Heat Company Amsterdam Moves One Step Closer
The establishment of a public heat company for Amsterdam, which will be responsible for the development and operation of district heating networks in the city, has moved one step closer. The Municipality of Diemen has indicated its intention to join the heat company in the future.
The initiative is being developed in part by the National Heat Investor (Nationale Deelneming Warmte – NDW), a subsidiary of Energie Beheer Nederland (EBN). Following the signing of a letter of intent in May 2025, the Municipality of Amsterdam, Nationale Deelneming Warmte (NDW) and Alliander have now reached agreement on the terms and conditions for further development and have therefore signed a Development Agreement. The next step towards establishing the company can only be taken if the Dutch government introduces measures to structurally improve the affordability of heat network connections.
Accelerating the rollout of district heating networks
The Municipality of Amsterdam, Nationale Deelneming Warmte (a subsidiary of EBN) and Alliander have formalised this next step through a Development Agreement for the establishment of a public heat company. A publicly owned heat company will provide greater control over, and accelerate, the rollout of district heating networks. In recent years, cooperation between public authorities and private parties in heat projects has not delivered the desired growth in the number of district heating connections. Projects stalled, despite district heating networks being an essential component of the energy transition.
Stable and affordable heat supply
Alongside ambitions to further decarbonise Amsterdam’s heat supply, current geopolitical tensions and the energy crisis have made an independent and future-proof heat system more important than ever. The establishment of a public heat company is an important step in achieving this goal and represents a long-term investment in a more stable and affordable energy bill for consumers.
Support from central government
The participating parties are now ready to establish a public heat company. However, doing so will only be meaningful if the framework conditions for the development of district heating networks are also addressed by the Dutch government.
At present, insufficient funding is available, making district heating connections unattractive for building owners. Existing subsidies are fragmented across different target groups, requiring numerous separate funding applications for a single heat network project. The participating parties hope that the government will take swift action to improve these conditions, clearing the way for stable, clean heat supplied under public leadership.
Development Agreement
The parties have reached agreement on the further development of a public heat company with equal shareholdings. Decisions will be taken jointly.
Initially, the company will focus on the development of its own sustainable heat sources and heat networks in areas outside the existing city-wide district heating systems. The longer-term ambition is to establish a single public heat company for the Amsterdam region, contributing to CO₂ emissions reduction, greater energy independence and a future-proof heat supply.
Diemen
The parties aim to create a regionally operating public heat company. Increased scale can help improve affordability, which is why discussions with municipalities across the region are ongoing.
In March 2025, the Municipality of Diemen decided to explore participation in the public heat company. Diemen has now formally expressed its intention to join the initiative. The parties are currently examining how Diemen’s potential participation can best be incorporated into the future organisation.
