Heat network becomes more unattractive: Eneco pulls the plug in Utrecht | Economy

Housing associations and energy company Vattenfall have previously withdrawn from development projects for district heating.

The aim of the development of heating networks is to sustainably use heat from industry for heating homes. This also allows households to get rid of gas. But the costs of construction are high and ultimately have to be passed on to households.

The high costs make the construction of heating networks a headache, because municipalities and energy companies do not want to incur costs for households that switch off gas.

But if heating network projects do not go ahead, it will become more difficult to switch residential areas off gas. The government’s target is for one third of all households to be connected to the heating network by 2050.

Eneco has been investigating since 2021 whether part of the Utrecht district of Overvecht could get rid of gas by installing a heating network. According to the energy company, the question is how smart it is to install such a grid in this district. Eneco explains that the costs are relatively high because there are many single-family homes in the neighborhood. Heat networks may be more efficient in flats.

The energy company believes that alternative ways to switch from gas, such as the installation of a hybrid heat pump, are more affordable in Overvecht than the construction of a heating network.

According to Eneco, the decision to stop developing the heating network is also influenced by the fact that the municipality of Utrecht has reduced the area. Some flats have disappeared.

Eneco emphasizes that in the Netherlands we should only install heating networks in neighborhoods where they are significantly cheaper than alternatives. Only then will it be attractive for tenants and homeowners to switch to it.