News
Supporting Community-Owned District Heating Projects
Since April 2024, the new development fund in the Netherlands has provided crucial support for community-owned district heating initiatives in the Netherlands. Financed by the Ministry of Economic Affairs, the €25 million fund aims to support up to 25 pilot projects across the country. Karlijn Stokkers of Energie Samen explains how does the fund work, how is it structured and what is its main purpose.
- Could you outline the key details of the fund?
Karlijn Stokkers: Sure. Here’s a quick overview:
- The fund supports development costs for community-owned district heating projects.
- There’s a budget of €25 million, intended for up to 25 projects.
- It’s financed by the Ministry of Economic Affairs.
- The target group is energy cooperatives across the Netherlands.
- The fund works in phases, each with different requirements
We also focus heavily on knowledge sharing and standardization, making it easier for future projects to replicate successful models.
- How is the fund structured?
Karlijn Stokkers: The fund is divided into four phases, each with increasing investment and collaboration as the project moves forward. In the first phase, the risks are quite high because a lot is still unknown about the project, but the investment needed is relatively small. As the project progresses, more money is required, and there’s more engagement with municipalities and other stakeholders. This increases the chance of success, but also the financial risks. It’s similar to our development fund for renewable energy projects, but with specific conditions tailored to district heating projects.
- How many communities have benefited from the fund so far?
Karlijn Stokkers: At the moment, three energy communities have successfully gone through the application process. Another ten are currently in the pipeline, applying for loans. Some are further along than others, but overall, interest is growing, and we expect to see more communities engaging as the process continues.
- Where does the financing come from, and who are the main players involved?
Karlijn Stokkers: The financing comes from the national government, specifically the Ministry of Economic Affairs. We, Energie Samen, manage the fund and work closely with energy communities right from the start, helping them through the loan application process. There’s also a national independent organization that manages the ministry’s funds. Additionally, quality assurance managers visit the projects that apply for loans to ensure everything is on track.
- How long does the process take from application to receiving funds?
Karlijn Stokkers: It varies. For the first phase, communities don’t need to have everything figured out, so it could take just a few weeks. But it depends on the complexity of each community’s business case. Some may take longer if they need to gather more documentation or conduct more discussions with local stakeholders.
- What is the ultimate goal of the fund?
Karlijn Stokkers: The primary goal is, of course, to help community-owned heating projects reach financial close. But we’re also focused on gathering and sharing knowledge from these projects, so future initiatives can benefit from their experiences. Ultimately, we want to standardize the process for developing community-led district heating systems, making it more accessible for energy cooperatives across the country.