What changes from 2026 in district heating?
With the Wcw (Collective Heat Act) taking effect on 1 January 2026, the playing field will change significantly. Municipalities will take the lead: they will decide, per neighborhood, which company may build and operate a heat network. At least half of the ownership of such a company must be public. The aim is greater affordability, reliability, and sustainability.
Another key change: heat tariffs will no longer be linked to the gas price but will be calculated on the basis of actual costs. For residents this brings more predictability and less exposure to short-term energy market swings.
There will also be more room for small networks (up to 1,500 connections), for example cooperative projects. Under conditions, these can operate outside a municipal designation, but always with appropriate consumer protection.
The core from 2026 is collaboration—between municipalities, heat companies, and residents. With the right approach, district heating can become an affordable and reliable pillar of our sustainable future.
After 2026: two tracks in parallel
Once the Wcw is in force, a likely two-track approach emerges. Large regional networks remain essential to decarbonize entire cities. At the same time, smaller local networks will gain ground. These are often faster to realize, make smart use of nearby heat sources, and benefit from resident engagement from day one.
Thanks to more stable tariffs and subsidies—such as the Warmtenetten Investeringssubsidie (WIS) and the Investeringssubsidie Duurzame Energie en Energiebesparing (ISDE)—there are opportunities to strengthen both routes. Municipalities, housing associations, developers, and residents can jointly build a reliable, affordable, and sustainable heat system.
What this means for residents
For residents, it’s crucial to know what will happen in their neighborhood, what choices exist, and what support is available. Those who get informed early can benefit from subsidies and prepare for a connection at lower cost.
Transparency in usage data and active support with energy monitoring are becoming increasingly important. This gives
Why 2025 is a tipping point for district heating
The Dutch energy transition is in full swing. While public debate focuses on solar payback and feed-in penalties, everyone is searching for ways to utilize surplus energy. Heat pumps seem to offer answers.
Meanwhile—less visible to many—district heating is expanding. The idea is simple, but implementation is complex and socially impactful.
District heating (collective heat) supplies buildings via a network of pipes carrying centrally produced heat. Sources can include industrial waste heat, geothermal heat, or even data-center heat. Especially in dense urban areas—where individual solutions are difficult or costly—district heating offers scale advantages and can ease pressure on the electricity grid. Yet investments are high and payback periods long.
In 2025, the sector reaches an inflection point. Regulation is changing, financing options are expanding, and projects are scaling up. At the same time, practice—and several flagship projects—show the road to a working heat network has hurdles. This blog provides an accessible, as-complete-as-possible overview of where we stand now, what to expect, and what this means for municipalities, developers, housing associations, and residents.
Collective Heat Act (Wcw): New rules from 2026
On 3 July 2025, the Dutch House of Representatives approved the Wcw. The law is expected to take effect on 1 January 2026. Key changes:
- Municipal direction: Municipalities decide who builds and operates the heat network.
- Public ownership: Heat companies must be at least 50% + 1 share publicly owned.
- Cost-based tariffs: Prices no longer track gas but are determined by actual costs.
- ACM oversight: The Authority for Consumers & Markets will oversee transparency and cost reasonableness.
For small networks (< 1,500 connections), there remains room—under conditions—for cooperative initiatives. Even there, consumer-protection rules apply so residents of small systems can count on fair prices and quality.
The importance of predictable tariffs
The debate on heating tariffs has received a lot of attention in recent years. Until 2025, the so-called “no more than usual” principle applied. The maximum price for heating could not exceed the price calculated for natural gas, which in practice meant that heating tariffs fluctuated in line with the price of gas. When gas prices rose sharply in 2022 and 2023 due to the start of the war in Ukraine (the Russia-Ukraine conflict), a shortage arose on the European gas market, leading to sharp price increases. Uncertainty about future supplies exacerbated this price explosion. This had a direct impact on gas prices, but also on heating tariffs.
To change this, the ACM has adjusted the system. For 2025, the maximum tariff has been set at 43.79 euros per gigajoule, including VAT. From 2026 onwards, the rate will be determined on the basis of three reference dates in September, October and November of the previous year. This makes the rates more predictable and less sensitive to short-term peaks in the energy market. For residents, this means greater financial security, while project developers and investors have more stable income expectations.
Sources:
https://www.energie-nederland.nl/acm-maakt-warmtetarieven-2025-bekend
Subsidies for heat networks in 2025
Building a heat network is expensive. Without subsidies or other financial support, many projects are difficult or impossible. In 2025, two schemes are pivotal: WIS (Warmtenetten Investeringssubsidie) and ISDE.
- WIS supports new networks and expansions. From 1 Aug 2025–16 Jan 2026, municipalities, heat companies, and consortia can receive up to 30% of investment costs; SMEs up to 40–50%. Conditions have been broadened so projects serving both existing buildings and new build can qualify.
- ISDE supports individual connections. Homeowners connecting to a heat network can receive €3,775 in 2025. Combining WIS and ISDE helps finance infrastructure and directly supports residents—lowering barriers and increasing public support.
Large-scale vs small-scale projects
Large projects as an example: WarmtelinQ
WarmtelinQ project for industrial residual heat to cities
The theory of legislation and subsidies is one thing; the practice is often more difficult. This is also evident in, for example, the large-scale WarmtelinQ project, a heat transport pipeline that will carry residual heat from the port of Rotterdam to cities such as The Hague, Rijswijk and Leiden. The ambition is to reuse millions of gigajoules of industrial residual heat, thereby providing thousands of households and businesses with sustainable heat. But the road to achieving this is bumpy and also extremely costly.
Societal cost comparison: WarmtelinQ vs. heat pumps
A Royal HaskoningDHV study compared the societal costs of heat delivery via WarmtelinQ with alternatives (e.g., heat pumps or geothermal) around Ypenburg–Leiden. Conclusion: WarmtelinQ’s societal costs are 21–36% lower than a fully all-electric (heat pump) scenario.
Illustrative calculation
If all-electric societal costs over 30 years are €1.4bn (for ~50,000 addresses):
- 21% lower: savings €294m → WarmtelinQ ≈ €1.106bn
- 36% lower: savings €504m → WarmtelinQ ≈ €896m
Sources:
Cost increases and delays: from €650 million to €1 billion
Originally budgeted around €600–650m, costs rose to >€1bn by 2025. The main pipeline between Vlaardingen and The Hague is now expected spring 2027, with the Rijswijk–Leiden branch summer 2028 at the earliest. Causes include contractor shortages, unexpected archaeological finds, complex permitting, and rising construction costs.
The project shows that large networks pose technical, governance, and social challenges. Residents worry about construction disruption and heat origin (not always fully CO₂-free). This underscores the need for transparent communication and participation—the very principles the Wcw aims to safeguard.
WarmtelinQ: financial increase and delay in realisation
WarmtelinQ, a large regional heat transport project that will supply residual heat from the port of Rotterdam to The Hague, Leiden and Rijswijk, among others, was originally estimated to cost €600–650 million. In the course of 2025, the costs rose to more than €1 billion. This is double the original estimate (or even €1.1 billion according to some sources).
The schedule has also been delayed: the main pipe between Vlaardingen and The Hague will not be laid before spring 2027; the branch to Rijswijk–Leiden will be even later, possibly not ready until 2028.
Calculation example for the costs of this realisation
Comparison of the original expected costs of €650 million with the currently expected costs of €1 billion (1,000 million):
- Cost increase: €1,000 million − €650 million = €350 million in additional costs
- Percentage increase: (€350 million / €650 million) × 100 ≈ 54% additional costs
- Time delay: expected completion date shifts from, for example, 2025 to 2027–2028. This is a delay of 2–3 years.
Source reference:
https://www.warmtelinq.nl/over-warmtelinq/veelgestelde-vragen/kosten-en-risicos
Small-scale heat networks: faster and locally supported
Not every heat network is a mega-project. Across the Netherlands, small-scale networks are emerging that can be realized faster and with less complexity. In Nijmegen, for example, the existing network in Dukenburg is being expanded by the municipality, a public heat company, and local partners. Business parks and villages are also launching networks based on local waste heat or renewable sources.
These projects show that scale is not a prerequisite for success. Smaller networks can tailor to local conditions, respond quickly to opportunities, and benefit from direct resident involvement.
Action plan for local authorities and developers
What this means for municipalities, housing associations, and residents
- Municipalities: Prepare for your lead role with heat plans and transparent selection procedures.
- Housing associations & developers: Align plans with Wcw requirements and submit subsidy applications on time.
- Heat companies: Rework business models for public ownership and cost-based tariffs.
- Residents: Stay informed about neighborhood plans and use available connection subsidies.
Curious about what this means for your project?
Action plan for 2026: be ready for the Wcw
In 2025–2026, Dutch district heating reaches a turning point. With the Wcw, control shifts to municipalities, tariffs become cost-based, and at least 50% of networks move into public ownership. Subsidies such as WIS and ISDE lower financial barriers for build-out and connection.
Large projects like WarmtelinQ show both potential and challenges. High capital costs for mega-projects increase the appeal of smaller local networks that can move quickly where opportunities arise.
For residents, the Wcw means more predictable tariffs and greater transparency and participation. Reliable energy data and active support in both control and monitoring are crucial: they empower residents to save energy and allow networks to be balanced more precisely—reducing losses by aligning demand and supply.
Conclusion: The future of district heating is data-driven and publicly directed
District heating in the Netherlands is entering a phase of professionalization and scaling. The Wcw brings stronger public steering, predictable tariffs, and more transparency. Subsidies reduce barriers for build-out and connection, accelerating roll-out.
Operational support—both in control and energy monitoring—will be essential to success. By giving residents insight into their consumption, you not only ensure transparency but also create a direct incentive to save energy. This transparency increases public support for reusing industrial waste heat and enables fine-grained optimization of heat networks.
Under the Wcw, the foundation and strength of district heating will lie in the availability of high-quality, reliable energy data. Anyone wishing to contribute to—or benefit from—this development should now invest in the systems and processes that make it possible. That is how district heating can become a transparent, reliable, and sustainable energy provision by 2050.