Utrecht, you feeling the heat?

Lola writes*

The Netherlands’ Climate Act of 2019 called for a reduction of greenhouse gas emissions by 49% by 2030, and 95% by 2050 (Kruit et al., 2022). Consequently, space heating, which is often powered by natural gas, has been getting a lot of attention and disagreement as the Dutch work towards their climate goals (Klimaatwet, 2022).

While the district heating approach has become a cornerstone of the Dutch sustainability strategy (Klimaatakkoord, 2019), private companies are hesitant to agree. In April, energy supplier ENCO refused to supply energy for this transition in the municipality of Utrecht. (Eneco, 2024). The company prefers hybrid heat pumps (HPs) for low-rise homes that are too far apart for a district heating grid (DHG). ENCO says hybrid HPs are a more cost-effective solution. (Ground.news, 2024).

Source

Utrecht reported in September that 20,000 households are getting heat from the largest heat pump in the Netherlands rather than from the long awaited DHG (NLtimes, 2024). HPs are efficient, but they depend on fossil fuels (this dependence should fall over time).

The 2019 Dutch Climate Act means that action is imperative, especially concerning  spatial-planning and infrastructure decisions (Rli, 2024). DHGs cost more to install but they can be heated with renewable energy from biogas and geothermal heating, for example (Lund, 2010).

Should the Netherlands adjust its sustainability goals for the sake of affordability?

This dilemma is typical of the green transition, where the public needs to accept personal costs in the short run for collective gains in the long run. Their willingness-to-pay has significant implications for any analysis of projects like the one in Utrecht. More attention must be given to the benefits of flexible options and long-term costs and impacts.

Bottom line: Any analysis of a sustainable heating transition must compare the public’s interests in the short- and long-term.


* Please help my Environmental Economics students by commenting on unclear analysis, alternative perspectives, better data sources, or maybe just saying something nice :).

Author: David Zetland

I'm a political-economist from California who now lives in Amsterdam.

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