A future-proof energy system also requires heat
The plans presented on Budget Day once again highlight the scale of the challenge facing the Dutch energy system. Investments in sustainable energy are continuing, while grid congestion and the availability of energy infrastructure are increasingly becoming decisive factors for economic development and sustainability. Sustainable heat deserves a prominent place in this effort.
Investing in a sustainable energy system
For 2027, the government is allocating €6 billion for subsidies aimed at energy security and sustainability for businesses and households. Of this, €1.6 billion is earmarked for the Sustainable Energy Production Incentive Scheme (SDE), which supports investments in renewable energy and CO₂ reduction. At the same time, available capacity on the electricity grid remains a key concern. The government is investing in expanding energy infrastructure and allocating additional resources to apply strategies for addressing grid congestion in other critical regions as well. However, the energy transition requires more than just expanding and using the electricity grid more intelligently.
Heat as part of the energy infrastructure
A significant portion of the Dutch energy demand consists of heat. For homes, greenhouse horticulture, and industry, this heat can be made sustainable in various ways. Geothermal energy is one of them. By utilizing heat from the deep subsurface, sustainable heat can be produced locally and continuously. Unlike many other renewable energy sources, production is not dependent on sun or wind. But a sustainable heat source alone is not enough. To actually deliver heat to homes and businesses, the entire chain must function. This means that source development, heat infrastructure, off-take, financing, and permitting must be organized in a cohesive manner.
Looking beyond electricity
Especially now that the pressure on the electricity grid is high, it is becoming increasingly important to view the energy system as a whole. After all, not every energy demand needs to be met with electricity. Collective heat systems and sustainable heat sources can be part of an energy system in which different energy carriers complement each other. The government is also committed to the further development of heat networks, partly due to their relationship with grid congestion. This requires not only investments in sources but also in the infrastructure needed to make sustainable heat available on a larger scale.
From development to realization
At Gaia Energy, we see in practice what is required for this. In various regions, we work with public and private parties on the development of geothermal energy and sustainable heat systems. In Delft, geothermal energy is now being used to supply heat to the TU Delft campus and parts of the city. In Oostland, we are working on the further expansion of geothermal production and the associated heat infrastructure for greenhouse horticulture. And in the Rotterdam region, work is underway on the development of new geothermal projects for the built environment and industry, among others. The projects differ in scale, environment, and customers, but they have one thing in common: the heat transition only succeeds when technology, infrastructure, financing, regulation, and collaboration are brought together.
The heat transition requires cohesion
The 2027 Budget Day plans show that investments in sustainability and energy infrastructure are continuing. At the same time, the challenges surrounding grid congestion make it clear that choices about our future energy supply must be made with increasing coherence. This includes a full focus on heat. Geothermal energy can contribute to a reliable and sustainable heat supply for homes, greenhouse horticulture, and industry. To realize that potential, long-term investment security, appropriate infrastructure, predictable procedures, and collaboration between governments, heat companies, customers, and financiers are essential. Because the heat transition does not happen on paper alone. It must be realized.
