The CONFIDENCE project addresses challenges Dutch municipalities face as they transition away from natural gas in the heating sector to sustainable heating solutions. Despite their central role in this transformation, many municipalities lack the institutional capacity, technical expertise, and financial tools required to develop sustainable district heating systems.

The case of Súdwest-Fryslân highlights these barriers: from navigating complex governance structures and defining the municipality’s role, to establishing public ownership models that ensure long-term accountability and local engagement. Financing is a particularly significant hurdle, as Dutch financial institutions often view district heating as a high-risk investment, leading to limited access to affordable capital and a heavy reliance on subsidies. Challenges include overcoming high financial risks, building institutional capacity, and establishing public ownership models.

Focusing on the municipality of Súdwest-Fryslân (SWF), the initiative emphasises building municipal capacity, overcoming investment barriers, and facilitating knowledge exchange.

The CONFIDENCE project is a collaboration between Denmark and the Dutch municipality Súdwest-Fryslân (SWF), aiming to support the transition from natural gas to sustainable district heating.

Denmark’s extensive experience in district heating systems, coupled with the support from the CONFIDENCE project, helps Dutch municipalities like Súdwest-Fryslân navigate the complexities of transitioning from natural gas to sustainable heating solutions. The project addresses these issues by providing expert guidance and facilitating knowledge exchange, focusing on practical district heating planning, governance, and innovative financing approaches. A combination of heat sources, including large-scale heat pumps, electric boilers, and thermal heat storage, ensures affordable heating prices. It enables an ever-closer coupling of the electricity and heat sectors, reducing the stress on challenged electricity grids.

Denmark’s long-standing district heating experience demonstrates how strong public frameworks, transparent regulation, and proven financial models can reduce risk and build trust.

Súdwest-Fryslân has set up a municipal district heating company inspired by the Danish model.

The project was concluded with the CONFIDENCE conference, which aimed to inspire other municipalities and stakeholders in the Netherlands based on the outcomes of the project.