Between Sustainability and Affordability: Housing Corporations and the Future of District Heating in Amsterdam

Abstract

This master’s thesis explores the capacity of Dutch housing corporations to take on a proactive role in advancing district heating (DH) developments within existing urban areas, amid the Netherlands’ national goal of achieving a 49% reduction in CO₂ emissions by 2030. DH networks, particularly fourth-generation systems, are positioned as a key component of the sustainable heating transition (Onencan et al., 2024). However, recent developments, such as the financial withdrawal of private energy companies, mounting cost pressures, and regulatory uncertainties linked to the proposed Collective Heat Act (Wcw), have severely challenged progress. Housing corporations, which own nearly 29% of the national housing stock, are uniquely positioned to facilitate large-scale connections, yet many have withdrawn from DH initiatives due to escalating costs and concerns about affordability.

This study employs a qualitative case study of Amsterdam’s housing corporations, combining semi-structured expert interviews with secondary document analysis. Using a capacity-based framework adapted from Kuzemko & Britton (2020), it categorises barriers into six dimensions: responsibility, authority, finance, personnel, knowledge, and energy materialities. The findings reveal that rising costs, market volatility, and a strong dependence on both energy providers and tenant approval result in financial constraints, limited strategic autonomy, and social resistance, all of which significantly hinder housing corporations’ ability to participate in DH developments. Notably, tenant consent requirements and concerns over tariff transparency and long-term affordability critically undermine housing corporations’ willingness to engage.

To address these barriers, the study identifies potential solutions, including the anticipated effects of new legislation such as the Wcw and the Municipal Instruments for Heating Transition Act (Wgiw), which may strengthen affordability considerations and reduce housing corporations’ dependency on other stakeholders. However, it also becomes evident that these legislative measures alone are insufficient. Structural financial compensation, coupled with stronger policy coordination and clearer guidance from various governmental levels, is necessary to revitalise DH development. Political will from public authorities is therefore critical. These solutions are essential not only to re-enable housing corporation involvement but also to ensure that DH development aligns with both environmental goals and social justice. Their implementation carries significant implications for public-private cooperation, requiring institutional reforms and redefined stakeholder roles within the energy governance landscape.

The research contributes to scientific debates on stakeholder roles in urban energy governance, highlighting the underexplored but pivotal role of housing corporations. It identifies a structural mismatch between environmental ambitions and housing corporations’ social mandates. The findings offer actionable insights for policymakers and energy providers to co-develop enabling conditions, regulatory clarity, and tenant engagement strategies, that could restore housing corporations’ confidence and re-engage them as essential actors in a just and effective heating transition.