31. Deputy Patrick Costello asked the Minister for the Environment, Climate and Communications for an update on the implementation of the recommendations outlined in the District Heating Steering Group report of July 2023; and if he will make a statement on the matter. [38633/24]

The District Heating Steering Group Report, approved by Government in July 2023, contains a suite of recommendations that set the future policy direction for the development of district heating. A District Heating Working Group was established with ensure the implementation of the recommendations from the Steering Group Report. The Working Group reports to the Heat and Built Environment Taskforce and, to date, has met nine times.

The Steering Group noted the importance of establishing a regulatory system for district heating that ensures consumer protection and provides market certainty. My Department is in the process of finalising the Heads of Bill, and is currently adapting the Heads to take account of legal review and the observations of other Government departments. The proposed Heads will be brought to Government in the Autumn term.

The Steering Group Report also recommended that district heating should develop nationally, under central direction, to ensure standardisation and acceleration of projects. In this regard, a district heating Centre of Excellence (CoE) has been established in the Sustainable Energy Authority of Ireland. As part of its role, the Centre of Excellence is currently formulating an approach to supporting feasibility studies regarding potential district heat projects in candidate areas and will soon begin development of a National Level Assessment to identify suitable candidate areas for the deployment of district heating in Ireland. The District Heat Centre of Excellence, working with other State bodies, will also examine additional financing options to support the growth of Ireland’s district heating sector from other sources, such as the European Union.

It is envisaged that future State funding (2026-2030), particularly with regards to the proposed support of larger district heating projects, will be predominantly financed through the Infrastructure, Climate and Nature Fund (ICNF). In addition, a review of supports/funding schemes for renewable heat production, such as the Support Scheme for Renewable Heat (SSRH) is being undertaken to further align with district heating policy.