Written answer
Energy Production
Government plans to expand district heating through funding, legislation and SEAI’s Centre of Excellence, with up to €100 million allocated through 2030.
42. Deputy Ruairí Ó Murchú asked the Minister for Climate, Energy and the Environment to outline the plans, to 2030, for the development of district and communal heating systems. [65853/26]
Comment on this
Government policy is supportive of the expansion of district heating and recognises the contribution it can make to Ireland’s energy and climate goals. The District Heating Steering Group Report was approved by Government in 2023, and a Working Group has been convened to oversee implementation of the Steering Group recommendations. These recommendations are being actioned by my Department. The report identified that as a newly emerging market, the district heating sector will require support to stimulate early growth in the sector. Government is supporting this sector through the combination of capital grants and the introduction of legislation.
Funding to support the development of efficient district heating has been allocated through the Climate Action Fund (CAF) and the Infrastructure Climate and Nature Fund, while Local Authorities can avail of Pathfinder funding for feasibility studies. The Tallaght District Heating Project was developed by South Dublin County Council and supported through the CAF. Additionally, €50 million has been allocated from the CAF to support the Dublin District Heating Project. I have also allocated €5 million from the CAF to support pre-construction costs for efficient district heating projects in Ireland. Under the National Development Plan, for the period 2026 to 2030, up to €100 million has been allocated to support the full development of efficient district heating networks. This level of funding demonstrates the Government’s ongoing commitment to district heating as a core component of Ireland’s decarbonisation strategy.
In tandem, my Department is working on the Heat (Networks and Miscellaneous Provisions) Bill to provide the legislative and regulatory underpinning for the sector in Ireland. Ireland's National District Heating Centre of Excellence has also been established within the Sustainable Energy Authority of Ireland to support the rollout of efficient district heating networks.