I propose to take Questions Nos. 256 and 257 together.
District heating is a proven technology that can decarbonise the built environment, diversify fuel sources for heat, and improve quality of life. The National Heat Study, produced by the Sustainable Energy Authority of Ireland (SEAI), highlighted significant potential for heat in buildings to be supplied by district heating, particularly in large towns and cities across Ireland where demand is concentrated, and heat sources are prevalent.
The Government recognises the contribution that district heating can make to Ireland’s energy and climate goals. The establishment of the District Heating Steering Group, committed to through the Climate Action Plan process, was a critical step towards developing district heating in Ireland. The District Heating Steering Group Report set out recommendations to develop the district heating sector in Ireland, including the need to develop a legislative basis and support the development and expansion for the necessary infrastructure. The Government’s Climate Action Plan has a key target for district heating of 2,700 GWh by 2030. The 2030 target equates to approximately 10% of Ireland's residential heat demand.
The Government has financially supported the development of district heat networks in Ireland through the Climate Action Fund. There is a large-scale scheme operational in Ireland, which was developed by South Dublin County Council in Tallaght, and supported through €4.48 million funding from the Climate Action Fund (CAF). It uses waste heat from a data centre and supplies low-carbon heat to customers, including South Dublin County Council and the Technological University Dublin. Phase 2 of this scheme is now under consideration.
In addition, Dublin City Council is working to develop a large project that will use waste heat from the Dublin Waste to Energy facility in Poolbeg to heat public sector, commercial and residential buildings, initially in the adjacent area with plans to progressively expand into Dublin city. There is significant momentum in the project with work progressing on the design and construction of infrastructure, with some key infrastructure already complete or being built out. Dublin City Council have been allocated €50 million through the CAF, pending the approval of the Dublin District Heating Project business case. My Department is working with Dublin City Council to ensure all necessary support is in place for the acceleration of this landmark district heating project.
Project funding has been identified as a key barrier for project development in Ireland. My Department, with the SEAI District Heating Centre of Excellence, are currently preparing a business case seeking to establish future State funding (2026-2030) to support efficient district heating projects. Developing this initial core infrastructure by 2030 would reduce heat emissions from connected buildings this decade. It would also enable many more citizens, businesses and public bodies to decarbonise their homes and buildings throughout the 2030s and beyond, and would establish a nascent asset base upon which a new energy utility sector can be developed in Ireland.
In 2024, the SEAI through Pathfinder enabled funding support for Local Authorities conducting feasibility studies for district heating projects. Approximately €400,000 in funding was provided for feasibility studies relating to projects in Dundalk, Drogheda, Naas, Maynooth and Arklow in 2024. The plan is to assist further projects in 2025, with my Department aware of several efficient district heating projects that have expressed an interest in funding support for feasibility studies. In addition, the SEAI Centre of Excellence have completed work on a feasibility template to assist district heating sponsors which will be launched shortly. 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. The Centre of Excellence is also supporting the development of a pipeline of potential district heating projects, including projects outside of Dublin.
