District heating is a proven and well-established technology that can play a key role in improving energy efficiency and reducing emissions in the heat sector. It also offers a unique opportunity to decarbonise and modernise heating for public and heritage buildings that are not suited to deep retrofit.
Government policy recognises the contribution that district heating can make to Ireland’s energy and climate goals. This is underpinned by the findings of the SEAI’s 2022 National Heat Study which concluded that a substantial portion of heat demand in Ireland could be met by district heating. This was further explored by a District Heating Steering Group, whose recommendations were approved by Government and published in 2023.
The expanded use of district heating, based on the use of renewable energy and/or waste heat, in line with the Energy Efficiency Directive definition of "Efficient District Heating", is envisaged to play a key role in the drive towards decarbonising the Irish heat sector. The amended Energy Efficiency Directive, which my Department is currently transposing, contains further provisions to promote the utilisation of waste heat.
The Heat (Networks and Miscellaneous Provisions) Bill 2024 (www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/heat-networks-and-miscellaneous-provisions-bill-2024/) is being prepared by my Department to support the expansion of district heating networks. The Bill will include a requirement for all heat networks in planning or development to be based on the use of renewable energy and/or excess heat, in line with the Energy Efficiency Directive's definition of "Efficient District Heating". That definition states that both waste heat and cogenerated heat are eligible low carbon heat sources for district heating networks up until 2045.
The Bill is currently being drafted with the support of the Office of Parliamentary Counsel (OPC). In order to progress the Bill, officials from my Department are actively engaging with the OPC drafter, the Department's own legal team and external stakeholders. I expect drafting to be completed and the Bill to be introduced in the Oireachtas shortly.
EU consensus has not yet been reached as to whether heat from waste-to-energy facilities should be categorised as waste heat or cogenerated heat but, in either case, my Department's intention is to support the connection of district heating networks to waste-to-energy facilities. Dublin City Council is currently developing one of the most important district heating projects nationally, which utilises excess heat from the Dublin Waste-to-Energy facility to heat an area extending into Dublin City. This project is being supported by the Climate Action Fund with an allocation of €50 million.
My Department will continue to engage with the European Commission to clarify the EU position on the definition of waste heat contained within the Renewable Energy Directive throughout the process of transposing the Directive and seek to align this with the provisions established by means of the Heat Bill.
