As per Parliamentary Question No. 227 of 22 June 2026, the Government has financially supported the development of district heating networks in Ireland through the Climate Action Fund (CAF). To date, funding support for district heating has only been allocated in the form of capital grants.
The Tallaght District Heating Project, developed by South Dublin County Council (SDCC), was allocated €4.92m funding from the CAF. In 2018, Dublin City Council (DCC) were allocated €20m from the CAF to support the development of the Dublin District Heating Project (DDHP). The CAF allocated an additional €30m to the project in 2023. In total, €50 million has been allocated to support the DDHP.
As of 2024, Local Authorities can avail of Pathfinder funding for feasibility studies for district heating projects. In 2025, €5 million from the CAF was allocated to support pre-construction development costs for efficient district heating projects in Ireland. Under the National Development Plan, for the period 2026 to 2030, €50m to €100m has been allocated to support the full development of efficient district heating networks.
Funding allocated to district heating in tabular form attached.
Funding Drawdowns
SDCC has drawn down the full allocation from the CAF for the Tallaght District Heating Project. This project has been operational since 2023. To date, no funding has been drawn down by DCC for the Dublin District Heating Project.
Since 2024, Pathfinder paid out approximately €700,000 to the Local Authority sector. It has a planned spend of €500,000 minimum for district heating feasibility studies in 2026.
The District Heating Pre-Construction Fund has completed the Expression of Interest phase and successful applicants have been invited to the next phase of the process. Following completion of a competitive selection process funding will be allocated to successful applicants.
All funding, both allocated or drawn down, is capital expenditure support.
Funding drawdown by district heating in tabular form is attached.
