Dáil Éireann Debate, Wednesday - 30 September 2026
10. Deputy Réada Cronin asked the Minister for Climate, Energy and the Environment whether the allocation of between €50 million and €100 million for district heating infrastructure under the Infrastructure, Nature and Climate Fund is considered sufficient to meet projected demand; and if further funding will be required; and if he will make a statement on the matter. [69335/26]
Amharc ar fhreagraGovernment policy supports 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 both 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 (ICNF), 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 allocated €5 million from the CAF to support pre-construction costs for pilot efficient district heating projects in Ireland. The fund attracted a strong level of interest from across the sector, resulting in a highly competitive application process. This level of competition demonstrates the growing maturity of the district heating market and will help ensure that projects are well-positioned to avail of future funding opportunities.
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. My Department is working closely with the Sustainable Energy Authority of Ireland to establish this scheme and ensure it provides meaningful support to projects as they progress.
This level of funding demonstrates the Government’s ongoing commitment to district heating as a core component of Ireland’s decarbonisation strategy. State funding will likely continue to be needed for projects beyond 2030, including depending on the project implementation models utilised.
