Frank Feighan (Sligo-Leitrim, Fine Gael) | Oireachtas source

I thank the Deputies for raising this timely issue, given what has been happening today. District heating offers the potential to make use of renewable and waste energy to heat homes and businesses as part of a range of measures to reduce carbon emissions. In Ireland, district heating currently accounts for a small share of the heating sector, estimated to be less than 1%. The Government is committed, however, to ensuring that advantage can be taken of this technology to decarbonise the built environment. The Climate Action Plan 2021 contains actions that provide a solid basis for the appropriate expansion of district heating, including the establishment of a steering group to oversee the roll-out of district heating and to ensure a robust governance framework will be put in place. These actions will also ensure consumer protection, in accordance with the legislation.

The legislative basis for the regulation of district heating is contained in the 2012 energy efficiency directive, which was transposed by SI 426/2014 and SI 646/2016. The directive contains a requirement in respect of the metering and billing of thermal energy, including district heating. It was amended through the 2018 revision and requirements for metering and billing of thermal energy were strengthened by way of that revision. The European Commission has proposed a further revision to the energy efficiency directive, which, once finalised, is expected to strengthen further consumer protection and empowerment. In addition to provisions contained within the energy efficiency directive, the 2018 renewable energy directive contains provisions for making information available to consumers in respect of energy performance and the share of renewable energy in their district heating and cooling systems.

The district heating steering group, established in line with an action set out in the climate action plan, brings together expertise from a wide range of organisations to assist with the development of district heating and to make evidence-based recommendations to the Government regarding targets for district heating. The steering group will draw on the findings of specialised working groups focused on key areas pertaining to the roll-out of district heating, including regulatory regime, planning guidance and financial options.

Under the House of Tomorrow programme, the first phase of approximately 50 homes in the Carlinn Hall development were supported by the Sustainable Energy Authority of Ireland. The homes were built to a higher standard of efficiency than the then building regulations and were approximately 40% more efficient than was then required. This means that, when they were launched in 2007, they were approximately 40% more efficient than they would be if they had been built to the standards of that time. The district heating network was also supplied by a central boiler, which significantly reduced the carbon footprint of the homes, given the fuel was originally biomass. I understand, however, that the fuel source has, since installation, been changed to a gas boiler.

Gas prices are not capped in Ireland, whether at a commercial or residential level, and electricity and gas markets operate within a European regulatory regime, whereby electricity and gas markets are commercial, liberalised and competitive. Nevertheless, I take on board, not least in the context of what has happened today, that prices will increase and the Deputies gave some sobering examples of the effects of the price increases on residents which I will convey to the Minister.

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