Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I understand the development in question is heated by way of a local heating system, which is fuelled by natural gas. Gas and electricity retail markets in Ireland operate within a European regulatory regime, as we have just discussed, wherein those markets are commercial, liberalised and competitive. I am acutely aware of the impact current, internationally influenced, energy price increases are having on people and families. For that reason, the Government has introduced a series of measures to try to alleviate the impact, particularly on lower-income households.

The 2018 renewable energy directive includes, inter alia, provisions concerning the use of unavoidable waste heat when planning district heating and provisions requiring member states to facilitate the development of heating and cooling derived from renewable sources. District heating, within a structured framework, is a technology that offers the potential to diversify fuel supply used to heat the building sector. It can offer flexibility in fuel choice and the ability to adapt to changes in the economic and policy landscape.

The Climate Action Plan 2021 contains actions that will provide a solid basis for the appropriate expansion of district heating in Ireland, including the establishment of a multidisciplinary district heating steering group. The steering group, which is up and running and has met four times already this year, is working on recommendations to ensure there is a robust governance and regulatory framework in place, along with any legislation that may be required, in line with the requirements of the renewable energy directive and the energy efficiency directive.

Considerations in this regard will also encompass pre-existing district heating and local heating schemes already operating in Ireland.

Deputy Ó Murchú brought a similar issue in Louth to my attention, where a local heating system is powered by gas. I am aware of the development in the Deputy's constituency. There are only a small number of such systems, but they have been badly hit by the impact of very high wholesale gas market prices. Our Department, through the steering group, will examine measures to explore what ways we can assist such developments to get out of what is now a high-priced system. It will not be an easy switch, but I am very much willing to investigate what policy levers we can seek to use in this regard.

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