Alan Dillon (Mayo, Fine Gael)

District heating can play a key role in improving energy efficiency and reducing greenhouse gas emissions. Government policy is supportive of the expansion of district heating to contribute to the diversification of fuel supply to decarbonise the heat sector. A district heating steering group was established to support the development of district heating in Ireland. The steering group report, which was approved by Government in July 2023, contains a range of recommendations setting the future policy direction for the development of the sector, including with respect to providing financial support for district heating infrastructure. In line with the district heating steering group report recommendation to provide financial support for district heating, the Department and Ministers are seeking a multi-annual financial allocation for effective district heating projects over the period 2026 to 2030. Investing now in the early phase infrastructure will deliver key backbone elements for district heating networks that will decarbonise heat for larger anchor customers within the decade and can be further leveraged, through future investment, to target smaller heat loads in the medium to longer term.

As part of this process, and in line with the infrastructure guidelines, my Department, in partnership with the Sustainable Energy Authority of Ireland's district heating centre of excellence, is preparing a business case seeking to establish future State funding from 2026 to 2030 to support efficient district heating projects in suitable locations, usually urban areas with high heat density.

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