Ruairí Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

112. To ask the Minister for Environment, Community and Local Government if he will provide an update on the preparation of the business case seeking to establish future State funding, from 2026 to 2030, to support efficient district heating projects; and if he will make a statement on the matter. [30338/25]

Ruairí Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

Will the Minister of State provide an update on the preparation of the business case seeking to establish future State funding to support efficient district heating projects? I have spoken to the Minister of State before about the wider issue of district heating. Stakeholders in the industry say the support scheme for renewable heat, for example, needs to be looked at to make it more fit for purpose to deliver district heating. We have a specific issue with communal heating systems which also needs to be addressed, which I will deal with later.

Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context

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.

Ruairí Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

It would be good to have a timeline for when the Minister of State sees that business case being in place. I think we all agree on the necessity of renewables and decarbonisation. We have seen some district heating projects that make complete sense where waste energy, rather than remaining waste, is piped in and used as a means of providing heat. We need as much as possible of this done as soon as possible. The Minister of State talks to the stakeholders, I assume. I would like an update on the interactions with the companies that are looking to put plans in place because they are still talking about how there is insufficient support. We have schemes that are not fit for purpose from a point of view of delivering. I will deal with communal heating systems and the particular issues in a moment.

Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context

We are currently actively working to enhance the support scheme for renewable heat to better support district systems. Included in that is ensuring we have industrial waste heat from sectors like pharmaceutical manufacturing and data centres. The SEAI, which administers the scheme, has already completed its 2024 annual review. That made clear recommendations on adapting the scheme for large-scale district heating. That includes raising the investment aid cap to reflect the current intensity of district heat infrastructure. Others were ensuring the eligibility for key components like pipework, energy centres and network connections. We are looking at working to ensure we can support these recommendations. The Minister is also progressing the heat network Bill, which will provide the regulatory certainty but also customer protections and licensing frameworks. What we need to do is come together on this.

Ruairí Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

I ask him the Minister of State to come back to me in writing on where that is. Obviously it is very positive. We all want to have schemes that are fit for purpose. We want to see we can actually deliver district heating systems at scale. I return to the Achilles' heel that exists with communal heating systems. I spoke to the Minister before about Carlinn Hall and I spoke to the previous Minister many times. He opened this particular housing estate. It has 200 homes and unfortunately the system that was biomass-fed is now gas-fed. We need to find an alternative. I have spoken to some companies and the SEAI about it. There may be something in train, in which case it is a proposal we will be bringing to the Government. There has been a feasibility study in the area on geothermal energy, a solution that would probably require a number of parts. I hope to get a promise from the Government on delivering for the people concerned. This obviously became a huge issue when gas prices went through the roof, but it is also an environmental disaster. There is a legal framework in an awful lot of other countries to deal with this issue, but it is an anomaly we still have here.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Glaoim ar an Teachta Byrne.

Malcolm Byrne (Wicklow-Wexford, Fianna Fail)
Link to this: Individually | In context

Gabhaim buíochas leis an gCathaoirleach Gníomhach. I entirely agree with Deputy Ó Murchú on the importance of district heating systems, but a very successful model to examine is the one operated by South Dublin County Council which heats facilities of TU Dublin and the council. It was opened by the previous Minister, Eamon Ryan. It provides a sufficient level of low-carbon heating to a number of connected buildings in the area. Where does that heat come from? It is generated by data centres operated in south Dublin. It is a very successful model and one that can be followed.

Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context

I suggest Deputy Ó Murchú write formally to the Department about the specifics of the scheme he is interested in. We will certainly get a response to him.

To add to Deputy Byrne's point, we are building momentum in this regard and we can see there are practical realities on the ground in many communities. He talked about the large-scale operation in south Dublin. There is also one in Blanchardstown. Fingal County Council uses waste heat from a data centre to serve public sector businesses and residential customers. There is also a strong pipeline outside Dublin. In Waterford and Galway private developers are working with local authorities to submit preliminary project scopes to the SEAI. There are also feasibility studies in Dundalk, Drogheda, Naas, Maynooth and Arklow and more towns are expressing interest. The Department is currently working with the district heating centre of excellence in the SEAI and we want to ensure this vision is clear and that we can deliver district heating so it can become a mainstream low-carbon solution for many Irish communities.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Táimid ag rith as am agus mar sin ligfidh mé don Teachta Daly ceist uimh. 114 a chur agus freagra a fháil air.