Ruairí Ó Murchú (Louth, Sinn Fein)
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30. To ask the Minister for Communications, Climate Action and Environment the funding mechanism currently available to established communal and district heating schemes (details supplied) for necessary upgrades to systems; and if he will make a statement on the matter. [17987/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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District heating is a proven technology that can play a key role in improving energy efficiency and reducing greenhouse gas emissions in the heat sector. Government policy recognises the contribution that district heating can make to Ireland’s climate and energy goals. This is underpinned by the findings of the SEAI's 2022 National Heat Study, which highlighted significant potential for heat in buildings to be supplied by district heating, particularly in cities and large towns, where demand is concentrated and heat sources are prevalent.

The establishment of the District Heating Steering Group was a critical step on our journey towards developing district heating in Ireland. The District Heating Steering Group Report, which was approved by Government in July 2023, contains a range of recommendations setting the future policy direction for development of district heating.

In terms of investment, the Government has financially supported the development of district heat networks in Ireland through the Climate Action Fund (CAF). There large-scale scheme operational in Tallaght was developed by South Dublin County Council, and supported through €4.48 million funding from the CAF. In addition, with the support of the CAF, Dublin City Council is working to develop a large project that will use waste heat from the Dublin Waste to Energy facility in Poolbeg to heat public sector, commercial and residential buildings in the adjacent area.

My Department, along with the SEAI's District Heating Centre of Excellence, are currently preparing a business case seeking to establish future State funding (2026-2030) to support efficient district heating projects. Developing this initial core infrastructure by 2030 would reduce heat-related greenhouse gas emissions from connected buildings this decade. It would also enable many more citizens, businesses and public bodies to decarbonise their homes and buildings throughout the 2030s and beyond.

Group heating schemes are smaller-scale operations that generally supply an apartment block or housing estate. These schemes tend to be supplied by natural gas purchased at a commercial rate by the energy system operator. As part of its work, the District Heating Steering Group asked the SEAI to carry out a research project, using the scheme in question as its locus, with the aim of understanding how a typical communal heating system operates in Ireland. The research assesses options to retrofit low carbon heat sources, including indicative costs, and makes recommendations for both existing and future heat networks in Ireland. Heat pumps and biomass boilers were options examined for replacing existing gas boilers, with grants potentially available. The SEAI’s Support Scheme for Renewable Heat (SSRH), for example, offers installation grants of up to 40% to support investment in renewable heating systems.

The SSRH is a funding mechanism for renewable heating that includes funding for district and communal heating systems. The funding is targeted at switching from fossil fuel to a renewable heat technologies. Grant aid is available for heat pump systems, including the heat pump, distribution system and associated energy efficiency measures. Additionally, in the case of biomass solutions, an operational tariff support is available for each unit of heat used for eligible purposes. It should be noted that the development referenced in the PQ is privately owned and managed, and implementation of any of the recommendations specific to this scheme would be a matter for the relevant parties.