Pa Daly (Kerry, Sinn Fein)
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239. To ask the Minister for Environment, Community and Local Government to provide an update on the expansion of district heating in Ireland; if additional funding will be provided on top of the €5 million as part of the climate action fund; to provide a breakdown of any projects in the pipeline; and if he will make a statement on the matter. [43005/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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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. To date, the State has financially supported the development of district heat networks in Ireland through the Climate Action Fund (CAF).

The CAF has allocated €5 million to support the pre-construction development costs of efficient district heating projects in Ireland. My Department with the assistance of the Sustainable Energy Authority of Ireland (SEAI) District Heating Centre of Excellence are in the process of operationalising this funding. Support for the pre-construction development costs is being introduced to ensure efficient district heating projects are in position to avail of future funding to support the construction phase of projects.

In line with the District Heating Steering Group Report recommendation to provide financial support for district heating, the Department is also seeking to put in place a multi-annual financial allocation to support the construction of efficient district heating projects in suitable locations over the period 2026 to 2030.

My Department is aware of a strong district heating pipeline of at least 17 projects at different stages, including potential projects both within and outside Dublin. Aside from those projects, there is the opportunity to explore up to 50 further efficient district heating projects in Ireland.

Pa Daly (Kerry, Sinn Fein)
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240. To ask the Minister for Environment, Community and Local Government when he expects the business case for future State funding for district heating to be completed; the timeframe for a decision on this; and if he will make a statement on the matter. [43006/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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District heating is a proven technology that can decarbonise the built environment, diversify fuel sources for heat, and improve quality of life. The National Heat Study, produced by the Sustainable Energy Authority of Ireland (SEAI), highlighted significant potential for heat in buildings to be supplied by district heating, particularly in large towns and cities across Ireland where demand is concentrated, and heat sources are prevalent.

Government policy is supportive of the expansion of district heating to contribute to the diversification of fuel supply to decarbonise the heat sector. To date, the Government has financially supported the development of district heat networks in Ireland through the Climate Action Fund (CAF). In addition, €5 million has been allocated from the CAF to support the pre-construction development costs of efficient district heating projects in Ireland. My Department will collaborate with the SEAI District Heating Centre of Excellence to develop this fund and make this allocation available as soon as possible.

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, I am seeking to put in place a multi-annual financial allocation for efficient 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 this decade, and can be further leveraged, through future investment, to target smaller heat loads in the medium-to-longer term.