Willie O'Dea (Limerick City, Fianna Fail)
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105. To ask the Minister for Environment, Community and Local Government if there are plans to fund the development of district heating. [48950/25]

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 urban areas 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 through the Climate Action Fund (CAF).

In July 2025, the Government approved the allocation of €5 million from the CAF to support pre-construction development costs for efficient district heating projects in Ireland. The Department, with the assistance of the SEAI District Heating Centre of Excellence, are in the process of operationalising this funding. This financial support is being introduced to ensure efficient district heating projects are in position to avail of future funding to support the construction phase of projects.

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 2023, contains a range of recommendations, including with respect to providing financial support for district heating infrastructure.

In line with this recommendation, I intend to put in place a financial allocation for efficient district heating projects over the period 2026 to 2030. Investing now in infrastructure will deliver key backbone elements for district heating networks that will decarbonise heat for larger anchor customers this decade, and for smaller heat loads in the medium-to-longer term.