Pa Daly (Kerry, Sinn Fein)
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44. To ask the Minister for Environment, Community and Local Government to provide an update on the expansion of district heating; the funding that was allocated for 2026 as part of Budget 2026; under which subhead this allocation is located; and if he will make a statement on the matter. [55838/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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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 heating networks through the Climate Action Fund (CAF). This includes support for a large-scale scheme operational in Tallaght, which was developed by South Dublin County Council. Dublin City Council, which has been allocated €50 million from the CAF subject to business case approval, 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. Outside of these, there is a significant pipeline of potential projects for district heating in Ireland.

A District Heating Steering Group was established to support the development of district heating in Ireland. The District Heating 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.

The SEAI, through Pathfinder, have enabled funding support for Local Authorities conducting feasibility studies for district heating projects. The Government also 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 pre-construction phase of projects.

A €500 million allocation for my Department, under the Infrastructure, Climate and Nature Fund in the revised National Development Plan for 2026-2030, will accelerate the diversification and decarbonisation of Ireland’s energy system, including the development of district heating networks. Further detail on programme allocations will be announced shortly.