I propose to take Questions Nos. 275, 276, 277 and 278 together.
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 diversification of fuel supply for the heat sector and to decarbonise it. 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 July 2023, contains a range of recommendations setting the future policy direction for development of the sector.
One such recommendation is to review supports for renewable heat production, such as the Support Scheme for Renewable Heat (SSRH), and redesign such supports, where appropriate, to facilitate suppliers connecting to a district heating scheme. The SSRH is a funding mechanism for renewable heating that currently includes funding for smaller district and communal heating systems. The funding is targeted at switching from fossil fuel to renewable heat technologies. My Department and the Sustainable Energy Authority of Ireland (SEAI) are continuing to progress enhancements to the scheme to ensure it is suitably adapted to also support large scale, efficient district heating projects.
The Government has financially supported the development of district heating networks in Ireland through the Climate Action Fund (CAF). There is a large-scale scheme operational in Tallaght, which was developed by South Dublin County Council, and supported through €4.48 million funding from the CAF. In addition, 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. Dublin City Council have been allocated (pending business case approval) €50 million through the CAF to support this project.
My Department, along with the SEAI 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 in suitable locations throughout Ireland (usually urban areas with high heat density). If funding is allocated, developing this initial core infrastructure by 2030 will reduce heat emissions from connected buildings this decade. It will also enable many more citizens, businesses and public bodies to decarbonise their homes and buildings throughout the 2030s and beyond.
The SEAI undertook a project with Codema to develop standardised templates and guidance for district heating projects in Ireland. As part of this work, a case study was undertaken (to inform, validate and test the concepts in the template and guidance) in the westside area of Galway City. Galway City Council were engaged in the process throughout, providing data and inputs without which the study would not have proceeded. The SEAI shared the final case study report with Galway City Council and other engaged stakeholders. While the overall project cost was approximately €101,000, no funding was assigned to Galway City Council in this instance. This funding was paid directly to a third party consultant to undertake the work.
Since 2024, Local Authorities can now avail of Pathfinder funding for feasibility studies for district heating projects. In 2024 five projects were assisted in this way, and the plan is to assist further projects in 2025. The District Heat Centre of Excellence, established within the SEAI and working with other State Bodies, will also examine additional financing options to support the growth of Ireland’s district heating sector, such as funding from the European Union. The Centre of Excellence is supporting the development of a pipeline of potential district heating projects, including in Galway.