District heating systems utilise a centralised heat source to supply heat to multiple buildings within a specific area, ranging from villages to entire cities. This approach offers the potential to decarbonise entire districts by utilising low-carbon heat sources such as waste facilities or excess heat from industrial processes.
A 2022 study by the Sustainable Energy Authority of Ireland (SEAI) highlighted the substantial potential of district heating in Ireland, estimating that it could supply over 50% of the country's heat demand. The study identified numerous opportunities for deploying district heating systems in large towns and cities where heat demand is concentrated, and suitable heat sources are available.
Similarly, Codema, Dublin's Energy Agency, has determined that the city's waste heat and renewable energy sources could potentially heat over one million homes. District heating could play a crucial role in meeting approximately 80% of Dublin's heat demand by 2050.
The new legislation will establish a robust regulatory framework to protect consumers and ensure the long-term viability of district heating projects. By promoting the development of district heating systems, Ireland can significantly reduce its reliance on fossil fuels and accelerate its transition to a low-carbon future.
Minister Ryan opened Ireland’s first district heating network in Tallaght, Co. Dublin, in April of last year. This uses waste heat from the Amazon Data Centre, which is now providing low-carbon heat to South Dublin County Council public buildings and Technological University Dublin, with further plans to provide heat to 133 affordable apartments next year and up to another 3500 homes over the next three to five years. There are also plans in place to use waste heat from the Poolbeg incinerator to heat approximately 50,000 buildings in the surrounding area.
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While, historically, many district and communal heat networks across Europe have relied on non-renewable energy sources such as gas, district heating is now being used as a key technology in many European countries to decarbonise heat. For example, low carbon district heating systems supply 90% or more of all heat in sustainable cities such as Copenhagen and Stockholm.
Although District Heating is a well-established technology with approximately 70 million district heating customers across the EU, it is new to Ireland with only one district heating network developed by South Dublin County Council in Tallaght.
Minister Ryan said: "By approving the General Scheme of this Bill, the Government is recognising that district heating has the potential to make a lasting contribution to Ireland’s heat needs and climate goals.
"I launched the first District Heating scheme in Tallaght last year and already, the pipes for district heating are going into the new housing development at the Glass Bottle site. We will have district heating there in 2026 and can continue then all the way up the Liffey to heat Dublin City Centre.
"The same can happen across the country. I’ve visited every County Council in the country and my first question to those Councils has been, where are your heat sources? District heating has the potential to heat entire towns, reducing costs for consumers and helping us lower our emissions.
"I am also pleased that my Department is engaging with the process of the Infrastructure, Climate and Nature Fund to prioritise funding for the development of national district heating infrastructure. I believe that the certainty of multi-annual funding will have a real impact on the development of district heating in Ireland."
Ireland has very ambitious targets within the Climate Action Plan, to comply with EU directives and our sectoral emissions ceilings, to deliver district heating of up to 2.7 TWh by 2030. That will require a very significant and immediate scale up and acceleration of projects.
The introduction of legislative and regulatory frameworks for the district heating sector by way of this General Scheme will be crucial in providing policy and regulatory certainty to potential project sponsors and investors in district heating in Ireland. In addition, amendments are being made to the Support Scheme for Renewable Heat (SSRH) to facilitate supports for district heating. The process to access Infrastructure, Climate and Nature Fund investment for district heating projects has also started, and with the active role the Department of the Environment, Climate and Communications, the SEAI and local authorities are taking in the area, tangible progress is being made in developing the project pipeline for the sector.
