Enabling the Energy Transition
Insights
District Heating progress
By
Damien Keane
District heating development in Ireland is accelerating with landmark legislation and funding. Minister O'Brien allocated €5 million to support pre-construction development costs of efficient district heating projects while the Heat Bill 2024 was approved Agriculture Minister.
Ireland has one of the lowest shares of district heating in Europe at less than 1 per cent of the heat market in comparison to the European average of 10 per cent of the heating market. As things stand, Ireland has the lowest share of renewable heat and cooling in Europe, with only 6.3% renewables being used to supply district heating compared to Sweden's 66.4% and the EU average of 21%
Ireland's district heating sector has gained significant momentum in 2024-2025 with recent policy developments and, finally, funding commitments. The government approved the General Scheme of the Heat (Networks and Miscellaneous Provisions) Bill 2024, representing the first ever stand-alone heat bill in the history of the State. This legislation will facilitate the growth of an efficient, low carbon district heating sector in Ireland Tackling Climate Breakdown and aims to enable public, private, and utility actors to realise district heating development Ireland is projected to exceed its National and EU climate targets.
The sector has ambitious targets, with plans aiming for up to 0.8 TWh of district heating installed capacity by 2025, increasing to 2.7 TWh by 2030. Climate Action Plan 2024 commits to introducing a mandate on the public sector to connect to district heating, where feasible.
Financial support has been annouced, with €5 million allocated to support the pre-construction development costs of efficient district heating projects. This complements broader energy funding, with SEAI disbursing a record €616 million in grants and supports for energy upgrades and clean energy projects in 2024.
Ireland's first operational district heating network in Tallaght demonstrates practical progress. The network uses excess heat from Amazon Web Services' data centre to provide low-carbon heat, with 133 affordable apartments to be connected by 2025. The project supplies heat to public buildings and Technological University Dublin, showcasing the potential for waste heat recovery in urban environments.