The Government has today announced the first dedicated development scheme for District Heating in Ireland, marking a major milestone in the country’s transition to sustainable energy. The €5 million scheme, announced by the Department of the Climate, Energy and the Environment will utilitse Climate Action Funding to support early-stage development of district heating projects across the country and help prepare them for further investment under the National Development Plan.

As the national representative body for the district energy industry, IrDEA (Irish District Energy Association) warmly welcomes this groundbreaking initiative.

Pauline O’Reilly, CEO of IrDEA, congratulated Minister O’Brien and his department for launching the scheme:

“This is a hugely significant step toward decarbonising the heating sector in Ireland. Heating remains the single largest contributor to energy-related carbon emissions, and district heating presents a scalable, efficient solution by using locally produced, renewable, and recovered heat. Across the country, our members are actively developing projects with anchor customers such as hospitals, universities, and other public sector buildings. This funding will enable those projects to move to more advanced stages of planning and investment readiness.

"It is also an important foundation for the broader support we are seeking through the National Development Plan. We thank Minister O’Brien and his officials for their engagement and commitment over recent months in advancing support mechanisms for district heating.

While feasibility studies have been supported, this is the first time in the history of the State that a dedicated funding scheme has been established specifically to support the development of district heating — and it is a welcome and necessary step forward.”

Dr. David Connolly, Chairperson of IrDEA, also welcomed the announcement:

“This is a pivotal moment for the district heating sector in Ireland and will send a powerful signal to our industry, future customers and key stakeholders that this Government intends to deliver on creating a district heating sector in Ireland. In time to come, this new grant scheme will be looked upon as a key ingredient to set the foundations of Ireland’s newest utility and one which has huge potential to decarbonise towns and cities across the country.”