Supporting and Promoting District Heating and Cooling in Ireland
In its submission, IrDEA outlines its view of the critical role district energy systems can play in achieving national decarbonization goals and enhancing energy system flexibility.
The submission highlights three core areas where district energy can significantly contribute to Ireland’s energy strategy:
By leveraging thermal energy storage (TES) and combined heat and power (CHP) technologies, district energy systems offer a robust solution for managing energy demand, reducing emissions, and stabilizing energy prices. It is a key linking technology that will allow Ireland to resolve a range of challenges we currently face in both the heat and electricity markets. And, we're keen to see all possible steps taken to roll out the technology across Ireland as soon as possible.
IrDEA’s consultation response sets ambitious targets for the adoption of district energy, aiming to supply heat equivalent to 200,000 homes by 2030. It argues for the integration of district energy into the National Energy Demand Strategy to ensure a cohesive approach to decarbonization, energy efficiency, and system resilience.
Murphy went on to say,
We urge policymakers to recognize the value of district energy in achieving Ireland’s climate action targets in all key policy documents. While great strides have been made in documents such as the Climate Action Plan 2023 (and 2024) it is vital that all policy instruments are set on the same path. This requires a strategic revision of the current energy strategy to include district energy as a key component of Ireland's demand management planning process.
According to the organisation, IrDEA’s submission is a call to action for Ireland to embrace district energy as a pivotal element of the country's energy future, ensuring a sustainable, efficient, and resilient energy system for generations to come.
Ends
Download and view full submission here.
The Irish District Energy Association (IrDEA) has today made a submission responding to the ESB Networks Demand Flexibility Consultation call for responses.
Emphasizing the enormous potential of Thermal Energy Storage (TES) for enhancing grid flexibility and sustainability, IrDEA CEO, Yvonne Murphy commented,
IrDEA views the proposal to procure demand flexibility for Ireland’s electricity grid as a key opportunity to integrate district energy systems into Ireland's energy market. One of the lesser publicised strengths of district energy systems is their ability to link the electricity and heat markets to one another, offering signficiant flexibility energy storage options that are well proven, cost effective, and well within financial and technological reach here in Ireland.
As part of its submission, IrDEA advocated for policies that support multi-market participation of flexible assets, emphasising that district energy, through TES, can significantly contribute to demand reduction, shift, and grid stability, ultimately reducing carbon emissions and supporting Ireland's renewable energy goals.
With several key recommendations submitted as part of this consultation response, IrDEA has aimed to highlight the need to consider the unique benefits and capabilities of district energy solutions as part of the design and rollout of this procurement process.
Ms Murphy concluded in stating,
For me, a systems based approach is crucial to achieving our net zero goals. We must tackle waste by improving efficiency and systems integration, both of which are benefits that district energy can bring to the Irish heat and electricity markets.
Download the full submission here.
The key annual event for Ireland's district energy sector saw an unprecedented level of engagement and attendance from industry actors, reflecting the commitment to working towards sustainable energy solutions in Ireland.
The presence of Eamon Ryan TD, Minister for Environment, Climate and Communications along with key officials from his Department, including the Heat Policy Team led by Barry Quinlan, and senior leaders from the Sustainable Energy Authority of Ireland underscored the significant support for the district energy sector from the highest levels of government.
Their positive statements of support have further energised a sector, which is very much on the rise in Ireland.
IrDEA extends its heartfelt thanks to all participants, speakers, and supporters who contributed to the conference's success.
We would also like to thank our sponsors in particular, without whom we could not host such an important event for the sector. They are:
This event not only facilitated meaningful discussions and networking opportunities but also demonstrated the collective resolve to advance Ireland's heat transition through district energy.
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The IrDEA Annual Conference 2023 is a must-attend event for anyone interested in district heating and its vital role in transforming Ireland's heating sector to low-carbon. This year's conference will bring together industry leaders, policymakers, researchers, energy sector representatives, and public bodies - among others - to share insights, foster collaborations, and drive innovation within the Irish district heating landscape.
We have a great range of speakers planned, with more being added to the line-up. Speakers to date include:
The IrDEA Annual Conference 2023 was designed for professionals and organisations involved or interested in district heating, including but not limited to:
Sponsors
This event is kindly supported by
Join us for an enlightening and engaging event where professionals, experts, and enthusiasts gather to explore the latest advancements, trends and opportunities in the district heating sector in Ireland and abroad.
Click here to book your ticket now.
Key Highlights:
Speakers
We have a great range of speakers confirmed, which include:
V iew all the speakers.
Who Should Attend:
The IrDEA Annual Conference 2023 is designed for professionals and organisations involved or interested in district heating, including but not limited to:
Join us at the Irish District Energy Association Annual Conference 2023 and be part of the transformative conversations, knowledge exchange, and collaborative initiatives that will shape the future of the low-carbon heating sector Ireland towards 2030 and beyond.
Tickets are now on sale and last year's conference was sold out, so be sure to secure your spot today!
Please note that photographs will be taken during the conference and some photos may be published publicly on social media, websites, etc.
Commenting on the RHO, IrDEA had this to say,
As set out in our submission to the original consultation on the Renewable Heat Obligation (RHO) in October 2021, IrDEA and its members fully support the introduction of the RHO and we welcome the opportunity to engage in this follow-up consultation.
Supporting investment and development in renewable heat is a policy imperative for the national transition to a low-carbon, climate resilient, circular economy. With a renewable heat share of just 5.2%, Ireland is currently ranked last among our European counterparts (Eurostat, 2023b). This must change for Ireland to meet its 2030 and 2050 decarbonisation obligations.
We view the RHO as a much-needed policy lever to incentivise change within an overly fossil-dependent heat sector. However, IrDEA is concerned that district energy has not been named as an eligible source of RHO credits. Such an oversight is a wasted opportunity to see that the RHO aligns with the Climate Action Plan 2023 goal to redirect the heat sector to a combination of district energy and heat pumps by 2050. Every conceivable opportunity must be taken to promote the establishment and growth of district energy systems across the country. One way to do that is to allow district energy networks to sell RHO credits as an income source that could then be invested in the further growth of networks.
IrDEA is hopeful that this submission will help to convince those determining the final make-up of the RHO to reconsider including district energy in the RHO credit system and, in so doing, help to incentivise the heat sector to shift towards its incorporation into their plans for future evolution.
View or download the full submission at this link.
Press Release, Irish District Energy Association, 10/10/2023
While detail is yet to emerge on exactly how the fund will operate and the types of projects it will support, the cumulative scale of the €14bn fund and its focus is ‘cause for optimism’, according to the sectoral interest group. Speaking on behalf of IrDEA, CEO Yvonne Murphy stated,
We have been advocating for a significant boost in the level and kind of funding available from the State to support capital projects of the scale needed to tackle decarbonisation in the heating sector. Naturally, we await further detail on how this fund will operate, but our initial impression of this announcement is a very positive one.
The organisation highlighted that the time for minor interventions has passed for Ireland as the country is currently on track to achieve less than 10% of the Climate Action Plan target of 2700 GWh for 2030. Murphy warned,
We cannot afford to wait, which is why it was so important that Budget 2024 was seen to deliver the resources needed to kick-start district energy in Ireland. There are additional areas of spending that we still wish to see addressed and it seems this fund is unlikely to deliver all the funding we believe the sector needs. But today's budget acknowledged the need to invest in the capital projects to achieve our decarbonisation commitments. That must be welcomed.
The district energy sector is poised to invest up to €2bn between now and 2030 to serve heat demand equivalent to 200,000 homes. We currently boast less than 20 GWh of district energy in Ireland.
Ms Murphy concluded by stating,
Strong market signals are needed on the part of government to demonstrate that the State is behind the sector and is committed to district energy into the long term. This will help to build confidence within the sector, which will help to trigger investment. This fund has the potential to help with that if it is correctly focused and can be accessed to support district energy projects. We await further detail with great hope that this is the case.
View or download IrDEA's Pre-Budget Submission
(VIEW OR DOWNLOAD FULL PRE-BUDGET SUBMISSION)
IrDEA’s total ask for Budget 2024 was €389.5m per year, which would be used to provide for district energy under three headings,
This is chiefly to increase staffing in Local Authorities, SEAI, CRU, and the Department of Environment, Climate and Communications to ensure capacity exists to drive district energy forward.
District energy infrastructure is a long-term investment, with piping lasting over 50 years before replacement. Allowing for private sector innovation and agility is important to get projects off the ground, but State support for infrastructure is also important given the public good it serves by keeping end use energy prices affordable and creating certainty in the market.
Heat accounted for 41.8% of final energy demand in 2021, this compares to transport at 36.1% and electricity 22.1% (SEAI, 2022). In 2022, only 5.2% of heat produced in Ireland came from renewable sources, this is the lowest renewable heat share in Europe (Eurostat, 2023a, 2023b). Although Ireland has made great strides in developing renewable electricity, we have outright failed to make progress on renewable heat.
The Climate Action Plan 2023 sets out that government intends to move us to a heat system run on a combination of heat pumps and district energy(Government of Ireland, 2022). In simple terms, this would mean using heat pumps in areas of low building and heat demand density, and district energy in areas of medium to high heat demand density, such as villages, towns, and cities. This would help to maximise efficiency and affordability in the heat sector, as where the heat demand exists, district energy is a more affordable option than heat pumps, but heat pumps are agile enough to cater to the needs of customers in, for example, one off houses.
District energy is well proven as an affordable, local source of decarbonised heat. One of its key benefits is that it can run off any energy source that can heat water; this means it can run off a range of renewable and waste heat sources, and often systems incorporate several heat sources to ensure adaptability and optimised cost effectiveness.
Insulated tanks or pits filled with water that range in size from domestic hot water tanks to large pits occupying surface areas equivalent to or bigger than football fields are used as energy storage in district energy systems. The water in the storage system is heated when energy is abundant or cheap, allowing for greater savings and efficiency to be delivered to consumers. At the longest duration, solar arrays are used in some sites to capture heat in summer for use in the winter as a source of heat for buildings.
Eurostat. (2023a). Heating and cooling from renewables gradually increasing. https://ec.europa.eu/eurostat/web/products-eurostat-news/w/DDN-20230203-1#:~:text=As%20a%20result%2C%20the%20share,value%20in%202004%20(11.7%25).
Eurostat. (2023b). Renewable energy statistics. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Renewable_energy_statistics
Government of Ireland. (2022). Climate Action Plan 2023. https://www.gov.ie/en/publication/7bd8c-climate-action-plan-2023/
SEAI. (2022). National Heat Study: District Heating and Cooling. https://www.seai.ie/publications/District-Heating-and-Cooling.pdf
The comments came in relation to the recent public consultation held as part of the review and the sectoral group’s submission to that process. (Full submission available here).
The group drew particular attention to the lack of consistency with national and international policy, which is set on a move away from fossil fuel dependency and towards renewables. Highlighting that the nuts and bolts of policy delivery must align with that overall goal, IrDEA called for mechanisms like the GNI price control to be used as tools to drive that change.
Speaking on the matter, an IrDEA Spokesperson stated,
We are very concerned that the business-as-usual approach adopted in the PC5 fails to incentivise change on the part of Gas Networks Ireland when it comes to continued gas grid expansion. This must be addressed as a matter of urgency to really get moving on building a pathway to renewable sources of flexible electricity generation, and renewable heat generation and distribution.
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IrDEA expressed further concern at the assumption that the demand and need for gas will continue to grow in line with projections made by Gas Networks Ireland (GNI). Government and industry are pushing to achieve 80% renewable electricity by the end of the decade, which will greatly reduce the market share GNI can compete for in terms of electricity generation and that needs to be factored into all scenarios.
On this, the organisation said,
There is a clear policy commitment to pivot to district energy and heat pumps for heating by 2050. If we are serious about achieving that, we must start now. The PC5 is an important mechanism that could help with this, but unfortunately it misses the mark in its current form. We urge that it be revised now to avoid prolonging our dependency on gas and help deliver decarbonised heating as soon as possible.
IrDEA went on to say,
The idea that the PC5 continues to promote the expansion of the gas network through the connection incentive is truly astonishing at a time when we need to plan for the eventual decommissioning of the gas grid. It is true that gas will continue to provide back-up for our electricity and heating systems until alternatives can be put in place, but to continue expanding beyond this is incredibly problematic. No slow-down in gas grid expansion appears to be envisioned in the PC5, which is very worrying from a decarbonisation and energy transition standpoint.
The sectoral group concluded in highlighting the importance of investing in decarbonised solutions to heating and electricity as soon as possible to ensure Ireland has a robust, secure, and safe supply of energy that serves the people of Ireland in every way needed, including in environmental terms.
Commenting in response to the launch of the Report, Yvonne Murphy, CEO of the Irish District Energy said,
The District Heating Steering Group Report is a key moment for the district energy sector in Ireland. Its recommendations on financing, consumer inducement and protections, regulation, and planning and consenting, among other elements, send a clear signal to the market that Ireland is committed to district energy as a key driver of decarbonised heat. This is hugely welcome.
The National Heat Study produced by the Sustainable Energy Authority of Ireland in 2022 demonstrates the potential for up to 54% of heat in buildings to be supplied by district heating. A proven technology in widespread use across many European countries since the 1970s, district heating is a key component Ireland's plans to decarbonise the built environment, diversify fuel sources for heat, and improve quality of life.
Countries like Sweden, Finland, Latvia, Estonia, Lithuania, and Denmark have both the highest levels of renewable heat and district energy in Europe. Each with a renewable heat share of over 40%. Ireland, on the other hand, ranks bottom in Europe with only 5.3% of heat coming from renewable sources (SEAI 2022).
The District Heating Steering Group was chaired by Barry Quinlan, Assistant Secretary in the Department of the Environment, Climate and Communications with responsibility for Energy, and was made up of representatives from,
District Heating Steering Group Report 2023 - IrDEA Summary of Key Recommendations.pdf
In its submission, IrDEA urged the Department to refine certain aspects of the Strategy, 'to better reflect the future role of district energy in achieving our 2050 net zero emissions targets'.
The current long-term strategy intersperses district energy as a source of heat decarbonisation alongside other options, particularly heat pumps. While IrDEA emphasised that is incredibly welcome to see district energy incorporated in this way, we are keen to ensure clarity and consistency in the strategy with respect to decarbonising heating and cooling. This is vital to support the scaling up of the district energy sector, which in turn is essential to achieving our long-term greenhouse gas emissions reduction targets.
To achieve this, IrDEA recommended the following changes to the strategy:
IrDEA concluded in stating,
If we are to achieve net zero emissions, it is vital to use every available technology and resource at our disposal. The science is clear that reducing emissions quickly will have the most positive impact on managing and mitigating the excesses of human induced climate change. As the heating sector lags so far behind in Ireland’s efforts to decarbonise, we must put particular focus on finding deliverable solutions that can be rolled out as quickly as possible. This must include placing district energy on a par with solutions like heat pumps given its capacity to deliver decarbonised heat to up to 50% of Ireland’s current building stock in addition to future constructions in areas with suitable levels of heat demand.
Download the full submission here:
IrDEASubmission_Ireland’s current Long-term Strategy for Greenhouse Gas Emissions Reductions_07Jul2023.pdf
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Irish District Energy Association
13 Adelaide Road, Saint Kevins, Dublin 2, D02 P950
Company Registration: 619382
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