Today, government published the much anticipated District Heating Steering Group Report 2023, which makes 11 recommendations on how government should support the growth and development of the district energy sector in Ireland.

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).

• If we meet targets set by government, approx. 200,000 homes and 2500 public/commercial buildings will be supplied with low-cost, low-carbon heat by 2030.
• The total investment of €2.5 billion will be needed for this (€1 billion in public piping and €1.5 billion in homes/supply).
• This investment, together with the operation, maintenance, and heat supply to district heating networks would lead to the creation of over 2,000 full-time jobs over the next decade.

About the District Heating Steering Group

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,

• Department of the Environment, Climate and Communications (DECC)
• Department of Housing, Local Government and Heritage (DHLGH)
• Sustainable Energy Authority of Ireland (SEAI)
• Commission for Regulation of Utilities (CRU)
• National Development Finance Agency
• Dublin City Council
• South Dublin County Council
• Limerick City and County Council
• City of Dublin Energy Management Agency (CoDEMA)

IrDEA has produced a summary of the key recommendations made in the Report, which is available for download below.

District Heating Steering Group Report 2023 - IrDEA Summary of Key Recommendations.pdf

Recommendations of the Report

1. Establish a National District Heating Centre of Excellence within SEAI.
2. Local authorities to continue developing existing projects. 
3. The District Heating Centre of Excellence should undertake detailed economic analysis to assess the feasibility of a list of measures.
4. DECC should bring forward specific legislation for the sector.
5. DECC and SEAI should review supports for renewable heat production.
6. DECC and the District Heating Centre of Excellence should engage with InvestEU Advisory Hub to explore financing options.
7. That DHLGH should strengthen the reference to district energy in key planning and development strategies.
8. The District Heating Centre of Excellence, with DECC, should develop a Long-Term Strategy for district energy.
9. That a national level assessment of the most suitable Candidate Areas for district energy in Ireland be completed by SEAI.
10. Establish a funded grant programme for Feasibility Studies to allow further investigation into potential schemes.
11. SEAI should undertake research in relation to awareness, current views, experience of current users, preferences and levels of uptake expected.