Ireland’s district heating ambitions have been given a major push with the announcement of a €5 million investment from the Climate Action Fund to support early-stage development of new projects.

Minister for Climate, Energy and the Environment Darragh O’Brien confirmed the funding will cover pre-construction costs for efficient district heating networks across the country.

The move is designed to get a strong pipeline of projects “shovel-ready” ahead of a larger, multi-year funding programme expected to run from 2026 to 2030.

District heating — which delivers heat through centralised systems to homes, businesses and public buildings — is viewed as a key element in Ireland’s drive to decarbonise its energy system and meet emissions targets under the Climate Action Plan. Despite its wide use in many European countries, it currently accounts for less than 1% of Ireland’s heating supply.

The €5 million will be available to both public and private developers and is aimed at unlocking progress in urban areas with high heat demand and available waste heat sources. Similar schemes are already operating or planned in Tallaght and Dublin city, where waste heat from the Poolbeg incinerator will be used to warm surrounding neighbourhoods.

Minister O’Brien said the new funding would help the industry take “the next step” and build the infrastructure needed to support a modern, low-carbon heat sector. A business case is also being prepared to secure future state funding to scale up district heating between now and the end of the decade.

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