Cabinet advances new Heat Bill as industry calls for a €100m support boost for district heating
The government has advanced the new Heat Bill, clearing the path for its introduction to the Oireachtas later this year. The legislation will unlock the rollout of district heating across the country. According to Climate and Energy Minister Darragh O’Brien, research indicates that district heating could supply about 80% of Dublin’s total heat demand by 2050.
Irish District Energy Association
Following the move, the Irish District Energy Association (IrDEA) has urged the government to increase supports for district heating, calling it an “unrivalled opportunity” to reduce Ireland’s vulnerability to fossil fuel price spikes and supply disruptions.
District heating utilises centralised, domestic sources – such as waste heat from data centres or pharma companies – to heat multiple buildings. Although it serves 80 million people across Europe, district heating currently meets less than 1% of Irish heat demand. However, a Sustainable Energy Authority of Ireland (SEAI) study found that it could supply over 50% of the national heat demand. With 300,000 homes planned by 2030, IrDEA CEO Pauline O’Reilly emphasises this “once-in-a-generation” chance for secure, low-cost energy.
The Tallaght District Heating Scheme already successfully utilises waste heat from an Amazon data centre. To scale this industry, IrDEA is requesting an additional €100m in capital grant support. It is also appealing for a VAT reduction on renewable heat from 13.5% to 9%, bringing it into parity with gas and electricity. IrDEA estimates district heating is 40% cheaper than heat pumps, potentially saving a standard Irish family €632 annually.
IrDEA Annual Conference 2026
The IrDEA Annual Conference takes place on 30 September next at the Radisson Blu Royal Hotel, Dublin 2. Speakers will include Minister Darragh O’Brien, Department of Climate, Energy and Environment (DCEE); Brian Carroll, Asst Secretary General, DCEE; Dr Matt Kennedy, Global Head of Client Transformation, IDA; Phil Hemmingway, Director of Decarbonisation, CRU; and Séan Kinsella, Principal Officer, Renewable Heat, DCEE.
To learn more or book your place, visit www.districtenergy.ie