Ireland currently represents one of the lowest shares of district heating in Europe¹, with only a few small-scale district heating networks amounting to less than 1% of the country’s total heat demand².
Despite this, the Government has set an ambitious target to deliver up to 2.7 TWh of district heating by 2030, equating to around 10% of Ireland’s heating needs. By 2050, the Sustainable Energy Authority of Ireland (SEAI) has suggested that up to 50% of building heating demand could be met by district heating.
The Irish Government is looking into how it can facilitate the market growth required to deliver this ramp up. The supply chain in Ireland isn’t as well developed as other countries and therefore, there is a significant challenge in terms of scaling up. It is clear that to date policy has not facilitated market growth at the rate required to achieve Ireland’s decarbonisation objectives. The main barriers to district heating are non-technical, as it is a proven technology around the globe. But in Ireland, there is currently a lack of guidelines, regulations, policies, frameworks, or standards relating to district heating, which presents a high risk and uncertainty for market actors.
The Government has already taken steps to increase district heating provision by forming the District Heating Steering Group under the 2021 Climate Action Plan³. Their recent 2023 Report set out a suite of recommendations as to how the Government can achieve their ambitious plans. These included introducing legislative changes in relation to consumer protection, licensing consenting, and technical standards. They also highlighted the need to build the skills and expertise needed at a local level, as well as considering how funding could be deployed to support the construction of networks. The report emphasised the need for private sector collaboration and investment to really unleash the potential of district heating in Ireland.
To overcome these barriers a coordinated approach is needed across departments, with learnings from international counterparts. Gemserv is delighted to be attending the Irish District Energy Association’s Annual Conference in Dublin on 26th October. We are excited to hear about the progress being made in Ireland and share how the UK has used policy, incentives, and regulation to drive heat network deployment over recent years. We know the UK still has a long way to go to hit its target to deliver 20% heat demand from heat networks by 2050, but there are learnings that can be drawn from the approach with many policies directly applicable to the Irish market.
District heating is beneficial to a wide range of customers, from domestic use to public buildings, educational facilities, offices and hospitals. These systems are recognised as being highly efficient by reducing the need to install individualised heating systems for multiple buildings⁴. A range of different heating sources can be used for district heating, including heat recovery from the many data centres in Ireland. District heating can be an incredibly efficient way to provide affordable heating to homes and businesses, whilst enabling the transition for high carbon fossil fuel heating. The carbon saving potential for district heating increases as networks expand, making them ideal for both rural and urban areas.
Ireland presents an exciting and growing market for anyone in the heat network sector internationally. There are, however, policy gaps which will need to be addressed and there is an opportunity to shape how these evolve over time. Our heat network team will be watching how the policy landscape evolves and we hope to inform the debate over the coming months.
Footnotes
¹ Irish District Energy Association. 2023. Opening Address to Joint Oireachtas Committee on Environment & Climate Action. Available here.
² Irish District Energy Association. 2023. Opening Address to Joint Oireachtas Committee on Environment & Climate Action. Available here.
³ Irish Government. 2023. District Heating Steering Group. Available here.
⁴ DESNZ. 2023. UK Heat Networks: market overview. Available here.
