Fossil to Future - The role of District Heating in Ireland
District Heating can decarbonise Ireland's heat sector, leveraging renewable and waste heat sources for a sustainable future. However, the next few years are vital.
Background
Did you know that the heat sector is responsible for over 20% of Ireland's CO2 emissions? Yet, it is not widely talked about when discussing decarbonisation. Progress to date has been slow in heating, with Ireland having the lowest proportion of renewable heat in the EU. A whopping 90.2% of our heat demand is satisfied using fossil fuels.
As we strive to meet our national emission reduction targets of 51% by 2030 and net zero by 2050 , it's clear that we must address the elephant in the room, heat. One solution that has been investigated is District Heating, a system which serves over 70 million citizens across Europe, with countries like Denmark having two thirds of households connected to District Heat. But what exactly is District Heating, and how can it transform Ireland's heat sector?
What is District Heating?
District Heating delivers heat to multiple buildings or sites through a network of pipes, providing space heating or hot water. Think of it a bit like an electricity grid, but instead of electricity, it distributes hot water to everyone in an area. This system is technology agnostic, meaning any heating technology can be used if it produces the required temperature for the end user.
District Heating is ideal for decarbonisation because it can accommodate various low carbon heat sources, including those that may not be feasible at small individual building level, such as deep geothermal or waste heat from industry. This flexibility, combined with the increased scale of the systems, can increase efficiency and reduce carbon emissions to provide low-cost, low-carbon heat in many areas of Ireland.
Due to the need to install pipework to distribute the heat, District Heating works best in areas with a high density of heat demand, such as towns and cities. It's especially effective in places with large buildings with high heating needs (known as anchor loads) like hospitals, or with a local heat source like waste heat from wastewater treatment plants or data centres.
District Heating in Ireland
District Heating uptake is limited in Ireland making up less than 1% of building heat demand. Ireland's Climate Action plan has set targets to deliver 2.7 TWh/year of heating through District Heating by 2030 which is 10% of our building heat demand. A lot of work is needed to expand the sector. There has been some recent progress with the opening of the Tallaght District Heat Scheme. It uses waste heat from a data centre to heat a range of public buildings , with plans for further expansion. Also, the planned Dublin District Heating Scheme (DDHS) in the Poolbeg area will supply heat from a waste-to-energy plant supplemented by thermal storage to buildings in the surrounding area.
Numerous recent studies have highlighted the role District Heating could have in decarbonising Ireland. SEAI’s National Heat Study found that as much as 50% of building heating demand in Ireland could be met by District Heating. And SEAI’s District Heating map has identified areas where it could and should be located. While potential of District Heating is clear, there is a need for a step change to increase deployment. A possible reason for low uptake in the past may be District Heating not receiving the priority required in heat policy and competing against cheap, market dominate fossil fuels. This led to a lack of a policy framework, a feasibility funding gap with no tailored financial supports and the need for greater capacity in a range of stakeholders to execute these schemes. However, in recent years, we have started to see District Heating becoming more central to heat policy in Ireland with a clear momentum building and the next couple of years are vital.
What’s happening now with District Heating in Ireland?
A cross -sectoral District Heating Steering Group set-up under the Climate Action Plan has framed the future of District Heating in Ireland as one based on decarbonised, consumer protected, diversified and reliable heat for all customers. To fulfil these principles and the recommendations of the Steering group, Stakeholders are driving some key actions to realise its potential:
- Enact the Heat Bill - The Heat (Networks and Miscellaneous Provisions) Bill 2024 has been developed to provide a legislative and regulatory framework for the District Heating sector in Ireland. This Bill includes provisions for the regulation of heat networks, consumer protection, and the development of a new heat network authority. It aims to ensure a vibrant and well-regulated District Heating industry that can meet Ireland’s energy and climate goals. It is planned to enact the legislation in 2025, accelerating roll-out.
- Establishment of a Centre of Excellence (CoE) - A National District Heating Centre of Excellence was established within SEAI in 2024. Its function is to provide support for project sponsors on the delivery of District Heating schemes, and to work with DECC to support the long-term strategy for District Heating deployment nationally.
- Funding – There is a need to address the funding gap for District Heating which has high initial costs for developers but tangible societal benefit. Development work has begun on how to best address this, whether through existing schemes or initiation of a specific District Heat fund.
What’s the future for District Heat?
District Heating presents a viable and cost-effective solution to decarbonising our buildings, leveraging renewable and waste heat sources. While Ireland has made some progress with projects like the Tallaght District Heat Scheme, there are significant opportunities available to expand the sector.
The establishment of a Heat Bill, and the National District Heating Centre of Excellence are positive steps forward. However, overcoming financial barriers and increasing public awareness are essential to accelerate the adoption of District Heating.
By embracing District Heating, we can create a more sustainable and energy-efficient future for Ireland. But time is of the essence, and we must act quickly to fulfil the potential of District Heating. Together, we must learn the lessons both nationally and internationally on how we grow this market to decarbonise our heat and develop a new indigenous sector creating new local green jobs. You could play your part by visiting our new webpage to learn more about District Heating.
