€5 Million Pre-Construction Fund Launched to Accelerate District Heating Projects in Ireland6/11/2025
Government opens Expression of Interest to support early-stage development of efficient district heating networks
District heating is a pivotal technology to help Ireland reach its climate ambitions, while also improving our energy security and affordability. The deployment of district heating at scale, particularly in densely populated areas with readymade heat sources located nearby, is a key Government objective under the Climate Action Plan. The State has financially supported the development of district heat networks in Ireland through the Climate Action Fund. In line with the Government’s District Heating Steering Group Report recommendation to provide financial support for district heating, the Minister for Climate, Energy and the Environment Darragh O’Brien approved the allocation of €5 million to support pre-construction costs for efficient district heating projects in Ireland. The funding will come from the Climate Action Fund and will be administered by the Department of Climate, Energy and the Environment. Through the SEAI website, the Department of Climate, Energy and the Environment has opened an Expression of Interest (EoI) for interested parties to be considered for the fund. Support for the pre-construction costs is being used as a pilot fund to bridge the gap for district heating projects until significant capital funding is in place, and to ensure that efficient district heating projects are in position to avail of this future funding. The fund will aim to grow the district heat market and overcome the market failures in early stages of development, that exist in the decarbonisation of heating in Ireland. This support will bring industry to the next step and underpin the future development of district heating networks. Minister O’Brien said: “I am pleased to see the swift progress on opening this fund and I thank the SEAI District Heating Centre of Excellence for their support and assistance to make this allocation available as soon as possible. “Prior to the announcement and since that time, I have observed that this industry is poised for advancement. I look forward to seeing the progress of this industry, and this initial fund represents the first step in that journey. The establishment of future State funding will be the next step to support the full construction of efficient district heating projects in the years to come.” William Walsh, CEO of SEAI, said: “District heating works really well in other countries and there’s huge potential for it here in Ireland. It's a vital piece of our overall plan to move away from fossil fuels – towards more secure, sustainable ways to heat our homes and other buildings. In order to get the industry properly off the ground, we need to offer help with set up costs and that's what this pre-construction fund is designed to do. The Sustainable Energy Authority of Ireland [SEAI] is excited to work with the Department of Climate, Energy and the Environment, to realise the full potential of district heating in Ireland.” How to register your Expression of Interest Details on how to register your interest in accessing this fund can be found on the SEAI website – at this link: https://www.seai.ie/renewable-energy-and-projects/district-heating/pre-construction-fund. Only applicants who register here will progress to the next phase of the fund. Expressions of interest will remain open until 12 December 2025. Applicants should expect to be contacted by February 2026 in relation to their submission. Who is eligible? The target audience of the fund will be Project Sponsors looking to develop efficient district heating projects in Ireland. The fund is open to all public and private sector applicants who meet the eligibility criteria and are legal entities (such as companies or organisations), as individuals cannot apply to the fund. Key deliverable under the National Biomethane Strategy – Biomethane Environmental Sustainability Charter now published
Minister for Climate, Energy and the Environment Darragh O’Brien and Minister for Agriculture, Food and the Marine Martin Heydon have announced the publication of the Biomethane Environmental Sustainability Charter. The Government remains committed to supporting the development of a biomethane sector of scale in Ireland. The development of a Biomethane Sustainability Charter as part of the National Biomethane Strategy is key to ensuring the successful roll-out of an Agri-led biomethane industry, and to mitigate against any unintended or negative environmental consequences. Developed in partnership with the Department of Agriculture, Food and Marine and the Department of Climate, Energy and the Environment, the Charter compliments and builds on existing regulatory or legal obligations and sets out best practice guidelines to maximise the benefits of anaerobic digestion, while minimizing its environmental impact on land use, water quality, biodiversity, and ensuring a high health and safety standard within the sector. Developed in consultation with key stakeholders, and overseen by the Biomethane Implementation Group, the Charter will apply to biomethane projects being developed in Ireland and in receipt of any form of public funded support, including a national AD/Biomethane support scheme. The Charter outlines the scope and vision for the biomethane sector, and best practices that participants in the industry should commit and adhere to during plant design, construction and operational phases of production. Charter Commitments The Charter includes 17 commitments, and 8 Recommendations focused on 4 key principals which include:
The Charter is available to view here. Also published is a progress report on delivery of actions within the National Biomethane Strategy. This is available to view here. Commenting, Minister O’Brien said: “A fundamental objective of the establishment of an indigenous biomethane industry of scale is to promote and enhance environmental sustainability. As such, all AD plants must be expected to meet the highest of environmental and industry standards. “The Biomethane Environmental Sustainability Charter commits the AD and biomethane industry to the necessary environmental safeguards and community engagement as we begin to increase domestic renewable energy resources in our energy mix. By following the best practices outlined in this document, operators, farmers, engineers, planning consultants, design engineers and developers demonstrate their commitment to maximizing the benefits and valorisation of anaerobic digestion and bio-based products, while minimizing its environmental impact, improved water quality and ensuring high health and safety standards. “Government is committed to supporting a production level of up to 5.7 Terra Watt hours (TWh) of indigenously produced biomethane per annum, which equates to approximately 10% of current gas demand in Ireland.” Minister Heydon commented: “The publication of The Biomethane Environmental Sustainability Charter is another important milestone in the development of the Biomethane Sector in Ireland. This charter is a key deliverable under the National Biomethane Strategy to help ensure that Ireland’s Biomethane sector can sustainably achieve the 5.7 TWh target by 2030. “From an agricultural perspective there are clear benefits in terms of contributing to the delivery of renewable energy targets. Along with the opportunity to diversify farm incomes, the Biomethane sector also represents a pathway for farmers to reduce fertilizer usage through the increased availability of domestically produced digestate.” I welcome the agreement reached last night by EU Environment Ministers and the European Climate Commissioner on the proposed European climate target for 2040 and the Nationally Determined Contribution (NDC). This represents an important milestone in shaping Europe’s long-term response to the climate crisis and in setting a clear direction for our collective efforts beyond 2030. It also means that EU Member States will arrive at COP with a credible and ambitious commitment for emissions reductions in our NDC.
Ireland has played a constructive role throughout these discussions, engaging actively and positively over recent months. I particularly welcome the text changes Ireland secured to the European Climate Law. These address a number of our key concerns – including recognition of the particular characteristics of our agriculture sector, the importance of maintaining energy affordability and security, and the need to ensure social cohesion as we continue the transition to a climate-neutral economy. The agreement reached reflects a pragmatic and balanced approach that has achieved the broadest possible consensus among Member States while maintaining Europe’s global climate leadership. Ireland now looks forward to working closely with the European Commission on developing credible and fair pathways towards 2030 compliance, and with all Member States next year on the broader implementing package that will give detailed effect to the headline agreement reached overnight. Minister for Transport, Darragh O'Brien, has welcomed the decision of An Coimisiún Pleanála to grant planning approval for the Luas Finglas project, enabling it to progress towards procurement and construction.
Minister O’Brien said: “This is a major milestone in expanding Dublin’s public transport network. Luas Finglas will offer thousands of Dubliners a fast, reliable, sustainable way to get around the city, helping to reduce traffic congestion and improve air quality. The additional cycle and pedestrian facilities involved in the project will offer even more sustainable and active transport options. By reducing journey times, the project will also support the development of housing and businesses along the route. Luas Finglas will bring great benefits to the local community as well as to Dublin as a whole.” The Luas Finglas extension is a transformative infrastructure project that will extend the Luas Green Line by 4 kilometers northward from Broombridge to Charlestown, adding four new stops: Charlestown, St Margaret’s Road, Finglas Village, and St Helena’s. The Luas Finglas extension is part of the National Development Plan and reflects the Government commitment to developing sustainable urban transport. Minister O’Brien welcomes decision to publish the Electricity (Supply) (Amendment) Bill 202529/10/2025
Bill paves way for Government investment of €1.5 billion in ESB Networks – to support crucial development of our electricity grid over the next five years
Minister for Climate, Energy and the Environment Darragh O’Brien has today welcomed the Government decision to publish the text of the Electricity (Supply) (Amendment) Bill 2025. The Bill will now pass through the Houses of the Oireachtas and once enacted, will provide the mechanism for Government to invest €1.5 billion in ESB Networks to support crucial development of our electricity grid over the next five years, as committed to in the updated National Development Plan. The Bill also provides for an increase in ESB’s statutory borrowing limit from €12 billion to €17 billion. The €1.5 billion investment will support ESB’s ability to finance its unprecedented investment plan for 2026-2030. Enabling it to expand, modernise and reinforce our onshore electricity network infrastructure. ESB Networks is responsible for managing the country’s electricity networks and the overall ESB investment plan will see delivery of over 500 capital projects including 181km of new overhead lines, 319km of new underground cables, nearly 70 new and upgraded substations across the country and 50,000 pole replacements. This critical infrastructure will improve the resilience of Ireland’s onshore electricity system and future-proof it for generations to come. It will support housing development, foreign direct investment, Ireland’s transition to greater levels of renewable energy and safeguard against damage from future weather events. It will ensure we can meet the demands required by the expected 50% growth in electricity by 2035 and deliver on Ireland’s energy needs. Without Government equity investment, ESB Networks would be unable to deliver such an extensive and rapid programme of work in the five years to 2030. While the investment does not directly lower current customer electricity bills, it ensures that ESB can borrow at the most competitive interest rates, ultimately lowering the impact of network charges on customer bills. The ESB equity injection is part of the €3.5 billion Government investment approved in the National Development Plan in July, which represented the largest single investment ever made in Ireland’s electricity network. €2 billion will be allocated to EirGrid over the next five years, and the mechanism for this equity investment will be agreed and legislated for separately. Speaking today, Minister O’ Brien said: “This €1.5 billion investment is crucial to modernising and future-proofing our electricity network infrastructure. “We want to ensure that every home and every business has a reliable and secure source of electricity, including the 300,000 new homes we’ve committed to build by 2030. “This investment will deliver energy security for Irish families and communities across the country. It will drastically improve network resilience against future weather events. It will create thousands of jobs. And it will make Ireland a more attractive place for international companies to invest and grow.” Commenting, Paddy Hayes, Chief Executive, ESB said: “ESB welcomes the publication of proposed legislation to facilitate an equity investment of €1.5 billion which will support ESB Networks’ plan to deliver an investment of €13.4 billion in critical electricity infrastructure over the next five years. “Investment by ESB Networks in enhancing electricity system infrastructure is essential – to support economic development, housing growth, and improved resilience, while delivering of an increasingly decarbonised electricity system – for customers, for the economy and for our future.”
Cabinet has today approved BusConnects Cork, a transformative programme of investment in Cork’s bus and cycle system. Today’s approval will facilitate the lodgement of planning applications with An Coimisiún Pleanála for new bus and active travel infrastructure, which is expected to occur next year. The multi-billion euro BusConnects Cork investment programme was developed following extensive public consultation by the National Transport Authority (NTA). The programme will deliver 11 Sustainable Transport Corridors across Cork city, covering 90km of bus lanes as well as 95km of cycle lane facilities (in one direction). It will also deliver new bus shelters, electric buses and Next Generation Ticketing. The redesigned bus network will have over 50% more bus services in place, with two routes operating 24-hours. All of this will provide more reliable, frequent and faster bus services, and better cycling infrastructure to the people of Cork, through an integrated sustainable transport network. Minister for Transport, Darragh O’Brien, said: “Today’s approval of BusConnects Cork is another example of the Government meeting its commitments to invest in sustainable transport. As a result of this programme, an extra 13,000 people will be able to reach Cork city entre by public transport from their homes within 30 minutes. BusConnects Cork will make it faster and easier to get to school, work, or visit family and friends. And by reducing congestion, it will make our streets safer for all.” Minister of State with responsibility for International and Road Transport, Logistics, Rail and Ports, Seán Canney, said: "BusConnects Cork is transformative and ambitious, mapping out a modern, efficient and sustainable transport system for the city. It will not only improve connectivity and help reduce journey times, but also support economic growth and our climate goals. It is an investment in a cleaner, safer and more accessible future for transport." Minister of State with responsibility for Rural Transport, Jerry Buttimer, said: “As a resident of Cork city, I am delighted to see BusConnects Cork moving to the next stage of development. This project has potential to transform the way we move across the city, increasing our transport options and making travel by bus and bike more attractive. There will of course be challenges, as with any ambitious project, but the benefits for the city and its residents will be considerable.” Hugh Creegan, Interim CEO of the NTA, welcomed the Government’s decision, stating: “This is a significant step forward for sustainable transport in Cork. The BusConnects programme will deliver a cleaner, faster and more efficient transport system for the people of Cork, making it easier for people to use public transport as part of their daily lives, improving journey times, reducing congestion, and supporting the city’s growth.” Notes to Editors The BusConnects Cork programme involves various projects, including:
Under the provisions of the Infrastructure Guidelines, any Exchequer investment proposal with an estimated capital cost of over €200 million requires Government consent for approval. This is the case with the BusConnects Cork programme. With today’s decision, the Government has issued Approval Gate 1 approval in line with the Infrastructure Guidelines, allowing the Sustainable Transport Corridors to enter the planning system. The final budget and delivery schedule for BusConnects Cork will be established for Approval Gate 3 (Final Business Case) under the Infrastructure Guidelines, following the planning/procurement phases. At present, it is anticipated that delivery of the capital programme will range from between €2.3 billion and €3.5 billion. Even using an upper-end cost estimate, the Benefit to Cost Ratio for the programme is 1.50, indicating that for every €1 spent, the programme will generate €1.50 in benefits. The overall citywide approach is delivered through the Cork Metropolitan Area Transport Strategy (CMATS) 2040. Adopted in 2020, CMATS is intended to deliver an accessible, integrated transport network that enables the sustainable growth of the Cork Metropolitan Area as a dynamic, connected and internationally competitive European city region. CMATS 2040 was developed by the NTA in collaboration with Transport Infrastructure Ireland (TII), Cork City Council and Cork County Council. During construction, appropriate traffic management measures will be put in place to manage any temporary traffic disruption. In addition, there will be extensive and comprehensive communication arrangements to ensure all impacted persons are fully informed of the construction activities and the mitigation measures in place. There is more information available at https://busconnects.ie/cities/cork/. |
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October 2025
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