€5 Million Pre-Construction Fund Launched to Accelerate District Heating Projects in Ireland

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.