Heating Up: Why Ireland can’t afford to wait on District Heating

Upward view of tall city skyscrapers against a clear blue sky.
  • Insight
  • 2 minute read
  • May 08, 2026
Robert Costello

Robert Costello

Partner, PwC Ireland (Republic of)

19,000

Heat networks serve 80 million people across Europe

1%

Of Ireland’s heat demand is met by district heating

7.4%

of people in Ireland went without heating in 2025

54%

of Ireland’s building heat demand could be met by district heating

District heating is a proven, scalable technology that already serves close to 80 million citizens across approximately 19,000 networks in Europe, yet it accounts for less than 1% of Ireland's heating market. We examine the compelling case for district heating in Ireland, drawing on European best practice to argue that it must become a central pillar of the nation's decarbonisation, energy security, and housing strategies – not an optional extra. 

The evidence that we present demonstrates that district heating delivers substantial carbon savings, reduces fuel poverty by shielding households from fossil-fuel price volatility, and represents the most cost-efficient low-carbon solution for apartment buildings and higher-density urban developments. The SEAI estimates that district heating could meet up to 54% of Ireland's building heat demand.

Despite this potential, there are critical barriers to its realisation – fragmented planning processes, absent supply chains, skills gaps, and a lack of regulatory precedent – that continue to stall progress. To overcome these barriers a comprehensive National Strategy – supported by targeted incentives, regulatory frameworks, and mandatory connection requirements in designated zones – is urgently needed to translate policy ambition into infrastructure delivery. With the National Development Plan and Housing for All initiatives under way, Ireland has a unique but time-limited window of opportunity to act.

Ireland’s homes can be decarbonised and warm

Let’s build the heat networks of the future

(PDF of 1.53MB)

Contact us

Robert Costello

Partner, PwC Ireland (Republic of)

Tel: +353 87 636 4014

Sinead Lew

Partner, PwC Ireland (Republic of)

Tel: +353 87 779 1373

Ciarán Nevin

Director, PwC Ireland (Republic of)

Rakshita Paul

Manager, PwC Ireland (Republic of)

Tel: +353 871941150

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