Heating is Ireland’s biggest energy challenge and biggest climate opportunity

The Sustainable Energy Authority of Ireland (SEAI) has today published key insights from Ireland’s National Comprehensive Heating and Cooling Assessment (HCA), highlighting the current challenges and opportunities for Ireland to significantly reduce its reliance on imported fossil fuels for heating with significant delivery required to reduce heating emissions by almost 90% by 2050.

Heating currently accounts for more than one-third of Ireland’s total energy demand and almost one-quarter of national greenhouse gas emissions, making it one of Ireland’s biggest climate and energy security challenges.  Approximately 90% of Ireland’s current heat demand is still met by fossil fuels, with around 80% dependent on imported energy sources.

Ireland’s biggest energy challenge

The assessment also finds that a rapid transition to low-carbon heating technologies including electrification, district heating, renewable gases and waste heat recovery could significantly reduce heating emissions under a high-ambition scenario assessed within the report.

Commenting on the Assessment, Minister for Climate, Energy and the Environment, Darragh O’Brien T.D. said: “Providing a comprehensive overview of the potential for efficient heating and cooling in Ireland, this report also gives us a timely insight into how Ireland can reduce its import dependency on fossil fuels for heating. The report highlights how this can be achieved through energy efficiency measures, electrification, district heating and incentivising indigenous renewable fuels for heat such as biomethane.
“We have made major strides in decarbonising many areas of our society and our economy, including in particular the electricity sector. While we are making progress in decarbonising our built environment, more is needed. This report sets out pathways to achieve this.”

While the overall economic case for rapid heat decarbonisation is strong, the report notes that affordability will be critical to delivering a just transition for households and businesses. It highlights the importance of targeted grants, electricity pricing reform, long-term investment supports and clear policy signals to ensure households and businesses can transition confidently to low-carbon heating alternatives.

SEAI noted that important progress is already underway through energy efficiency upgrades, increased heat pump deployment and wider climate action measures, but that significantly greater scale and pace of delivery will now be required to decarbonise Ireland’s heat sector.

William Walsh, CEO of SEAI, said: “We’ve looked at how we heat our homes and businesses and identified a number of ways we can break the link with oil and gas for good, giving Irish homeowners and businesses more security and control over their energy costs in the long-term.

“Currently in Ireland, we are 90% reliant on fossil fuels for our heating. That means we are at the mercy of international affairs to price one of the core costs to any household or business.

“Through coordinating our efforts and accelerating in areas such as the electrification of heating systems in our homes, businesses and public sector – our hospitals and schools, rapidly scaling district heating in dense urban areas, and using renewable fuels in hard to electrify areas like high temperature industrial uses, we can make a big difference. Reducing the amount of heat, we use is also crucial, and this is where energy efficiency measures and retrofitting become so important.

“We’ve made progress in many of these areas, but it’s not enough. We need a clear, long-term heat strategy, which puts Ireland on a path to energy independence and recognises areas for investment.  District heating for example, a central component of many energy systems in other countries, is a major strategic opportunity for Ireland.

“It will require a big effort, and we must do it in a way that protects our most vulnerable, but this assessment helps provide insights to how it can be done.”

The analysis identifies electrification as the backbone of Ireland’s future heat system, with electricity and ambient heat projected to supply up to 72% of final heat demand by 2055. Renewable fuels such as biomethane, hydrogen and bioliquids are expected to play targeted roles in sectors that are more difficult to electrify.

The HCA also highlights district heating as a major strategic opportunity for Ireland, particularly within urban areas and across commercial and public buildings. Detailed modelling demonstrates that around 4.6TWh of building heat demand could be delivered more cost effectively through district heating networks than by individual heat pumps alone, and with directed policy support this opportunity would grow.

SEAI said that with targeted policy support, district heating could become a key enabler of a diverse, low-carbon heat system in Ireland.

Please use this link to access SEAI’s Insights on Ireland’s National Comprehensive Heating and Cooling Assessment.

The HCA, prepared under the EU Energy Efficiency Directive, examines Ireland’s heating and cooling sector over the period 2025–2055 and assesses the most economically optimal pathways to decarbonise heat across homes, businesses and industry.
About SEAI

SEAI is the expert authority on decarbonising Ireland’s energy system, using robust, objective data and an evidence-based approach to help inform policy development and energy user behaviours. SEAI empowers households, businesses, motorists and the public sector to move away from fossil fuels with practical advice and financial supports. We encourage positive changes in how Ireland uses energy to deliver a more prosperous, energy efficient and cleaner environment.

SEAI is funded by the Government of Ireland through the Department of Climate, Energy and the Environment.

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