Some 45,000 local authority houses with no adequate heating are to have new central heating systems installed under a multi-million euro investment programme from the Department of the Environment.
Some €15 million has been allocated for the programme this year.
The Minister for State for the Environment, Mr Noel Ahern, said he hopes the project will be completed by 2010.
"We'll probably get 2,000 plus houses done this year and up to 5,000 next year, but it it depends on the local authorities and how much they allocate to it in their budget estimates."
Each local authority provides 20 per cent of the funding for the installation, with the remainder coming from the Department of the Environment.
With 104,000 local authority houses across the State, almost half have inadequate heating and rely on open fires and solid fuel back boilers for heat and hot water. Elderly people, who occupy 7,600 of these homes, will be first to get the new systems.
While all local authority houses built in the last 20 years have central heating, older houses, often occupied by long-term tenants, do not.
"A national survey showed that 90 per cent of homes have central heating. However, for local authorities that figure is much lower. It's more like 60 per cent," Mr Ahern said.
There had already been "small pockets" of schemes for installing heating in these houses, but they had been undertaken by local authorities on an individual basis. This was the first national scheme to upgrade home heating systems, Mr Ahern said.
"Central heating is regarded by the majority of householders as being a basic necessity for a reasonable standard of comfort and warmth in dwellings. By channelling investment that makes a difference to people's daily lives, we are providing heating systems that improve the level of comfort for local authority tenants and improve the fabric of dwellings."
As part of the scheme, energy-saving measures such as attic insulation and boiler insulation will be installed. Mains-operated smoke alarms will also be fitted to each of the 45,000 houses.
"Our drive to create sustainable communities is about far more than just a roof over people's heads. That's why we're focusing on making our neighbourhoods cleaner safer and greener," he said.