Vol. 696 No. 1
39 Deputy Joan Burton asked the Minister for Communications, Energy and Natural Resources if he will comment on the reported deal between companies (details supplied) for satellite services; the number of households he expects to be provided with satellite broadband; if this number has changed since the announcement of the national broadband scheme; and if he will make a statement on the matter. [43362/09]
The national broadband scheme contract guarantees that broadband connectivity will be available to all of the buildings within the NBS coverage areas. In recognition of the fact that some areas will be very costly and technologically challenging to reach using standard infrastructure, a limited number of residences and businesses in the NBS coverage area might be covered by a satellite service.
The NBS contract defines specific thresholds and circumstances under which satellite can be deployed and allows for a maximum of 8% of residences and businesses to be served utilising satellite technology. 3 Ireland anticipates the actual deployment of satellite will be approximately 5% of residences and businesses within the NBS coverage area. It is a matter for the NBS service provider, 3 Ireland, to decide where a satellite solution will be deployed, provided that the overall number of residences and businesses served by satellite does not exceed thresholds defined at a county level and for the NBS as a whole. As a commercial matter, 3 Ireland has entered into a contract with two satellite providers on a non-exclusive basis for the provision of the NBS satellite service. I understand that Avanti is one of these companies.
I thank the Minister for his reply. This raises issues concerning the standard, quality, speed and cost of broadband. There is a danger that because the Minister wants to say he is providing universal coverage the service he will provide will not be acceptable. A business woman in my constituency has satellite broadband but she finds that because of the time delays it is totally inappropriate and almost useless and she cannot access corporate networks.
The other complaint I received relates to schools which have satellite at present. The service is completely inadequate. It is not sufficient for the Minister to trumpet that schools will have good systems in place when small rural schools depend on satellite. He must accept a basic standard should apply across the board rather than simply dealing with numbers. Irish Rural Link has stated some 12,000 households are not within the national broadband scheme. What is happening to these?
I will outline some of the standards set within the national broadband scheme. Satellite services must provide a 1 megabit download and 128 kilobyte upload speed, with a maximum contention ratio of 48:1, a round trip latency of 800 milliseconds and an 11 gigabyte, ten down and one up inclusive monthly allowance limit. These are technical details. As the technology develops we intend to continue to upgrade it and improve standards. I understand from talking to people in the industry that improvement in satellite provision continues. Undoubtedly, there have been difficulties——
There are difficulties.
——including slow or latent problems, in some of the schools referred to by the Deputy. However, technology is developing and we are determined to continue to push for the highest possible standard within the available support schemes.
I refer to the 12,000 houses which may be in electoral districts that cannot be covered by the NBS due to market distortion factors that would come into play. We contacted the European Union in respect of a stimulus package which provides for the development of rural broadband schemes as part of the agriculture and rural development programme. We seek to put in place a scheme to provide services largely by satellite. However, we will not rule out other technological solutions for those houses and our intention is that no house is left behind.
What is the Minister saying to the 12,000 people not covered by the NBS and who cannot access broadband at the moment? Is he saying they should wait and see what the Minister produces in terms of negotiations with the European Commission? Many such people come to offices such as mine and ask if they should spend €500 or €700 in capital investment on installing a satellite dish in their houses, such that they can receive satellite broadband. Should they wait for a national broadband scheme type solution that will help with the costs? What is the Minister saying to such people in terms of the timescale for a decision?
Our policy is working in terms of providing for a range of platforms. I have deliberately set out a process whereby——
What should the 12,000 people without broadband do now?
——through competition and collaboration, evolving technological solutions are available, not only through satellite but also through WiMax and mobile broadband. This is a changing landscape due to the competitive forces at play. We must recognise some houses in this competitive landscape will not be provided with services. We have approached the European Commission and indicated we wish to avail of the rural development scheme for broadband. We wish to provide a scheme for such broadband applications.
When can we expect that?
We expect it will be in place next year and rolled out at that stage. I cannot give a specific time because I do not wish to give a commitment until the matter is cleared completely with the European Commission. However, we are working flat out on the issue and it will be part of a range of measures put in place to secure ubiquitous coverage and the availability of faster speeds, which we will need.
The Minister referred to the problems encountered by schools. I refer to one school in particular in which the principal has indicated it takes a full school day to upload three or four photographs onto the website. That is the poor standard at issue, in case he gets carried away with technical detail.
I refer specifically to the national broadband scheme. A supplier is reported to have trouble providing sufficient capacity to meet the needs of users. If there are additional users who seek to avail of satellite services, is the Minister convinced the capacity will be in place to meet the need?
I have heard no details of capacity problems as such. However, one of the benefits of the national broadband scheme is certain standards must be complied with for State support to be triggered. We can guarantee quality in this way.
That is in the case of one of the suppliers which has already done a deal.
If the Deputy has information, she may wish to pass it to me. The analysis carried out by the Department indicates the scheme is meeting its targets in terms of roll-out, which is not easy. There are many planning difficulties and people hold concerns throughout the country about the deployment of masts and so on. However, the companies are working to meet these deadlines and to meet the standards, whether for satellite or mobile solutions, to provide the minimum service standards set out in the contractual arrangements.
I suggest the Minister investigates that matter.
We must move on.
He has an entire Department at his disposal.
If the Deputy submits information, I will follow it up.
40 Deputy Tom Sheahan asked the Minister for Communications, Energy and Natural Resources the way he plans to facilitate connection to the grid for new wind generation projects on shore and offshore that make commercial sense but are not part of the gate 3 process; and if he will make a statement on the matter. [43329/09]
55 Deputy Ulick Burke asked the Minister for Communications, Energy and Natural Resources if he plans to amend the gate 3 system to facilitate commercially viable new wind farm proposals receiving grid connection without delay; and if he will make a statement on the matter. [43254/09]
59 Deputy Seán Sherlock asked the Minister for Communications, Energy and Natural Resources if he will comment on the options for investors of offshore and onshore wind farm applications outside the gate 3 process; the position regarding the wind farm applications to the grid and overview of the gate three process; and if he will make a statement on the matter. [43356/09]
I propose to take Questions Nos. 40, 55 and 59 together.
The Commission for Energy Regulation, CER, has statutory responsibility for grid connection offers and for oversight of EirGrid's grid connection process. Currently, there is in the region of 1,400 MW, of renewable generation capacity connected to the electricity grid. Wind powered technology is the dominant renewable technology. Approximately 100 individual windfarms have been connected with a combined capacity of approximately 1,100 MW. Some 240 MW of hydro-power are connected. The balance represents biomass plant, mainly landfill gas.
The contribution from renewable energy connected to the electricity grid is increasing very steadily from year to year. Renewable generation contributed 12.2% of all electricity consumed in 2008 compared to just 4.4% in 2003. Ireland is on schedule to achieve the 15% target for 2010 and must meet the 40% target set for 2020. It is worth recording that on Thursday, 19 November, wind power was contributing more than 700 MW to the system, the equivalent of the entire output from Moneypoint.
In addition to projects already built and connected, a further 1400 MW of capacity have already signed grid connection offers and have been accepted into the renewable energy feed in tariff, REFIT, programme. These projects were part of the gate 1 and gate 2 processes and will be built and connected to the grid in the next two or three year period. The projects being built this year and next year will ensure delivery of the 2010 target of 15%. Those built in following years will contribute to meeting our 2020 target. The CER and EirGrid have calculated that approximately 5,800 MW of renewable capacity will be required to deliver the 40% target in 2020.
The CER decision on the gate 3 round provides for connection offers for 4,000 MW of additional renewable electricity capacity. Approximately 90% of these offers are wind powered capacity, including in the region of 800 MW of offshore wind. The projects in gate 3 were selected by the CER on a first-come-first-served criterion. The 4,000 MW of capacity within the gate 3 process are currently being assessed as part of the connection process. Connection offers are scheduled to issue between now and early 2011.
To ensure this process operates efficiently and to keep the industry stakeholders informed of the ongoing work, the CER has established a gate 3 liaison group involving all stakeholders, including EirGrid and the renewable industry associations. The objective is to ensure the connection offer process is completed quickly, transparently and effectively. The gate 3 process was extensively consulted on by the CER. With a full public consultation and dedicated industry workshops, all industry stakeholders were given the opportunity to respond in advance to the proposed connection process.
The decisions by CER on gate 3 projects are potentially capable of delivering the 40% national target for the contribution from renewable energy resources to electricity consumed by 2020. In the event of any failure to take up gate 3 offers, the CER intends to add replacement projects currently in the queue, to ensure delivery of that target. Strategies to deliver on the distinct potential for exporting renewable electricity from Ireland will be also progressed. These will take account of grid technology developments, power flow management techniques and progressive interconnection with the UK and potentially Europe.
I thank the Minister for his reply. I hope he will accept that I share his vision to the effect that we must move away from a reliance on fossil fuels and towards a much more sustainable renewable power source for electricity generation. Primarily, that source will be provided via wind energy.
I take issue with the Minister in the context of how it is planned to connect onshore and offshore wind generation projects to the grid under the gate 3 mechanism. It has been made clear, at meetings of Oireachtas committees and elsewhere, that the basis on which a grid connection under the gate 3 mechanism is granted relates to the length of time for which a project has been awaiting connection rather than on whether — in the context of wind speeds, location, proximity to the grid, etc. — that project is suitable.
Does the Minister accept that if we are to build between 2,000 to 4,000 wind turbines during the next ten years to produce the level of power envisaged by him, we should adopt a far more strategic approach with regard to where we locate this infrastructure? Does he also accept that this would be preferable to granting grid connection on the basis of the length of time a project has been awaiting such connection? At present, there is no strategic planning in this regard. In that context, certain zones could be identified as being suitable locations for the development of wind farms.
The Green Party makes big play of the fact — and rightly so — that terrible planning mistakes have been made in the past. Such mistakes contributed to the tragedy to which the past week's flooding has given rise. We must not do the same when it comes to planning for this massive infrastructural project that will involve the construction of thousands of wind turbines. Instead of relying on stakeholders who have a vested interest in obtaining grid connections, we should take a much more strategic approach and zone areas where the development of wind farms — in the form of new projects and those awaiting connection — should be encouraged.
I agree with the broad points made by the Deputy. Projects in gate 3 were selected on a first-come-first-served basis. However, I do not believe this will be the key criterion in the context of what has been built and developed. I ask the Deputy to be publicly supportive of what is the key criterion, namely, the development of the grid that will be required to take on the power produced by these wind turbines. That development project will not be politically popular, it will prove to be contentious and many people will voice their concerns in respect of it. If Deputy Coveney's party is serious with regard to meeting some of the targets we have set, I ask that it be supportive of the key criterion to which I refer. If we fail to construct the grid that is required, no amount of gate systems will work. It will not be possible to proceed unless the grid is built out to connect to the wind generation projects in question.
The Deputy is correct that our approach in this regard must be strategic.
If the approach was strategic, there would not be a necessity to build such a large grid.
I agree. However, the study being carried out by EirGrid is strategic and is correct. EirGrid is prioritising investment and developments on the basis of how the grid can be rolled out.
The whole point is that it does not match gate 3.
The Deputy's second point, namely, that the planning decisions made in respect of this matter must be the correct ones, is valid. I understand that approximately half of the applications made in respect of the development of wind farms have been rejected. Decisions in this regard are appropriate on a range of grounds, including the proximity to housing, the effect a project could have on the landscape or environmental concerns relating to the nature of the habitat where it is proposed to build a wind farm. It is a matter for local authorities and An Bord Pleanála to adjudicate on such matters on a case-by-case basis.
I hope decisions in respect of this matter will be made in the understanding that there is a need for urgency, particularly in light of the temporary opportunity afforded to us — as gas prices fall — to switch to a renewable alternative that will be cheaper, cleaner and more secure in the future. There is an imperative in this regard for me to inform the regulator and the grid company that we should proceed with development in as quick, safe and proper a manner as possible. Such development will be in the long-term interests of the country and its people.
Ostensibly, we are all on the same side in respect of this matter. However, there is a problem with regard to implementation. The Minister referred to instances where planning is not granted and everyone accepts this can happen. Is he aware of the position with regard to cases where planning permission in respect of projects is running out? I refer, for example, to a project to construct a large wind farm at Bellacorick, County Mayo, with which Bord na Móna and the ESB are both involved, which cannot proceed because of difficulties relating to grid development. That is a matter of which the Minister should take charge. If the different agencies are not working together to ensure that needs are met, the need for urgency to which the Minister refers is not getting through. Will the Minister comment on this matter?
When will timelines outlining the different elements of the grid development plan prepared by EirGrid be forthcoming? The Minister called on the Opposition to support grid development. I presume he is referring to the North-South interconnector in this regard. Will the Minister indicate what is the level of support for grid development on the Government side? The Government tends to hide behind agencies such as An Bord Pleanála and local authorities when it comes to difficult issues.
I speak for the Government, which is fully supportive of the process in which EirGrid is engaged and which is aware of the fact that critical infrastructure is going to have to be rolled out. The Deputy referred to the North-South interconnector. In that context, if areas such as Cavan-Monaghan are intent on attracting industries in the future, they will be obliged to have in place high-quality transmission grids that will ensure high-tech factories remain open. This will not happen if the grid is not developed along the lines envisaged by EirGrid. Unless we build the grid, we will not be able to meet the targets that have been laid down in respect of renewables.
Deputy Coveney is correct that this matter is going to be politically sensitive and difficult to deal with. However, the parties in opposition which state that they support the meeting of certain energy targets must follow up on their claims in that regard.
It is not our problem. It is the Government's responsibility to ensure that those targets are met.
The Government will be supportive, despite the difficult decisions that must be made.
Deputy McManus referred to the period relating to planning permissions running out. We accept that this is an issue and that is why the Minister for the Environment, Heritage and Local Government wrote to county managers to discover whether they could assess the projects that have been built. He also sought to discover whether the definition of "progressed works" could be reconsidered in order that some leeway could be provided in respect of those projects which have been unnecessarily delayed — not through the fault of those responsible for them but rather as a result of the difficulties that exist in respect of the grid — in order that they might proceed despite the fact that their planning permissions are running out. The county managers with whom I have been in communication — I spoke directly to the county manager in Mayo — in respect of this matter are extremely supportive because they recognise that building the grid will not only allow for the generation of energy but will also ensure the infrastructure required to allow them to attract other direct investment and ensure that jobs are retained will be put in place.
Has the Minister received legal advice on this? I can imagine a court case where a local authority or service provider argues that the works are substantially progressed when there is not a sign of anything on the ground. That is a weak argument. Is the Attorney General happy with it?
I am sure the Minister for the Environment, Heritage and Local Government has done so. Equally, one does not want a local authority taking such an interpretation that makes any development of wind farms possible. Within the confines of the law and the planning system, they are to do what they can to assist development in this area because it is in the national interest.
That is a weak response.
That is the true response.
We have heard much about commercial producers and large wind farm proposals. What is the Minister's policy on micro-producers and what incentives can he offer them? I understand that micro-producers do not require the same level of grid infrastructure. We could be progressing that while we are dallying with the other.
I am concerned that the Minister has moved away from the essence of the question. I am not trying to make my point in an adversarial way and will give a practical example. If I have a piece of land on which it is suitable to develop a wind farm, which has reasonable proximity to the grid, good wind speeds and is on the coast and not in an area of scenic beauty, I have no chance of getting a connection under the gate 3 process. Somebody who has a really poor site for a wind farm but who has been waiting for seven or eight years, which I accept is very frustrating, will be connected before me despite the fact that it would be far more beneficial in the national interest for the farm which makes more commercial sense to be connected. That is the weakness of the gate 3 process. Will the Minister address this specific issue so we can examine the most strategic places in the country to develop wind turbine technology rather than connecting people based on the length of time they have been waiting?
In my initial reply to the Deputy I stated that where someone is not able to avail of a gate 3 connection it will go back into a pool to develop an alternative project. The CER and EirGrid will have to do this in a very timely manner and recognise that the targets we have set are ambitious and require action. The Irish Wind Energy Association and others recognise that every system will have certain failings and difficulties for one operator and not another. What they do not want is for us to throw up the entire apple cart and have to pick up the pieces afterwards. While the gate 3 process is difficult and has certain limitations, it gave them the certainty they needed to get projects built and that was the first of my criteria.
To answer Deputy Coonan, we introduced a support scheme for micro-generation of less than 11 kilowatt hours and an SEI grant scheme to test the various systems. This is proper and right to ensure that we are developing the proper technologies. My ambition goes beyond that. I have asked the ESB about how we can extend that to larger small-scale micro-producers. I am particularly interested in putting something in place that works for the Irish farming community because it must have a benefit from the system and not just a cost.
I am delighted the Minister is considering the farming community. He is one of the few in Government who is doing so.
The low price of dairy products makes this a particularly difficult time for the dairy industry, where there is huge potential application of micro-generation. However, I see that as an area with huge potential for us to develop a distributed electricity generation system.
41 Deputy P. J. Sheehan asked the Minister for Communications, Energy and Natural Resources the progress made to date on the national broadband scheme; the percentage of the area that remains to be covered by the scheme; the timescale for nationwide broadband availability; and if he will make a statement on the matter. [43332/09]
63 Deputy Jim O’Keeffe asked the Minister for Communications, Energy and Natural Resources the projected timeframe for the availability of broadband in the entire country; the percentage coverage projected at the end of 2009; and if he will make a statement on the matter. [43234/09]
I propose to take questions Nos. 41 and 63 together.
Broadband services are provided across the country by private service providers over various platforms including DSL over telephone lines, fixed wireless, mobile, cable, satellite and fibre. Details of broadband availability throughout the country are available at www.broadband.gov.ie. Information contained on this website is provided by the service providers. Details of broadband penetration levels are available from ComReg at www.comreg.ie.
In general, the State intervenes in the provision of broadband where there is clear evidence of market failure. Where there are already existing service providers, such intervention is governed by EU state aid and competition rules. My Department entered into a contract with "3", a Hutchison Whampoa company, for the delivery of the national broadband scheme, NBS, in December 2008. The company is required to provide services, using a mix of technologies, to all fixed residences and businesses that are located within the NBS coverage area and which seek a service. The NBS is being rolled out on an electoral division basis with a total of 1,028 electoral divisions to receive broadband services under the NBS. 3 is progressing its network roll-out and, to date, NBS services have been made available in 38% of the electoral divisions. Under the NBS contract, 48% of the electoral divisions in the NBS coverage area are required to be enabled by the end of December 2009, while all electoral divisions in the NBS coverage area must be covered by the end of September 2010. The status of the NBS rollout is available at www.three.ie.
My Department is intensively monitoring delivery of the NBS to ensure that all contractual commitments are fully met. It is accepted that even after the full roll-out of the NBS there will still be a small percentage of premises that will not be capable of receiving broadband services. This is primarily due to technical and other reasons such as the suitability of a telephone line, distance from an enabled exchange or line of sight issues.
The European economic recovery programme includes funding for access to broadband infrastructure in rural areas and my Department is considering the design and implementation of such a scheme. This work will include the identification of premises not capable of receiving broadband. It is hoped to commence this scheme in 2010 and have it completed by 2012. A notification of state aid has been made to the European Commission as part of the process of securing the necessary approvals for the scheme.
We have already touched on this issue and I want to ask the Minister specifically about the delivery of the national broadband scheme and how 3 is performing. The Minister stated the Department is monitoring it closely to ensure it is meeting the conditions of the contract. What is the average broadband speed and bandwidth delivery provided by 3 in the electoral divisions it has covered under the roll-out of the national broadband scheme? Will the Minister confirm that 3 is meeting the upload and download speed targets outlined in the contract? Will the Minister provide me with the figures on speed delivery that the monitoring has uncovered? Is any independent assessment of the roll-out being done by the Department or are we relying on receiving information from the company involved in rolling out the infrastructure?
The speeds mandated are 1.2 MB for download and 200 kb upload. I have been informed that to date the technology is working. It provides those levels of service and above. Obviously, it varies according to distance from a mast and the level of contention at any time but we have minimum standards and they are being met. The roll-out is proceeding along the projected target timelines. It has not been easy and many difficulties have arisen in planning provisions for masts so meeting the timelines cannot be absolutely guaranteed but based on what has happened to date, we expect the end of year target will be very close to, if not above, the 48% of electoral divisions roll-out that we seek to achieve.
As I stated in my response to an earlier question, funding is dependent on the targets being met. There is a real contractual commitment that gives us certainty on the basic service levels we have put in place. The advantage we have in this area is that the technology has been further developed since the first version of the mobile broadband systems. This is a major project involving an investment by the company and the State of more than €200 million and I am informed that the technology is working well and to plan.
What is the average download speed being delivered by 3?
I do not have that information but I will provide it to the Deputy. I will have to revert to the Department to get the precise figure.
In light of our dependence on providers for information, concerns have arisen about whether the national broadband scheme is subject to rigorous scrutiny. The scheme is in effect working from a false premise, that is, the famous but inaccurate map. I can cite an example from my constituency involving an unemployed man who invested €20,000 in setting up a small business. Before he made his investment, he was given confirmation that he would have broadband but the company involved subsequently informed him that it was unable to provide him with a service. He is desperate because his business is completely dependent on broadband. He contacted the Ombudsman, ComReg and six broadband providers but every road leads back to Eircom. He has logged 18 calls with that company but cannot even speak to the same person twice let alone get an answer. ComReg has finally lodged an official complaint but the response will take ten days to issue. On paper, it appears that broadband is being provided in certain parts of the country but there appears to be no oversight by the Department of the reality on the ground. In the case I have outlined, a man's livelihood is dependent on the provision of broadband.
The contractual documents for the national broadband scheme are four or five times the thickness of the pile of papers in front of me. Working out the details took time but we got them right in the end. The contractual arrangements give me the confidence that the scheme will provide the level of service we seek.
I am not speaking about the contractual arrangements.
The specific example to which the Deputy referred pertains to a fixed line company. Difficulties have arisen in regard to split lines and distance to exchanges, particularly given that 40% of rural houses are once-off developments.
The map makes it seem as if there is no problem.
It is more difficult to service such areas. We are delivering alternative solutions, such as wireless, WiMAX, mobile and fixed wireless, in addition to the crucial role played by fixed lines. Competition among these alternatives will deliver the best service possible.
The Minister failed to fully address my question. I asked for the percentage that remains to be covered by the national broadband scheme. The map circulated to Deputies reveals that huge tracts of the country are not covered. I ask the Minister when the greater part of my constituency of Cork South-West will be completely covered by the scheme.
Every square inch of the country was examined and areas in which the majority of the population were unable to access any service were targeted for the national broadband scheme. In respect of areas in which a small percentage of the population lacked access, we are working with the European Commission to establish, subject to state aid rules, a final support scheme to give every house, be it in south-west Cork or north-east Donegal, the potential for getting broadband.
Vast areas of my constituency are not covered by the map circulated to us two days ago. I am amazed that is the case. The tip of Sheep's Head peninsula will be covered but Kilcrohane, Ahakista and Durrus will not.
We will have to find the sheep's body to connect it to the head.
I am very familiar with Ahakista, Kilcrohane and Durrus. The Government has made a clear commitment that no house in any of those villages, or in any other village in the country, will be unable to access standard broadband services. We have put in a place a variety of mechanisms to cover the country in that regard.
Written Answers follow Adjournment Debate.
