David Stanton
Question:95 Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources his views on supporting the micro-generation of electricity; and if he will make a statement on the matter. [3335/10]
Other Questions.
Electricity Generation.
The development of electricity micro-generation is a key priority as part of the overall objective to deliver a more distributed and sustainable generation and network system and to reduce energy costs and carbon emissions. In February 2009, I launched the Micro Generation Programme, which is being operated by ESB Customer Supply and supported by ESB Networks. The programme has the potential to provide up to 4,000 domestic customers investing in micro-scale projects with a financial payment for electricity exported back to the grid. The ESB advises that 189 customers have signed up for the scheme to date. I have asked my Department to review the level of take-up with ESB with a view to identifying and addressing any barriers to participation.
The micro-generation programme also provides for two-way metering, to be installed without additional charge to the customer. The electricity producer is paid a price of 19 cent per kilowatt-hour, which will help to offset the start up costs. The eligible micro technologies include wind, solar and hydro as well as combined heat and power.
It is the case that micro-scale electricity production will benefit the participating customers upfront by allowing them to replace retail rate electricity with their own cheaper generated electricity. Sustainable Energy Ireland's micro-generation pilot programme currently involves 42 projects and a range of technologies including wind, solar PV and micro-hydro. Twenty-seven wind turbines and 14 solar photovoltaic installations have been commissioned and initial results are expected later this year. The pilot programme is being carried out in conjunction with key stakeholders and is designed to assess market potential, technologies, economics and emissions savings. The field trials are also addressing grid connection and technical standards to ensure the power security, safety and quality of installations.
The national smart metering pilot programme is proceeding in parallel with the current microgeneration initiative and there are important links between the two. The data gathered from the interval meters being used in a micro-generation scheme will provide important information on import and export of electricity. This will feed into the analysis of electricity use being carried out in the smart metering pilot programme. In turn, the findings of the smart metering programme will inform the development of a long-term micro-generation strategy. Other initiatives designed to facilitate the development of micro-generation include the 2008 planning and development regulations which provide for planning permission exemptions for certain categories of micro-generation.
Additional information not supplied on the floor of the House.
The purchase of wind turbines by companies is now eligible for accelerated capital allowances under the Finance Acts. To be eligible for the accelerated capital allowance, the turbines must comply with the relevant eligibility criteria. In particular, they must be for the purpose of generation of electricity primarily for on-site use by the company. Other developments in support of micro-generation include the streamlining of licensing arrangements for compliant small scale generators and the adoption of a new standard for connection of domestic generators to the distribution system.
An SEI study completed last year points to a significant number of barriers to the deployment of micro-generation which need to be addressed. These include: the need for further work on the impact of deployment of large numbers of micro-generators on the existing electricity distribution system; the immaturity of some of the technologies; the need for equipment standards, installation practices and codes to ensure appropriate safety and efficiency standards are in place; and the need to adopt the present administrative infrastructure for customer metering and billing.
I thank the Minister for his reply. Is he disappointed at the take-up of 189 that signed up, from a target number of 4,000? With regard to the planning the Minister mentioned, are there difficulties in getting connections at the 10.8 kilowatt level? No planning is required up to 11 kilowatts but I am told there are problems with the connection at 10.8 kilowatts. He might provide information on that.
Concerning the tariff of 19 cents to which the Minister referred, is it true this applies only to the first 3,000 kilowatts generated per annum? Does the Minister propose to raise that limit?
To answer directly, yes. We need much larger numbers and we need those 4,000 smart meters to be availed of as soon as possible. That is why I asked the Department to go back to the ESB and others to find out why the scheme is not going as quickly as we wanted. If necessary we will change the regulations to make it happen. While one should be careful, one does not want to create a static market while waiting for an alternative system. It is a matter of looking at the current rules to see if they can be adapted, not in a way that would disrupt the market but in order to make the process easier. We must do this and there is a variety of ways by which we can do it. Micro-generation is a crucial element within an overall distributed electricity generation mix which we must develop.
I would like to hear answers to Deputy Stanton's questions because we did not receive them in the Minister's reply. Going back to the ESB to ask it why there has not been more take-up on this scheme is not necessarily the way forward. For a start, it is not in the interests of the ESB to facilitate large-scale decentralisation of power generation.
I reiterate a specific question that was asked already. The key to building a successful micro-generation industry in other countries that have been successful — Germany is probably the best example but France and, more recently, Britain can be included — is the level of export tariff set. A tariff of 19 cent per kilowatt hour for the first 3,000 units is significantly less than the tariff made available in other countries to kickstart this industry and is in spite of the fact that Ireland has much better climatic conditions for micro-generation, in particular wind, but also bio-mass generation. Will the Minister review the rate of 19 cent per kilowatt hour for the first 3,000 units with a view to raising it for a period? It would significantly kickstart this industry which could employ a great number of people.
My question concerned the 3,000 kilowatt per annum limit. Will the Minister examine that limit and either get rid of it or increase it substantially? Can he throw any light on reports that there are difficulties in connecting to the network at the higher level of up to 11 kilowatts, specifically the 10.8 generating plant? Has he any plans to move beyond the ESB to include Bord Gáis, Airtricity and others?
Deputy Stanton is correct. This issue concerns not only the ESB but a number of different supply companies. In fairness to the ESB, it came forward with its offer of 10 cent premium for the first 3,000 kilowatt hours. There is a variety of ways in which this can be done. One lesson we must learn from the success in other countries is that what is not needed is a stop-start approach. That sometimes bedevils some of the very high initial feeds in fixed price systems which cannot be maintained. That is not a clever method either. We must learn this from other countries that have worked in this area.
With regard to whether there is a difficulty concerning the 11 kilowatt level, that is one of the benefits of doing the SEI study. We have grant-aided up to approximately 40% of those 42 projects in order to get answers to such technical questions regarding safety, height, power output and installation systems. The right way to do it is to answer those questions by proper surveying machines on the ground. This is all being done with the purpose of our having an environment that can deploy micro-generation. It has taken time but we will get there. Micro-generation will happen, not only in households but on Irish farms, and in rural areas where the power supply is more significant, available and more consistent, it will have a significant role to play.
We always said we would take this in stages, the first being the 1-11 kilowatt plant but we also recognise we need to work back down, from some of the large auto generators within industry towards the type of farming or small business environment that can use the power supplied. It is work in progress. More needs to be done and I am committed to it.
Simon Coveney
Question:96 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources his plans to introduce legislation to facilitate the development of offshore wind energy; the timescale for same. [3358/10]
I intend to bring forward shortly a policy blueprint for the development of the renewable energy offshore resource encompassing ocean and wind energy. The national offshore renewable energy plan will take account of the significant impetus being given to offshore renewable energy at European level. Our work as part of the North Seas countries offshore initiative together with the forthcoming EU Strategic Energy Review will focus on the priority interconnection needs across member states. The national plan will also reflect ongoing co-operation with the UK and Northern Ireland through the ISLES project and under the British-Irish Council. Critical to delivery of the renewable energy development plan will be the creation of a fit-for-purpose planning regime for the resource.
Following the enactment of the Foreshore and Dumping at Sea (Amendment) Act 2009, responsibility for certain foreshore functions transferred to the Minister for the Environment, Heritage and Local Government with effect from 15 January 2010. This includes all energy-related developments on the foreshore, including oil, gas, wind, wave and tidal energy.
My colleague, the Minister for the Environment, Heritage and Local Government, Deputy Gormley, has made clear that he will introduce legislative change aimed at better integrating the foreshore consent processes with the planning processes under the Planning Acts. This will include the new planning regime for offshore renewable energy developments, taking account of the forthcoming plan. My Department is working closely with the Department of the Environment, Heritage and Local Government on the new regime that will reflect national and EU renewable energy objectives while taking account of the interests of stakeholders in the marine resource.
Both Departments will work with the Department of Finance, the Attorney General's office and other relevant Departments, as well as Eirgrid and the Commission for Energy Regulation and Sustainable Energy Ireland, in delivery of the new regime. A strategic environmental assessment, SEA, of Irish offshore renewable energy resources is being undertaken by Sustainable Energy Ireland at my Department's request. This will complement and inform the design of the plan and the new offshore framework. The SEA process is being overseen by a steering group comprising my Department, the Department of the Environment, Heritage, Local Government, the SEI and the Marine Institute.
Under the EU Renewables Directive, Ireland along with all member states, will submit a national renewable energy action plan by June 2010. This will set out the plans to meet our national renewable energy target and will include medium-term plans to develop an offshore grid to facilitate the export of renewable electricity. I will also meet my UK ministerial colleague shortly in this regard.
I am glad the Minister is thinking in terms of the super grid that was proposed in the past by people such as Eddie O'Connor and others, whereby countries would agree to work together to build very large scale offshore generation capacity that would interconnect electricity grids of different European countries with a view to providing green energy and security of supply. I encourage the Minister to progress this, while obviously taking into account the potential cost to the Exchequer and to energy users and endeavouring to keep down that cost.
My specific intent with this question relates to the Joint Committee on Climate Change and Energy Security, chaired by Deputy Seán Barrett. Deputies McManus, Coonan and I are members of that committee. We spent a great deal of time putting together new legislation of which the Minister is aware. It would facilitate the fast tracking of a planning process for significant offshore energy projects. Has the Minister looked at that legislation? Will he use it as the basis for new legislation that might reduce the period from time of application to time of building? There is enormous frustration at present among those in the industry concerning the length of time it takes to get permission to build offshore.
I am aware of the legislation to which the Deputy refers and I am of the view it will strongly inform the new planning system for the development of offshore renewable energy projects in respect of which we will be obliged to legislate. The Minister for the Environment, Heritage and Local Government has primary responsibility for the delivery of the new planning system to which I refer.
I take this opportunity to suggest that I could again go before the Joint Committee on Climate Change and Energy Security in order to engage in specific discussions on offshore development. This would enable us to try to arrive at a common vision with regard to what is our purpose. This is a long-term project and it will not be completed within a two to five-year timeframe. As a result, a long-term vision will be required. If the political system in this country gives a strong direction, both at home and in Europe, to the effect that it is committed to this project, that it will build the type of interconnection and offshore infrastructure — in respect of which EirGrid is already carrying out analysis and is working on delivering — required and that it will enter into negotiations with the UK, French and other governments, it will be possible to establish an exporting industry here for the long term.
We have a comparative advantage, particularly in the context of our ocean energy resource, and I am of the view that we can obtain European support. I attended the Council of Ministers meeting in Seville last week and I argued in favour of such support being provided. There is potential for us to attract EU support in respect of the type of project in which we are engaged. It would serve the country well if we could come to a political agreement on the broad, long-term approach to be taken. If such agreement is forthcoming, it will then be a matter of putting in place the necessary planning legislation.
A long-term approach has certainly been adopted up to now, particularly in view of the fact that it has taken two years to transfer responsibility for this matter from one Department to another. Does the Minister not accept that the type of goodwill to which he refers already exists? I do not imagine that any Member would oppose the possibility of his again coming before the committee.
The problem in respect of this matter relates to the difficulties involved in modernising our legislation, which is a ministerial responsibility. Does the Minister not accept that he must set down certain timelines? Does he further accept that this will not be easy, particularly when it is not his Department but rather the Department of the Environment, Heritage and Local Government that has responsibility in this regard? That is the precise reason the Joint Committee on Climate Change and Energy Security produced legislation in which it is suggested that there be a one-stop shop and that the process be streamlined in order that it might deliver the goods.
It is fine to refer to the long term and I am sure this goes down well at EU meetings. However, that is not my primary concern nor, I am sure, that of Deputy Coveney. It would be possible for the Minister to indicate now, and to everyone's satisfaction, what will be the timeline in respect of when the legislation will be delivered.
What is the Minister's view on the ESRI report, which essentially indicates that we have enough potential in respect of producing onshore wind energy and it would not be necessary to move into the area of offshore production? That is quite a significant conclusion for an eminent body such as the ESRI to reach. Will the Minister comment on this matter and outline the Government's position in respect of it?
I am glad Deputy McManus raised this issue. I am of the view that goodwill and co-ordination at a political level are important because a consensus does not exist in certain other quarters. In my opinion, the ESRI's report does not take account of the long-term opportunity that exists. That body did not consider this industry as an exporting one. It may have examined this matter on a purely domestic basis and failed to see the bigger picture in the context of what is happening. If we followed such advice, we would miss the opportunity that exists. It is for this reason we must provide a strong signal to the effect that this is the course we will take.
I referred to a long-term approach but I also believe this matter to be of immediate importance. The issue of whether the European Union should develop these grids will be one of the items on the agenda for the Heads of Government meeting to take place in the spring. We are obliged to make our submission, as part of our renewable energy plan, by June. It will have to be pretty much agreed and set out by that point. If we are to obtain EU funding under the next round in 2014 — approximately the right date in the context of when construction on some of these grid networks should commence — it will be necessary to obtain European buy-in in 2011. This means that we must present our submission this year. To do so, we must be as confident as possible that, regardless of who is in power, we are going to pursue the approach to which I refer.
Telecommunications Services.
Jimmy Deenihan
Question:97 Deputy Jimmy Deenihan asked the Minister for Communications, Energy and Natural Resources when he plans to instruct ComReg to allow open access to all publicly and privately owed broadband infrastructure. [3367/10]
The question of ensuring access to telecommunications infrastructure is a matter for ComReg as part of its function of regulating the telecommunications markets in accordance with the requirements of the EU regulatory framework for electronic communications. ComReg is independent in the exercise of its regulatory functions and is required by law to exercise its powers impartially and transparently. Under the access directive of the EU regulatory framework, ComReg is required to ensure access and interconnection between telecommunications operators in order to promote efficiency and sustainable competition and provide the maximum benefit to end users. These are legal obligations under EU and national law, which ComReg is required to enforce.
There are a number of telecommunications networks owned by the State or by commercial State bodies that are available to telecommunication service providers on an open-access basis. Some 87 metropolitan area networks, MANs — constructed by my Department, in conjunction with local and regional authorities and offering dark fibre and managed services — are available on an open-access basis to all service providers. There are currently 35 service providers using the MANs in some of these locations.
ESB Telecoms, ESBT, has built over 1,300 km of optical fibre network, which was grant-aided by my Department from Exchequer and European regional development funds. ESBT offers dark fibre and managed bandwidth services to any service provider requiring backhaul connectivity on its network. Aurora Telecom, a division of Bord Gáis Éireann, offers dark fibre on its network to service providers on an open-access basis. The importance of open access for competition in the telecommunications market has been continually highlighted by me in policy statements governing electronic communications. I referred to it most recently in my policy paper, Next Generation Broadband — Gateway to a Knowledge Ireland.
If the Minister is continually highlighting the issue of open access, one must inquire as to why he is not making it happen. The Minister has been in office for a number of years and he understands the telecommunications market quite well. He refers to the need for open access to infrastructure but on each occasion he is asked this question he states that ComReg, in the context of its regulatory functions, is independent. That is true. However, ComReg is not responsible for setting policy and this is a policy issue. A policy decision regarding whether ComReg will independently require the owners of ducting or fibre infrastructure to make such infrastructure available — in the interests of competition — to other operators for their use is going to be required.
I presume the Minister is familiar with the position in France and the success that has been achieved as a result of ducting infrastructure being opened up to competition on a national basis. What happened in France has promoted competition, brought about reduced prices and improved services. That is the kind of model I would like to be implemented in Ireland through an independent regulator. However, ComReg cannot make the decision to implement it. A Minister must give a policy direction to an independent regulator to implement it.
It is disingenuous for the Minister to state that there are 87 metropolitan area networks available for use in this country, particularly when he is aware that a significant percentage of these do not even have backhaul capacity. Some of them are mere fibre rings — for which the taxpayer has footed the bill — which were laid around certain towns but which are not connected to a backhaul infrastructure.
The Deputy should allow the Minister to reply to his supplementaries at this point.
The specific question here is——
The Deputy has now spoken for three minutes. He is only allowed one minute in which to ask his supplementary questions.
I am entitled to take some time.
No, the Deputy is not allowed to do so.
I am entitled to take some time.
The Deputy is allowed one minute in which to pose supplementary questions and he has already spoken for three minutes. This means that other Members will suffer. I want to be as flexible as possible but the Deputy should show some respect for the Chair.
I have given a very clear policy direction to the effect that we want to move towards open access. Yesterday, Eircom and ComReg reached an agreement in respect of this matter. They were due in court today in respect of a ComReg decision to bring the cost of wholesale line rental down from €8.41 to 77 cent per month. This means the new rental price will be less than 10% of that which previously applied and it shows that the policy approach does work.
I did not inquire about that matter. Will the Minister answer my question?
The Deputy did inquire about it.
Will he require open access to infrastructure?
The Deputy inquired about what ComReg is doing to deliver open access. That which I have outlined represents a massive change and is a major indicator in the context of delivery.
I asked what the Minister is doing.
I set the policy framework within which ComReg makes its decisions.
The one-stop shop was supposed to have been established six months ago. However, there is still no sign of it.
The 90% plus reduction achieved yesterday in crucial rental charges in respect of hundreds of thousands of lines throughout the country is an example of how policy can work and how open access can be provided. That is an example of a policy working, bringing prices down and providing open access on the market, and it was achieved yesterday.
I have a specific question. Will the Minister instruct the regulator to introduce an open-access policy to all ducting infrastructure in order to facilitate those private companies that want to lay fibre to increase and improve broadband speeds?
Will the Minister respond to the chief executive of Shannon Development who recently said that the main impediment to job creation in the mid-west,——
That is not relevant to this question now.
——which is dying on its feet, is the lack of a high-speed broadband system in the area?
At the forum we held on next generation broadband in Dublin Castle involving all sides in the debate, I gave a very clear consistent signal that we need to develop a co-operative model that is also still competitive. It needs to be co-operative in terms of providing open wholesale access. Crucially, that is now being delivered; it is starting to work and happen, in the MANs, which are being used increasingly, in the dramatic fall in line rental on a wholesale basis,——
May I ask a question?
——in the schools broadband infrastructure, which we are providing, and in the one-stop shop that we are progressing. In the Seanad, as we speak, a series of measures are being taken——
Will the Minister require open access to infrastructure?
Yes. Those measures will provide open access in a plethora of different ways to bring us back up to the very top of the league in broadband. That is happening. It happened yesterday in the courts and will happen in the Seanad tomorrow when we push the legislation through. I believe it will work; it is the right policy as against the alternative, which would have been a direct intervention, paying over money to the former Eircom owners which would not have worked. I am very glad we did not pursue this as a policy unlike others who proposed it.
Alternative Energy Projects.
Michael D'Arcy
Question:98 Deputy Michael D’Arcy asked the Minister for Communications, Energy and Natural Resources his plans to introduce legislation to facilitate geothermal combined heat and power projects; and the timescale for same. [3363/10]
Ruairí Quinn
Question:147 Deputy Ruairí Quinn asked the Minister for Communications, Energy and Natural Resources the position regarding geothermal energy here; and if he will make a statement on the matter. [3418/10]
I propose to take Questions Nos. 98 and 147 together.
The Minister of State, Deputy Conor Lenihan, and I have stated on a number of occasions our commitment to the early provision of a legislative framework for the exploration for and development of geothermal energy. Accordingly, in the course of 2009, I instructed my Department to prioritise the drafting of a general scheme of a Bill with a view to producing heads in early 2010, with detailed legislative drafting to follow by the Office of the Parliamentary Counsel. Considerable progress has been made in this regard and I understand that the drafting of the heads is on target for completion in February 2010.
It is important to stress that geothermal energy is a new area of legislative endeavour in this jurisdiction and the Bill is likely to be substantial, dealing with a range of matters such as ownership of the resource, regulation and licensing of exploration and development, ancillary rights and protection of third party interests. We have engaged closely with industry and interested parties in a series of meetings and workshops to ensure legislative proposals have the benefit of their input. While the preparation of legislation is being expedited urgently, it is not possible at this juncture to commit to a date for publication.
Unlike the answer to the previous question, I welcome the answer to this one. While it is overdue, introducing legislation to facilitate geothermal technology will allow a new and renewable source of district heating systems and energy generation through gas turbine technology. This is quite a substantial industry in other European countries and can also provide a major source of heat and energy generation capacity here. I encourage the Minister to bring the legislation before the House as soon as possible.
I appreciate the Deputy's comments in that regard. It is a major Bill and needs to be drafted at the same time as we are producing the minerals development Bill, which is also very extensive. However, I believe it will be possible to develop both Bills quickly and I look forward to introducing them.
I am surprised that this question was not answered by the Minister of State, Deputy Conor Lenihan; perhaps he is away on other business. The Minister of State has made the introduction of geothermal legislation a priority. He certainly talked the talk when he attended a meeting of the Oireachtas committee. There is considerable disappointment now because developers who want to engage in this kind of exploration and develop a renewable resource had felt some optimism following what the Minister of State had said. However, it now seems it is all back to some kind of commitment that it will happen at some time in the future. Is the Minister, Deputy Ryan, now again responsible for geothermal legislation?
It falls under the remit and brief of the Minister of State, Deputy Conor Lenihan. He is absolutely right that it is being given priority. Resources from my Department and the Office of the Attorney General are being allocated to it to get it over the line as quickly as possible. Getting the heads of a Bill in February, in the very short time since it was proposed to take that action, is a very quick response. When the Deputy sees the Bill she will understand its scale. It will be in place some months after that and hopefully put into action by a range of different developers.
Written Answers follow Adjournment Debate.