Vol. 732 No. 2
6 Deputy Seán Ó Fearghaíl den Aire Cumarsáide, Fuinnimh agus Acmhainní Nádúrtha céard atá beartaithe aige i ndáil leis an 120 crann cumarsáide atá le tréigean ag RTÉ tar éis 2012; agus an ndéanfaidh sé ráiteas ina thaobh. [10825/11]
As the Deputy is aware, the remit and obligations of RTE, as an independent national public service broadcaster, are set out in the Broadcasting Act 2009. Section 114 of that Act sets out the principal objects and associated powers of RTE. Section 98 provides that it "shall be independent in the pursuance of its objects", subject to the requirements of the Act. Therefore, as Minister I have no function in RTE's general day-to-day operations, including matters relating to the management of its broadcasting infrastructure. Having said that, I have contacted RTE to seek the information requested by Deputy Ó Fearghaíl. RTE has advised that some of the sites which will not be used for digital terrestrial television are in use for other services, such as radio services, or are leased to telecommunications operators. RTE will continue to use them after the analogue switch-off takes place. Most of the other sites are owned by third parties. I understand that RTE plans to decommission its television equipment from these sites as soon as the analogue signals have been switched off.
I thank the Minister for the information he has provided. He has basically answered Deputy Ó Fearghaíl's question. Bhí sé ag iarraidh a fháil amach an mbeidh na crainn cumarsáide agus tarchuradóirí seo ar fáil do na comhlachtaí sin. Can I take it that the Minister has been reassured by RTE that these sites will continue to be available for other purposes? Will they be available to radio stations, emergency blue-light services and telephone companies? If these masts were to become unavailable, it would interfere with the daily lives of those who depend on them for the provision of services. Can I take it the Minister, who has general responsibility for communications, will ensure these sites continue to be available to those who need them in order to provide services to the public?
The Deputy is right to suggest that these are valuable State assets. There are crainn cumarsáide at 149 locations, but just 51 locations are needed to transmit digital terrestrial television. That does not mean it is as simple as subtracting one from the other. Quite a few of these facilities are used for other purposes. I assure the Deputy there is no question of interfering with other functions, such as radio or mobile and fixed telephone services that are used for broadband purposes. I do not rule out the possibility of using these masts for additional services after the switch-off.
Absolutely.
As the Deputy knows, quality new spectrum will become available after the switch-off. It may well be the case that some of these masts will be used to improve the quality of broadband, for example.
The Minister mentioned in his reply that RTE will decommission some of the sites it will not need for television services in the future, after digital television has been introduced. Will it be possible to ensure the future use of such sites for other services is ascertained before any of them are sold or disposed of in any way? As the Minister is aware, people in many rural areas have encountered difficulties in getting suitable sites for masts for a range of services, including telephone services. Can the Minister assure the House that he will pursue a policy of ensuring none of these sites, which are already in our possession, is disposed of until it is absolutely certain that it cannot be used for another communications purpose? This is particularly important at a time when new spectrums are about to become available, as the Minister said, and when we are trying to upgrade rural broadband services, which are very important.
I can give the Deputy a commitment that I will bring the views he has just expressed to the attention of the RTE authorities, which are putting a great deal of work and thought into getting the switch-off right. As Minister, I could not contemplate the implications of a significant number of the constituents of Deputy Ó Cuív and the Leas-Cheann Comhairle being left without "Coronation Street". It would be an appalling vista.
That is the subject of another question.
7 Deputy Brian Lenihan asked the Minister for Communications, Energy and Natural Resources his plans to increase the maximum level for consideration as micro generation to50 kW; and if he will make a statement on the matter. [10835/11]
23 Deputy Dara Calleary asked the Minister for Communications, Energy and Natural Resources his plans for increasing the tariff received for micro production of energy; the amount by which it will be increased; the proposed term of guaranteed tariff; and if he will make a statement on the matter. [10834/11]
I propose to take Questions Nos. 7 and 23 together.
The programme for Government commits to the provision of a feed-in tariff for microgenerators producing electricity for their own homes, farms and businesses and selling surplus electricity to the grid. The programme also states that the tariff will not be significantly above the single energy market price for electricity. In line with the programme for Government commitment, my Department and the Sustainable Energy Authority of Ireland are finalising a cost-benefit analysis of a feed-in tariff programme for microgeneration. I expect their assessment to be submitted to me shortly. Any microgeneration programme must be fully cost-effective, taking into account the overall cost implications for all electricity consumers. As part of their analysis, the authority and my Department are assessing the varying potential kilowatt levels of microgeneration installations in terms of the levels of support they would require. The kilowatt size of installations and related costs and benefits will be factored into the overall assessment of a cost-efficient programme.
ESB Electric Ireland is the only electricity supplier in the market that offers microgeneration tariffs to domestic customers who generate up to 11 kW. ESB Networks agreed in 2009 to provide the necessary import export metering free of charge to the first 4,000 domestic microgeneration customers. ESB Networks provides a support payment of ten cent per kilowatt hour for those eligible customers for the first 3,000 kW hours exported back to the grid annually for a period of five years. The take-up of 364 customers has been disappointingly low despite a potential overall tariff rate of 19 cent per kilowatt hour being available. This tariff is significantly above the single electricity market wholesale electricity price, which currently averages 7 cent per kilowatt hour.
The Sustainable Energy Authority of Ireland is in an 18 month micro-generation pilot scheme which entails close monitoring of the performance of the 42 installations taking part. Those participating in the pilot have been able to avail of the tariffs offered. The findings from the pilot scheme are providing useful data which will inform the overall assessment of the optimum way forward to encourage the micro-generation sector.
Does the Minister agree that we do not need to reinvent the wheel given the large amount of information on micro-generation available internationally? With an average tariff threshold for micro-generation of 50 kW in the rest of Europe, is it not self-evident that economies of scale arise the larger one designates the threshold? Does he also accept that the average energy requirement of a farm — perhaps not in my part of the country but certainly in the Leas-Cheann Comhairle's part of the world — is approximately 50 kW? Permitting output of 50 kW would make such farms energy neutral and dairy and other farms would have zero net energy usage because they would be able to supply as much electricity to the grid as they took from it. Will the Minister give a timescale for the completion of the various reviews, taking into account the European example? Will he indicate when decisions will be made?
I do not know enough about the issue but I am trying to find out and learn about it. I do not entirely agree that the Deputy is entitled to put on the béal bocht for Galway West as compared to Galway East given that farms in the east of the county tend to be small and the area does not have many milking parlours.
There may be some in Galway East whereas there is not a single dairy farm west of Galway city.
Yes. While stimulating the micro-generation sector is probably a positive thing to do, one has to consider the economics of the issue. I set out the figures on the cost of the current feed in tariff and the minuscule amount of electricity going back into the grid. I do not know whether economies of scale apply, as the Deputy suggests, although I am open to examining that proposition. It is interesting that none of the other suppliers has entered the market and the ESB is on its own in that regard. There will come a point at which it will no longer be economic, especially if only one of the electricity suppliers is playing a part in stimulating the micro-generation sector.
On the economics of the system at national level and for private companies and producers, the micro-generation of electricity is potentially a good source of income for farmers and would put their land to good use. Does the Minister agree that in assessing the economics of the case for micro-generation, one must examine its potential for making small farms more viable, which is an objective to which the Government and European Union are committed? It would also be economical from the point of view of the State in that it would use freely available resources, namely, wind and water. One then has the economics for the private company. Where the economics of micro-generation for the country and producers trump those for private companies, does the Minister agree that the State must adopt a policy to ensure the economics of private companies do not overrule the national interest and that, on that basis, a national policy is required? Will he undertake to examine the reason the tariff threshold here is 11 kW on three phases and 6 kW on a single phase when the average tariff threshold in Europe is 50 kW? Is this connected to the robustness of our grid? Is upgrading the grid not the answer to the problem?
I will undertake to examine the issue raised by the Deputy. I do not know whether the position here is exactly analogous to the position in other EU member states. While I support the idea of micro-generation in principle, we must examine the economics of the case. If it is the Deputy's case that the level at which the tariff threshold means inherent failure is likely and that a higher threshold would allow micro-generation to make a meaningful contribution, I will certainly examine that proposition.
It would perhaps be an understatement to say I receive occasional representations on the matter. I receive a regular dribble of representations from different areas, primarily in the south, which could indicate they may be from farmers with significant land. Now that the days are getting longer, I will examine the issue of micro-generation.
8 Deputy Noel Harrington asked the Minister for Communications, Energy and Natural Resources his plans to improve accessibility and functionality of the metropolitan area networks in the towns of Bantry, Skibbereen and Dunmanway, County Cork; and if he will make a statement on the matter. [10839/11]
10 Deputy Noel Harrington asked the Minister for Communications; Energy and Natural Resources the capacity available to the metropolitan area networks in the towns of Bantry, Skibbereen and Dunmanway, County Cork; his views on whether these networks are being used to the maximum potential following the investment by the State of 90% of the cost; and if he will make a statement on the matter. [10840/11]
I propose to take Questions Nos. 8 and 10 together.
The metropolitan area networks, MANs, were built by the State throughout the country to deliver telecommunications infrastructure where the commercial telecommunications operators had not invested and market failure had therefore been identified. The MANs are fibre optic networks mainly built in a ring formation around towns with populations above 1,500 persons. Each MAN has a co-location centre where service providers can house their equipment. The MANs contain more than 1,000 km of duct, sub-duct and high capacity fibre optic cable offering virtual limitless capacity.
The MANs are a middle mile solution meaning that they fit between the local access delivered in towns by service providers and the national backhaul network, for example, ESB Telecoms and BT, which carries the traffic from the MANs to the central points of international connectivity in the country. All the metropolitan area networks, including the MANs in Bantry, Skibbereen and Dunmanway, County Cork, are managed and operated by e|net, a company appointed by my Department following a procurement process. e|net makes the networks available to the telecommunications sector.
The MANs are operated on a wholesale carrier neutral and open access basis. This means any service provider can use the network without having to invest privately and replicate network footprints throughout the country. The MAN in Bantry is now delivering telecommunication services to that area. In the case of the Dunmanway and Skibbereen MANs, there are no customers yet connected. e|net is available to discuss the options for connection to these MANs with interested parties. However, it is understood that there has been insufficient market demand for fibre connections in these towns to date.
9 Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources the progress made with the NewERA proposal since assuming office; the funds provided for same; the source of the funds; and if he will make a statement on the matter. [10828/11]
30 Deputy Billy Kelleher asked the Minister for Communications, Energy and Natural Resources if he will confirm that the proceeds of the sale of State assets of his Department will be invested directly in the NewERA Programme. [10939/11]
I propose to take Questions Nos. 9 and 30 together.
I am working with the Minister, Deputy Rabbitte, and other relevant Ministers to ensure that all appropriate funding opportunities are leveraged to deliver on the NewERA objectives of job creation and economic growth. The report of the review group on State assets and liabilities has been published and is under active consideration by the Government, including consultation with stakeholders. Any future Government decision with regards to this report will have regard to the programme for Government and will target up to €2 billion in sales of non-strategic State assets.
As I already have advised Members, the Government has clearly set out its intention to ensure that the semi-State sector will play a full role in Ireland's economic recovery. The investment programmes of the State companies must be fully focused on delivering for the State as a shareholder and on the Government's strategic priorities. Under the NewERA authority, existing and new investment programmes by the State companies will continue to be funded primarily by revenue streams, regulated income and appropriate borrowings. They must also ensure the best possible return for the State as a shareholder.
Will the Minister of State clarify that the idea of the NewERA programme was to sell off some State assets and to use the money to provide broadband and other infrastructure?
Yes, absolutely.
Perhaps the Minister of State can clarify how this would sit with the EU-IMF programme, which states that all funds realised from the sale of State assets are meant to go towards the reduction of debt.
Clearly, before coming into government, the plan was to use the money in the National Pensions Reserve Fund, the vast majority of which, or more than €10 billion had to be used to bail out the banks. Approximately €4.9 billion now remains in the National Pensions Reserve Fund and that is money that must be considered in respect of NewERA.
On the sale of State assets, there are two ways to do this. The first would be to write off the debt and the other, as my ministerial colleague, Deputy Rabbitte has stated, would be to create jobs. Obviously on an individual basis the Government would be obliged to work with the IMF and EU in respect of the sale of any assets. The clear preference of this side of the House — and I presume also on the Deputy's side — is that were those assets to be sold, job creation would be a productive way in which to use them and they would add to the money that is so urgently needed to create the infrastructure and jobs in broadband, in water and in bioenergy.
I seek clarity on this issue because the Government recently has been engaged in considerable use of statements like "on the one hand and on the other". On one day it states the assets must be used in a sell-off of State assets while on other days, one is told the great big new idea is to have a massive investment in reinvestment, which obviously all Members would welcome. Will the Minister of State crystalise in a "Yes" or "No" answer whether the proceeds will be used for NewERA and whether that is guaranteed? Is he stating today that €4.9 billion of the National Pensions Reserve Fund will be used for NewERA?
The first point is that €4.9 billion is all that remains after the Deputy's party wrecked the economy. As I noted earlier, €10 billion of the money in the fund had to go to bailing out the banks. The troika has told the Government that it will examine fully any proposals the latter may have for the disposal of State assets for the creation of employment, such as the NewERA projects. I hope this response is crystal clear to the Deputy.
To clarify, the Minister of State does not know whether there will be a NewERA project.
To be clear, yes, NewERA certainly will be established and yes, it will be the vehicle for those funds.
It will be a little like the jobs initiative; a micro-NewERA.
No, all jobs are important and the thousands of jobs the Government will create through NewERA will be extremely welcome nationwide, including in the Deputy's constituency.
Now that the Government has examined the information that always was public knowledge in respect of available resources, can the Minister of State outline how much of the pension fund it now is intended to invest in the NewERA project?
I cannot do that because I am not a member of the Government.
The Minister of State's ministerial colleague sitting beside him could tell him.
It is being considered by the Government. A special sub-committee of the Government is dealing with all these issues. I assure the Deputy that NewERA is on that agenda and my specific job, on foot of a Government commitment, is to ensure the process by which NewERA will be set up and will manage the assets of the State will happen as soon as possible.
As a Minister, whenever anyone sent me a draft answer that included the famous statement, "as soon as possible" I rejected it as an answer and asked for a timescale to be provided. Does "as soon as possible" mean three or six months, one, five or ten years or what does it mean? It is a totally meaningless statement in the context of a reply to a Deputy and even as a Minister I always considered it to be so.
Having been in government for 17 of the past 20 years, I can understand there was no sense of urgency from the Deputy's party. To be perfectly clear, there have been several discussions in the Departments of Communications, Energy and Natural Resources and Environment, Community and Local Government. As I stated in the original reply, I am working with the respective Ministers, Deputies Rabbitte and Hogan. The Department of Finance also is very interested in this project and a Cabinet sub-committee will deal with it. I intend to have this in place as soon as possible.
Does the Minister of State envisage a period of six months or one, two or five years?
I cannot——
Will it be within one year?
No one would sell assets in this climate.
Within a year?
One issue is whether legislation is required to establish the entity. If legislation is not needed, I hope it will be done before the summer. If legislation is required, I would hope to have it before the end of the year. In either event, by the time Santa Claus visits the Deputy, it is to be hoped that NewERA also will be in his package.
Question No. 10 answered with Question No. 8.
11 Deputy Seamus Kirk asked the Minister for Communications, Energy and Natural Resources in view of the nuclear reactor issue in Japan, his plans regarding the alternative energy programme; and if he will make a statement on the matter. [10976/11]
27 Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the number, location and type of alternative energy projects submitted to him for wider Government approval; the degree to which he expects to approve such projects with a view to increasing energy production through renewable resources with consequent reduction on dependence on imported oil and gas; if he will set out his most ambitious targets in this regard; and if he will make a statement on the matter. [10936/11]
I propose to take Questions Nos. 11 and 27 together.
The tragic events in Japan and the geopolitical events in North Africa and the Middle East underline the imperative for Ireland and the European Union as a whole to reduce dependence on imported fossil fuels. Radical improvements in energy efficiency and the continued development and deployment of renewable energy are key priorities for the Government and this fully resonates with EU energy policy objectives. In line with Ireland's legally binding target of 16% for renewable energy by 2020 under the renewable energy directive, the Government is committed to ensuring the progressive deployment of renewable energy across the transport, heat and electricity sectors.
The significant level of growth in renewable energy required over the next decade is challenging. Ireland's national renewable energy action plan, which was submitted to the European Commission in 2010, sets out the projections for achieving the target and outlines the challenges to be addressed. These challenges include timely delivery of grid infrastructure, planning permission, regulatory certainty and managing the interaction between renewable energy and environmental and biodiversity obligations. Ireland's overall EU target will be largely achieved through the electricity sector with a target of 40% of electricity consumption from renewable sources by 2020. This will be combined with a target of 12% in the heat sector and 10% in the transport sector.
The incremental increase in renewable electricity is being delivered through the roll-out of projects under the Gate 3 grid connection process overseen by the Commission for Energy Regulation. I have no role with regard to the consideration or approval of projects under this process. The grid connections for these projects require the corresponding building out of the grid infrastructure, under EirGrid's Grid 25 strategy. Most of the 3,900 MW in Gate 3 is made up of onshore wind projects. By 2020, 36% of Ireland's electricity consumption will come from wind — proportionately the highest in the EU. At present, there is 1,448 MW of wind connected to the grid, which represents approximately 15% of the country's electricity demand.
Our targets for renewable energy are ambitious but achievable. They also are vital to reducing Ireland's economic and strategic dependence on imported fossil fuels and to the progressive de-carbonisation of the economy.
I thank the Minister for his comprehensive answer. I have two brief supplementary questions. Work was under way on a wave energy project in north-west County Mayo and I understand there was a great deal of interest in developing that form of energy on a commercial basis. What is the updated position in respect of that work?
Many of our wind energy resources are on the west coast, be they on land or sea. Has the Government plans to consider providing national finances to ensure we can access that energy and have a grid to carry the energy? Many of the areas in question do not have robust grid connections.
The Deputy is correct, in that the quality of wind supply along the west coast is the best in the country. There are those who would argue it is the best in Europe. Deputy Ó Cuív fully understands how the Government is constrained in terms of sourcing investment for this type of project. None the less, the commercial sector in this area is growing and it is our task to facilitate such growth. As the Deputy knows, a feed-in tariff would be required. It is regrettable that we are constrained, as this sector is already making a significant contribution to the reliance of electricity production on wind. There is tremendous further capacity.
The Taoiseach asked me this week to examine the wave energy research project in more detail than I have managed to date. I will let the Deputy know the outcome.
Resources have always been constrained but we managed to provide national infrastructure in times when we were much poorer than we are now. If infrastructure is required to bring large quantities of electricity from the west coast to the market, will the Minister ensure that its absence will not serve as a constraint on realising the potential of these resources for the people?
As one can infer from the Deputy's question, he knows that feedback to the grid is an expensive part of the process. He will also be aware of EirGrid's ambitious investment plans for its development programme. Notwithstanding recently published reports to the effect that, due to the dramatic step down in economic activity, we could afford to pull back on some of these plans, we are not minded to do so. It is possible to build out some of the plans at a lesser cost than was the case only a couple of years ago. I can give the Deputy support on that question.
Written Answers follow Adjournment Debate.
