I understand two Fianna Fáil Deputies - Deputies James Lawless and John Brassil - will now make their contributions, but there may be a third. If that third Deputy arrives, the three Deputies will have to share their time accordingly.
Energy Bill 2016 [Seanad]: Second Stage (Resumed)
Question again proposed: "That the Bill be now read a Second Time."
I wish to see the Bill through to the next Stage, but I am aware that there are some time constraints in that regard. As I sit on the relevant committee, I am aware that we are due to receive it tomorrow. I, therefore, hope it will proceed smoothly this evening. I have a number of comments to make on the energy sector as a whole and the Bill also.
Sustainable energy and energy security are desirable and targets to which we all aspire to achieving. They are targets we can and should do more to achieve. Before I deal with that issue and the Bill specifically, it would be remiss of me not to acknowledge concerns in the energy sector that have arisen not only in my own constituency but in others also. This is not necessarily directly pertinent to the Bill but more so to the energy sector as a whole. It is a good opportunity to air them in the House.
There appears to be an over-concentration in this country and others on a single form of renewable energy, wind energy, wind turbines in particular. Their prevalence in the midlands, along the western and the north-west coasts, etc, has been controversial and many applications have been refused as a result. I refer, in particular, to the Emlagh wind farm in County Meath and also the O'Grianna case on the west coast in which various court decisions led to an overturning of the decision. The Emlagh case went to the High Court in which the objectors won their case.
Some legitimate concerns have been raised and I do not necessarily agree with all of them. Some of the concerns expressed about the wind energy sector, in particular, are grounded in reality. Set-back distances remain a concern in many areas. The question of efficiency has been raised as regards whether a spinning reserve is required. Is there a need to depend on a fossil fuel, a non-renewable form of energy, to keep turbines in action at times when the wind speed is not sufficient to power them. The provision of turbines has been extremely divisive within communities. That is a fact we can all acknowledge.
Public consultation has been lacking in many cases where wind energy project developers - the "big wind" as it is termed - have arrived in communities under the cover of a notice in a less well accessed publication. I saw this happen in Johnstownbridge in the Hamlet Court Hotel when, on a dark Tuesday night in November, a public consultation meeting took place about which nobody had heard, before or since. That is regrettable and not the way to engage with communities and secure their goodwill. I saw it first hand in the case of the Macken wind farm and the Maighne wind farm. The other point of note is that sometimes wind farms tend to span more than one county or local authority area. It can be difficult for county councils if there are three turbines in one county, four in another and five in yet another in close proximity. It can mean that there are multiple applications being dealt which, in some cases, end up being referred to An Bord Pleanála. What seemingly is unprecedented, in the case of the Maighne wind farm with which I am most familiar, is that An Bord Pleanála has repeatedly deferred making a decision. Initially it was due to be made last September; then it was due to be made in February or March and now it is being deferred again. I did not realise the legislation gave An Bord Pleanála powers to do this, but obviously it does or it is being done in any case. I flag these concerns to the House.
While we all wish to embrace renewable energy, it is important to diversify and scatter what is in our basket beyond one source. I refer to the guidelines. It would be a gesture of good faith on the part of the Department and the Minister if they moved ahead with new ones. We are aware that the guidelines are outdated. Anyone with even the faintest knowledge of the sector will be aware of this. New wind turbine guidelines are long-awaited. The technology is very fast-moving and always has been. If we want to embrace the sector and the concerns of communities, it is very important that we move on the guidelines as soon as possible as a positive step, to put communities out of their misery and win buy-in among the wider community.
I will briefly discuss the positives. For four days solid in early May Portugal ran on renewable energy sources. Electricity stations were powered entirely by solar, wind and hydro power sources for a 107-hour period from 7 to 11 May. That is an extremely positive example of how well it can work. Elsewhere in the European Union, Germany achieved an even more impressive feat also in the month of May. Prices were in the negative for a while, something I am sure householders here would welcome. The renewable energy sector needs the right framework to compete with fossil fuel plant operators to make it competitive and place it in a context in which it can bypass fossil fuel plant operators on efficiency and competitive grounds also. I look forward to the Bill moving to the next Stage.
I wish to quote a conclusion made by the Minister in his contribution on the Bill:
The Bill does not set out to revise or recast the energy regulatory framework in an all-embracing or comprehensive way. Whether such wider and more comprehensive reform is required will be addressed by the review of the legal and institutional framework for the regulation of electricity and natural gas markets, including the Commission for Energy Regulation's mandate.
I will discuss the mandate and important role of the Commission for Energy Regulation, CER, particularly in the case of a project very close to my heart in County Kerry, known as the Shannon LNG project. It was initiated in 2006 and involves an investment of €500 million to €1 billion to bring liquefied natural gas into Ireland for the first time. It was going exceedingly well until approximately 2009 when a decision by the CER to implement a new tariff structure for the gas coming through the interconnector across the Irish Sea put it in abeyance. I have already spoken to the new Minister about it and last Wednesday we had a very productive meeting with a delegation from the community, the company, local councillors and Deputies. The project has been designated as a national strategic infrastructure project and the European Commission has awarded it project of common interest, PCI, status which means that it wants it to be built for the reasons outlined in the policy statement of 2016. The project ticks all of the boxes. It would ensure security of supply in a very difficult market, particularly given that we are dependent on gas from a source 4,000 miles away in which the political situation is very volatile. It would provide for diversity in the Irish gas market, connectivity to the global LNG market and have the added benefit of low carbon emissions.
In recent times, following the European Commission's intervention in awarding the project PCI status, the support of Bord Gáis Energy and Gas Networks Ireland has been critical. We are looking not only at importing gas at Ballylongford but also at reverse flowing it through the interconnector to supply gas to the United Kingdom and northern Europe. The project has great potential. The worldwide LNG industry wants to competitively supply the Irish and north-west European gas market through the Shannon LNG terminal. In order for this to happen, the key players are the industry with an investor, Gas Networks Ireland, which owns the network and Bord Gáis Energy which controls the interconnectors. We must all act together.
Coincidentally, the project is mentioned in A Programme for a Partnership Government, which I very much welcome. It states:
The new Government remains supportive of the proposal to construct a LNG terminal near Ballylongford, County Kerry. The LNG facility would bring connectivity for the first time to the global LNG market. The prospect of such a facility would be a positive step for the island of Ireland. While the regulation of the gas market is the responsibility of the energy regulator we will request the national dialogue on climate change to examine if there are ways to facilitate liquid natural gas on the island of Ireland.
How does the Government intend to implement this policy statement in a manner that will result in successful investment and job creation in the Shannon region? It is in all of our interests to make the project happen. The regulator, the Minister and the industry have key roles to play and we must work together to get the project over the line. The knock-on benefits for a rural county such as Kerry would be immeasurable. There is immense potential for knock-on industries that would flow from such a development in Ballylongford. There is, therefore, an onus on us all to try to make it happen. In a spirit of co-operation, I ask the players mentioned to get together to get the project over the line.
New wind energy guidelines have been proposed for many years, but deadlines have come and gone. I ask that the new guidelines be published before the summer recess, if possible, or, at the latest, by September to give guidance to the industry. This is critical. An interest in solar energy has emerged. There are a number of projects in my county, one of which has been submitted for planning. Owing to a delay regarding the PSO charge that will be applied to solar energy projects, there is confusion in the industry and people do not know what the benefits will be and whether they should go ahead and develop solar energy farms. The issue must be resolved quickly to allow development in this area.
This is my first opportunity in the House to congratulate Deputy Seán Kyne and wish him well on his appointment as Minister of State.
As my party colleagues have stated, we broadly support the Energy Bill 2016 which mainly involves amendments to existing energy Acts and strengthens secondary legislation, which is very important. One issue of concern to us and consumers throughout the country is the high retail energy prices footed by consumers, despite the collapse in wholesale gas prices. Consumers are not seeing an equivalent drop in the prices charged to them that should be expected due to the fall in prices worldwide. My colleagues in this debate have indicated that the Commission for Energy Regulation, CER, must be reformed and empowered to take account of the impact of current retail prices being foisted on consumers by energy providers which is having an effect on the prices paid by consumers and competitiveness.
One project is a source of serious contention in the north east of the country, namely, the proposed North-South interconnector. During this and the previous Dáil, I have raised the issue by way of parliamentary questions, but I have never received a satisfactory response. The former Minister, Alex White, always dodged the question by outlining that the matter was before An Bord Pleanála. None of us expects anybody to interfere with the work of An Bord Pleanála, but we did not receive satisfactory answers during that period from the former Minister or his predecessor, Pat Rabbitte. Last August I made a detailed submission to An Bord Pleanála on the proposed project, with Councillor Clifford Kelly, one of my councillors in County Cavan. We lodged a detailed objection last August and our colleague in the Oireachtas, Senator Robbie Gallagher, with his then council colleagues in Monaghan, Seamus Coyle, P. J. O'Hanlon and Padraig McNally, made a very detailed submission objecting very strongly to the proposed North-South interconnector. Individuals, community groups and public representatives of other political parties submitted hundreds of very good objections.
Last January I welcomed the fact that An Bord Pleanála had agreed to hold an oral hearing, which took place over a period of many weeks in Carrickmacross, County Monaghan. I participated in the oral hearing, with Fianna Fáil colleagues and public representatives of all other political parties. I outlined clearly and strongly that I strongly objected to the proposed project. Any public utility, in providing public services, must be cognisant of the concerns of individuals, families and communities about a project that will traverse so much of the country, as the proposed North-South interconnector will. At the oral hearing the County Monaghan Anti-Pylon Committee and the North East Pylon Pressure Campaign, representative of communities in counties Meath, Monaghan and Cavan, also made very detailed and well researched proposals and lodged objections to EirGrid's proposals. With others, I outlined the many negative aspects of the planning application in terms of the unacceptable scenario that would arise with the construction of monstrous transmission lines through large parts of counties Monaghan, Cavan and Meath. The project, if permitted to proceed, will destroy heritage and tourism in the area and place huge impediments in the way of farming practices.
Debate adjourned.