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Dáil Éireann debate -
Wednesday, 26 Oct 2016

Vol. 926 No. 2

Other Questions

The next question is in the name of Deputy Bríd Smith. I ask her to keep to the allocated time as it will allow more of her colleagues to get in.

I am not sure of the times I get.

The Deputy gets 30 seconds to introduce. The Minister gets two minutes to make the initial reply.

The clerk is saying something to the Acting Chairman.

There are two questions together. Where there is just one question, the Minister gets two minutes to reply. Where two questions are grouped, the Minister gets four minutes to reply and the Deputy gets two opportunities of one minute to ask questions.

So the time I get is not doubled.

I only get 30 seconds, one minute and one minute, but the Minister gets twice as much.

The Minister gets four minutes, yes.

That is great.

Do not shoot the messenger.

Climate Change Policy

Bríd Smith

Question:

14. Deputy Bríd Smith asked the Minister for Communications, Climate Action and Environment if his Department's budget allocation is sufficient to ensure targets for reductions in CO2 emissions under the Paris treaty are met; and if he will make a statement on the matter. [32124/16]

Bríd Smith

Question:

17. Deputy Bríd Smith asked the Minister for Communications, Climate Action and Environment the additional resources he plans to use for climate action; and if he will make a statement on the matter. [32125/16]

I want to discuss something that needs quick attention, which is the question of the scorching of the earth. The planet is warming at a pace not experienced in the past 1,000 years according to NASA, a very reputable agency with the best scientists in the world. This is not Bríd Smith or the left saying it. The planet is scorching and warming at an unforeseen pace. The response of this Government and governments across the world is insufficient. Does the Minister believe it is sufficient? Does he have sufficient resources in the budget to deal with the issue of climate change?

I propose to take Questions Nos. 14 and 17 together.

I suggest that the Deputy should do the lotto this evening. Questions Nos. 14 and 17 are being taken together, so she is doing quite well today.

The Paris Agreement aims to hold the increase in global average temperature to well below 2° C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5° C above pre-industrial levels. It also aims to increase the ability to adapt to the adverse impacts of climate change and foster climate resilience.

The agreement puts in place the necessary framework for all countries to take ambitious action, as well as providing for transparency to ensure that all countries can have confidence in each other’s efforts. The agreement aims to tackle 95% of global emissions through 188 intended nationally-determined contributions, INDCs, which will set out how parties intend to meet their own emission reduction targets. The Paris Agreement itself does not set specific targets for CO2 emissions. Ireland will contribute to the agreement via the INDC tabled by the EU on behalf of its member states, which commits the EU to a 40% reduction in EU-wide emissions by 2030 compared with 1990. The specific details of the contribution to be made by each member state to this overall ambition remains to be finalised and Ireland is currently examining proposals made by the European Commission in this regard.

The extent of the challenge to reduce greenhouse gas emissions, in line with the Paris Agreement and other international commitments, is well understood by the Government, as reflected in the national policy position on climate action and low carbon development, published in April 2014, and now underpinned by the Climate Action and Low Carbon Development Act 2015, which was enacted in December of last year. The national policy position provides a high-level policy direction for the adoption and implementation by Government of plans to enable the State to move to a low-carbon, climate-resilient economy by 2050.  Statutory authority for the plans is set out in the Act.

In accordance with section 4 of the Act, and in line with responsibilities assigned to me as Minister for Communications, Climate Action and Environment, I intend to make a draft national mitigation plan available for public consultation by the end of the year followed by submission of a final plan to Government for approval at the latest by June 2017. The preparation of the national mitigation plan is statutorily designed to be a whole-of-Government approach to tackling greenhouse gas emissions.  In particular, Ministers with responsibility for the largest-emitting sectors, namely, agriculture, transport, electricity and the built environment, are required by Government to develop sectoral mitigation measures for inclusion in the plan.

A key element of the development process of the national mitigation plan is the identification of the most cost-effective measures with the optimal mitigation potential, which safeguard Ireland’s competitiveness and ideally support sustainable economic growth. Work is ongoing on this complex task by all relevant Departments and will culminate in a master list of potential measures being produced, from which the most appropriate measures will be selected for inclusion in the national mitigation plan. As this process is yet to be finalised, detailed costings are currently unavailable.  In recognising the whole-of-Government approach under way, it is noted that the cyclical process of preparing appropriate policies and measures for both 2020 and 2030 will require a range of budgetary measures across a range of relevant Government Departments over the period concerned.

My Department has received an allocation of €100 million for energy projects in the Estimates for 2017, the bulk of which will be allocated to energy efficiency and renewable energy, which represents an increase of  35% on last year's allocation. My Department will target the upgrading of up to 30,000 homes in 2017 that will, together with the €22 million retrofitting fund announced by my colleague, the Minister, Deputy Coveney, for local authority dwellings, have a significant impact on reducing carbon emissions as well as supporting the creation of jobs in the sector. About 4% of the total housing stock will be upgraded in 2017.

Just to clarify, as both questions grouped are Deputy Smith's questions, she and the Minister will have four one minute slots. There will be plenty of time to go backwards and forwards.

We will have great craic.

The Deputy will have me battered and bruised.

The Minister will be battered. I wish to reiterate the urgency of action needed on climate change. I am on the Joint Committee on Communications, Climate Action and Environment. From what I have seen both at the committee yesterday and in the past, there is double-speak going on. On the one hand, we acknowledge verbally in our dialogue that we have a problem. We have had a 1.38° Celsius increase in temperature this year, which is the highest on record. According to the Paris deal, we are to stay below 2° Celsius, but we are hurtling in the opposite direction. We are in a very serious situation. When we compare the budget which has been given to deal with this situation with all the sweetheart deals that have been given to developers and landlords to encourage private development to so-called "deal" with the housing crisis, it leaves a lot to be desired. I do not believe, as the Minister tried to argue, that the two things complement each other. Au contraire, what we are actually doing is assisting the heating of the planet to the detriment of what goes on here. In my next minute, I will get to the question of land usage and what we do with our bogs, trees, etc.

The Deputy might come back in on the contradiction as well. I am not exactly sure what she is talking about there-----

I am talking about the billions of euro given to landlords to build houses and the tiny amount of the budget allocated to climate change.

The Deputy will be back in.

One of the big challenges we have is to try to improve the energy efficiency of the built environment. That includes public and private buildings. We will be putting people in new houses that are far more energy-efficient under the current building regulations than the building regulations that would have applied heretofore. The energy efficiency of those buildings is far greater. The amount of energy that is used to heat them is far less and, therefore, there are fewer emissions. The focus at the moment has to be on the three big challenges that we have, none of which is actually carbon dioxide. They are hydrofluorocarbon, HFC, black carbon and methane. They are the ones that are warming up our environment at a rapid pace at the moment. They are going to become a far bigger challenge between now and 2035 than the challenges that we have to face by 2050. There was the Kigali agreement on HFCs last week, which is going to deal with and tackle that issue. We now need to look at the other two issues as well.

I have to take the Minister up again on the question of global warming. In yesterday's committee debate on land usage, there was a real contradiction in what the committee was being told by the Department. On the one hand, there is this ambition to adhere to the EU regulations on land usage and to use it better for absorbing carbon and, on the other hand, there is great excitement when it comes to CETA or trade deals with Egypt, for example, for live cattle. How do we get live cattle reared in Ireland on to boats to transport them to Canada or Egypt? We have to produce and grow them here. That leads to a huge increase in methane, which is one of the problems we have. I am told that the average farm has 16 cattle. That gives an indication of the size of the big ones. When one looks at the graph, there are a huge number of ranchers in Leinster and Munster producing incredible amounts of beef. That has an impact on the climate. This is what I mean about the contradiction. On the one hand, we are saying that we are doing something and, on the other hand, we are increasing agricultural beef production. There is no joined-up thinking-----

Thank you, Deputy. You will be back in twice more.

-----and I think the Minister's Department has to take some responsibility for that.

I will deal with the land use and the agricultural issues first. We have the best carbon footprint for milk production anywhere in the EU. There are less carbon emissions from dairy production in Ireland than in anywhere else in the EU. We are equal to one other member state. With regard to beef, we are the fifth-best in the EU and are working towards becoming not only EU leaders but world leaders in this. Only last month, I had a detailed bilateral discussion with my colleague from New Zealand on this very issue. We can have beef produced in other parts of the world in a far less efficient manner that is transported either on the hoof or in carcass form, or we can actually produce it quite efficiently here in Ireland. Can agriculture help in regard to the fight against climate change? Yes, it can. What we want to see is a situation in which our food production in this country is carbon neutral. By working through the forestry sector, through better land use, through better management of agricultural slurries and so forth, and through more efficient rearing of animals that makes agricultural production itself far more efficient and profitable in returns to the farmer, we can reduce emissions.

Is this my last minute?

Great. I will go all day at this. Let me go over it again. The Minister should be concerned about the budget, but he does not seem to be. He seems to be happy enough that he has €500,000 for a national dialogue.

There were 15,000 young people on the streets protesting during the Paris deal on climate change. They have had the dialogue and they know what they are talking about. They are extraordinarily concerned about the future of the planet. The €24 million on energy efficiency and renewables will go nowhere towards having an impact. There is €2 million for better homes energy, €4 million for better energy communities and €8 million for warmth and well-being schemes. This just is not sufficient to take this seriously. Where does the Minister think he can get additional resources? Has he thought of looking at the fact our pension reserves give a chunk of money to oil companies and to researching companies which extract gas and oil instead of trying to reduce such activities?

The objective behind the dialogue on climate change is to take the concern and convert it into action. We have had concern over the past two decades and we have not seen the action. Now we need to convert it into action and have real engagement with communities throughout the country rather than the approach that has been taken until now to lecture people on it.

With regard to the budget, €100 million was invested in energy projects through the Department, with €63 million for the better energy homes and communities scheme, €9 million for electric vehicles, €7 million on the renewable heat incentive scheme, €111 million on the GLAS scheme, €112 million on the afforestation scheme and €52 million on the beef genomic scheme. A total of €430 million has been allocated to the OPW with regard to flooding and €22 million to the Department of Housing, Planning, Community and Local Government for the retrofitting of local authority homes. Relief for the VRT on electric vehicles has been extended for another five years. The VRT on hybrid vehicles has been extended for another two years. The natural gas used in vehicles has been reduced to the EU minimum. We have introduced reductions through the abolition of carbon tax with regard to biomass fuels.

We have gone over time for this and I ask Deputy Smith to be very brief.

I want the House to note the Minister have given us a rationale for privatising the national broadband plan, and the money is to be used for key issues such as climate action. I will hold the Minister to this for as long as I can stay in the House to do so, and I will keep a close eye on it. It was a big mistake to privatise broadband, but if the Minister is going to do it and put the money into climate action then let us see the colour of this money.

We need a plan for public transport to see it not as a burden but an opportunity to stop hiving off State routes to top private operators. As an essential part of any plan to deal with climate change we have to get carbon emissions and cars off the road. We also need to think strongly about our targets. We are way off target and the EPA report yesterday, just so people do not get too alarmed about it, is a disaster. We will be 14% below our targets by 2020. This is a very worrying development for us. There is much to be addressed.

We are in the process of drafting the national mitigation plan. The draft will be completed before the end of the year and will go for public consultation. It will be finalised next year. This will set down the blueprint and not just in my Department with regard to energy. It will also involve the built environment, with regard to the Department of Housing, Planning, Community and Local Government and the Minister, Deputy Coveney, and will also involve transport and agriculture. The capital plan that will be finalised next year will have to feed into this. As part of the discussions in the run-up to the budget this year, I made it clear to the Minister, Deputy Donohoe, that the capital plan will have to reflect what we are doing with regard to the mitigation plan. Yes, we have big challenge ahead of us. There is no doubt about this, but we have made a start this year. Everyone is always looking at the glass as half empty. Let us start to look at it as half full. We have been a world leader with regard to hydrofluorocarbons. We were one of the first countries to put forward money on this. We are a world leader with regard to our dairy industry. We will be a world leader with regard to our beef industry. We are engaging with countries such as Tanzania, Costa Rica and New Zealand to see how we can improve agriculture efficiency and reduce emissions, not just for ourselves but for farmers throughout the world, particularly in the developing world where there will be a huge challenge post-2030.

Questions Nos. 15 and 16 replied to with Written Answers.
Question No. 17 replied to with Question No. 14.
Question No. 18 replied to with Written Answers.

I ask Members and the Minister to try to stick to the times, in fairness to people coming after them so their questions will be taken.

Energy Conservation

Eamon Ryan

Question:

19. Deputy Eamon Ryan asked the Minister for Communications, Climate Action and Environment the stage at which the development of smart metering for every home is; and the way such a scheme will be funded. [32081/16]

The Minister is right that in some areas we are leading. There are not many, and I am not too sure whether we are leading in some of the areas he mentioned, but an area where I know we are not leading but falling dramatically behind is that of demand management efficiency and domestic home management energy systems. We have no smart metering programme roll-out ready. We have been working on this. I remember working on it seven or eight years ago, when it was first thought about and ready to go, but for five years nothing has happened. Demand management and efficiency saving is the first step. What are our plans for smart metering? When will we roll it out? I am very much conditioned by the fact an opportunity is opening up to us. Yesterday the climate committee heard interesting figures, that the UK received £3.5 billion in funding-----

The Deputy is only introducing the question.

When will we start putting smart meters into homes? When will we lead in this area, which is the most important area for leadership to save energy?

The national smart metering programme, which includes electricity and gas meters, is managed by the Commission for Energy Regulation, CER. The EU's third energy package sets out the need to roll out smart meters based on economic assessment and provides that in the case of electricity, "where roll-out of smart meters is assessed positively, at least 80% of consumers shall be equipped with intelligent metering systems by 2020". In the case of gas, there is no specific target, but any roll-out is subject to economic assessment.

The key determinant of the scale, scope and timing of the roll-out of smart meters is a cost benefit analysis that is being developed by the CER. The results of this cost benefit analysis are expected in the first half of 2017.

Previous statements had indicated that the roll-out of smart meters would likely commence, at the earliest, in late 2018. The go-live date of smart services would follow once a significant number of smart meters have been rolled out.

The Commission for Energy Regulation commenced a replanning process of the national smart metering programme in July 2016 with ESB Networks, Gas Networks Ireland and other relevant stakeholders in order to bring more clarity and certainty regarding the timelines for implementation of the programme. This replanning process, which will conclude later this year, may lead to the timelines being extended.

The costs of rolling out smart meters will be included in the costs of distribution networks in the same way as other infrastructure investments are paid for. These costs are approved by the regulator and charged by ESB Networks and Gas Networks Ireland to energy supply companies. The energy supply companies generally include these costs in the standing charges on customer bills.

We did that analysis seven or eight years ago. We rolled out a very large testing scheme and the ESB had all the factual analysis. There is an endless amount of economic analysis. It needs leadership now. It needs political leadership to kick the system out of the inertia, conservativism, lack of ambition and lack of energy and start making this happen. We are in severe danger. We were ahead of the game seven or eight years ago but we are now falling way behind. It needs more than just waiting for the energy regulator to do yet another study to assess another study. This has been studied to death, internationally and here at home, for the past five or six years. There is an opportunity for us to get the funding that will not now go to the UK. The European Investment Bank and others spent approximately €3.5 billion in clean energy lending to the UK which will now not go there. If we had ready-to-go big scalable projects in clean energy and efficiency we could get funding from the EIB. We could kickstart our economy and save our emissions but we are not doing it. We are falling way behind. A country that has all of the IT businesses and a good distribution and transmission system should be ahead of the game on this. It is not good enough to say we have to do more studies. It is time for us to start doing something.

The cost benefit analysis available to me was completed by PricewaterhouseCoopers in September 2013. The results of the updated cost benefit analysis, which are available on the CER website, show that net present value is minus €59 million for electricity meters only.

Where electricity and gas meters are included, the net current value is estimated at minus €54 million. The most recent cost benefit analysis, therefore, was marginally negative. Technology has changed. One of the most significant changes which was not envisaged when the Deputy was Minister is the Internet of things. Only last month I launched one of the first national networks in Kilbegley, south Roscommon, in my constituency. It will dramatically change how we consider smart metering and smart devices. I had an interesting conversation with Glen Dimplex - I am sure the Deputy had one also - about the way it was developing products. All this needs to be considered before a decision is made. There is no point in using yesterday's rather than tomorrow's technology.

The Internet of things has been coming for years and was known about. The cost benefit analysis that was finally dragged out of the system in 2013 was known about as far back as 2009. A greater cost benefit needs to be taken into account. We are breaking through the ceiling in the context of our emissions and nowhere near our targets, but we are missing out on an economic opportunity. The big message for those who always engage in the cost accounting analysis on every line is that they should think of the bigger picture. The technological industrial revolution is taking place in the interface between digital and clean energy technology. We have every reason to be the best in the world in this area and sell that expertise to the rest of the world, but that cannot be done if the basic technological elements such as smart meters are not in place in order that other companies can use their products in innovative ways and the Internet of things can kick off. If the State is not monitoring or measuring or putting a price on products, it will not happen. We will probably not do it until the next decade, which will probably be a decade late in grabbing the opportunity. That is what the Minister needs to overcome. He should tell the regulator and the Department to make this happen.

The Deputy is correct that the interface between digital and clean energy technology needs to be examined. It has changed dramatically in the past decade. I want to be sure that if we charge every ESB customer €400 for a smart meter that, first, they will benefit from them and, second, that it is the most cost effective way of making this investment. I want to establish whether there are other more efficient ways by using new technology. That analysis will be completed in the next few weeks. When the commission publishes the findings, we can examine the approach we are taking. The Deputy is also correct about the investment being made. I want an answer to the question of whether it should be used for this or some other technology before I proceed. Smart metering could provide huge opportunities and the type of meter is crucially important to the decisions we will take not just for now but for the next decade and the following decade.

Telecommunications Services Provision

Bernard Durkan

Question:

20. Deputy Bernard J. Durkan asked the Minister for Communications, Climate Action and Environment the progress made in the provision of high quality modern telecommunications such as broadband and mobile telephony in all areas throughout the country; the action being taken to ensure a quality of service here equal to the best globally; if regulation of the mobile telephone network can be invigorated to ensure the services are working to optimum efficiency and quality, with high quality and high speed broadband to become the norm rather than the exception; and if he will make a statement on the matter. [32055/16]

The question encompasses two telecommunications issues, broadband services and mobile telephone services in both urban and rural areas. I encourage the Minister to elucidate further on his targets for broadband provision and the quality and extent of the service provided by mobile telephone operators.

The Deputy is getting value for money from his question.

The national broadband plan aims to make high speed broadband available to all premises in Ireland through investment by commercial companies and a State intervention in areas where a commercial investment has not been fully demonstrated.

In December 2015 the procurement for the State intervention commenced.  It aims to deliver networks with at least 30 Mbps download and 6 Mbps upload speeds to all premises within the intervention area.  Intensive dialogue with bidders is continuing and the three bidders have indicated that they are proposing a predominantly fibre-to-the-home solution.  Householders and businesses will get speeds not just of 30 Mbps but potentially 1,000 Mbps, with businesses potentially availing of symmetrical upload and download speeds.

In accordance with commitments in A Programme for a Partnership Government, the Minister for Arts, Heritage, Rural, Regional and Gaeltacht Affairs is leading in the establishment of two regional action groups to help to accelerate the broadband network build in rural Ireland, once contracts have been awarded.

The commercial telecommunications sector has invested more than €2 billion in upgrading and modernising networks which support the provision of high speed broadband and mobile telecommunications services.  Approximately 1.3 million premises in Ireland can now get high speed broadband and at least one mobile operator is delivering 4G services to more than 90% of the population.

In July I established a mobile telephone and broadband task force with my colleague, the Minister for Arts, Heritage, Rural, Regional and Gaeltacht Affairs, to address immediate issues related to the quality of mobile telephone and broadband coverage. I expect the task force to report by the end of 2016.

In addition, I recently signed regulations allowing ComReg to proceed with an early 2017 auction of the 3.6 GHz radio spectrum band, to provide for an 86% increase in the total spectrum available for mobile and fixed wireless services.

I have also secured €8 million for RTE in my Department's Estimate for 2017 which will allow it to free up the 700 MHz spectrum band.  ComReg expects to auction this spectrum which will provide for significantly enhanced mobile coverage.  The 700 MHz band is particularly suited to rural environments as the signal can travel long distances.  I also intend to discuss with ComReg the possibility of including elements within the auction process to ensure black spots, particularly in rural areas, will be identified and adequately addressed.

These initiatives should assist in significantly improving the quality of broadband and mobile telephone services across the country, putting Ireland to the forefront internationally in terms of connectivity.

I thank the Minister for his comprehensive reply. To what extent does he expect to compete with best practice internationally when the current investment programme is completed, both in respect of broadband and mobile telephony? The quality of the service provided is embarrassing. Adequate evidence has been available for a long time of the areas with poor service which require urgent upgrading. How is it planned to integrate the new services, when available, with medical and educational services to their mutual benefit?

I would need a week to address that question. We will have the most modern network in the world when the investment programme is completed. The national broadband plan provides that Ireland will be the first country to bring fibre broadband to the home extensively in rural areas. This has not been done anywhere else in the world to date. It will deliver speeds up to 1,000 Mbps to homes and businesses throughout the country.

On mobile telephony services, we intend to use the 700 MHz spectrum to focus on a geographic rather than a population basis. The intention is to roll out 5G mobile services on this spectrum, which will mean that Ireland will probably be one of the first countries in the world to roll it out on this basis. At the conclusion of the investment programme, Ireland will be a world leader in this regard.

We are focused on what we can do practically in the short term, which is why we are not waiting for the mobile phone and broadband task force to complete its report at the end of the year. As suggestions and proposals are made, we are engaging with solutions. I have announced a number of decisions, including the release of the 3.6 GHz spectrum. We will continue to do this between now and the end of the year.

I thank the Minister and congratulate him on his continued perseverance with the investment programme. Will the regulator become more active than in the past, with a view to encouraging service providers to ensure the continued provision of the highest quality service?

Despite numerous attempts to encourage it in the past, it has been impossible for many of us to penetrate the wall of bureaucracy that seems to exist. Accordingly, we end up having extra participants in particular networks, leading to a lower quality of service. Can we be assured this will be addressed in this context?

I am actively engaging with ComReg on these issues. I have got a positive response from ComReg on putting a map in place which would show the 2G, 3G, 4G and, in the future, 5G, coverage available. This would fit in with what we are doing with the national broadband plan and allow people to see what services are available.

Such a service is available in Northern Ireland through Ofcom. People living in Armagh city can see if there is one particular mobile provider they should not use if they want 3G services. People will be able to do that in every single community. We are also working with the mobile providers to see where there are particular blackspots, as well as working with local communities to provide locations for antennae to improve the quality of broadband and mobile services.

Public Service Obligation Levy Increase

Timmy Dooley

Question:

21. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment his views on increasing the public service obligation levy on electricity bills; the rate at which it is levied; and if he will make a statement on the matter. [32065/16]

The public service obligation, PSO, levy has been in place since 2001. The PSO levy consists of a set of support schemes designed to facilitate the national electricity policy objectives for renewables, indigenous fuels and security of supply. The PSO has supported the connection of over 2,000 MW of renewable energy to the electricity grid. It will continue to support the development of renewable energy to ensure we can meet our target of increasing renewable electricity penetration to 40% by 2020.

Recent international studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the European Union.

The calculation of the level of the PSO is a matter for the Commission for Energy Regulation, CER. The total PSO levy for 2016-17 is €392.4 million. This equates to less than €6 per month for domestic consumers and represents an increase of less than €1 per month. The biggest drivers for the proposed levy increase are the lower predicted wholesale market electricity price and increased deployment of renewables.

I am conscious of the impacts of energy costs on industry and households alike. As the wholesale electricity price is falling, this should be passed onto domestic electricity customers and more than outweigh the levy increase. In this regard, I am pleased to see that most electricity suppliers have recently reduced their standard prices.

Customers can also avail of discounts available, either by contacting their supplier directly, or by using the price comparison websites accredited by CER, such as bonkers.ie or switcher.ie, to switch to discounted tariffs. A customer consuming the average amount of electricity could save over €200 per annum by switching suppliers.

My party is deeply concerned at the current high level of retail energy prices. These are footed by the consumer at the end of the day. This is at a time when there has been a significant collapse in wholesale gas prices. The Minister is aware consumers are not seeing the equivalent cuts in their electricity and gas bills from the main retail operators. While he is correct that wholesale gas prices decreased by 29% in 2015, the retail equivalent decrease was just 5%, a mere €50 reduction per annum. Any retail energy bill decreases will be negated by the planned PSO levy increase of over 30% this October.

I agree with the PSO approach and support for the renewable energy sector. I also acknowledge the necessity of getting tariffs in place to encourage the solar sector to become part of that mix of renewables. Does the Minister believe the CER is sufficiently empowered with enforcement and sanctioning powers regarding the wholesale electricity and gas market to ensure consumers are getting a fair price?

The overall impact of the levy on consumer bills depends on what happens with the other components in electricity prices. The wholesale price of electricity makes up 50% of a bill, while the network charges make up 30%. That would be a higher factor than would be the case in most other EU countries, purely because we have a dispersed rural population. Up to 30% of our population is on 97% of the country’s landmass. Due to that, the distribution charges are significantly higher than in other parts of the European Union. The retail margin the companies have is between 10% and 12%.

The advantage with the fall in the wholesale price is retailers will pass on those reductions to consumers. However, because of that, we have to compensate the wind operators for that fall in the wholesale price, which, in turn, leads to an increase in the PSO. This has increased by €10.80 to €70.80 per annum. I encourage people to shop around. If they go to bonkers.ie or switcher.ie, they can save up to €200, which would more than negate the cost of the PSO.

Does the Minister believe the CER is fit for purpose? I am not calling into question its directors or anyone else involved in the agency. Is it adequately resourced and appropriately configured from a legislative point of view in challenging the network operators? If the Minister is suggesting that is where a large percentage of the cost is, then consequent reductions in the wholesale price will not be passed on if a large portion of the cost is a function of the network provision.

I have to smile. Deputy Timmy Dooley is legitimately questioning network charges, while Deputy Eamon Ryan is arguing we should increase the charges with smart metering.

The customers would save money.

I have to be conscious of all the costs. When I make decisions, I need to make them in the interests of consumers. Deputy Eamon Ryan is correct that the intention would be to ensure people reduce their bills rather than increase them. It would also help in reducing consumption through energy efficiency.

Regarding the regulatory capacity of CER, we are looking at an independent review of its operations. There have been changes in its operation. It is working on the iSEM, all-island single electricity market, which will bring about additional challenges. I do not know if legislative changes are required but we are prepared to look at them.

Alternative Energy Projects

Mick Wallace

Question:

22. Deputy Mick Wallace asked the Minister for Communications, Climate Action and Environment his views on the continued operation of coal-fired and turf-fired power plants; his further views on their effects on the environment and on Ireland's capability to meet EU climate change mitigation targets; and if he will make a statement on the matter. [31965/16]

Burning coal is one of the most irresponsible and damaging forms of energy production in the world. Electricity generated from burning peat releases at least twice as much greenhouse gases as coal. That said, the ESB’s coal-fired power station at Moneypoint is Ireland’s largest single source of carbon dioxide emissions. If we are to meet our binding climate change mitigation targets - I am referring to the 2030 ones, as we will fall well short of the 2020 ones by 12 million tonnes of CO2 - we must cease destroying the environment with these immensely damaging power generation methods and move wholeheartedly into wind, solar and tidal energy. What are the Minister’s plans for these areas?

The extent of the challenge to reduce greenhouse gas emissions, in line with our EU and international commitments, is well understood by the Government. This is reflected in the national policy position on climate action and low carbon development, published in April 2014, and now underpinned by the Climate Action and Low Carbon Development Act 2015, enacted in December 2015. The national policy position provides a high-level policy direction for the adoption and implementation by the Government of plans to enable the State to move to a low-carbon economy by 2050.

Statutory authority for the plans is set out in the Act.

The national policy position establishes a long-term objective to pursue substantial decarbonisation of the energy, transport and built environment sectors, as well as pursuing carbon neutrality in the agriculture and land sector. Transition to low carbon electricity generation will be key to successfully meeting this objective. Work is ongoing in this context in my Department, with the development of sectoral mitigation measures for the electricity generation sector for inclusion in the first statutory national mitigation plan. The first iteration of this plan will place particular focus on tracking implementation of measures already under way, putting in place the necessary measures to address the challenge to 2020 and also on planning ahead to ensure that beyond this appropriate policies and measures are in place.

A Programme for a Partnership Government sets out the commitment to establish a national dialogue on climate change. There is also a specific commitment that the national dialogue on climate change will identify the most suitable replacement low carbon power generation technology in anticipation of Moneypoint, the only coal burning plant in Ireland, coming to the end of its operating life in its current configuration. In this regard, my Department is reviewing existing analysis and studies carried out on Moneypoint in preparation for an initial discussion within the framework of the national dialogue on climate change, which will examine a range of issues, including technology options, security of supply, competitiveness and sustainability. My Department is currently assessing how best to optimise the processes that will underpin the national dialogue, including scale and format.

The White Paper on energy policy sets out a vision to decarbonise the energy sector in Ireland in the coming decades which will ultimately involve moving away from higher emission fuel types to lower emissions fuels or zero carbon, renewable energy technologies.

Ireland more than most countries in Europe appears to be always putting things on the long finger and deciding to do things tomorrow or another time. We do not even meet our EU targets. The recent decision to delay the implementation of the EU air pollution limits for Moneypoint is illustrative of the level of willingness to tackle these issues. I am sure the Minister is aware of the recent court decision on Edenderry and the likelihood that Bord na Móna's planning permission will be overturned because An Bord Pleanála did not take on board the fact that 1.2 million tonnes per annum of peat was being burned at that plant, which information should have been included in the environmental assessment. I understand there are approximately 250 jobs at stake. Bord na Móna made over €50 million in 2014 and €33 million in 2015. As such, it has money to invest in renewable energy. Has the installation of solar panels in the bogs been considered? Has a cost benefit analysis been done on the possibility of moving in that direction? There is much talk about plans but we are not doing a whole lot yet and so we are missing our targets.

Theory is one thing, practice is another. To put things in perspective, there are 1,443 jobs in the midlands associated with Bord na Móna and the three peat-fired power stations in Lanesboro, Shannonbridge and Edenderry. The Edenderry plant is the first to come before the planning process. There are many families who are reliant on employment in the three plants involved. The maintenance of solar panels would involve only a handful of those people. What then are we to do with the remainder of the people? Do we throw them on the scrap heap? Are we to declare the midlands a no-go area in terms of employment? We are currently working on a bio-energy plan that will result in the conversion of the three plants to renewable sources of fuel, which will be biomass fuel.

That is unsustainable.

This will allow for the maintenance of existing job levels in the region and create a cash crop for local farmers. We are trying to sustain employment. There is no point talking about closing plants until such time as we have in place an alternative. The reaction thus far to proposals put forward by environmental groups has been negative because people tend to forget that we are talking about human beings, families and lives. We need to take a balanced approach to this issue. As Minister, I will take a responsible approach to it. I will work to decarbonise our energy system but I will do so in a responsible manner and not in a way that results in 1,443 families being thrown on the scrap heap.

Nobody is asking the Minister to throw families on the scrap heap. In regard to his comment that what we are talking about is people's lives, according to a report by the European Environmental Bureau, alongside others, the delay in dealing with the problems of air pollution at Moneypoint is having a direct impact on the health of asthmatic children and results in scores of premature deaths. If the Minister believes that the only employment this Government can provide in the midlands is in the area of peat burning then we need a change of Government. There are many other ways to create jobs. When will this Government start investing in indigenous industry? I was approached recently by a number of young people who were trying to start up a business in Ireland. There is little support provided for start-up business in this country, except in the case of multinationals and so on. Young people are not being helped to start businesses. I do not need a lecture from the Minister on energy. His argument is that as long as there are jobs involved we are not going to deal with the environmental impact of this industry. None of us wants to see people unemployed. For the life of me I do not understand the attitude to employment in Ireland. We are totally dependent on foreign direct investment, the companies involved in which appear to locate wherever they want. We would probably not be able to get them to locate in the midlands. When will this Government start investing in young people trying to start up businesses in Ireland?

As I said earlier, I am working with Bord na Móna to put in place a bio-energy plan that will create alternative employment.

Biomass is unsustainable.

Let me finish. I am working with Bord na Móna to put an alterative system of employment in place in the midlands. I have already made decisions in that regard. We will be announcing a consultation document on the renewable heat incentive scheme before the end of this year, which will create demand for bio-energy crops in this country and will build up the capacity needed to convert these peat-fired stations from peat to biomass. The installation of solar panels across the midlands will not create jobs. We need to put in place a sustainable plan that benefits the local communities involved. It needs to be accepted that this is about communities and families. We need to come forward with sustainable solutions rather than suggestions to close three peat-fired power stations.

Nobody is suggesting that. That is unfair.

In regard to the Deputy's suggestion, I invite him to visit the midlands, including Deputy Troy's constituency and my constituency, to talk to the people and hear what they have to say about it.

Okay. There was €90 million spent on a biomass plant in Mayo. It has been abandoned.

It has not been abandoned.

(Interruptions).

There are opportunities not only in Mayo but across every other county in Ireland. As Minister, I am prepared to support the development of the renewable energy sector, on which I will not be lectured by Deputy Wallace.

I am only trying to make a couple of points to the Minister.

Written Answers are published on the Oireachtas website.
Sitting suspended at 5.30 p.m. and resumed at 6 p.m.
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