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Thursday, 31 Jan 2013

Written Answers Nos. 1 - 9

Renewable Energy Generation Issues

Questions (7)

Caoimhghín Ó Caoláin

Question:

7. Deputy Caoimhghín Ó Caoláin asked the Minister for Communications, Energy and Natural Resources the way in which small area renewable energy projects can feed their electricity into the main electricity grid; and if he will make a statement on the matter. [4690/13]

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Written answers

Ireland’s electricity system is made up of larger electrical lines (the transmission grid) and smaller electrical lines (the distribution grid). Small area renewable energy projects feed into the distribution network. The Distribution System Operator (DSO) and owner in Ireland is ESB Networks. ESB Networks has a webpage which explains to the public how to connect a microgenerator, which is the main type of small area renewable energy project. This page includes a connection guide and outlines the steps involved. It also contains a series of “Frequently Asked Questions” for those wishing to connect. The page also contains a document that sets out the specific Irish protection settings appropriate to the ESB Network, known as EN 50438.

There is no charge to connect a micro-generator to the ESB network provided it complies with EN50438. The micro-generator must in addition conform to the conditions governing the connection and operation of micro-generation contained on the ESB webpage. Generators with an installed capacity of 1MW or less are deemed to be automatically authorised and licensed by the Commission for Energy Regulation under the terms of S.I. 383 and S.I. 384 of 2008 and are subject to the conditions in those orders. This system was introduced in order to promote microgeneration. The Department of Environment introduced two statutory instruments that contain planning exemptions for renewable technologies that meet certain criteria. These were introduced to facilitate microgeneration and are contained in S.I. 83 of 2007 and S.I. 235 of 2008.

When microgenerators that connect to the distribution system wish to export electricity, they need to install an import/export meter. The ESB websites indicate that where a customer requires import/export metering, they can contact ESB for a quotation for this. The Commission for Energy Regulation previously wrote to all electricity suppliers in Ireland inviting them to introduce microgeneration tariffs for customers exporting to the grid using microgenerators. To date, the only company to have introduced such a scheme is Electric Ireland (formerly ESB Customer Supply), which offers a tariff of 9 cent per kilowatt hour for domestic customers under specified conditions.

In addition, for small area renewable generation projects that can fulfil certain terms and conditions (e.g. have planning permission, have a grid connection and can secure a power purchase agreement (PPA)), the Department of Communications, Energy and Natural Resources operates the REFIT schemes, which are funded from the Public Service Obligation. Small hydro and biomass projects are included in these schemes.

Energy Resources

Questions (8)

Kevin Humphreys

Question:

8. Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the amount of oil and gas respectively extracted from Ireland and our territorial waters in 2012; the areas from which that extraction occurred; the estimated value of those resources; and if he will make a statement on the matter. [4603/13]

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Written answers

Ireland has three producing gas fields. They are the Kinsale, Ballycotton and Seven Heads gas fields, which are located in the Celtic Sea approximately 50km off the Cork coast. Ireland does not have any oil producing fields. In the year to 30 September 2012 total production from all three fields amounted to just under 7.8 billion cubic feet of gas. Approximately, 6.6 billion cubic feet was produced from the Kinsale and Ballycotton gas fields, and just under 1.2 billion cubic feet from the Seven Heads field.

As royalties at a rate of 12.5% are payable in respect of production from both the Kinsale and Ballycotton Fields, my Department receives data on the value of the gas produced from these fields. Based on the data provided, the value of the gas produced from the Kinsale and Ballycotton fields in the year to end September 2012 was €48 million. The Seven Heads gas field came into production after the fiscal terms had been revised and accordingly, royalties do not apply. As a result, while my Department receives data on the volume of gas produced, it does not receive data on the value of that gas.

The only other commercial discovery of oil or gas in the Irish offshore is the Corrib gas field, which is estimated will commence production towards the end of next year. The three gas fields in Kinsale area are nearing depletion and currently supply approximately 5% of Ireland’s gas requirements. It is estimated that the Corrib gas field when in peak production could supply up to 60% of Ireland’s gas requirements.

Broadband Services Provision

Questions (9, 25, 38, 120)

Éamon Ó Cuív

Question:

9. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources the way he will meet the challenge to persuade the remaining 20% of households who are not connected to the Internet to do so; and if he will make a statement on the matter. [4757/13]

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Dara Calleary

Question:

25. Deputy Dara Calleary asked the Minister for Communications, Energy and Natural Resources the contribution he is making to expanding the digital economy here; and if he will make a statement on the matter. [4737/13]

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Seamus Kirk

Question:

38. Deputy Seamus Kirk asked the Minister for Communications, Energy and Natural Resources his views on whether society here is digitally complacent; and if he will make a statement on the matter. [4750/13]

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John Deasy

Question:

120. Deputy John Deasy asked the Minister for Communications, Energy and Natural Resources his plans to encourage greater take up of broadband in view of the estimated 426,096 households here that have no internet connection, according to the 2011 census. [5014/13]

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Written answers

I propose to take Questions Nos. 9, 25, 38 and 120 together.

The digital economy is important to Ireland. Research by Boston Consulting Group cited in the recent UPC report on Ireland’s Digital Future, estimates it will grow from a current rate of about 3% to 6% by 2016. Research currently underway in the context of the National Digital Strategy will look further at this value and ways it might be enhanced. Specific examples of the importance and potential of the digital economy can also be cited. As Deputies are aware there is substantial employment in Ireland in the ICT and digital sectors arising from the presence of world leading companies in these areas based in Ireland. In addition, smaller indigenous companies are also making an important contribution. For example, the Digital Hub in Dublin currently caters for 66 digital enterprises, which between them employ some 800 people. More than three-quarters (78%) of these companies expanded their business operations last year, with 44% hiring additional staff. Two-thirds are planning to expand their workforce this year. In addition the National Digital Research Centre (NDRC) has helped to create 155 full-time jobs and 66 part-time jobs by the end of 2012 as a direct result of the projects it has supported.

Considerable progress has been made in recent years in both the coverage and speeds of national broadband infrastructure, with a multiplicity of commercial operators providing services over a diverse range of technology platforms. The Government has also undertaken a number of initiatives to bring broadband to those parts of the country where commercial operators have been unable to offer services on a commercial basis. The combination of private investment and State interventions means that Ireland has met the EU Commission’s Digital Agenda for Europe target of having a basic broadband service available to all areas by 2013. The Government’s National Broadband Plan recognises that the key imperative now is to ensure high speed broadband availability to all. The Plan commits to high speed broadband availability across the country by ensuring that high speed services of at least 30Mbps are available to all of our citizens and businesses, well in advance of the EU’s target date of 2020.

Encouraging citizens to connect to the Internet is a separate but related challenge, and a number of public and private sector measures are already underway in this area. The most recent Central Statistics Office (CSO) statistics – published in December last - show that 19% of households do not have an Internet connection. That is not to say they cannot get an Internet connection. CSO statistics indicate that not having an Internet connection is primarily a matter of choice by those households – with respondents in those households mostly indicating they do not want or need access to the Internet. The issue therefore is substantially one of demand which underlines the importance of awareness raising.

The National Broadband Plan commits to the publication of a National Digital Strategy (NDS) aimed at stimulating demand for broadband services and connectivity. The NDS will focus on the benefits of digital engagement and will build on existing measures to increase awareness amongst citizens, households and business. As part of the strategy, I recently appointed David Puttnam as Ireland’s National Digital Champion. An important element of engaging citizens is the development of skills. The “BenefIT” schemes operated by my Department have worked in partnership with third sector and not-for-profit organisations and has provided basic skills training for over 70,000 people at over 700 locations nationwide.

My Department is also working in partnership with the Department of Education and Skills to roll out high speed broadband connectivity to all second level schools. This is already facilitating new possibilities for students and could potentially help to stimulate take up in households.

The commercial sector also has a strong role to play in stimulating demand for Internet services. The explosion in the use of smart phones and tablet devices, increased availability of applications such as video-on-demand, and initiatives by Internet services providers to make technology more accessible to targeted segments of society, will continue to impact on the level of take up. As part of the National Digital Strategy, my Department will work closely with the commercial sector to build on these initiatives, with a view to ensuring that citizens, business and communities realise more fully the potential of a digitally enabled society. I do not believe that society here is digitally complacent. The evidence shows that digital engagement continues to grow. I am, however, very conscious of the further potential and the National Digital Strategy will be looking at ways to add impetus in terms of engagement.

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