Written Answers Nos 1-116
95. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources the way he can help reduce electricity costs for the small and medium sized enterprise sector; and if he will make a statement on the matter. [20229/13]
View answer109. Deputy Brendan Smith asked the Minister for Communications, Energy and Natural Resources the way he can help reduce electricity costs for business; and if he will make a statement on the matter. [20238/13]
View answerI propose to take Question Nos. 95 and 109 together.
Responsibility for the regulation of the retail electricity market is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. Since 4 April 2011 prices in the electricity retail market have been fully deregulated. Business customers can therefore avail of competitive offerings from electricity suppliers. Prices are set by electricity suppliers and are commercial and operational matters for them. I have no statutory function in the setting of electricity prices.
Electricity and gas costs in Ireland are influenced by various drivers, including global gas and oil prices, the costs of capital, exchange rate fluctuations, the small size of the Irish market, geographical location and low population density. Global gas and oil prices are by far the most significant factor in the case of Ireland. Prices have risen sharply since the start of 2011 driven by events in the Middle East, North Africa and Japan and demand from China and India. Ireland is at the mercy of international fossil fuel prices which dictate the retail price of electricity.
At a national level, the competitive energy market in place helps put downward pressure on prices. In addition, we must focus on all possible additional actions to mitigate costs for business and domestic customers, including rigorous regulatory scrutiny of the network costs component of retail prices.
I am committed to working with enterprise and with the energy sector to ensure that the costs of energy are as competitive as possible. In this context, promotion of energy efficiency measures is an area within our control where action can be taken to reduce energy costs.
Energy efficiency represents an opportunity for businesses to reduce their energy costs and improve their competitiveness. There are energy efficiency measures in place for SMEs. The Energy Efficiency Fund, which I announced in February, will assist energy efficiency projects in the public and commercial sectors, including SMEs. Another support is the SME programme administered by the Sustainable Energy Authority of Ireland (SEAI), under the Better Energy in Business programme. It helps 2,000 businesses improve their energy efficiency and competitiveness.
Promotion of indigenous sustainable sources of energy will help offset the impact of volatile fossil fuel prices. The Government has a target of 40% of electricity being generated from renewable sources envisaged by 2020. Good progress has been made in meeting this target and its realisation will introduce more certainty in the energy fuel mix as well as boosting security of supply.
The latest analysis of Eurostat data on electricity and gas prices is presented in SEAI’s published report on electricity and gas prices in the period January to June 2012 and publicly available. The price statistics are presented for different business consumers, differentiated by consumption level.
The report shows that VAT exclusive electricity prices increased for small business by 3.1%, and for medium business by 1.8% over the previous six months. In contrast, the very smallest business users saw a price decrease of 6.7%. Prices for the three categories of business consumers range from 4th to 9th most expensive in the EU and these rankings have not changed significantly since the previous six months. The effects of the price drivers outlined earlier in this response tend to place Irish electricity and gas prices towards the more expensive position in the EU rankings.
96. Deputy Sean Fleming asked the Minister for Communications, Energy and Natural Resources the key points of his recent address at a seminar on media pluralism; and if he will make a statement on the matter. [20219/13]
View answerThe event to which the Deputy refers was organised by the Institute for International and European Affairs and was held on the 22nd of March. It was titled ‘Media Pluralism and Freedom in a Connected Europe’, and provided an opportunity to discuss some important trends that are emerging across Europe in relation to media. Other speakers included Commissioner Neelie Kroes, who is Vice-President of the European Commission and Commissioner for the Digital Agenda and Lord David Puttnam, our Digital Ambassador. Professor Herta Däubler-Gmelin, who was one of the members of EU High Level Group on Media Freedom and Pluralism, and a former German Minister for Justice was also present.
My address focused on the central role of media in society, and particularly around the deeper structural trends emerging from the impact of technological change and the consequent shifts in the economics of media across Europe, and indeed the world. In short, this has involved the rise of a large and diverse online media, a trend which has already posed a profound challenge to print media, a process which is likely to progressively extend into television and audio-visual media over the coming years.
Online media has some very positive aspects and is genuinely important in terms of extending media plurality and as a commercial development. However, it may also fracture and disaggregate audiences and may even ensure that the scale and degree of editorial competence that traditionally existed in newspapers cannot be easily replicated. Conversely, it may well facilitate the rise of multi-national converged media operators, something which may prove a challenge in terms of assuring media plurality in years to come.
The event was an extremely interesting and worthwhile one, and raised a great many issues that will undoubtedly be the subject of discussions in years to come. If the Deputy is looking for further information, the text of my address in on my Department’s website, and I gather that videos of all the presentations are available on the IIEA’s website.
97. Deputy Barry Cowen asked the Minister for Communications, Energy and Natural Resources his plans for a post code system; and if he will make a statement on the matter. [20214/13]
View answerIreland is the only country in the EU and OECD that does not have a national postcode. I wish to reiterate the strong commitment of the Government to introducing a national postcode system.
A national postcode system is in my view a vital part of the national infrastructure. Apart from providing efficiencies for postal delivery it will significantly impact deliveries of public and private services.
The procurement process for a national postcode system has proven to be more complex and protracted than originally envisaged. As the Deputy will appreciate it is crucial that the postcode system to be put in place delivers the optimal level of service whilst providing full value for money for the tax payer.
Since the procurement process commenced in 2011 intensive work has taken place on what is an extremely complex national project with many different inter-dependent aspects to it. Consequently the procurement process is still ongoing. It is expected that the final tender will be issued to all qualified bidders in mid-May.
The proposals in response to that tender will, in turn, be evaluated, by the postcode evaluation team, a preferred option will be chosen and a recommendation will be made to Government.
The final decision to proceed with implementation of a national postcode will be one for Government and will be based on appropriate financial, technical and operational considerations. I cannot give a precise date on when this decision will be made but I intend that it will be no later than the third quarter of this year.
98. Deputy Seamus Kirk asked the Minister for Communications, Energy and Natural Resources the progress made to date with the national broadband plan launched in 2012; and if he will make a statement on the matter. [20222/13]
View answerThe Government’s National Broadband Plan, which I published in August last, aims to radically change the broadband landscape in Ireland 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, and that significantly higher speeds are available to as many homes and businesses as possible.
During the preparation of the National Broadband Plan, the commercial market operators indicated that they expect to provide 70Mbps to 100Mbps services to 50% of the population by 2015. I welcome the progress by the commercial sector since the publication of the Plan and note that investments in high speed services are progressing apace particularly in urban and semi-urban areas.
The Government is also committed in the Plan to investing in areas where high speed services are not commercially viable and will not be provided by the market. In an important milestone towards delivery of this commitment in the Plan, my Department will appoint, in the next few days, a team of experts to assist it in the design, planning and procurement of the State-led investment. Intensive technical, financial and legal preparations including stakeholder engagement will be ongoing throughout 2013 with a view to the launch of a procurement process in 2014.
Progress is also being made on the additional actions in the Plan concerning demand stimulation, spectrum policy, the removal of barriers to infrastructure rollout and maximising the use of State assets. Implementation of the Plan is being overseen by a High Level Group, which is chaired by my Department and comprises representatives from Department of Environment, Community and Local Government, Department of Transport, Tourism and Sport, OPW, NewERA, ComReg and Forfás.
99. Deputy Joan Collins asked the Minister for Communications, Energy and Natural Resources with regards to the wind and wave energy projects, the tax and licensing terms of same; his views on whether the public adequately benefits from these natural resources. [20203/13]
View answerThe Commission for Energy Regulation is responsible for issuing licences to construct generation capacity and to generate electricity.
Ireland primarily supports the development of renewable energy in order that we can meet our challenging targets under the Renewable Energy Directive. To achieve the 16% target we will have to ensure that renewable energy contributes 40% to our electricity consumption, 12% to our heating consumption and 10% of our transport.
To assist us meeting the electricity targets, the primary supports put in place are schemes of feed-in tariffs. Additionally, the qualifying period for tax relief for corporate investment in certain renewable energy projects was extended from 31 December 2011 to 31 December 2014 in Budget 2012.
The purpose of the schemes and tax relief is to encourage investment in renewable energy projects and to facilitate the growth of electricity generation capacity using these sources.
In terms of benefits, a central objective of the Directive is to ensure that the deployment of renewable energy contributes to environmental and climate change objectives.
Increased renewable energy also improves security of supply and also has the benefit of displacing the imports of fossil fuel. In 2011, it is estimated that €300 million in fossil fuel imports and 3.6 million tonnes of CO2 emissions were avoided – equivalent to the annual energy needs of almost 350,000 homes. The bulk of the €300 million was due to the displacement of gas by electricity generation from wind.
In terms of the cost to the public, two major studies have been published on the impact of increased wind generation on the Single Electricity Market in Ireland. Both studies found that the market is capable of operating successfully with increasing amounts of wind and that the cost to consumers in PSO terms tends to be cancelled out by the cost savings in the wholesale market.
100. Deputy Derek Keating asked the Minister for Communications, Energy and Natural Resources if he will clarify the locations for wind turbines to be erected in Dublin mid-West such as Newcastle, Rathcoole and Athgoe; and if he will make a statement on the matter. [19952/13]
View answerPlans to locate wind turbines in specific locations is in the first instance a matter for developers in consultation with the relevant planning authority, having due regard to the Development Plan for the area. Any such proposed project would be subject to the Planning Acts, including the requirements for public consultation. Additionally, proposed projects would require appropriate consideration and approval by the Commission for Energy Regulation and appropriate provision for connection to the transmission system by Eirgrid. I am not aware of any plans to erect wind turbines in locations in Dublin mid-West such as Newcastle, Rathcoole and Athgoe.
More generally, a technical review of the Wind Energy Guidelines is being overseen by officials from the Department of Environment, Community and Local Government, my Department and the Sustainable Energy Authority of Ireland. This review will examine the manner in which the guidelines address key issues of community concern such as noise (including separation distance) and shadow flicker. The review will be completed later this year.
BRIEFING
Wind and EU targets
The Government has set a target of 40% electricity consumption from renewable sources by 2020. In the last 5 years in particular, Ireland has made huge strides in accelerating renewable generation. In the 2001 European RES-E Directive, Ireland was set a target of moving from 3.6% RES-E to 13.2% RES-E by 2010. Ireland achieved 14.8% RES-E in 2010 and exceeded the EU target of 13.2% in 2010.
Directive 2009/28/EC on the promotion of the use of energy from renewable sources was published in June 2009. The Directive aims to ensure that by 2020, 20% of all energy consumed in the EU is from renewable sources covering heat, electricity and transport.
The target addressed to Ireland is 16% of all energy consumed to be sourced from renewable energy by 2020. The electricity market is approximately 33% of the energy target. Ireland’s national target for 2020 has been set as 40% of electricity must come from renewable sources (RES-E). Also, this converts to 10% of energy in the transport and 12% of energy in the heat sector must come from renewable sources.
Electricity
The electricity market is the most mature of the national support programmes. Support commenced in the mid-1990s based on competitive tendering under the Alternative Energy Requirement (AER) programme. The more successful feed in tariff support mechanism (REFIT) replaced AER from September 2007.
The primary support mechanism for renewable electricity is REFIT (Renewable Energy Feed in Tariff), which is designed to provide certainty to renewable electricity generators by providing them with a minimum floor price for each unit of electricity exported to the grid over a 15 year period. This certainty afforded by a guaranteed minimum price gives them sufficient certainty to be able to get loans to finance the renewable developments. REFIT 2, launched last year, is designed around interacting with the market price.
The increasing contribution from renewable energy technologies to the electricity market are summarised in the following table energy
|
‘04 |
‘05 |
‘06 |
‘07 |
‘08 |
‘09 |
‘10 |
‘11 |
|
5.2% |
6.8% |
8.6% |
9.5% |
11.9% |
14.1% |
14.8% |
17.6% |
Technologies employed
There are 2000 megawatts (MW), approx., of installed generating plant harnessing renewable energy technologies. The dominant technology developed in recent times is onshore wind power ca 1696 MW with a lesser amount of biomass, mainly landfill gas. Hydropower contributes approximately 238 MW of installed capacity. On an electricity system of the order of 6000 MWs of installed capacity, wind now represents approximately 30% of the total installed capacity.
It was estimated a total of 1650 MW of installed renewable capacity was required to achieve the 15% renewable electricity target. There were sufficient projects with both planning permission and a connection offer to deliver this target with onshore wind remaining dominant. The latest figures from EirGrid show that there is a further 1,582 MW with signed connection agreements or in the final stages of agreeing one.
Microgeneration
Should a microgeneration scheme be introduced, if this to be funded from the PSO levy, increased electricity costs would have to be borne by all customers to fund it. This Department and SEAI are finalising analysis, which will be completed shortly, on the most cost effective options which could be considered for supporting the microgeneration sector, having regard to the costs and benefits for all energy consumers.
Future capacity
The recent Commission for Energy Regulation (CER) decision on the ‘Gate 3’ process provides for connection offers for 3900 MWs of additional renewable electricity capacity in the short term. Connection offers for Gate 3 were due to issue between December 2009 and Q3, 2011 and have all been issued. Major infrastructure developments are required to deliver this. EirGrid (the transmission system operator) has developed a plan for these necessary infrastructure developments (see: www.eirgrid.com/media/Grid%2025.pdf ). As a consequence, these projects will be building out over the decade
101. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which electricity costs here in both the domestic and the industrial sector remain competitive or in line with the costs in other EU jurisdictions; the extent to which all energy costs here compare favourably with those in other EU countries; if there are particular issues of concern in this regard which might require attention; and if he will make a statement on the matter. [20164/13]
View answer377. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the degree to which energy costs to the industrial and domestic sectors here remains competitive with such costs in other jurisdictions throughout Europe; and if he will make a statement on the matter. [20410/13]
View answerI propose to take Question Nos. 101 and 377 together.
Responsibility for the regulation of the retail electricity and gas markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. Prices in the electricity retail market are fully deregulated and similarly for gas, except in the case of BGE tariffs for domestic consumers. Customers can therefore avail of competitive offerings from electricity and gas suppliers. Prices are set by suppliers and are commercial and operational matters for them. I have no statutory function in the setting of electricity or gas prices.
Electricity and gas costs in Ireland are influenced by various drivers, including global gas and oil prices, the costs of capital, exchange rate fluctuations, the small size of the Irish market, geographical location and low population density. Global gas and oil prices are by far the most significant factor in the case of Ireland. Prices have risen sharply since the start of 2011 driven by events in the Middle East, North Africa and Japan and demand from China and India. Ireland is at the mercy of international fossil fuel prices which dictate the retail price of electricity.
At a national level, the competitive energy market in place helps put downward pressure on prices. In addition, we must focus on all possible additional actions to mitigate costs for business and domestic customers, including rigorous regulatory scrutiny of the network costs component of retail prices.
I am committed to working with enterprise and with the energy sector to ensure that the costs of energy are as competitive as possible. In this context, promotion of energy efficiency measures is an area within our control where action can be taken to reduce energy costs.
Energy efficiency represents a significant opportunity for both businesses and households to reduce their energy costs. There are energy efficiency measures in place to assist both business and domestic energy consumers, with significant funding allocated to them. The Energy Efficiency Fund, which I announced in February and which will commence funding specific measures in the near future, will assist energy efficiency projects in the public and commercial sectors.
Promotion of indigenous sustainable sources of energy will help offset the impact of volatile fossil fuel prices. The Government has a target of 40% of electricity being generated from renewable sources envisaged by 2020. Good progress has been made in meeting this target and its realisation will introduce more certainty in the energy fuel mix as well as boosting security of supply.
The latest analysis of Eurostat data on electricity and gas prices is presented in the most recent report of the Sustainable Energy Authority of Ireland on electricity and gas prices report, covering the period January to June 2012. The price statistics are presented in the usual format, that is for a number of different business and domestic consumers differentiated by consumption level, as set out by Eurostat. This report is publicly available.
Most household electricity consumers saw increases of between 1.9% and 2.8% in price for the first half of 2012, compared to the previous 6 months, with Ireland’s position in the EU rankings varying from 5th most expensive for those consuming small amounts to 9th for the larger consumers. In broad terms, for 89% of the residential electricity market, there was little change in the EU rankings from the previous six month period, except for the very largest household consumers comprising 9% of the market whose position dis-improved three places to 9th most expensive.
In the first half of 2012 most business users saw price increases ranging from just under 2% to 8.4%. Only very small users saw a price decrease of 6.7%. This meant that in the various business user categories, depending on the level of consumption, prices ranged from around 99% to 115 % of the EU average.
103. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the situation regarding to the national digital strategy; and if he will make a statement on the matter. [20236/13]
View answerThe National Digital Strategy will be published in the coming weeks and will set out a strong policy framework for greater adoption and use of digital technologies. The overarching objectives will be to increase digital skills and consequent employment opportunities, assist in overall economic growth and job creation and facilitate the objective of delivering a wide range of public services in a more cost-effective way. The Digital Strategy will be implemented as an iterative process. Phase 1 will focus on the key areas of enterprise, e-Learning, citizen adoption and fostering an indigenous digital industry.
On more specific terms, the focus of the Strategy will be: To support traditional enterprises to realise the full opportunities of online transactions and trade; To achieve the full benefits of digital in the classroom, through the completion of the rollout of 100Mbps to all second level schools in Ireland (by end 2013 we will be two thirds the way through that programme); To provide continued support for Ireland’s digital enterprises and entrepreneurs; and To empower citizens by encouraging and assisting them to achieve more of the benefits of Internet engagement. The Strategy will focus on the key areas of connectivity, capability, content and community and it is my objective that with continued private and public investment in broadband infrastructure combined with increased skills and knowledge and the rapid development of more applications we can create significantly increased levels of digital participation among all sectors of society.
The NDS should be seen as a further element of the Government’s overall approach to fostering increased access to and use of digital services, complementing as it does the existing National Broadband Plan, last year’s e-Government Strategy and the recent National Payments Plan.
The trading on-line element of the Strategy will also complement the disruptive reform initiative in this area which is included in the 2013 Action Plan for Jobs.
To help drive and deliver these ambitious objectives, last December I appointed David Puttnam as our first national Digital Champion. We are lucky to have such a passionate, articulate and influential advocate for the possibilities of digital, particularly in the education sector. Working with the Department, he will be engaging with the various sectors over the coming months, with a view to driving the digital agenda and specifically pursuing some key goals that will be set out in the National Digital Strategy.
104. Deputy Aengus Ó Snodaigh asked the Minister for Communications, Energy and Natural Resources the number of disconnections from electricity and natural gas there have been in the past year; and if he will make a statement on the matter. [20193/13]
View answerResponsibility for the regulation of the electricity market, including disconnections, is a matter for the Commission for Energy Regulation (CER), which is an independent statutory regulator. I have no statutory function in the matter of disconnections of electricity or gas customers regardless of the supply company involved.
The CER provides quarterly and annual updates on the electricity and gas retail markets, including on disconnections, and further information may be found at:
http://www.cer.ie/en/electricity-retail-market-reports-and-publications.aspx
Nevertheless, the number of disconnections is a matter of concern to me as it is for the Government, the CER, voluntary organisations and suppliers. The rise in numbers in recent years has coincided with the economic recession which has caused customer arrears and debt levels to rise.
In line with the CER’s Code of Practice on disconnection, electricity and gas suppliers must facilitate payment options/plans for domestic customers experiencing genuine hardship and, where appropriate, engage with a money advisor acting on behalf of the customer or a recognised charity. This must include offering the customer a prepayment meter. According to CER’s published report on its website on Electricity and Gas Retail Markets, concerning the period to the end of September 2012, over 11,000 Pay as You Go electricity meters have been installed. That report also states that there are approximately 19,500 token meters in operation. In addition, disconnections may not be initiated where a customer has entered into a payment plan with the supplier and is honouring that arrangement.
I welcome the fact that CER is working with energy suppliers to ensure that they take all reasonable steps to assist customers through this difficult period and that disconnections resulting from genuine inability to pay are minimised, and only occur as a very last resort.
Implementation of the measures set out in the Government’s Affordable Energy Strategy, published last November, is pivotal to protecting the interests of vulnerable customers and improving energy affordability.
In addition, the Government will continue to support the delivery of energy efficiency measures to vulnerable households in 2013. The Better Energy Warmer Homes scheme has been allocated Exchequer funding of €18 million for 2013, which is expected to result in upgrades in over 10,000 homes.
105. Deputy Jerry Buttimer asked the Minister for Communications, Energy and Natural Resources if he will report on his visit to New York and Pittsburgh; and if he will make a statement on the matter. [19950/13]
View answerI visited New York, New Jersey and Pittsburgh for four days just prior to St. Patrick’s Day.
In New York I met with Johnson Controls Inc., leaders in the energy efficiency sector; Verdant Power, an energy tidal company who, working with an Irish engineering company, are considering Ireland as their European manufacturing base; and United Technologies Corporation (UTC), a diversified company that provides a broad range of high-technology products and services. UTC’s European research centre in Cork is focused on research in energy and security and involves an investment of $15m leading to the creation of 40 new jobs. I delivered a speech at the Saint Patrick’s Day Foundation dinner which included key messages on the economy and encouraged the attendance of approximately 500 to celebrate ‘The Gathering’ in Ireland. I joined a panel discussion at the Ireland Day in the New York Stock Exchange; attended the American Ireland Fund Young Leaders annual St. Patrick’s Day event; and delivered a speech at the Ireland US Council lunch.
I travelled to New Jersey and met with Bell Labs, one of the world's foremost research centres, responsible for breakthroughs that have shaped the networking and communications industry. Bell Labs employs 120 people in Blanchardstown together with the creation of an academic research consortium involving eight Irish universities and Institutes of Technology.
In Pittsburgh I delivered a speech to more than 1,000 guests at the American Ireland Fund dinner alongside Ambassador Dan Rooney, reiterating the message that Ireland is open for business, highlighting key messages on the economy in terms of recovering our financial sovereignty and the strong performance of Ireland in terms of exports and investment to and from the United States and promoted ‘The Gathering’. At a business leaders’ breakfast meeting, I met with Congressman Tim Murphy, County Executive Rich Fitzgerald, the Pittsburgh City Comptroller Michael Lamb and representatives of a number of companies working in the energy sector. I also attended the Pittsburgh St. Patrick’s Day parade.
106. Deputy Richard Boyd Barrett asked the Minister for Communications, Energy and Natural Resources with regards to the planned Dublin Array project, the licensing terms that will apply if the project goes ahead; and if he will make a statement on the matter. [20200/13]
View answerThe Commission for Energy Regulation is responsible for issuing licences to construct generation capacity and to generate electricity. Development in the foreshore is subject to the Foreshore Acts 1993 to 2005, which require that a lease or licence for development activity must be obtained from the Minister for the Environment, Community and Local Government. I understand that an application by Saorgus Energy Limited for a foreshore lease in respect of an offshore wind farm, known as the Dublin Array project, is under consideration by the Minister for the Environment, Community and Local Government.
107. Deputy John Browne asked the Minister for Communications, Energy and Natural Resources the measures he will take to expand the banking facilities offered by An Post; and if he will make a statement on the matter. [20209/13]
View answerIssues relating to the post office network and An Post’s commercial products are an operational matter for the management and Board of An Post and one in which I have no statutory function.
108. Deputy Micheál Martin asked the Minister for Communications, Energy and Natural Resources his response to the Forfás recommendation that subsidies for peat generated electricity should be discontinued; and if he will make a statement on the matter. [20225/13]
View answerThe Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for peat generation, for certain conventional generation constructed for security of supply purposes and for the development of renewable electricity. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers, including the three peat stations. Peat-fired electricity plants are supported as they contribute to security of supply through the use of indigenous fuels.
The particular PSO scheme for peat generation was approved by the European Commission in 2001 and was designed to enable the accelerated closing down by ESB of the then existing six old peat fired plants and the building of two new more environmentally friendly and efficient plants with a 15-year operational lifetime. The PSO also applied to the peat fired plan in Edenderry which is now owned by Bord na Móna.
The peat PSO for Edenderry expires in 2015 and Bord na Móna is incrementally increasing the co-firing of biomass with peat. The PSO for the two ESB peat stations expires in 2019. REFIT 3, opened last year, aims to support co-firing of biomass at all three peat stations. I have no plans to end the PSO for peat in advance of the dates for their expiry under the European Commission approvals.
110. Deputy Dara Calleary asked the Minister for Communications, Energy and Natural Resources the way he will address the concerns being raised by the proposed expansion of Ireland’s wind energy sector; and if he will make a statement on the matter. [20210/13]
View answerAny proposed projects resulting in the expansion of Ireland’s wind energy sector will be subject to the Planning Acts, including the requirements for public consultation.
In addition, a technical review of the Wind Energy Guidelines is being overseen by officials from the Department of Environment, Community and Local Government, my Department and the Sustainable Energy Authority of Ireland. The review will be completed later this year.
111. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources if he will report on the informal meeting of EU Energy Ministers in Ireland this month; the issues discussed; and if he will make a statement on the matter. [20234/13]
View answerAs the Deputy is aware, Energy Ministers met in Dublin over two days last week to discuss various topics relevant to the way forward for European energy policy.
The deliberations commenced with a joint discussion amongst Energy and Environment Ministers to help identify key priority issues which will need to be addressed to ensure a coherent post 2020 energy and climate policy framework facilitating a transition to a competitive low-carbon economy.
This joint discussion was timely and Ministers recognise the need for greater certainty on targets in mutually supporting the achievement of cost effective and cost efficient climate and energy policies. There is potential for maximising synergies while addressing the possible trade-offs between competitiveness, security of supply and sustainability.
Commissioner Oettinger attended the Informal Meeting. He highlighted how any new framework should take into account current economic difficulties whilst remaining ambitious on the long-term low carbon objective.
The Council of Energy Ministers also discussed the effects of unconventional oil and gas on energy supply, competitiveness and prices. In relation to the work currently underway by the European Commission on unconventional hydrocarbon extraction, the Irish Presidency requested that the Commission would reflect on the debate among Ministers in Dublin, particularly on the global competitiveness and security of supply aspects, and to take those views into consideration in their work on the matter, having regard to legitimate environmental and safety considerations.
The two days of discussions were informed by the goal of full implementation of the internal energy market. Ministers agreed that this is not an end in itself, but rather, it must bring tangible benefits to all energy consumers.
On the issue of the links between smart technology, innovation and energy policy, I concluded that the ultimate objective in rolling out standardised smart meters and smart grids across Europe must be value and benefit driven, with a specific consumer focus. In so doing, we must recognise the energy needs, circumstances and IT capabilities of all categories of consumers. Data protection concerns should also be considered and addressed. The need for public awareness campaigns on the potential advantages was acknowledged and the benefits must be clear to all individual energy customers and management of energy consumption. Product and price analysis must be simple and straightforward.
The financing of energy efficiency measures was also discussed. Realising the energy efficiency potential of buildings is central to the EU's energy efficiency policy. Nearly 40% of final energy is consumed in homes, offices and shops. The challenge that Energy Ministers face is to find the necessary finance to underpin the energy retrofit renovation that is required as part of our 2020 energy and climate goals. This is particularly important given the potential for jobs and growth that a sustained campaign of energy efficiency in buildings would realise.
The integration of variable renewable energy sources, in particular wind and solar energy, was also discussed and the Ministers agreed that the proper development of energy policy must adequately recognise the numerous challenges, including cost considerations, in the incremental transition to a low carbon economy.
I concluded the two day session by stating that in relation to all the energy matters considered by the Ministers, our level of ambition must be underpinned by a rigorous analysis of the costs and benefits associated with the different possible approaches to new and existing policies, especially in exploiting new opportunities. National energy circumstances are also important, as we strive to reduce our dependence on imported fossil fuels.
I will, during the remainder of our Presidency, be facilitating continued discussions at the Energy Working Party on identifying a robust 2030 framework which will facilitate long term European competitiveness and security of supply. Europe must maintain its leadership position in the transition to a low carbon future, particularly with regard to energy efficient and clean technology, products and services.
I should also highlight also that the Council of Ministers agreed that I would write to President Van Rompuy to update him on our deliberations which the Ministers wish to see inputted to the forthcoming Council of Europe meeting in May.
112. Deputy Jonathan O'Brien asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the drilling rigs at Catherline bog, County Limerick; if his attention has been drawn to the purpose of these rigs; and if he will make a statement on the matter. [20189/13]
View answerXstrata Zinc Ireland Ltd. holds prospecting licences under the Minerals Development Acts 1940 to 1999 over an area centred on Caherconlish, County Limerick and including the townland of Caherline referred to by the Deputy. The minerals licensed for exploration in this case are base metals, barytes and zinc. I am informed that the company is currently carrying out an approved programme of drilling in the area, employing five drilling rigs. In carrying out all such activities within the licensed area, it is a strict condition that the licensee must conduct operations so as to avoid damage to the environment and the amenities of the area, to avoid or minimise disturbance of persons resident there and comply with all relevant statutory planning and environmental requirements.
113. Deputy Denis Naughten asked the Minister for Communications, Energy and Natural Resources the steps being taken to support the maintenance of the post office network; and if he will make a statement on the matter. [19956/13]
View answer116. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if he has taken account of the proposals set out in the report on promoting a sustainable future for the post office ##network. [20195/13]
View answerI propose to take Questions Nos. 113 and 116 together.
Operational matters and the role of developing commercial strategies for the post office network are a matter for the management and Board of An Post and one in which I have no statutory function.
As shareholder, however, I have a strong concern in relation to the ongoing commercial position of the Company and I regularly liaise with the Company in this regard.
An Post has many strengths and has the largest retail presence in the country. I have impressed on the Company the need to further exploit its unique position in this regard and have been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins.
I welcome the Joint Oireachtas Committee’s ‘Report on Promoting a Sustainable Future for the Post Office Network’. I have read and considered this report and found it both positive and ambitious.
An Post has made much progress towards diversification with its enhanced arrangement with AIB and its agreement with Aviva for the transfer of Aviva Ireland’s branch offices personal insurance business book to One Direct.
In the context of the public sector transformation agenda I will continue to engage with my colleague the Minister for Public Expenditure and Reform in relation to consideration, as appropriate, of the post office network for transactional elements of the business of Government Departments and Agencies and have stressed to my Government colleagues that the network is ideally configured for over the counter transactions.
Overall, it is Government policy that An Post remains a strong and viable company, in a position to provide a high quality, nationwide postal service and maintain a nationwide customer focused network of post offices.
114. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if he has had any discussions with the Minister for Environment in Stormont regarding the expansion of the area designated for hydraulic fracturing; if this runs contrary to awaiting the findings of the Environmental Protection Agency report; and if he will make a statement on the matter. [20192/13]
View answerNo area of the Irish onshore has been designated for hydraulic fracturing. Accordingly, there can be no question of expanding an area, where no area has been so designated. As I have informed this House previously, the findings of the further EPA research will inform decisions on projects that propose the use of hydraulic fracturing as part of an unconventional gas exploration programme. There can be no decision on any such proposal until after there has been time to consider the EPA research findings. There is no change in this position.
115. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources the action he is taking regarding Ireland’s marine renewable energy development [20232/13]
View answer121. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources his views on whether the closure of an ocean energy research company (details supplied) in County Kildare represents a failure on the part of the State to adequately plan in the long term to realise employment from harnessing domestic natural resources; if he will offer any solutions which may restore funding either from the State or from other sources; and if he will make a statement on the matter. [18359/13]
View answerI propose to take Questions Nos. 115 and 121 together.
Wave and tidal energy is still at the research, development and deployment stage globally and is not yet commercially viable.
Ireland’s 2020 legally binding target under the Renewable Energy Directive has to be met across the transport, heating and electricity sectors by 2020. The target is set at 16% of all energy consumed to be from renewable sources. Ireland has set out that we intend to meet the target through 40% renewable electricity, 10% renewable transport and 12% renewable heating by 2020, which together amounts to 16% of all energy consumed. At the end of 2012, 6.4% of all energy consumed was from renewable sources, hence a significant increase is required in the period to 2020.
Wave and tidal energy has the potential to contribute to our renewable electricity target by 2020, provided the technologies become commercially viable in the period to 2020. Our National Renewable Energy Action Plan (NREAP) includes 75MW of ocean energy contributing to our 2020 target out of an estimated total of 4000MW required to deliver 40% renewable electricity. This is based on the assumption that by 2020 some early pre-commercial wave and tidal devices will be connected and exporting power to the electricity grid.
A range of supports have been deployed since 2009 in support of wave and tidal development. The Ocean Energy Development Unit in the Sustainable Energy Authority of Ireland (SEAI) has been taking forward the development of the sector through administration of a Prototype Development Fund of grants for industry. The purpose of the Prototype Development Fund is to fund research, development and deployment. SEAI has also been progressing the development of a full scale grid connected wave test site off County Mayo, which would complement existing wave testing facilities i.e. the wave tank in Cork and the quarter scale wave testing site in Galway Bay. It should also be noted that the cumulative amount of expenditure on Ocean Energy in the period 2009 – 2013, including the estimated 2013 allocation, is €19.159m.
Given the nature of research, development and deployment activity, especially in non-commercially viable areas such as wave and tidal energy, it is a reality that such activity is a high risk business for companies who engage in it. In this context I am aware of the closure of the company referred to by the Deputy. I understand that SEAI provided Prototype Funding to this company in the past but having engaged in due diligence of the company, and taking account of available resources, were unable to offer any further grant aid.
Other supports for the sector include the development of the Beaufort Laboratory as part of the IMERC facility in Cork, which will see a re-housing of the wave tank facility and will bring together researchers in the area currently based in the Hydraulics and Maritime Research Centre (HMRC) and the Coastal and Marine Research Centre (CMRC), as part of a broader campus approach with the Naval College, UCC and Cork Institute of Technology, aimed at maximising on marine industrial opportunities.
Research in the ocean energy area is ongoing in most universities across the country and ocean energy was recently identified as of 1 of 14 priority research areas by the Department of Jobs, Enterprise and Innovation in their Research Prioritisation Exercise. SEAI has been allocated funding for ocean energy by my Department this year and will be continuing to offer grants under the Prototype Development Fund in 2013 and to progress development of the grid connected wave test site off County Mayo.
