Written Answers Nos. 1-19
10. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources if he is satisfied to leave the development of the best wave energy resource in Europe to the private sector or if will he require the ESB to direct resources to developing the wave energy resource to provide renewable energy and jobs for Irish workers. [40171/14]
View answerThe development of Ireland's abundant offshore renewable energy resource will be an increasingly important element of Ireland's future energy policy. The Offshore Renewable Energy Development Plan sets out a vision of Ireland’s offshore renewable energy resource contributing to economic development and sustainable growth, and generating jobs for our citizens. The Plan highlights the importance of coherent policy, planning and regulation, managed in an integrated and collaborative manner. To coordinate support across Government, the Offshore Renewable Energy Steering Group has been established with relevant Government departments and agencies overseeing the implementation of the plan, focussing on three main areas namely the Environment, Infrastructure and Job Creation. In addition, the Steering Group will hold plenary sessions with external stakeholders annually.
The ocean energy sector is at the pre-commercial stage. A range of policies is required to support developers in bringing their devices from prototype to full scale commercial viability. Exchequer support for ocean research, development and demonstration has been provided to the sector in recent years and is being increased under the OREDP. My Department’s multi-annual ocean energy development budget was increased by €16.8 million, covering the period 2013 to 2016, and brought the total cumulative funding to €26.3 million. This funding will support the development of the test sites in counties Mayo, Galway and Cork, the Integrated Maritime Energy Resource Cluster at Ringaskiddy, and the Prototype Development Fund operated by the Sustainable Energy Authority of Ireland. Options for an additional €30 million capital funding in the years 2016 to 2018 are being discussed cross-departmentally. This funding is expected to facilitate innovative projects, like the ESB led Westwave project, that can meet certain compliance criteria.
Finally, I should highlight that the OREDP further proposes, subject to State Aid clearance from the European Commission and further Government approval, an initial market support scheme for wave and tidal energy from 2016, limited to 30MW, to unlock the economic growth and job creation opportunities offered by ocean energy development.
11. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the position regarding the roll-out of the Eircode postcode system. [40393/14]
View answerSince the contract to deliver the project was signed with Capita in December 2013, considerable progress has been made. The design for the National Postcode System was approved by Government and the brand ‘Eircode’ was launched for the National Postcode System in April 2014. Capita launched the website www.Eircode.ie earlier this year. Over the last number of months, Capita have engaged with a number of private and public stakeholders to brief them on the project and prepare them for the launch of Eircodes next year. Overall the response to the project has been very positive. In order to support dissemination of Eircodes, the databases of large public sector bodies are being Eircode enabled. This work is expected to conclude by December which means that public sector bodies with large customer facing databases will be in a position to immediately use the codes on launch. An extensive public information campaign will commence early next year to inform the public about Eircodes and promote their usage. This will include outreach activities to ensure the public and especially the vulnerable and hard to reach obtain information on Eircodes in a timely manner. Eircodes are expected to be launched in the second quarter of next year when every household and business in the country will receive a letter containing their Eircode.
The necessary protections will operate around the use of Eircodes to ensure that data protection legislation is complied with. Holders of personal data are bound by Data Protection legislation in how they store and use this data, and the introduction of Eircodes will not alter this obligation.
The cost to the Exchequer of the National Postcode System over the 10 year cycle of the contract is expected to be €26m excluding VAT with costs covering design, database upgrades, media and postcode distribution.
12. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if he will provide in tabular form the average cost of energy production per megawatt hour of each source of energy used here; the current supports given to wind energy here; and if he will make a statement on the matter. [40193/14]
View answerEstablishing the average cost of energy production, referred to as the levelised cost, is complex and depends on a number of factors such as capital and operational costs, the fuel used, the cost of carbon, the cost of capital, technology, the project lifetime, efficiency and yield. There are a number of publicly available reports that compare the costs of electricity generation at an aggregate level from the various sources of energy including a 2010 report titled “Low Carbon Generation Options for the All Island Market” which is available on the EirGrid website. More recently, an interim report, prepared for the European Commission, titled "Subsidies and costs of EU energy" was published by the Commission last week. The interim report evaluates the subsidies and levelised costs of various renewable technologies in aggregate across European Member States and highlights the cost effectiveness of onshore wind energy. The primary support mechanism for renewable electricity from a range of renewable sources is through the Renewable Energy Feed-in-Tariff schemes. These REFIT schemes are designed to provide renewable electricity generators with the certainty required to finance their projects. Based around Power Purchase Agreements between generators and electricity suppliers, REFIT schemes assure a minimum price for each unit of electricity exported to the grid over a defined period. Specifically, depending on the size of a wind project the REFIT tariff is either €69.581 or €72.023 per megawatt hour of electricity exported to the grid. The costs associated with the REFIT schemes are payable from the Public Service Obligation fund, which is raised by a levy on all electricity consumers. Analysis underpinning these rates would have been undertaken and submitted with the application to the European Commission for State Aid approval.
Furthermore, tax relief is available on capital investment in wind generation assets under Section 486B of the Tax Consolidation Act and under the Employment and Investment Incentive Scheme. An Accelerated Capital Allowance scheme also allows companies to offset the cost of investment in qualifying renewable energy generation technologies against their tax liabilities in Year 1 rather than over a more prolonged period of years, thus aiding cash flow.
13. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources the position regarding the amount of grant aid paid by the Sustainable Energy Authority of Ireland to Irish wave energy companies by company; the type of wave energy converter proposed in each case; and the technical readiness level of each company before and after the grant aid. [40170/14]
View answerWave and tidal energy technology is still at the Research, Development and Demonstration stage globally. Ireland has a rich ocean resource and has significant potential in this area. Consequently, in order to take forward the Government's ocean energy strategy, an Ocean Energy Development Unit was established in the Sustainable Energy Authority of Ireland in 2009. The Ocean Energy Development Unit has been facilitating the development of the sector through administration of a Prototype Development Fund of grants for industry. SEAI has to date invested or provided grant aid totalling just over €2.6m to ocean wave energy companies from the Fund. Grant commitments have been made to 15 separate companies ranging from just over €13,000 to over €830,000. The following table details the commitments made from the Fund.
Table: Grant Commitments from Prototype Development Fund
|
Company |
Paid from 2009 - 2014 |
Type |
Technology Readiness Level (TRL) Change Pre- Grant to Post -Grant |
|
Wavebob Ltd |
€836,877 |
Point Absorber |
1->5 |
|
Ocean Energy |
€575,198 |
Oscillating Water Column |
1->6 |
|
Sea Power Ltd |
€363,646 |
Attenuator |
1->4 |
|
Jospa Ltd |
€177,539 |
Attenuator |
1->2 |
|
Cyan Technologies Ltd |
€132,594 |
Overtopping |
1->2 |
|
Blue Power Energy |
€109,280 |
Point Absorber |
1->3 |
|
Wave Energy Ireland Ltd |
€90,120 |
Oscillating Water Column |
1->2 |
|
Sea Energies |
€82,250 |
Oscillating Water Column |
0->2 |
|
CETO Wave Energy Ireland Ltd |
€69,718 |
Point Absorber |
4->5 |
|
Benson Engineering Ltd |
€51,257 |
Point Absorber |
1->2 |
|
Limerick Wave Ltd |
€13,410 |
PTO Developer |
1->4 |
|
JJ Campbell |
€40,040 |
Oscillating Water Column |
1->2 |
|
Waveberg Ireland |
€26,412 |
Attenuator |
1->2 |
|
Key Engineering Services |
€25,310 |
Floating Overtopping |
0->1 |
|
Martin Houston & Sons Ltd |
€13,410 |
PTO Developer |
0->1 |
Technology Readiness Level Scale
Applied and strategic research
1. Basic principles observed and reported
2. Technology concept and/or application formulated
3. Analytical and experimental critical function and/or characteristic proof of concept
4. Component and/or partial system validation in a laboratory environment
Technology validation
5. Component and/or partial system validation in a relevant environment
6. System/subsystem model validation in a relevant environment
System validation
7. System prototype demonstration in an operational environment
8. Actual system completed and service qualified through test and demonstration
9. Actual system proven through successful mission operation
14. Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Question No. 40 of 11 March 2014, the progress to date with State-led investment part of the national broadband plan; when he expects the mapping process to be concluded; and if he will make a statement on the matter. [40358/14]
View answerThrough the National Broadband Plan the Government aims to ensure that high speed broadband is available to all citizens and businesses in Ireland, through a combination of commercial investment and a State-led intervention. The commercial telecommunications sector is currently investing approximately €2.5bn in network upgrades and at least 1.6m of the 2.3m addresses in Ireland are expected to have access to commercial high speed broadband services over the next number of years.
Under EU State Aid Guidelines Member States cannot intervene where commercial investors have plans to roll out services. My Department is currently finalising a national map which will identify those areas that require a State intervention. An initial examination has already identified a significant number of areas that will require State intervention.
As part of the mapping process, a stakeholder consultation was launched in June. 32 submissions have been received and non-commercially sensitive versions of these responses were published by my Department earlier today.
I expect to publish the map shortly. Those accessing this map will be able to identify their own house or premises and see whether it is in the proposed intervention footprint. Where a house or premises is not in the proposed intervention area it means it either currently, or will in the near future, have access to commercial high speed broadband services. The map will be subject to change as new information becomes available or commercial investments are announced in the future.
A further public consultation on a detailed intervention strategy will be launched in mid-2015. My Department is also working closely with the European Commission with a view to obtaining State Aid clearance for the programme.
A detailed procurement process will be undertaken in order to select a potential preferred bidder or bidders towards the end of 2015.
This complex and ambitious project is a key priority for Government. It aims to conclusively address current connectivity challenges in Ireland. Our goal is to ensure that quality broadband services are available to all citizens regardless of where they are located.
15. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which comparisons have been made with the standard, quality, availability and speed of broadband in this country with those available in competing European or other jurisdictions worldwide; if the full significance of the need for state-of-the-art quality in these areas is recognised; if any examination has been done with a view to identifying the means whereby such vital elements of our infrastructure may be upgraded as a matter of urgency thereby facilitating economic progress; and if he will make a statement on the matter. [40328/14]
View answerThe provision of broadband services occurs within a fully liberalised market. The commecial telecommunications sector is currently investing approximately €2.5bn in network upgrades and at least 1.6m of the 2.3m addresses in Ireland are expected to have access to commercial high speed broadband services over the next number of years. Mobile service providers are now also rolling out 4G mobile services and upgrading 3G services. The broadband speeds available in Ireland are as capable as the highest marketed speeds available in many comparable economies. Comparisons of broadband statistics concentrate on the headline or average broadband speeds marketed by the largest operators in each country. However these comparisons do not measure access to those high speeds within any country.
Through the National Broadband Plan the Government aims to ensure that high speed broadband is available to all citizens and businesses in Ireland, through a combination of commercial investment and a State-led intervention.
Under EU State Aid Guidelines Member States cannot intervene where commercial investors have plans to roll out services. My Department is currently finalising a national map which will identify those areas that require a State intervention. As part of the mapping process, a stakeholder consultation was launched in June. 32 submissions have been received and non-commercially sensitive versions of these responses were published by my Department earlier today.
I expect to publish the map shortly. Those accessing this map will be able to identify their own house or premises and see whether it is in the proposed intervention footprint. Where a house or premises is not in the proposed intervention area it means it either currently, or will in the near future, have access to commercial high speed broadband services. The map will be subject to change as new information becomes available or commercial investments are announced in the future.
A further public consultation on a detailed intervention strategy will be launched in mid-2015. My Department is also working closely with the European Commission with a view to obtaining State Aid clearance for the programme.
A detailed procurement process will be undertaken in order to select a potential preferred bidder or bidders towards the end of 2015.
This complex and ambitious project is a key priority for Government. It aims to conclusively address current connectivity challenges in Ireland. Our goal is to ensure that quality broadband services are available to all citizens regardless of where they are located.
16. Deputy Lucinda Creighton asked the Minister for Communications, Energy and Natural Resources his views on the dramatic restructuring of Royal Mail that has occurred since 2008; if he has considered a similar plan for An Post; if he will support a similar employee shareholder scheme; his plans to commission a report into An Post similar to the Hooper report; and if he will make a statement on the matter. [40362/14]
View answerWhile I have overall responsibility for the postal sector, the Communications Regulation (Postal Services) Act 2011 charges the Commission for Communications Regulation (ComReg), as the postal regulator, with the promotion of the development of the postal sector and particularly the availability of the universal postal service, the promotion of the interests of users and the facilitation of the development of the competition in the postal sector. Under this Act, An Post is statutorily required, as the designated universal service provider, to provide a universal postal service. The essential element of this obligation is the collection and delivery of mail to every address in the State on every working day.
The Royal Mail is the designated universal postal service provider for the UK. Two reviews of the Royal Mail’s universal postal service in the digital age were carried out by Richard Hooper in 2008 and 2010. Subsequently, Royal Mail plc was privatised in October 2013.
There are no plans to commission a similar report into the operation of An Post and there is no consideration being given to introducing a similar restructuring of the company or to put in place an employee shareholding scheme.
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 focussed network of post offices in the community.
That said, the Deputy should be aware that operational matters and the role of developing commercial strategies for the company are matter for the Board and management of An Post and not one in which I have a statutory function. As a shareholder, however, I have a strong interest in relation to the ongoing commercial position of the company and I regularly liaise with the company in this regard.
An Post has undertaken a programme of capital investment particularly in the computerisation of the post office network and the automation of all post offices. This leaves the network well positioned to become the front office provider of choice for Government and financial services sector. A whole of Government review of the scope for providing additional public services through the local post offices is currently underway under the auspices of the Cabinet Committee on Social Policy.
17. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if he will provide an update on the review of Grid25; the amount that has been spent on the Grid25 project since its inception to date in 2014; and if he will make a statement on the matter. [40197/14]
View answerIn January 2014, an independent panel of experts, chaired by Mrs Justice Catherine McGuinness, was established to examine the Grid West and Grid Link projects. The Panel met on several occasions since then to consider and approve the terms of reference for comprehensive, route specific studies and reports of fully undergrounded and overhead options for each of the Grid West and Grid Link projects. The studies and reports are required to include assessments of potential environmental impacts, technical efficacy and cost factors. The terms of reference for the work to be carried out were published in May and are available on my Department's website. EirGrid will either undertake or commission the necessary work in accordance with those terms of reference set by the Panel. In due course, the Panel will provide an opinion to me on the completeness, objectivity and comparability of the studies and reports and will oversee the publication by EirGrid of the two studies and reports prior to EirGrid proceeding to public consultation on the two projects.
The Panel was also asked to provide an opinion on the compatibility of the methodologies to be employed on the Grid West and Grid Link projects with what has already been done on the North South project. In July the Panel announced its unanimous opinion that, in all material respects, what has already been done on the North South project is compatible with the methodologies now being employed on the Grid West and Grid Link projects.
Grid25 comprises over 100 projects ranging from large projects such as Grid West, Grid Link and North South, to smaller projects, station works or upgrades of existing lines around Ireland. EirGrid reviews all projects at regular intervals and is currently undertaking such a review. The overall Grid25 Strategy was forecast to cost up to €4 billion at its launch in 2007. In 2010, the identification and use of new technologies, together with the re-optimisation of the Grid25 programme, enabled EirGrid to reduce the estimated cost of the programme from €4 billion to €3.2 billion, which would represent an estimated 20% saving. The outcome of the current review is expected in the New Year.
18. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if the €500 million promised in April 2014 for rural broadband will be forthcoming. [40390/14]
View answerThe National Broadband Plan contains very clear commitments from Government to invest in areas of the country where high speed broadband services are not, or will not, be made available through commercial investment. We are close to finalising the comprehensive national mapping exercise which will culminate shortly in the publication of a national coverage map. This will enable all users, both business and domestic, to ascertain whether their individual premises are to be included in the proposed State intervention or whether they will receive high speed broadband from commercial operators. The map will be the subject of public consultation.
The precise amount of the financial contribution required from the State will be informed by this mapping process as well as through detailed modelling, development of the intervention strategy, including the funding strategy, and ultimately through the formal procurement process.
Issues such as the ownership model decided upon, the duration of the contract, whether the competition is designed for one winner or a multiplicity of smaller contracts, the strategic value the bidder or bidders place on the contract will all impact on the final cost of this ambitious intervention plan.
Our focus in designing this procurement process will be to ensure value for money in any State expenditure and we need therefore to ensure that the tender issued is designed in such a way as to maximise all possible efficiencies and savings so as to keep costs as low as possible.
I can assure the Deputy that the Government is committed to making the necessary funding available as part of the design of the intervention strategy and to ensuring the delivery of high speed broadband to all parts of Ireland that will not be served by commercial operators.
I should also point out that considerable capital investment continues to be made from commercial operators with high-speed broadband services becoming available in more and more locations nationwide.
19. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources his views on the fall in the take-up of grants for home energy retrofit since 2011; if his Department has conducted any estimate of the energy costs which would have been saved had the programme been maintained at prior levels; his strategy in relation to improving take-up; the reason the pay-as-you-save scheme has been persistently delayed during the Government's time in office; and if he will make a statement on the matter. [40326/14]
View answerJust under 280,000 homes have received some form of Government assisted energy efficiency upgrade since 2009 under the Better Energy Programme. This represents approximately one sixth of all homes in the country. While applications for grants under the Better Energy Homes Programme have been falling, this has been somewhat offset by a surge in applications under the Better Energy Areas and Communities Schemes, which provide grant funding for local community-based projects, as well as homes. Funding has been maintained for the Better Energy Warmer Homes Scheme, which provides energy efficiency upgrades free of charge to households in energy poverty.
The National Energy Efficiency Action Plan and the Programme for Government include a commitment to roll out a Better Energy Financing scheme, effectively a Pay-As-You-Save type model, for domestic buildings. The key benefit to homeowners of the Better Energy Financing mechanism would be that it would allow them to secure up-front financing for energy efficiency upgrades to their homes. The up-front funding would be repaid via savings on the customers’ energy bills arising from the energy efficiency measures.
My Department worked with SEAI under the direction of a Project Board representing State and industry stakeholders to consider the range of financing options that may be available. As well as accessing expert technical, legal and financial advice, detailed analysis of similar schemes in other jurisdictions was undertaken and a public consultation carried out. My Department is continuing to work with the SEAI to try to identify a viable and attractive financing mechanism. A pilot programme is planned for 2015 to test the market for a Better Energy Financing scheme, the result of which will inform any wider roll-out options.
