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Tuesday, 10 Nov 2015

Written Answers Nos. 560-9

Renewable Energy Projects

Questions (560)

Maureen O'Sullivan

Question:

560. Deputy Maureen O'Sullivan asked the Minister for Communications, Energy and Natural Resources the extent of research into wave energy harnessing his Department has conducted, given the abundance of wild coastline; his plans to increase renewable energy supply through the harnessing of wave and sea currents; and if he will make a statement on the matter. [38967/15]

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Written answers

Globally, wave energy is still at the research, development and demonstration stage, and action across a range of areas is required to support developers in bringing ocean energy devices from prototype to full scale commerciality. In Ireland, this action is being taken in the context of the implementation of the Offshore Renewable Energy Development Plan (OREDP) 2014, which sets out Government policy in relation to the sustainable development of Ireland’s abundant offshore renewable energy resource.

The Atlantic seaboard has been identified as having the highest potential for the development of ocean energy in the EU and the Strategic Environmental Assessment carried out for the OREDP found that 1,500 MW of wave and tidal generation could be sustainably developed in Irish waters.

Much progress has been achieved since the publication of the OREDP, including increased Exchequer support for research, development and demonstration for the ocean sector in recent years. My Department’s multi-annual ocean energy development budget covering the period 2013 - 2016, was increased by €16.8 million, to bring total cumulative funding to €26.3 million. This funding supports the development of test sites in counties Mayo, Galway and Cork, and supports marine research activities at the Integrated Maritime Energy Resource Cluster at Ringaskiddy.

The University College Cork Beaufort Building in Ringaskiddy which was opened in June of this year, is a world-class piece of infrastructure for renewable energy and maritime research and includes state-of-the-art wave simulators, test tanks, workshops and offices.

My Department’s budget also supports the Prototype Development Fund operated by the Sustainable Energy Authority of Ireland. The Authority supports and grant-aids ocean wave energy companies from this fund, with a view to assisting projects progress up the technology readiness level chain.

Options for additional capital funding for the years 2016 to 2018 are also being discussed cross Departmentally. This funding would facilitate innovative projects, like the ESB led Westwave project.

In addition, the OREDP further proposes an initial market support scheme for wave and tidal energy from 2016.

Implementation of the OREDP continues under the Offshore Renewable Energy Steering Group, with the aim of unlocking of the economic growth and job creation opportunities offered by ocean energy development.

National Broadband Plan Administration

Questions (561)

Michael Moynihan

Question:

561. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the procurement procedures his Department has in place to ensure an open and transparent tender process in awarding the contract for the national broadband plan; and if he will make a statement on the matter. [39032/15]

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Written answers

I hope to commence the formal procurement process for the NBP towards the end of this year. This process will be an open and competitive one, conducted in accordance with Department of Finance and EU procurement frameworks.

Furthermore, the current State Aid Guidelines governing investments in broadband markets contain detailed compliance obligations on all public bodies considering a market intervention.

In designing the detailed intervention strategy for the NBP as well as the subsequent procurement process and Request For Tender, my Department is cognisant of the need to fully comply with all of these State Aid requirements.

Broadband Service Provision

Questions (562)

Dan Neville

Question:

562. Deputy Dan Neville asked the Minister for Communications, Energy and Natural Resources the position regarding Internet access for a person (details supplied) in County Limerick; and if he will make a statement on the matter. [39075/15]

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Written answers

The National Broadband Plan (NBP) is a Government initiative which aims to deliver high speed broadband to every citizen and business in Ireland. This is being achieved through a combination of accelerated commercial investment by telecoms operators, and a proposed State intervention to provide high speed broadband to those parts of the country where the commercial sector will not invest. Last November I published a national high speed coverage map for 2016. This map is available at www.broadband.gov.ie. The map shows Ireland with two colours, BLUE and AMBER and was developed based on the most up to date information available at the time of publication. The areas marked BLUE represent those areas where commercial providers are either currently delivering or have plans to deliver high speed broadband services by the end of 2016.

The areas marked AMBER represent those areas where the State intends to intervene to ensure those areas will have access to high speed broadband services and includes Ashford, Co Limerick.

I would encourage members of the public to consult both my Department's map and the information being provided by the commercial operators on their respective websites to establish the precise situation regarding their individual premises.

It is anticipated that speeds of at least 30 Mbps will be also delivered through the Government's intervention and the network will be designed to cater for future increased demand from consumers and business.

More generally I can confirm that next generation broadband services have been rolled out to over 48,800 premises to date in Co Limerick with over 14,800 more expected to be served by commercial investment. Approximately 33,900 premises in Limerick will be covered either by further commercial investment or the proposed State intervention.

40 responses were received following the publication of the NBP proposed Intervention Strategy in July last. Non-confidential versions of these submissions have been published since last week and can be accessed at www.Broadband.gov.ie.

Meanwhile, my Department continues to review the technical and financial detail relating to potential new commercial investment proposals with a view to updating the intervention area Map. I expect to publish an updated version of the Map and to proceed to formal procurement before the end of the year.

The Government is determined to ensure that the network is built out as quickly as possible and engagement with industry stakeholders has indicated that this could be achieved within 3-5 years of the contract award.

In this context, the NBP proposes that through the combination of commercial investment and State intervention, 85% of addresses in Ireland will have access to high speed services by 2018 with all addresses passed by 2020.

National Broadband Plan Funding

Questions (563, 564)

Michael Moynihan

Question:

563. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the amount of the €34.756 million included under the total programme expenditure for communications in his Department's 2016 Estimate that will be allocated specifically to the national broadband plan in 2016; if supplementary funding is being allocated to this plan; if so, the total amount; and if he will make a statement on the matter. [39203/15]

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Michael Moynihan

Question:

564. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the proportion to be spent in 2016 from the moneys allocated under the infrastructure and capital investment plan 2016 to 2021 on the national broadband plan; if he will provide a breakdown in National Exchequer and European funding in 2016; and if he will make a statement on the matter. [39204/15]

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Written answers

I propose to take Questions Nos. 563 and 564 together.

The Government's National Broadband Plan (NBP) aims to ensure that every citizen and business, regardless of location, has access to a high quality, high speed broadband service. This will be achieved through a combination of commercial investments and a State led intervention in areas where commercial services will not be provided.

On 29 September the Government agreed and published its 6 year Capital Plan, Building on Recovery, which included an allocation of €275m for the National Broadband Plan. This will provide the initial stimulus required to deliver the Government's intervention.

Funding of €75m is also committed through the European Regional Development Fund but this can only be drawn down after Exchequer expenditure is first incurred.

Combined with commercial investment, this will ensure that 85% of Ireland's premises have high speed broadband by 2018, with 100% coverage by 2020.

Because a competitive procurement process is anticipated, it would be neither advisable nor appropriate to speculate about the potential overall cost of the NBP at this stage. Ultimately, the outcome of the procurement process will determine the final cost of the intervention. I hope to commence the procurement process before the end of this year. Progress on the project and the outcome of the procurement process will influence the quantum of exchequer funding that will be expended on the NBP in 2016.

Energy Schemes

Questions (565)

Patrick O'Donovan

Question:

565. Deputy Patrick O'Donovan asked the Minister for Communications, Energy and Natural Resources the supports available to the hotel and hospitality sector for reducing energy costs; his plans to provide additional supports to the sector in respect of energy costs and energy efficiencies; and if he will make a statement on the matter. [39210/15]

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Written answers

A wide range of policy initiatives to promote an awareness of energy use and energy efficiency in the commercial sector, including the hotel and hospitality sector, have been implemented in recent years. These measures are focused on addressing the barriers identified to undertaking energy efficiency activity in the commercial sector rather than providing direct grant assistance to business.

The Government has committed €35 million to an Energy Efficiency Fund (EEF), which makes commercial financing available to businesses who want to boost their energy efficiency. In addition, a dedicated support programme for small to medium energy users has also been operated by the Sustainable Energy Authority of Ireland (SEAI) since 2008. The programme offers free energy management advice, mentoring, training and other support services to any business willing to show a commitment to becoming more energy-efficient. This service delivery includes the provision of an initial energy audit and offers a structured approach to energy management, in a form that can be adapted and tailored to the level of energy costs in the company.

The Accelerated Capital Allowances (ACA) scheme is a tax incentive whereby businesses can write off the full cost of investment in energy efficient equipment in the year of purchase. This assists in cash flow and in the financing of energy efficiency projects. There are now 52 technologies covered in 10 product categories (which includes a catering and hospitality equipment category), comprising over 10,000 products registered.

SEAI promotes the provision of high quality energy efficiency audits for businesses through supports for industry and SMEs including assistance with implementation of certified Energy Management Systems and the provision of energy audits to business through the Advice and Mentoring Scheme. Over 2,000 businesses, representing an annual energy expenditure of over €400 million, have already availed of this programme, with 10% energy savings routinely found in the first year and energy cost savings of up to 30% achieved in many cases.

An energy efficiency obligation scheme commenced in 2014. Under the scheme, energy suppliers are required to deliver mandatory energy savings. The obligation scheme encourages energy suppliers to work collaboratively with customers to identify potential savings and to share the benefits that these savings could deliver.

In 2012, the Government introduced a support scheme to incentivise the use of Combined Heat and Power (CHP) generation in the commercial and industrial sector. This support for CHP is in the form of feed-in tariffs for electricity produced from biomass CHP plants. A further support scheme that covers renewable heat is expected to be introduced in 2016.

Renewable Energy Incentives

Questions (566)

Thomas Pringle

Question:

566. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources when he will launch the renewable heat incentive being developed by his Department; and if it will include an incentive for domestic dwellings as well. [39512/15]

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Written answers

On 31 July last, I launched a consultation on the proposed Renewable Heat Incentive (RHI) to incentivise larger heat users in the industrial and commercial sector to change to heating solutions that produce heat from renewable sources. While the initial phase of the consultation closed on 18 September 2015, there will be two further opportunities to contribute at key stages in the design of the scheme. The RHI scheme, once designed, will require State Aid approval from the European Commission and further Government approval. It is proposed to have the RHI scheme in place in 2016. There are no plans at this time to introduce such a scheme for domestic heat users.

Renewable Energy Generation Targets

Questions (567)

Bernard Durkan

Question:

567. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which he can precisely identify the extent to which, based on current and projected economic growth, alternative energy targets need to be revised upwards, having particular regard to possible penalties arising from carbon reduction requirements, the growing agricultural sector, and the need to enhance import substitution in respect of energy; and if he will make a statement on the matter. [39585/15]

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Written answers

The EU's 2020 targets for emissions reductions, renewable energy and energy efficiency form a cornerstone of EU energy policy. The EU aims to deliver a 20% improvement in energy efficiency, a 20% reduction in Green House Gas emissions and 20% of energy from renewable sources by 2020.

In addition, the 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. In order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources, 12% renewables in the heating sector and 10% in transport. Policies and schemes are in place to incentivise the use of renewable energy. The REFIT schemes underpin the development of a range of renewable energy technologies. As regards energy efficiency, the Sustainable Energy Authority of Ireland (SEAI) is continuing to implement policy with the roll out of efficiency measures in homes and businesses throughout the country supported by substantial exchequer funding for energy efficiency.

The overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy to all consumers. A well balanced fuel mix that provides reliable energy, minimises costs and protects against supply disruptions and volatility, is essential to Irish consumers. While fossil fuels will remain part of the energy mix as we transit to a largely decarbonised energy system by 2050, significant progress is being made in increasing the share of renewables in that mix.

Provisional figures provided by the SEAI for 2014 show that 8.6% of Ireland's overall energy requirements were met by renewable energy. In addition, the SEAI has calculated that 22.7% of electricity, 6.6% of heat and 5.2% of transport demand was met from renewable sources.

Alternative Energy Projects

Questions (568)

Bernard Durkan

Question:

568. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which research continues into the development of the alternative energy sector, including wind, wave, and solar energy, with particular reference to the need to develop a comprehensive and reliable energy grid not dependent on any one product; and if he will make a statement on the matter. [39586/15]

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Written answers

The increasing use of renewable generation technologies on the electricity power system presents a range of operational challenges - challenges that can only be overcome through effective and ongoing research and innovation. A number of research initiatives are underway to facilitate the use of different types of renewable technologies on the system and are worth noting. First, a Smart Grid Working Group comprising representation from my Department, EirGrid, the ESB, the Commission for Energy Regulation (CER) and the development agencies has drawn up a Smart Grid Roadmap setting out how a smart grid can contribute to increasing the amount of renewable energy on the electricity system, improving our security of energy supply and meeting Ireland’s emissions reductions targets.

Second, a number of major studies have been carried out by EirGrid in recent years to investigate the levels of renewable generation that can be securely accommodated on the power system of Ireland and Northern Ireland. These studies have considered the implications for both transmission infrastructure, and grid operation, of managing a power system with large amounts of variable renewable generation sources.

On foot of this work, EirGrid has developed a range of secure operational tools and system management policies to manage the power system with increasing amounts of variable renewable generation. These operational tools and polices are subject to on-going review and development to ensure security of supply is always maintained.

Furthermore, EirGrid continues through its Grid 25 strategy and its "DS3" programme (Delivering a Secure, Sustainable Electricity System) to develop and operate the electricity network to meet the challenges of the deployment of increasing levels of renewable generation in order to maintain high quality, secure and competitive power supplies in line with best international practice, for the benefit of all electricity consumers.

Separately, analysis of the potential of microgeneration technologies has been carried out by the Sustainable Energy Authority of Ireland (SEAI). The SEAI's findings, along with responses to the recent consultation on the Green Paper on Energy Policy, will inform future policy on the provision of any market support for microgeneration, and will be taken into consideration in preparation of the Energy Policy White Paper which will be published before the end of this year.

Finally, as regards ocean energy, Exchequer support is provided by my Department for ocean research, development and demonstration and my Department’s multi-annual ocean energy development budget supports the development of test sites and of marine research activities at the Integrated Maritime Energy Resource Cluster in Cork. My Department’s budget also supports the Prototype Development Fund operated by the Sustainable Energy Authority of Ireland which supports and grant aids ocean wave energy companies, helping projects progress up the technology readiness level development path.

Renewable Energy Generation Targets

Questions (569)

Bernard Durkan

Question:

569. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the progress to date towards reaching targets arrived at by the previous Administration in respect of renewable energy, with a view to meeting this country's international commitments within time and target; and if he will make a statement on the matter. [39590/15]

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Written answers

The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020 and in order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources, 12% renewables in the heating sector and 10% in transport. Ireland has made good progress with regard to renewable energy deployment.

Provisional figures provided by the Sustainable Energy Authority of Ireland (SEAI) for 2014 show that 8.6% of Ireland's overall energy requirement was met by renewable energy. In addition, SEAI has calculated that 22.7% of electricity, 6.6% of heat and 5.2% of transport were met from renewable sources. While the progress to date is encouraging, significant challenges remain, particularly in the heat and transport sectors.

Regarding renewable electricity, the REFIT schemes underpin the development of a range of technologies, including hydro, biomass combustion, biomass combined heat and power, landfill gas and onshore wind. These schemes will be closed to new applications at the end of this year. In terms of renewable heat, in addition to existing measures such as Part L of the Building Regulations, the 2014 Draft Bioenergy Plan recommended the introduction of a Renewable Heat Incentive for larger heat users to change to heating solutions that produce heat from renewable sources.

On 31 July 2015, my Department launched two separate consultations on new support schemes, one for renewable electricity and one for a proposed Renewable Heat Incentive. Two further consultations on each support scheme are planned. These consultations will be informative regarding the cost effectiveness of technologies that can assist in meeting both our 2020 target and our contribution to the EU's 2030 renewable energy target of 27%. Subject to Government approval and State Aid clearance from the European Commission, the new schemes would become available in late 2016.

As regards renewable transport, Ireland aims to meet its target mainly through the use of sustainable biofuels. Further increases to the obligation rate in the Biofuels Obligation Scheme will be required in the context of achieving our 2020 target. In this regard, a public consultation on the Biofuels Obligation Scheme was completed recently.

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