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Thursday, 17 Dec 2015

Written Answers Nos. 674-686

Energy Schemes

Questions (674)

Róisín Shortall

Question:

674. Deputy Róisín Shortall asked the Minister for Communications, Energy and Natural Resources the number and average value of grants awarded for the better energy homes scheme and the better energy warmer homes scheme, in each of the past five years. [46219/15]

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Written answers

The Better Energy Homes and Better Energy Warmer Homes schemes are administered on behalf of my Department by the Sustainable Energy Authority of Ireland (SEAI) under the Better Energy Programme.

The Better Energy Homes scheme provides grant aid to private homeowners who wish to improve the energy performance of their home. Fixed grants are provided towards the cost of a range of measures including attic insulation, wall insulation, heating systems upgrades, solar thermal panels and accompanying Building Energy Rating (BER).

From 2011 to end-November 2015 the scheme delivered energy efficiency measures to 109,191 homes around the country. In response to a decline in demand for this scheme, in March of this year, I increased grant levels and introduced other reforms such as a bonus payment for deeper measures. This has led to a resurgence in grant applications, with applications up 80% year on year in 2015.

The following illustrates the number of homes grant-aided per year, along with the average value of grants awarded.

Year

Number of Homes

Average value of grant per home

2011

49,236

€1,170

2012

26,426

€1,095

2013

13,710

€960

2014

9,279

€997

2015

10,540

€1,141

The Better Energy Warmer Homes scheme delivers a range of energy efficiency measures free of charge to low income households vulnerable to energy poverty, who meet the eligibility criteria. It should be noted that under this scheme the full cost of the works is met, therefore the figures given relate to average spend per home. The measures available include draught proofing, attic insulation, lagging jackets for hot water tanks, low energy light bulbs and cavity wall insulation.

From 2011 to end-November 2015, 67,293 homes around the country have received energy efficiency measures under the scheme. Demand for this scheme remains strong, with €15m paid out so far in 2015. The average spend per home has increased considerably over the past five years. This is primarily due to significant improvements in the technical standards the scheme must meet. Rising costs and the provision of some deeper interventions for households in severe energy poverty also account for this increase.

Year

Number of Homes

Average spend per home

2011

20,388

€1,049

2012

21,175

€1,683

2013

9,803

€1,790

2014

9,056

€2,280

2015

6,871

€2,212

Appointments to State Boards

Questions (675)

Robert Troy

Question:

675. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources the number of appointments to State boards under the aegis of his Department and the number of appointments that have been advertised on his Department’s website since March 2011; and if he will make a statement on the matter. [46250/15]

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Written answers

There have been 175 appointments to State Boards under the aegis of my Department in the period 7 March 2011 to 30 November 2015. Of these appointments, 25 were from among individuals who submitted expressions of interest following an advertisement on my Department's website. A further 9 appointees applied under the revised arrangements set out in the Guidelines on Appointments to State Boards which were published in November 2014.

It should be noted that some 48% of the appointments made were either ex-officio appointments, reappointments, the appointment of worker directors chosen by election, or appointments made on foot of nominations made by an Oireachtas Committee.

Appointments to State Boards

Questions (676)

Robert Troy

Question:

676. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources the number of chairpersons appointed to State boards under the aegis of his Department who have appeared before the relevant joint Oireachtas committee since March 2011; and if he will make a statement on the matter. [46265/15]

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Written answers

There have been 17 appointments to the position of Chairperson to State boards under the aegis of my Department since March 2011. Of these, 9 have appeared before the relevant Joint Oireachtas Committee in line with current Government policy on the appointment of Chairpersons to State Boards. It should be noted that a number of the appointments were reappointments and therefore an appearance before the Joint Oireachtas Committee was not required.

Commencement of Legislation

Questions (677)

Seán Ó Fearghaíl

Question:

677. Deputy Seán Ó Fearghaíl asked the Minister for Communications, Energy and Natural Resources the details of the Acts currently in force for which he has lead responsibility and that have parts or sections yet to be formally commenced, including the purpose of same, in tabular form; and if he will make a statement on the matter. [46280/15]

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Written answers

There is one Act for which all sections have yet to be formally commenced by my Department. The details are set out in the following table.

Title of Act

Parts/Sections not yet commenced

Purpose of sections

Petroleum (Exploration and Extraction) Safety Act, 2015

All sections

To confer on the Commission for Energy Regulation (CER) the additional functions with respect to petroleum safety required by the Offshore Safety Directive.

The legislation was enacted in July, 2015 to meet the transposition deadline but cannot be commenced until the Petroleum Safety Framework has been updated by the CER to reflect the additional functions required by the Directive. It is anticipated that the Act will be commenced in its entirety in January, 2016.

Postal Services

Questions (678)

Michael Moynihan

Question:

678. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the cost for the existing An Post office network to provide additional services such as the processing of motor tax payments, local authority charges and hospital charges; and if he will make a statement on the matter. [46310/15]

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Written answers

It is Government policy that An Post remains a strong and viable company, in a position to provide a high quality postal service and maintain a nationwide network of customer focused post offices in the community.

The post office network plays an important role in serving the needs of business and domestic customers alike. However, the postal sector is undergoing systemic change, with migration towards electronic communications resulting in significant core mail volume decline year-on-year. However, post offices, having being fully computerised some years ago, also stand well positioned to become the front office provider of choice for Government and the financial services sector for both electronic transactions as well as the more traditional over the counter transactions.

In recognition of the changing commercial environment I established the Post Office Network Business Development Group earlier this year, the remit of which is to examine the potential from existing and new Government and commercial business that could be transacted through the Post Office network. The Group presented its initial report to me in May 2015. In summary, the initial report outlined that the future of the Post Office network would be best secured by seeking out opportunities in the following areas: financial services; Government services; social capital and enterprise; and white labelling of financial and other products.

To gain further insight into these areas, a public consultation exercise was held from 16 June to 28 July last, inclusive. Interested parties were invited to submit their views on the initial report. It is clear from the responses received that there is a strong public desire to maintain the nationwide network of post offices. The consultation responses have assisted the Group in identifying opportunities that can benefit the post office network and have informed the final report, which I expect to receive presently.

It is premature to speculate, in advance of receiving the final report, on matters, including cost implications, until I have had the opportunity to consider in detail the findings of the Group.

Broadband Service Provision

Questions (679)

Michael Moynihan

Question:

679. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the estimated costs of delivering universal broadband to all premises. [46315/15]

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Written answers

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 2015, 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 and it is expected that further funding will be available over the lifetime of any contract(s).

Funding of €75m is also committed through the European Regional Development Fund and is generally 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 an ambition of 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 expect to proceed to formal procurement 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.

Broadband Service Provision

Questions (680)

Michael Moynihan

Question:

680. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if he has considered community broadband projects such as the rural broadband project in northern England for an Irish setting; the estimated cost of piloting a similar project in each county based on this model; and if he will make a statement on the matter. [46316/15]

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Written answers

The National Broadband Plan 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.

The commercial telecommunications sector is currently investing approximately €2.5 billion in network upgrades and enhanced services. These very significant investments represent a step-change in the quality of broadband services available.

The proposed State intervention is targeted at areas where commercial investment is not forthcoming, and through the combination of commercial and State investment the NBP aims to deal conclusively with connectivity challenges for every home and business in the State. While it is not envisaged that a separate community based scheme would be introduced at this juncture, there will be scope to prioritise areas for network rollout, depending on the technology and network being employed by the winning bidder(s). I am also aware that a number of commercial companies are piloting the rollout of high speed services to rural communities in anticipation of the NBP intervention.

I expect 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 an ambition of 100% coverage by 2020.

Renewable Energy Generation

Questions (681)

Michael Moynihan

Question:

681. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the estimated percentage of electricity that Ireland will generate from biomass in 2020; the amount of increased subsidies that would be incurred to meet our renewable heating targets by 2020; and if he will make a statement on the matter. [46317/15]

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Written answers

The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our overall energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. In 2014, 8.6% of Ireland’s overall energy requirements were met from renewable sources.

To date wind energy has proved to be the most commercial renewable energy technology in the Irish electricity market. In 2014, 18.2% of Ireland’s electricity demand was met by wind generation. Nevertheless, diversification of the renewable generation portfolio in the longer term will be important for creating a sustainable, carbon free, electricity system. In this regard, biomass will have a role to play. Electricity generated from biomass is already supported through the three REFIT schemes and, depending on electricity demand, the full implementation of current policies could mean that up to 5% of electricity may be generated from biomass in 2020.

Notwithstanding the expected use of biomass in the electricity sector, it is expected that biomass will have a more significant role to play in the heat and transport sectors where fewer alternative technologies exist. To support this, the Draft Bioenergy Plan published in 2014 identified the need for an additional bioenergy focussed Renewable Heat Incentive (RHI) to support the deployment of renewable energy in the heat sector. The Draft Bioenergy Plan identified the introduction of an RHI as the most cost effective means of helping to meet our 12% renewable heat target by 2020. It has been determined through subsequent analysis that a premium based RHI scheme targeted at the large industrial non-ETS sector would be the most cost effective mechanism.

As part of the design process to introduce an effective RHI scheme, my Department published the first of three consultations in July this year to identify a range of technologies in the heating sector. At the moment, all responses to this first consultation are under review. Two further consultations are expected in 2016 in order to finalise the new RHI support scheme, and determine the level of subsidy required. The RHI scheme will - subject to Government approval and state aid clearance from the European Commission - become available at the end of 2016.

Commission for Energy Regulation

Questions (682)

Michael Moynihan

Question:

682. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if he has examined the reforms proposed by the Commission for Energy Regulation to help drive down prices for domestic and business users; and the associated costs to achieve this from a regulatory point of view. [46318/15]

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Written answers

The Commission for Energy Regulation (CER) is Ireland’s independent energy regulator and has a wide range of economic, customer protection and safety responsibilities. While it is entirely independent in the execution of its statutory duties, I am satisfied that it carries them out to the highest standard. As I have said in the White Paper on energy policy which I published yesterday, the CER has provided valuable regulatory stability, certainty and predictability through its strong, evidence-based and transparent decision-making.

CER ceased regulating retail electricity prices in 2011 and retail gas prices in 2014. The electricity and gas markets are commercial, liberalised, and competitive and they operate within national and European regulatory regimes. The competitive energy market results in choice for consumers and businesses in terms of suppliers, products and prices, exerting downward pressure on prices.

Under various relevant Statutory Instruments, CER carries out statutory market monitoring functions and has the responsibility to ensure the market operates competitively for the benefit of the consumer. The statutory functions include monitoring whether the development and operation of competition in electricity supply is benefitting final customers. CER market monitoring reports are available on its website. In this regard I am confident that the regulator is carrying out its functions effectively and that it will continue to ensure that competitive markets are delivering for all consumers as I set out in the White Paper. The recent announcements by Electric Ireland, Bord Gáis, SSE and Energia offering savings to customers indicate that competition is working for the benefit of customers.

The White Paper contains a commitment to review the legal and institutional framework for the regulation of the electricity and natural gas markets. This review will encompass a review of the CER’s mandate, in line with ongoing requirements for government sectoral economic regulation.

Wind Energy Generation

Questions (683)

Michael Moynihan

Question:

683. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the cost of setting up an independent body to conduct a full economic review of wind energy; its impact on energy prices; and its long-term sustainability in supplying the national grid. [46319/15]

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Written answers

My Department has been working with the Sustainable Energy Authority of Ireland, EirGrid and the Commission for Energy Regulation, to assess the costs and value of choosing the path towards 40% renewable electricity generation in 2020. It is expected that the majority of this 40% target will be met by wind energy. Quantifying the costs and benefits of meeting our renewable energy obligations is a complex task involving the examination of many interrelated variables. This work and the related findings will form the basis of a report that will be published shortly.

In addition, a range of other studies have been undertaken in the last number of years to assess the economic cost of integrating increasing amounts of renewable energy into the energy mix. The All-Island Grid Study, published in 2008, assessed the technical feasibility and the relative costs and benefits associated with various scenarios for increased shares of electricity sourced from renewable energy in the all island power system. The scenarios were informed by the resource available, technological readiness of the various generation technologies (including wind) and cost required per generated unit. This study informed the decision to move towards achieving 40% renewable electricity generation in Ireland by 2020. It concluded that - based on assumptions set out in the report - wind energy represented a cost effective source for electricity generation.

It is well known that Ireland is an ideal location for wind energy investment. The abundant wind resource in Ireland means that each unit of installed wind generation capacity generates more units of electricity when compared with other countries and hence needs a lower rate per generated unit of electricity in order to recover the overall costs of the project. The existing feed-in tariff, REFIT, which is funded from the Public Service Obligation levy on consumer bills, is a very cost effective support for onshore wind development. This was the finding of a report published by the Council of European Energy Regulators earlier this year.

This finding has been underpinned by other published reports and analyses which have examined the effect of renewables on electricity prices. Two major studies have been published on the impact of increased wind generation on the Single Electricity Market in Ireland. One was carried out by the Commission for Energy Regulation’s (CER) and the Northern Ireland Authority for Energy Regulation (NIAER) in January 2009 and the other by the Sustainable Energy Authority of Ireland (SEAI) and EirGrid in 2011. Both studies found that the market is capable of operating successfully with increasing amounts of wind and that the cost to consumers in Public Service Obligation (PSO) terms tends to be offset by the downward pressure wind puts on energy prices in the wholesale market.

On the question of sustainability, there is little doubt that the use of indigenous renewable generation is a more sustainable long-term approach for energy security and economic competitiveness than importing fossil fuel energy. In 2014, renewable electricity generation in Ireland is estimated by the SEAI to have avoided €250 million worth of fossil fuels imports.

In the circumstances, there are no plans to set up and independent body to commission further economic review of wind energy.

Electricity Transmission Network

Questions (684)

Michael Moynihan

Question:

684. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the cost of placing national grid extensions underground in Grid West, Grid South and the NSIC. [46320/15]

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Written answers

An Independent Expert Panel considering EirGrid's Grid West and Grid Link projects was appointed on foot of a Government decision in January 2014. On foot of a request by the Minister for Communications, Energy and Natural Resources, the Independent Expert Panel agreed to provide an opinion on the compatibility of the methodologies to be employed on the Grid West and Grid Link projects with what had already been done on the North-South project.

As part of this process EirGrid provided cost estimates for underground options to the Independent Expert Panel. These figures are published on the EirGrid website in reports prepared by EirGrid and submitted to the Independent Expert Panel.

The estimated costs, submitted to the Independent Expert Panel, of developing the projects underground are: €810 million (North-South), €643 million (Grid Link) and €477 million (Grid West).

Departmental Functions

Questions (685)

Michael Moynihan

Question:

685. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if he has examined merging with the Department of the Environment, Community and Local Government. [46321/15]

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Written answers

The structure of Government departments and the allocation of functions is determined by the Taoiseach and Government. Clearly both departments collaborate closely on a bilateral basis on areas of mutual interest, for example climate change, as well as on other issues using the range of cross departmental structures in place.

Broadband Service Provision

Questions (686)

Martin Heydon

Question:

686. Deputy Martin Heydon asked the Minister for Communications, Energy and Natural Resources the status of the provision of fibre broadband to an area (details supplied) in County Kildare, which has a number of industries and businesses that require high-speed broadband given that the lack of this is affecting their business; and if he will make a statement on the matter. [46366/15]

View answer

Written answers

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.

In July last I published a detailed draft Intervention Strategy for public consultation. That Strategy proposes that the State-funded network must be capable of delivering high-quality, high speed broadband of at least 30mbps download and 6mbps upload. It must also be capable of catering for higher performance in the future so as to keep pace with consumer demand. This will be a specific requirement of the tender and it will be a matter for bidders to select the technology they consider will best deliver the service.

In accordance with EU State Aid Guidelines, my Department must observe a strict policy of technology neutrality in any procurement process and therefore I am not in a position to promise connectivity through any one particular technology platform. The Department will set out a detailed service specification, including a requirement to scale up services over the lifetime of the contract, and allow bidders to demonstrate how they propose to meet these contractual requirements.

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 an ambition of 100% coverage by 2020.

More generally I am informed by the commercial operators that next generation broadband services have been rolled out to over 55,000 premises to date in County Kildare with over 12,500 more expected to be served by commercial investment. Approximately 20,500 remaining premises in Kildare will be covered either by further commercial investment or the proposed State intervention. The breakdown of premises covered, per townland, is available on the High Speed Broadband Map at www.broadband.gov.ie.

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