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Wednesday, 15 Jun 2016

Written Answers Nos. 194-199

Transfer of Entitlements Application

Questions (194)

Dara Calleary

Question:

194. Deputy Dara Calleary asked the Minister for Agriculture, Food and the Marine if he will provide a person (details supplied) with additional entitlements. [16327/16]

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Written answers

The registration details of the above herd number were transferred to the person named on 12th May 2015, however he does not hold any Basic Payment Scheme entitlements. Also, the person named did not submit a 2016 Transfer of entitlements application form to transfer entitlements into his name. The closing date for receipt of Transfer of Entitlement applications has now passed, however given the extenuating circumstances pertaining to the case my Department is willing to accept a late application at this stage. An official from my Department has been in contact with the person named to discuss the position outlined above.

Energy Prices

Questions (195)

Thomas P. Broughan

Question:

195. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources to report on the impact of Corrib Gas on energy security and pricing in the energy market; and if he will make a statement on the matter. [16095/16]

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Written answers

Up until late 2015, 95% of Ireland’s gas requirement was imported from Great Britain. The Corrib gas field, which came on stream in the final days of 2015, will have a significant impact on Ireland’s security of gas supply when at full production.  As published in Gas Networks Ireland's "Network Development Plan 2015", Corrib is expected to meet 77% of  demand when in its first full year of commercial production. Following peak production levels Corrib gas supplies will steadily decline year on year.

With regard to pricing, the two main parts of the price of gas to the end customer are the tariff charged for the transportation of gas through the gas network, and the cost of the gas itself.

On tariffs, I have no statutory function in relation to the regulation of the gas market, including the matter of tariffs.  This is entirely a matter for the Commission for Energy Regulation (CER) under the electricity and gas regulatory framework as set out in the various regulatory Acts. The CER is completely independent in the performance of its functions and required to be so under national and EU law. The CER aims to ensure that the gas network meets the needs of the Irish gas customer at a reasonable and efficient cost.

On retail pricing, gas prices in Ireland are set against prices on the international gas markets. Gas is imported to Ireland through the natural gas network, or specifically through interconnection with Britain. The price of this imported gas is determined by the UK National Balancing Point price plus the cost of transportation to Ireland. The price of Corrib gas is referenced to the price of imported gas. As a result, Irish customers are exposed to fluctuations in international gas price and neither the Commission nor the gas suppliers have direct control over this part of the value chain.

Alternative Energy Projects

Questions (196)

Timmy Dooley

Question:

196. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources the grant support available for photovoltaic solar energy production; and if he will make a statement on the matter. [16270/16]

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Written answers

The Programme for Government contains a commitment to facilitate the development of solar energy projects, recognising that solar photovoltaic (PV) projects could potentially contribute to meeting Ireland's renewable energy objectives. This commitment builds on the Energy White Paper published in December 2015 and recognises that solar also has the potential to provide a community dividend, thereby enhancing citizen participation in Ireland's energy future.

It is widely recognised that the deployment of solar PV in Ireland has the potential to increase energy security, contribute to our renewable energy targets, and support economic growth and jobs. In addition, solar PV can be deployed in roof-mounted or ground-mounted installations, and in this way it can empower Irish citizens and communities to take control of the production and consumption of energy. It is also recognised that while the cost competitiveness of solar PV has improved, it would still require a subsidy in order to be developed on a commercial basis. The provision and design of any subsidy will be the subject of detailed economic appraisal.

The first public consultation on the design of a new renewable electricity support scheme was published in 2015, and a second public consultation will take place before any new scheme is introduced. Details of the next public consultation will be advertised on the Department's website www.dcenr.gov.ie. Before any such scheme could be introduced, it would have to secure Government approval and State aid clearance from the European Commission.

Wind Energy Generation

Questions (197)

Timmy Dooley

Question:

197. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources his plans to conduct a cost-benefit analysis of the investment in wind energy and increased generation and of the savings in fossil fuels such as gas in each of the years 2012 to 2015, inclusive; and if he will make a statement on the matter. [16271/16]

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Written answers

According to the Sustainable Energy Authority of Ireland (SEAI), Ireland had an energy import dependency of 85% in 2014, which was estimated to cost €5.7 billion. This represents a decrease from a peak of 91% in 2006 and reflects the expanding use of Ireland’s indigenous renewable energy resources, particularly wind energy over the same period.

From 2012 to the end of 2014, the use of wind energy and other renewables in Ireland increased by 29%, while the total cost of fossil fuel imports avoided in the sector over the same period is estimated at circa €855 million. The represents avoided costs of fossil fuel imports of €300 million in 2012, €300 million in 2013 and €255 million in 2014.

While the information for fossil fuel costs savings in 2015 is not available yet, I will arrange for the Deputy to receive this information once it is produced.

While the inherent benefits of increased use of wind energy in Ireland are apparent in terms of displacement of fossil fuels, consequent emissions reductions, increased security of supply and reducing the potential impact of fossil fuel price volatility, it is equally important to understand the potential cost of this transition. 

Quantifying this cost is a complex task due to the number of influencing components. For example, while renewable electricity generation introduces savings by reducing the need to burn fossil fuels, this is offset to a certain extent by increased costs of system operation, the need for additional network investment, and the capital and operational costs of the renewable generators. In the past a number of studies have been completed by various parties in the energy sector focusing on particular aspects of this issue.  However, a broad based analysis is being finalised by my Department, the SEAI, EirGrid and the CER, which looks at the range of components contributing to the projected costs and the financial impact on the electricity customer. The report will be published this year once the work has been completed.

Renewable Energy Incentives

Questions (198)

Timmy Dooley

Question:

198. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources to consider diversifying Ireland’s renewable energy portfolio by incentivising the take-up of solar and biomass energy to meet our 2020 renewables targets; and if he will make a statement on the matter. [16272/16]

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Written answers

The Programme for Government contains a commitment to facilitate the development of solar energy projects and to support the development of a sustainable bio-energy sector in Ireland. This commitment builds on similar such commitments in the Energy White Paper published in December 2015 which set out a long-term vision to develop Ireland’s diverse and indigenous renewable energy resources in a cost effective manner.

It is widely acknowledged that no single technology will enable Ireland to meet our renewable energy or climate change objectives. Provisional data from the Sustainable Energy Authority of Ireland (SEAI) indicate that Ireland had reached 9.2% of the overall 16% renewable energy target at the end of 2015. This renewable energy mix was made up of wind, biomass, solar thermal, hydro generation, biogas, landfill gas, and waste-to-energy.

Work is under way to examine the design and cost of introducing a new Renewable Electricity Support Scheme (RESS) that will encourage the continued diversification of our renewable energy portfolio in the electricity sector. This scheme will examine the viability of supporting a range of new renewable energy technologies in Ireland, including solar photovoltaic (PV) and biomass generation.

At the same time, detailed economic analysis is underway in my Department to develop a Renewable Heat Incentive in Ireland. This support scheme will examine the potential to diversify the use of renewable technologies in the heating sector, and the use of biomass is being considered as part of this process.

Energy Prices

Questions (199)

Timmy Dooley

Question:

199. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources his views that the Commission for Energy Regulation should introduce more regular reporting requirements to encourage wholesale gas and electricity providers to offer the most competitive prices to customers; and if he will make a statement on the matter. [16273/16]

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Written answers

I have no statutory function in the setting, review or reporting of electricity or gas prices. Responsibility for electricity and gas market regulation is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body.  However, for the information of the House, I can confirm that CER carries out statutory market monitoring functions, has the responsibility to ensure the market operates competitively for the benefit of the consumer, and accredits price comparison sites, such as www.bonkers.ie or www.switcher.ie, where energy consumers can assess prices and identify significant savings. A customer consuming the average amount of electricity could save over €150 by switching suppliers. The competitive energy market results in choice for consumers and businesses in terms of suppliers, products and prices, exerting downward pressure on prices.

Electricity and gas price statistics for Ireland and for both European Union (EU) and Eurozone Member States are publicly available. The Sustainable Energy Authority of Ireland (SEAI) publishes biannual reports presenting electricity and gas price statistics from Ireland and all European Union Member States. These reports analyse electricity and natural gas price statistics, as published and collected by EUROSTAT for Ireland and other European countries under the methodology for the EU Gas and Electricity Price Transparency Directive 90/377/EEC as amended by Council Decision 2007/394/EC. The latest EUROSTAT average electricity and gas price statistics as published by the SEAI on their website relate to the first half of 2015.

On 29 April of this year, Electric Ireland announced a 6% reduction off their unit rate for domestic electricity consumers and on May 18 Electric Ireland announced that their customers could avail of additional savings of up to 8.5%. On the 1st June SSE Airtricity announced a 5% reduction off their unit rate for both electricity and gas consumers as well as launching a new 8% reward discount. While I have no statutory role in the setting, review or reporting of energy prices I welcome these reductions by energy suppliers in domestic gas and electricity prices.

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