Written Answers Nos. 1-20
5. Deputy Eamon Ryan asked the Minister for Communications, Energy and Natural Resources when smart metering displays will be rolled out for domestic electricity and gas use; the role of his Department in considering such a strategy; and the timeline in this regard. [21700/16]
View answerThe National Smart Metering Programme is managed by the Commission for Energy Regulation and includes both electricity and gas meters. Officials from my Department are members of the steering group that has oversight of the National Smart Metering Programme. The most recent phase of consultation concluded in April this year with the publication of policy papers relating to customer information, customer protection and the wider transition from traditional to smart meters.
Last month, ESB Networks commenced the procurement process for electricity smart meters and communications systems by issuing a notice in the Official Journal of the European Union.
The key determinant of the scale, scope and timing of the roll-out is a cost benefit analysis that is currently being developed by the Commission for Energy Regulation. The cost information from the procurement process will be a key input into the cost benefit analysis, the results of which are due in the first quarter of 2017.
The roll-out of smart meters would take a number of years and will commence in late 2018 at the earliest. In-home display would be available to all consumers to allow them to see their level of energy use. The ‘go live’ date of smart services will follow once a significant number of smart meters have been rolled out. This will allow energy suppliers to provide detailed information to consumers on their energy use.
14. Deputy Sean Sherlock asked the Minister for Communications, Energy and Natural Resources his plans to recognise the presence of the solar industry; and the potential schemes that will provide for solar energy in the energy mix. [21632/16]
View answerThe Programme for Government contains a commitment to facilitate the development of solar energy projects. This commitment builds on the Energy White Paper published in December 2015 and recognises that solar photo voltaic also has the potential to provide a community dividend, thereby enhancing citizen participation in Ireland's energy future. It is widely recognised that solar photo voltaic technology has become more cost competitive for electricity generation over the last few years, not only compared with other renewables but also compared with conventional forms of generation. With these significant changes in the cost of the technology, the deployment of solar photo voltaic in Ireland has only recently become a potential cost-effective option to increase energy security, contribute to our renewable energy targets, and support economic growth and jobs. It is also recognised, however, that while the cost competitiveness of solar photo voltaic has improved, it would still require a subsidy in order to be developed on a commercial basis.
In-depth economic analysis is now underway to inform the actual costings of a new Renewable Electricity Support Scheme scheme. While no decision has been taken on the precise renewable technologies to be supported, the cost and technical viability of a range of renewable technologies is being assessed, including solar photo voltaic.
Designing and implementing a new scheme is a complex task and it is expected that the broad details of the new scheme will be available early next year. Before these details are announced, the Department will run a second public consultation, which will give all interested parties an opportunity to input into the development of the scheme. Ultimately, the introduction of any new scheme will be subject to Government and State aid approval from the European Commission.
While there are no specific targets in relation to any individual renewable energy technology, any renewable energy technology that is built and connected before 2020 can contribute towards Ireland’s 2020 renewable energy target. This may include solar photo voltaic.
15. Deputy Brendan Smith asked the Minister for Communications, Energy and Natural Resources his plans to improve the broadband telecommunications service throughout counties Cavan and Monaghan; if he is aware that households, educational and business interests, particularly small and medium-sized enterprises, are concerned about the inadequate service that exists in many areas in these counties; if he will undertake the necessary investment programme without further delay to bring the broadband services up to a proper standard; and if he will make a statement on the matter. [21512/16]
View answerThe National Broadband Plan is a priority for Government and Plan is being delivered through a combination of investment by telecommunications operators and a State Intervention in areas where commercial investment is not forthcoming. This is reflected in the High Speed Broadband Map, at broadband.gov.ie. The areas marked BLUE on the map are where commercial providers have previously indicated plans to deliver high speed broadband services. The areas marked AMBER represent the State Intervention area. Individuals can check whether their premises is in a BLUE or an AMBER area by entering their address or Eircode. They can also email the Department, quoting their Eircode, to broadband@dcenr.gov.ie.
There are over 750,000 premises in the Intervention Area, including over 24,000 premises in Cavan and 19,500 in Monaghan. Last week, I announced that a further 170,000 premises will need to be covered by the State Intervention. Further analysis is being undertaken by my Department to identify the exact location of these premises and to adjust the High Speed Broadband Map.
The Department has now moved to the next stage of the procurement process and three qualifying bidders will commence dialogue with the Department next week. This will be followed by the issue of final tender documents and the current schedule envisages contract(s) award in June 2017. The timing of each stage of the procurement is dependent on a number of factors, including the complexities that may be encountered during the process.
The Department will engage with winning bidder(s) on the best roll-out strategy, in order to target areas of poor service, business needs and/or high demand. This will be balanced with the need to roll-out the network in an efficient manner. A prioritisation programme will be put in place and the detailed roll-out plan for the network will be published once contract(s) are in place.
In parallel with the procurement, Minister Humphreys is establishing regional action groups, working with Local Authorities, Local Enterprise Offices, LEADER Groups and other relevant agencies. This will help accelerate the broadband network build in rural Ireland, once a contract(s) has been awarded.
16. Deputy Eamon Ryan asked the Minister for Communications, Energy and Natural Resources if his Department carried out any compliance with the potential costs to the State from failure to meet compliance with the European Union renewable energy supply obligations for the electricity, heat and transport sectors. [19555/16]
View answerThe Energy White Paper, Ireland's Transition to a Low Carbon Energy Future, published in December 2015, sets out a vision for transforming Ireland's fossil-fuel based energy sector into a clean, low carbon system by 2050. The clear focus of my Department is on implementing the range of actions set out in the White Paper and Programme for Government that are aimed at meeting our energy and climate change targets. 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 price volatility, is essential to Irish consumers as we make the transition to a low carbon system.
The 2009 EU Renewable Energy Directive 2009/28/EC 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. The Government has adopted a range of support measures designed to meet our binding target, and although good progress towards our target has been made to date, meeting the 16% target remains challenging. Provisional data from the Sustainable Energy Authority of Ireland indicates we had reached 9.2% of the overall 16% target at the end of 2015.
In the electricity sector, the primary support mechanisms introduced for renewable electricity are the Alternative Energy Requirement schemes and the Renewable Energy Feed-In-Tariff schemes. These schemes have proved successful at incentivising the development of the renewable electricity generation capacity necessary to meet our 40% renewable electricity target, and provisional figures show that in 2015 some 25.3% of electricity demand was met by renewable sources.
In the heating sector, my Department is working on the introduction of a new Renewable Heat Incentive to support the deployment of renewable energy in the sector. The primary aim of the RHI is to build on the progress already made in heating and to help reach our 12% target by 2020. In 2015 it is estimated that 6.8% of heat was derived from renewable sources.
In the transport sector Ireland aims to meet our renewable target mainly through the increased use of sustainable biofuels, with electric vehicles also making a small contribution. In 2015, provisional figures indicate 5.7% of our energy needs in the transport sector were met from renewable sources.
The clear focus is on implementing the range of actions set out in the White Paper and Programme for Government that are aimed at meeting our energy and climate change targets. While my Department has not carried out any studies in regard to the potential costs of not meeting our overall renewable energy targets, the Sustainable Energy Authority of Ireland (SEAI), has estimated that the cost to Ireland may be in the range of €100 million to €150 million for each percentage point Ireland falls short of the overall 16% renewable energy target.
17. Deputy Brian Stanley asked the Minister for Communications, Energy and Natural Resources to request Bord na Móna to produce a plan for the future use of the natural resources that it owns at the Coolnamona group of bogs in County Laois and at Kilberry in south County Kildare. [21521/16]
View answerBord na Móna is a commercial State company operating under the Turf Development Acts 1946 to 1998 and is responsible for, inter alia, the management and development of the lands in its ownership. Since its establishment in 1946, Bord na Móna has developed the country’s extensive peat resources primarily for fuel, energy and horticultural growing media. As part of this development, the company has acquired extensive areas of peatland, together with other lands and properties. These lands extend in total to approximately 80,000 hectares. I am advised that Bord na Móna owns approximately 1,450 hectares of peatland in the Cuil Na Mona Group of bogs, consisting of Cuil Na Mona, Coolnacartan and Cashel bogs. There are 980 hectares in Bord na Móna’s ownership at Kilberry. I understand that all of these areas are currently used for peat production for use in the energy and horticultural businesses. Bord na Móna has confirmed that it is expected that they will continue to be used for these purposes for at least another 10 years.
I am informed that Bord na Móna operates in compliance with Integrated Pollution Control licences issued by the EPA and that these licences oblige the Company to, inter alia, prepare a plan for the rehabilitation of peat lands to be implemented when peat production ceases. I understand that a draft rehabilitation plan for each of the bogs mentioned has been submitted to the EPA.
I am also advised that the Company has prepared a strategic framework for the future use of peatlands, setting out broad principles which will enable Bord na Móna to balance and optimise the commercial, social and environmental value of the Company’s lands. The lands at Cuil na Mona and Kilberry will be assessed in accordance with this framework when peat production ceases.
18. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources the programme for Government commitments relating to improving mobile telephone coverage; the timetable for actions in this area; and if he will make a statement on the matter. [21626/16]
View answerThe Programme for a Partnership Government commits to the establishment of a mobile phone and broadband Taskforce which will consider immediate measures to address telecommunications deficits in rural Ireland. My Department is engaging with the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs in relation to the terms of reference for the Taskforce to ensure delivery of the Programme for Government commitment. The Taskforce will involve a number of Government Departments and agencies, as well as engagement with ComReg and telecommunications operators. My Department has already conducted a number of meetings with vendors and mobile operators to help inform the process and identify what tangible measures can be taken. I expect that Minister Humphreys and I will bring proposals to Government by the end of 2016, on foot of the Taskforce's report.
The Programme for a Partnership Government also commits also to measures to assist in the roll-out of the network once a contract is awarded. In this regard, Minister Humphreys is leading on the establishment of two regional action groups, working with Local Authorities, Local Enterprise Offices, LEADER Groups and other relevant agencies to help accelerate the broadband network build in rural Ireland, once a contract(s) has been awarded. I expect that the work of the National Taskforce will assist in the development of regional digital strategies, by providing guidance, legislation if appropriate, and information on how Local Authorities can accelerate the roll-out of services in their areas.
These new structures at national and local level, are designed to address as far as possible immediate frustrations about the quality of mobile phone and broadband coverage.
The commercial telecommunications sector has invested over €2bn in the last 4 years, in upgrading and modernising networks which support the provision of telecommunications services. These include the upgrading of 3G networks and investment in new 4G networks. It also includes significant investment in high speed broadband services. These investments are improving the coverage and quality of broadband and mobile voice and data services throughout the country, although I understand that some temporary disruptions to service have been encountered when upgrades are taking place. ComReg is also planning the further release of spectrum to assist in the roll-out of wireless services, particularly in rural areas.
My Department continues to liaise closely with industry and relevant other Departments and agencies to assist in the commercial deployment of telecommunications networks and this will be a key focus for the Mobile Phone and Broadband Taskforce.
19. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which he has received complaints in regard to quality, speed and availability of modern broadband facilities throughout urban and rural Ireland; the extent to which his plans to address the issue can be expedited over the next five years; and if he will make a statement on the matter. [21543/16]
View answerThe National Broadband Plan (NBP) aims to deliver high speed services to every city, town, village and individual premises in Ireland. The Programme for a Partnership Government commits to the delivery of the NBP as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and through a State intervention in areas where commercial investment is not forthcoming. The formal procurement process for the State Intervention commenced in December 2015. The High Speed Broadband Map, which is available at www.broadband.gov.ie shows the extent of the State Intervention area, which is the subject of procurement. The areas marked BLUE represent those areas where commercial providers are either currently delivering or have previously indicated plans to deliver high speed broadband services. The Department continues to monitor the commercial deployment plans in the BLUE area to ensure that those services are delivered. The areas marked AMBER on the High Speed Broadband Map represent the target areas for the State Intervention. The map provides information on a county by county basis with a breakdown of coverage across the townlands in every county. The Department also has a dedicated mailbox and anyone with a query in relation to the Map should email the Department, quoting their Eircode, to broadband@dcenr.gov.ie.
Over 750,000 premises are the focus for the procurement process, which formally commenced in December 2015 with the publication of the Pre-Qualification Questionnaire ( 'PQQ') and Project Information Memorandum. On 5 July 2016, I announced that my Department has also identified a further 170,000 premises which are currently market BLUE on the High Speed Broadband Map and which are unlikely to get access to services. My Department is currently in the process of identifying these additional premises with a view to including them in the formal procurement process.
On 5 July I also announced that the Department has now moved to the next stage in the procurement process. In this Invitation to Participate in Dialogue (ITPD) phase, three qualifying bidders have been invited to meet with the Department to commence the formal dialogue process. The qualifying bidders will shortly be furnished with a draft contract, with detailed specifications for a quality and affordable high speed broadband network.
Following the ITPD stage, which will take a number of months, the Department will issue final tender documentation to bidders. When final tenders have been submitted a winning bidder(s) will be selected for the contract which will comprise one or two lots as set out in the NBP Intervention Strategy. The Department will then enter into formal contract negotiations with the winning bidder(s), with a view to having contract(s) in place in June 2017.
The timing of each stage of the procurement is dependent on a number of factors including the number of bidders short-listed and the complexities that may be encountered during the dialogue process. It must be noted that bidders will need several months to prepare their draft bids and their final formal bids and get the relevant shareholder and funding approvals at these stages of the process.
As part of the Department's extensive stakeholder consultations in 2015, telecommunications service providers indicated that it could take 3-5 years to roll-out a network of the scale envisaged under the NBP. It is however open to bidder(s) to suggest more aggressive timescales as part of their bids. As part of the competitive process, the Department will engage with winning bidder(s) on the best roll-out strategy, in order to target areas of particularly poor service, business needs and / or high demand. This will need to be balanced with the most efficient network roll-out plan. A prioritisation programme will be put in place in this regard, in consultation with the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. A detailed roll-out plan for the network will be published once contract(s) are in place.
In the meantime, my Department continues to liaise closely with industry and relevant other Departments and agencies to assist in the commercial deployment of telecommunications networks. The commercial telecommunications sector has invested over €2bn in upgrading and modernising networks which support the provision of high speed broadband and mobile telecoms services. These investments will further improve the coverage and quality of broadband and mobile voice and data services throughout the country. The Programme for a Partnership Government commits to the establishment of a mobile phone and broadband Taskforce which will consider immediate measures to address telecommunications deficits in rural Ireland. My Department is engaging with the Department of Arts, Heritage and the Gaeltacht in relation to the terms of reference for the Taskforce to ensure delivery of the Programme for Government commitment. The Taskforce will involve a number of Government Departments and agencies, as well as engagement with ComReg and telecommunications operators. My Department has already conducted a number of meetings with vendors and mobile operators to help inform the process and identify what tangible measures can be taken. I expect that Minister Humphreys and I will bring proposals to Government by the end of 2016, on foot of the Taskforce's report.
The Programme for a Partnership Government commits also to measures to assist in the roll-out of the broadband network once a contract is awarded. In this regard, Minister Humphreys is leading on the establishment of county or regional broadband taskforces, working with Local Authorities, Local Enterprise Offices, LEADER Groups and other relevant agencies to help accelerate the broadband network build in rural Ireland, once a contract(s) has been awarded.
I fully accept that all citizens should have access to reliable and quality broadband services and I am acutely aware of the challenges faced by business and households alike due to poor quality broadband. The provision of telecommunications services is of course primarily a matter for the service providers concerned who operate in a fully liberalised market. These operators are regulated by the independent regulator, the Commission for Communications Regulation (ComReg).
Any regulatory issues surrounding quality of service are the responsibility of ComReg. If, after having exhausted the service provider’s complaint handling procedures, a customer is not happy they may contact ComReg, on 1890 229 668; online at http://www.askcomreg.ie/ or by email at Consumerline@comreg.ie, for further assistance and guidance. As the body that issues licences to broadband service providers, ComReg will investigate such complaints to ensure that the company in question is delivering services in line with its licence obligations.
20. Deputy Bríd Smith asked the Minister for Communications, Energy and Natural Resources his plans to spend any savings as a result of the privatisation of the national broadband plan; the portion he expects to spend on climate change mitigation and prevention; and if he will make a statement on the matter. [21591/16]
View answerOn 5 July 2016, the Government selected the Commercial Stimulus Model as the optimum ownership model for the network that will be part-funded by the Exchequer. The Government considered two ownership models, having narrowed the options down last December, from five models. The two models are: - Commercial Stimulus where the private sector finances, designs, builds, owns and operates the network, with contractual obligations to the Department.
- Full Concession where the private sector finances, designs, builds and operates the network with contractual obligations to the Department. In this model, those assets funded by the State are handed back to the State after 25 years; commercial assets that support the NBP infrastructure would however remain in private ownership.
Both Models will deliver the same network, with the same service specifications and controls, for 25 years. In both models, the winning bidder(s) will be subject to stringent contract provisions to ensure that the network delivers quality, affordable high speed broadband to all parts of Ireland that cannot access services.
The Department has completed detailed costings, down to every individual premise in the Intervention Area and, on that basis, has modelled the likely cost of each ownership model. It would not be appropriate to publish the expected cost of building the network or the likely cost to the State while a major public procurement process is underway. I do not intend therefore, to indicate the overall estimated Exchequer funding parameters. Ultimately, the costs will depend on the price that bidder(s) quote in the tender process. I can however confirm the following based on the cost modelling completed to date:
- The Full Concession Model is estimated to cost 50 – 70% more in nominal terms that the Commercial Stimulus Funding model;
- In the Full Concession Model, the full cost of the project would be likely to go on the Government’s Balance Sheet, and the commercial sector input would likely be regarded as Government debt;
Having the entire project on the Government’s Balance sheet would impact the general Government deficit by approximately €1bn more than the Commercial Stimulus Model. This would also reduce the available capital spend for other key investment projects by up to €600m over the next six years.
In choosing the Commercial Stimulus Model, up to €600m now can be potentially allocated for other priority projects over the next six years. It is a matter for Government to determine the appropriate use of additional capital funding that may be available having regard to the Programme for Government commitments, including those commitments in relation to climate action.
