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Thursday, 31 Jan 2013

Written Answers Nos. 20-29

Sale of State Assets

Ceisteanna (20)

Aengus Ó Snodaigh

Ceist:

20. Deputy Aengus Ó Snodaigh asked the Minister for Communications, Energy and Natural Resources the position regarding the sale of Bord Gáis Energy; and if he will make a statement on the matter. [4688/13]

Amharc ar fhreagra

Freagraí scríofa

Significant progress is being made on the sale of Bord Gáis Éireann’s Energy business as part of the State Assets disposal programme. NewERA is the agency with responsibility for oversight of the sale transaction on behalf of the Government and has appointed Barclays Bank plc as financial advisers to the Government with A & L Goodbody recently appointed by NewERA as legal advisers. My Department is also progressing priority actions to address necessary legislative, regulatory and financial issues in relation to the disposal process.

Bord Gáis Éireann (BGÉ) also continues to prepare for the restructuring and due diligence process, which is required as part of the sale transaction and the company is carrying out detailed preparatory work following the appointment of RBC Capital Markets as BGÉ's financial advisers and McCann FitzGerald as its legal advisers in relation to the sale. My Department, in conjunction with the Department of Public Expenditure and Reform, NewERA and BGÉ is advancing the various work-streams essential to the transaction. Dedicated Steering and Working Groups have been established with a view to commencing the sale process early this year.

Alternative Energy Projects

Ceisteanna (21)

Bernard Durkan

Ceist:

21. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources if he will outline his objectives in the context of this country’s reduction in its dependency on fossil fuels, with particular reference to the development of alternative sources of electricity generation, including wind, wave or hydro; the extent to which he expects to meet or exceed national and EU targets in this regard over the next ten years; if he will identify the extent to which the motor industry is likely to develop technology in tandem with this thereby reducing fuel import costs and meeting carbon reduction targets; and if he will make a statement on the matter. [4804/13]

Amharc ar fhreagra

Freagraí scríofa

Directive 2009/28/EC known as the Renewable Energy Directive, assigns a legally binding target of 16% on Ireland for the share of renewables in energy consumption by 2020. This target has to be meet across the electricity, transport and heating sectors and a minimum of 10% in the transport sector is required. Ireland intends to meet the target through 40% renewable electricity, 10% renewable transport and 12% renewable heating, which amounts to 16% of overall energy consumption, commensurate with our target.

In terms of the 40% renewable electricity to be achieved by 2020, the ability to meet this is largely determined by the grid connection offers to renewable generators. The grid connection process is vested in the Commission for Energy Regulation (CER). CER published a Gate 3 direction in December 2008, which was specifically designed with the intention of providing for sufficient renewable energy grid connection offers to achieve 40% renewable electricity by 2020. In addition, the CER published a decision on the connection of small, low carbon renewable generators outside the Gate process (CER 09/99.) This mechanism specifically provides for the ability of small anaerobic digesters, biomass CHP plants, wave and tidal devices and other non-wind renewable low carbon generators to connect to the grid outside of the Gate process by 2020.

The Gate 3 grid connection direction includes a list of specific renewable generating projects to receive grid connections. It can be seen that the vast bulk of these are onshore wind developments. Hence, wind will make up the bulk of the delivery of the 40% renewable electricity target. In the First Progress Report on the National Renewable Energy Action Plan (NREAP), available on my Department’s website, the Sustainable Energy Authority of Ireland (SEAI) modelling indicated that 3,521MW of wind would be needed on the electricity grid by 2020 in order to achieve our 40% renewable electricity target. This is approximately a doubling on the current position.

In addition, the NREAP progress report modelling also forecasts other technologies contributing to our 40% renewable electricity target - 274MW of biomass technologies by 2020 as well as 75MW of wave and tidal technology. Hydro is expected to contribute 234MW in 2020, largely made up of the large hydropower stations and some smaller generators. There are several very small hydropower stations already operational in the REFIT schemes. Wave and tidal energy is still at the RD&D stage of development, however, it is anticipated that some early devices will be available by 2020. The biomass REFIT 3 scheme opened in 2012 and provides for up to 310MW of biomass generated electricity. The volume of applications received to date has been positive.

The target set under Directive 2009/28/EC is 16% of all energy consumption to be from renewable sources by 2020, up from 3.1% in 2005. At the end of 2012, SEAI estimates that 6.4% of consumption was from renewable sources. Achieving our 2020 target will be challenging, however I am confident that it can still be reached. The rapid development of 2nd generation biofuels will be critical in terms of renewable transport, while maintaining our grid development and grid build on track will be essential if we are to double the renewable electricity on our grid in the next 8 years.

In terms of transport, over the coming years, we will see an increase in the number of Electric Vehicles becoming available. To date, in Ireland, only a very limited number of full battery Electric Vehicle models have been available for consumers. I expect, possibly later this year, to see the introduction of Plugin Hybrid Electric Vehicles. Plugin Hybrids use both a battery and an internal combustion engine to power the vehicle using two different types of technology. One is an advanced version of hybrid technology which has been available for some years now, where the vehicle is powered by the battery and the engine takes over as the power in the battery drops. Unlike previous hybrids, Plugin Hybrids can be recharged by mains electricity between journeys thus reducing the requirement for the engine to do the same. The other technology uses the engine as a backup generator so that the vehicle is constantly powered by electricity. In this area, I also expect to see battery technology improve and journey ranges increase. I would also expect to see vehicles developed that can run on higher blends of biofuels. Most new petrol vehicles can now run on blends of up to 10% biofuel with diesels capable of handling up to 7% biodiesel.

Another area where we will see developments is in relation to vehicles being fuelled by gaseous fuels, such as Compressed Natural Gas (CNG), biogas and biomethane. Though CNG is a fossil fuel, it is cleaner than petrol or diesel producing between 11 and 20 per cent lower carbon emissions per unit of energy produced than diesel. Biogas, which can be produced locally by anaerobic digestion of waste and plant material, can also be used in certain vehicles, including some which run on CNG. Furthermore, biogas can be further processed to produce biomethane which can be used as a direct substitute for any Natural Gas product not only in the transport sector, but in the heat and electricity sectors also. Hydrogen is another fuel which is being looked at by some major motor manufacturers as a fuel for the future but it is uncertain when this technology will become widely available.

Question No. 22 answered with Question No. 6.

Energy Resources

Ceisteanna (23)

Kevin Humphreys

Ceist:

23. Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources if he is satisfied with the current arrangements and supports for the extraction of oil and gas in Ireland's territorial waters; his plans for changes in this policy area in the coming year; and if he will make a statement on the matter. [4604/13]

Amharc ar fhreagra

Freagraí scríofa

Ireland operates a model where the State provides the opportunity and private industry bears the risk associated with investing in exploration activity. Exploration investment is encouraged through an active and targeted promotion campaign, the holding of regular licensing rounds and by supporting petroleum research projects that deepen knowledge of the petroleum potential of the Irish offshore. Last November, I announced that my Department had designed a major state-of-the-art seismic acquisition programme to provide a regional grid of high quality seismic data over our Atlantic frontier basins. When complete, the survey will add to the understanding of the petroleum potential of our frontier basins and should provide a boost to our efforts to attract a greater share of mobile international exploration investment to Ireland.

Maintaining an appropriate fiscal and broader regulatory regime is also a critical success factor. To that end my Department will continue to work with the Commission for Energy Regulation (CER) to ensure the effective development of a new risk assessment based Petroleum Safety Framework in line with best industry practice. In addition my Department is working with the Department of the Environment, Community and Local Government to streamline the environmental impact assessment of strategic petroleum projects.

Broadband Services Provision

Ceisteanna (24)

John Browne

Ceist:

24. Deputy John Browne asked the Minister for Communications, Energy and Natural Resources the progress being made on the national broadband plan; the extent of its impact in rural areas; and if he will make a statement on the matter. [4735/13]

Amharc ar fhreagra

Freagraí scríofa

The Government’s National Broadband Plan, which I published in August last, aims to radically change the broadband landscape in Ireland by ensuring that high speed services of at least 30Mbps are available to all of our citizens and businesses. During the preparation of the National Broadband Plan, the commercial market operators indicated that they expect to provide 70Mbps to 100Mbps services to 50% of the population by 2015. The areas to be provided with those services will be determined by the commercial market operators.

My Department is making preparations to commence a formal national mapping exercise to determine the exact position in relation to commercial service providers’ existing and planned broadband services throughout the country. This exercise will identify where the market is expected to succeed and fail in the delivery of high speed broadband over the coming years and will therefore inform the level of Government interaction that may be required and the areas that need to be targeted. It will also form a critical input to an EU State Aids application in respect of any intervention. The key is to ensure that all businesses and citizens, wherever they are located, have a broadband connection which meets their needs to interact effectively with society and business in a digital environment.

The Plan also sets out a number of additional actions concerning demand stimulation, spectrum policy, the removal of barriers to infrastructure rollout and maximising the use of State assets. Progress on the rollout of the Plan is being overseen by a High Level Group, which is chaired by my Department and comprises representatives from Department of Environment, Community and Local Government, Department of Transport, Tourism and Sport, OPW, NewERA, ComReg and Forfás.

Question No. 25 answered with Question No. 9.

Telecommunications Services Provision

Ceisteanna (26, 35)

Clare Daly

Ceist:

26. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources in view of the fact that the Government is promoting Internet and ICT and with the large number of persons contacting emigrants via Skype, if he will instruct ComReg to investigate the blocking of the Skype service by a leading Irish mobile phone company (details supplied). [4593/13]

Amharc ar fhreagra

Dessie Ellis

Ceist:

35. Deputy Dessie Ellis asked the Minister for Communications, Energy and Natural Resources his view on a mobile telephone company blocking the use of Skype on its devices; and if he will make a statement on the matter. [4684/13]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 26 and 35 together.

I refer the Deputies to my reply to Dáil Question No. 146 of 24 January last wherein I advised that the Commission for Communications Regulation (ComReg) had received a small number of consumer complaints in respect of one operator blocking Skype. ComReg is continuing to investigate this matter.

Question No. 27 answered with Question No. 16.

Alternative Energy Projects

Ceisteanna (28)

Seán Crowe

Ceist:

28. Deputy Seán Crowe asked the Minister for Communications, Energy and Natural Resources if he will establish a nationwide process of dealing with wind turbine applications that will outline a process where the concerns of all will be addressed; and if he will make a statement on the matter. [4678/13]

Amharc ar fhreagra

Freagraí scríofa

The Commission for Energy Regulation (CER) is the statutorily independent regulator for the electricity and natural gas sectors in Ireland under the Electricity Regulation Act 1999 as amended. Supervision of the grid connection process is vested in the CER. Aside from microgeneration that meets specified criteria, all applications by wind generators for connection to the electricity network are processed through the Gate process.

The CER established the Group Processing Approach known as the ‘Gate’ process for applications for grid connections. This means that grid connections in Ireland are processed in batches rather than sequentially. Within these gates, applications are further divided into groups and sub-groups based on the optimal network required to connect them. This approach is considered a more efficient process than dealing with applications on an individual basis where projects which are the subject of such applications interact with each other electrically and where large volumes of such applications exist. The group processing approach allows for a more strategic view to be taken of network requirements and serves to put in place efficient connection solutions to cater for large number of applications and to ensure optimum network development, minimising network costs and, where possible, avoidance of network bottlenecks.

To date, CER has put in place 3 'Gates.' Under Gate 1 and Gate 2, 1755MW of connection offers were made and accepted. Under Gate 3, almost 4000MW of offers issued to renewable generators. A Gate 3 liaison group involving EirGrid, ESB Networks, CER and industry representatives meets on a regular basis. The Sustainable Energy Authority of Ireland’s latest estimates are that around 4,000MW of renewable generation is required on the electricity network by 2020 to deliver our 40% renewable electricity target. The total amount of renewable generation in the 3 Gates is well above that amount.

While the take up of Gate 3 offers is not clear at this stage, largely as a result of ongoing consultations on the Single Electricity Market (SEM) Committee scheduling and dispatch rules, even with some fall off, sufficient offers appear to have already issued to ensure that our target can be achieved. The implementation of Gate 3 requires a significant amount of grid build and grid upgrade, which will be challenging to achieve in the period to 2020. EirGrid’s Grid 25 implementation plans are designed to augment and improve the grid in order to connect the Gate 3 grid connection offers and to deliver on our 2020 targets. Any decision on a future Gate for new wind generators would have to be considered in the context of the processes already underway.

Apart from the above, the CER published a decision in 2009 (CER 09/099) that allows for certain renewable, small and low carbon generators to connect to the transmission and distribution grids without going through the full rigours of the Gate process. This includes small projects, research and development projects and those that qualify as they are deemed to provide benefits of a public nature that merit qualification.

Broadband Services Speeds

Ceisteanna (29)

Peadar Tóibín

Ceist:

29. Deputy Peadar Tóibín asked the Minister for Communications, Energy and Natural Resources the reason Ireland is behind other European countries in access to high speed broadband; and if he will make a statement on the matter. [4680/13]

Amharc ar fhreagra

Freagraí scríofa

Considerable progress has been made in recent years in both the coverage and speeds of national broadband infrastructure, with a multiplicity of commercial operators, providing services over a diverse range of technology platforms. The Government has also undertaken a number of initiatives to bring broadband to those parts of the country where commercial operators have been unable to offer services. The combination of private investment and State interventions means that Ireland has met the EU Commission’s Digital Agenda for Europe target of having a basic broadband service available to all areas by 2013.

The Government, through the National Broadband Plan, which I published on 30 August last year, has recognised that the key imperative now is to ensure high speed broadband availability to all. This is a challenge which faces all Member States and comparisons between Member States can be difficult as measurement metrics differ, and Member States, often experience different barriers to deployment. The National Broadband Plan commits to ensuring that high speed services of at least 30Mbps are available to all of our citizens and businesses, well in advance of the EU's target date of 2020. Ireland is now moving to a new phase of public and private sector investment in broadband which will see significantly improved speeds delivered across the country.

As a consequence of the recent multi-band spectrum auction conducted by ComReg, new high speed 4G telecoms services will be rolled out by mobile operators and will significantly increase the speeds available across wireless platforms. In addition, the commercial sector is already investing in high speed fixed line services, particularly in urban and semi-urban areas. The National Broadband Plan commits the Government to investing in areas where high speed services are not commercially viable and will not be provided by the market. This will ensure that citizens or businesses, wherever they are located, have a broadband connection which meets their needs to interact effectively with society and business in the digital environment.

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