Simon Coveney (Cork South Central, Fine Gael)
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Question 52: To ask the Minister for Communications, Energy and Natural Resources his proposals to promote electric transport this year. [10455/10]

Eamon Ryan (Dublin South, Green Party)
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The Government has ambitious plans for the large-scale deployment of electric vehicles in Ireland. A target has been set of 10% of all vehicles to be powered by electricity by 2020, which would equate to approximately 225,000 cars on Irish roads. Electric vehicles are an increasingly realistic solution to the challenge of reducing the transport sector's greenhouse gas emissions and reducing reliance on imported fossil fuels. There is now significant global investment under way in research and development in this area. The technology is maturing to a point where large-scale commercial deployment appears feasible in the short to medium term. There is keen interest at EU level and internationally in Ireland's commitment to be an early mover in this field. Ireland is seen as an excellent testbed, particularly in respect of its network infrastructure development. The challenge now is to develop economically viable options for the establishment, cost-efficient operation and maintenance of an electric vehicle infrastructure network in Ireland, together with measures to develop a market for the vehicles themselves.

ESB Networks is playing a central role in the research and development of the infrastructure network. The ESB also is playing a leading role in work by European utilities and car manufacturers to further essential standardisation across Europe. I have given my support to the current Spanish Presidency in highlighting electric vehicles as a key EU priority. I also have welcomed the recent confirmation by the European Commission that it is to begin work on the standardisation agenda. The interdepartmental-interagency task force has assessed the costed options and timeframes for putting in place the necessary infrastructure and other arrangements for the cost-effective deployment of electric vehicles on a national basis. Initial estimates by ESB Networks for the roll-out of infrastructure are between six and 18 months, depending on the scale of initial deployment. Global developments will be factored in as the technologies mature.

The introduction of incentives to assist in the roll-out of electric vehicles, as set out in budget 2010, is being furthered by my Department and the Department of Finance. As the Minister for Finance stated in his Budget Statement, it is intended that incentive systems will be in place to coincide with the arrival of the first electric vehicles later this year or at the same time as the agreed arrival of electric vehicles from a number of car manufacturers.

My Department and the ESB have already agreed a memorandum of understanding with Renault-Nissan that provides for ongoing information exchange on developments. Discussions also are under way with a number of other car manufacturers, with a view to developing memoranda of understanding with them. I understand there are several promising prospects in this regard for later this year.

Simon Coveney (Cork South Central, Fine Gael)
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First, I welcome the commitment by the Spanish Presidency that this issue should be one of the key priorities for the European Union during its presidency. I also welcome the initial moves by the EU towards standardisation in respect of plugs, charging and so on. My concern is with the Government's lethargy in driving forward this agenda. I acknowledge the Minister agrees with me that this is a technology which can transform the transport sector in Ireland, can deal in a highly impressive way with an emissions problem in that sector and can act as an exciting new development for the energy sector, particularly with regard to dealing with intermittency issues pertaining to wind generation. Is the Minister satisfied that ESB Networks is doing enough in respect of its proposed pilot projects? My understanding from the Minister's reply on 26 January last is that ESB Networks intends to put in place 20 charging points as a national pilot project. How many charging points does the Minister envisage being installed during the six to 18 months timeframe in which ESB Networks is involved? Second, a number of months have passed since a memorandum of understanding was put in place with Renault-Nissan. What has been the result and how many cars can one expect will come into Ireland from that company? Does Ireland have the infrastructure to be able to facilitate this?

Brendan Howlin (Wexford, Labour)
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Go raibh maith agat.

Simon Coveney (Cork South Central, Fine Gael)
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I have one or two other brief questions.

Brendan Howlin (Wexford, Labour)
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I will revert to the Deputy but I wish to ensure that Members receive a full answer.

Eamon Ryan (Dublin South, Green Party)
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I am satisfied the ESB is doing the right thing and is doing enough. It is a staged roll-out and I understand it has already started. There is a charging point outside my own office and a number of other locations but that is only the beginning. It is intended to deal first with a number of our cities and then to consider connecting them. I had an interesting meeting last week with officials from the British Government's Department that is involved in this area to ascertain whether work in Dublin and Belfast could be co-ordinated to develop a corridor. Such a corridor, in which two systems are connected, would be highly progressive. Consequently, I am fully confident that the ESB is performing the correct analysis and that Ireland is a good and proper test location for this technology because the distances are not insurmountable. I am also confident that the roll-out of the charging points will be sufficient to meet the needs of approximately 6,000 vehicles initially over the first three years but with the objective of increasing this number to 200,000 vehicles by the end of this decade and thereafter to go on to transform the entire fleet.

This is the opportunity that is open to us. I agree with the Deputy that we share an ambition on this issue to the effect that our renewable variable supply and single distributed network give us a competitive advantage. The United Kingdom has six different grids, which makes it difficult for it. As one would not wish to be dependent on any single vehicle or company, I understand the memorandum of understanding with organisations such as Renault-Nissan might lead to one third, one quarter or a percentage of the vehicles that are needed, which is appropriate. Were two or three car companies to deliver 2,000 vehicles each, it would set us up.

Brendan Howlin (Wexford, Labour)
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I ask both the Minister and the Deputy to be more concise in their answers and questions.

Simon Coveney (Cork South Central, Fine Gael)
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To clarify, the Minister has stated that over the next three years, we will deploy 6,000 vehicles and then, over the following six years, he intends to deliver 244,000 vehicles. This is what Members are being told because the target for 2020, which is only ten years away, is to have 250,000 such vehicles. My concern is that although Ireland is engaged in pilot projects, it should propose itself as a pilot project for the European Union. I am frustrated with this lack of ambition because I do not believe Ireland can ramp up from 3,000 vehicles to 250,000 vehicles in the space of six years. I refer in the first instance to the requisite infrastructure to facilitate this. I am highly concerned that we are progressing too cautiously in this regard and as a result will not receive the benefits associated with being a first mover in respect of technology, smart charging, software and everything else because we simply will be overtaken by other countries' levels of ambition

Eamon Ryan (Dublin South, Green Party)
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It is exactly our ambition to be a testbed for the technology. Our first requirement was to get any vehicles as there is a queue of countries who seeking to be in Ireland's position, having been able to have signed a memorandum of understanding with Renault-Nissan and hopefully with other companies such as Mitsubishi. First, this will give us the opportunity of having some vehicles, because certain countries that will seek vehicles will not be able to have access to them, to turn Ireland into a testbed facility.

Simon Coveney (Cork South Central, Fine Gael)
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Three thousand vehicles. Is that it?

Eamon Ryan (Dublin South, Green Party)
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I have been informed by both the ESB and my Department that 6,000 vehicles is a sufficient number to provide us with a proper testbed location in which we can develop the software technology and data management technology that comprises the real economic opportunity for Ireland behind the development of electric vehicles, as well as managing our renewable electricity supply.