Written answers

Wednesday, 15 January 2014

Department of Communications, Energy and Natural Resources

Electricity Transmission Network

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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459. To ask the Minister for Communications, Energy and Natural Resources if he will provide evidence that placing electricity pylons under ground will add 3% per annum for 50 years to domestic electricity bills. [1270/14]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Decisions regarding the construction of the electricity transmission infrastructure are operational matters for EirGrid. Apart from the tariff charged by BGE to its residential gas customers, the Commission for Energy Regulation (CER) no longer regulates final retail prices in either electricity or gas. The CER does regulate the network component to be charged within retail electricity and gas prices.

I am advised by the Commission for Energy Regulation (CER) that it estimates that the additional cost of implementing an underground cable solution for the main Grid25 projects would increase the capital costs of the projects from €1.4 billion to €3.12 billion. I am further advised by the CER that this estimate is based on certain assumptions and the estimated increased costs are conservative and could be higher. The CER would be happy to provide the Deputy with a more detailed explanation of their calculations which, the CER believes, would add an additional 3%, per annum increase in customer tariffs over the coming 50 years. I would be happy to request the CER to provide the Deputy with the relevant material. Finally, I should mention that the CER have also highlighted that the increased costs giving rise to the estimated 3% increased are capital only and that higher operational costs would also be anticipated for any underground solution.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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460. To ask the Minister for Communications, Energy and Natural Resources if the proposed Eirgrid Gridlink Project is to be used exclusively for point to point transmission; if there will be any elements of a localised distribution network; and if he will make a statement on the matter. [1290/14]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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461. To ask the Minister for Communications, Energy and Natural Resources if he will provide a list of all independent reports to determine the need for Eirgrid's Gridlink proposal; and if he will make a statement on the matter. [1291/14]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Independent)
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462. To ask the Minister for Communications, Energy and Natural Resources if homeowners will be compensated for any drop in value of their homes as a result of EirGrid's Gridlink Project; and if he will make a statement on the matter. [1294/14]

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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468. To ask the Minister for Communications, Energy and Natural Resources if he has had any contact with Coillte regarding the use of Coillte lands for the construction of pylons as part of the Eirgrid project to upgrade the national grid; and if he will make a statement on the matter. [1384/14]

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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475. To ask the Minister for Communications, Energy and Natural Resources his views on reports that Eirgrid is to carry out a survey with the view to having a powerline between this country and France in order to export electricity generated from wind; his views that this would represent the best use of our renewable energy resources [1616/14]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 460 to 462, inclusive, 468 and 475 together.

While several of the issues raised in the Question are matters for EirGrid, and not ones in which I, as Minister, have a statutory role or function, I do wish to respond to the issues that fall within the ambit of my Department and Government policy in this area.

EirGrid’s Grid25 Programme is a Government endorsed strategy to develop the transmission network to ensure nationwide safe, secure and affordable electricity supply supporting economic growth, renewable and sustainable energy. It represents the most important investment in Ireland’s transmission system for several generations and will position our energy system for decades to come.

The Government's July 2012 Policy Statement on the Strategic Importance of Transmission and Other Energy Infrastructure underlined the urgent need for new energy infrastructure and its importance to individual consumers, but acknowledged that it will be necessary to have public confidence that relevant projects and programmes adhere to the highest international standards of safety, particularly with regard to health, environmental and visual impacts, and avail of optimal technologies.

Neither the Government nor I seek to direct the energy infrastructure developers to particular technologies, sites or routes as was made clear in the Government Policy Statement. That statement emphasises that these are matters for the developers and for the forward planning process through regional and local development plans and at project level through the development management process. Ultimately, it will fall to An Bord Pleanála to determine whether the views expressed have been adequately taken into account in the final project design.

The Grid25 consultation process is a key opportunity for public input as no decisions have been made regarding the final routes of these electricity lines. Following conclusion of the consultations on the €500m Grid Link project, I have had a productive meeting with the Board and senior management of EirGrid. Some 35,000 submissions from the public are now being sifted through in detail by EirGrid and I have asked the company to prepare an initial list of the main issues raised. I am satisfied that the value of the public consultation will be determined by the character of the response to the issues raised. I am committed to making a response to the public consultation in Dáil Éireann as soon as an initial report is available. I expect to be able to respond before the end of this month.

It is important to note that Grid25 is completely separate from the work underway on a possible Inter-Governmental Agreement with the UK on wind export. Grid25 was underway long before any proposals in this regard. Grid development is required to serve our own domestic energy needs, and it will be still required regardless of whether any agreement with the UK emerges.

EU policy is to encourage greater integration and interconnectivity between member states. EirGrid has the statutory responsibility in this regard. Enhanced security of supply, increased competitiveness, and the ability to integrate greater quantities of renewable generation resources are some of the potential benefits of further interconnection between the transmission grids of Ireland, Great Britain and mainland Europe. I understand from EirGrid that a number of studies are exploring different aspects of the feasibility of additional interconnection and these will feed into the decision of future interconnection investment.

I have had no discussion with Coillte regarding the use of their lands for any part of the Grid25 project.

I look forward to reporting back to the House on these matters before the end of this month.

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