“It does not add up” – Minister Ryan
“Reading Fine Gael’s economics plan last year I got a distinct sense of déjà vu. The good elements, such as Ireland developing renewable energy, building a smart grid, rolling out electric vehicles, a smart meter in every home and allowing people to sell excess electricity back to the network were in the original 2007 Programme for Government. Not only are they Government policy, they are being implemented on a daily basis across Government and the semi-state sector. The 2009 Renewed Programme for Government built on the work already done and outstrips many of the NewEra provisions. The policy is essentially a cut and paste of Green policy in Government.
“New Era’s financial plan of €18 billion includes re-categorised NDP money of €7 billion and an unsubstantiated amount from the Pension Reserve Fund, the European Investment Bank and a national bond. The maths is very fuzzy indeed.
“The validity of the numbers can be gauged from the fact that original New Era or ‘old New Era’ launched in March of last year pledged investment of €11 billion and 100,000 jobs. ‘New NewEra’ promises investment of €18 billion with a similar number of jobs. It simply does not add up.
“Current Government policy has brought about costed and announced investment plans of over €30 billion in green energy. Investment in broadband from providers and Government stands at over €1.5 billion since 2007.
“We have already surpassed our renewable energy target for 2010.
“Energy prices in gas and electricity have reduced by over 25% in the past two years. We are converging on the European average and in many categories, such as the domestic and SME market, we are now lower than the EU average.
“We have instituted a national insulation programme to retrofit our old housing stock and over 5,000 contractors have registered to carry out this work. Already, the new jobs in the green economy run to the tens of thousands.
“We are trialling an ocean energy device off Co. Mayo to harness the power of the ocean.
We are rolling out electric cars across the country and, for the first time, are allowing people to sell the power they can create using renewable energy back to the national grid.
“Since entering Government, broadband subscription numbers have doubled, currently at 1.5 million and counting. Recent announcements from UPC, Imagine, Eircom, Vodafone, O2 and others demonstrate how quickly we’re improving.
“The National Broadband Scheme is a €230 million programme bringing broadband to the areas of the Government currently unserved. Broadband is getting faster and cheaper for the Irish consumer. The NewEra plans for broadband would in fact displace the significant investment by commercial operators and actually threaten our progress and the regulatory and policy certainty we have carefully achieved.
“This is the new economy, not on paper in an unsubstantiated dream, but in action – every day all over Ireland.
“Though it may not seem so, the Government’s plans are actually more ambitious than those in NewEra. The difference is ours is based on sound policy analysis, costed investment plans and is working. All this, without selling off state assets or raiding the pension fund. Or setting up an unnecessary quango of 100 employees to oversee the ‘new era’.
“Where is the Department of Communications, Energy and Natural Resources in this plan? It currently oversees the corporate governance of the semi-states referred to in NewEra. Is the Department to be abolished? Will NewEra answer parliamentary questions and be accountable to the Dáil? Will the head of NewEra be an appointee rather than an elected politician, answerable to the people? The NewEra quango is Kafkaesque in its conception and no Government should countenance such policy.
“It is flattering that Fine Gael seem to regard so much in the Programme for Government as excellent economic policy. It is worrying that this is where the analysis stops.
“It seems NewEra is more a marketing ploy than an economic strategy for this country.
“In Government, we cannot afford to play such games with the electorate or indulge in elaborate branding exercises. We have to act.
“I know that our truly transformational policies are bringing real investment and real jobs to the Irish people. We have only begun this work.
More will come onstream as we continue to use Ireland’s natural resources to forge a genuine new economy,” he said.
[ENDS]
Note to editors: See below a contrast of FG ideas, and the Government policy that is already in action:
Investment:
FG suggests €12.2 billion in energy.
Already, semi-state companies have committed to €30 billion in investment over the next decade. (See below)
ESB €22 billion
Bord Gais €2.5 billion
EirGrid €4 billion
Bord na Mona €1.5 billion
TOTAL €30 billion
The “Ideas”
FG idea “Ireland to produce well over 50% of its electricity from renewables by 2020”
Government policy: The Government target is 40% renewables by 2020, although Minister Ryan has consistently said this will not be the limit of our ambitions.
The All-Island Grid study, which is the most advanced and comprehensive analysis of its kind in the world electricity sector, demonstrates that Ireland could feasibly have 42% of its electricity generated from renewables by 2020. The Study was the recipient of the Annual Achievement award from the American Wind Utility Integration Group in 2008 and is the central ‘due diligence’ basis of Government policy on renewables. Launched on the 10th January 2008, it is available at http://www.dcenr.gov.ie/Energy/Latest+News/All-Island+Grid+Study+Published.htm
We have already surpassed our 2010 target for renewable energy http://www.dcenr.gov.ie/Press+Releases/Major+progress+in+renewable+energy+in+Ireland.htm
Generous renewable energy feed in tariffs are available for renewable energy producers – €220/mWh for ocean energy, €140/mWh for offshore wind and up to €150/mWh for bio-energy
We are partnering with eight other European Countries to construct a renewable energy “supergrid”, as well as trialling an ocean energy test-bed off the coast of Mayo. http://www.dcenr.gov.ie/Press+Releases/2009/Ireland+and+eight+European+countries+agree+on+North+Seas+Wind+Project.htm
2. FG idea: Develop nationwide infrastructure that will allow 50% of cars run on electricity by 2025
Government policy: The Government announced its intention that 10% of Ireland’s transport fleet would be electric by 2020 i.e. 250,000 vehicles.
The Programme for Government commits to 6,000 electric vehicles over the next 3 years.
The Government has signed three Memoranda of Understanding – two with Nissan-Renault and ESB, and another with Mitsubishi, in order to bring the vehicles to the Irish market as soon as they are available. Additionally, Ireland’s first ecar trial-project will also be conducted by Trinity College Dublin http://www.dcenr.gov.ie/Press+Releases/GREEN+LIGHT+FOR+ELECTRIC+MOTORING.htm
Government is providing grants of up to €5000 towards the cost of electric vehicles which will also be VRT exempt. ESB has committed to providing the infrastructure for such a radical overhaul of our electricity system so that electric vehicles can be charged on the Irish system – 3,500 charge points and 30 fast charge points announced April 2010 http://www.dcenr.gov.ie/Press+Releases/ELECTRIC+CARS+A+REALITY+FOR+IRELAND.htm
3. FG idea “Smart Grid” to install smart meters in every home, allow people to sell electricity back to the network, facilitate renewable generation and electric cars and reduce fossil fuel dependence
Government policy: Investment of €4 billion by EirGrid to allow Ireland’s electricity infrastructure carry 60% more renewables than current levels – announced October 2008: http://www.eirgrid.com/media/Grid%2025.pdf
Government policy: A Smart Electricity Network – announced on 21 July 2009 “Technology Actions to Support the Smart Economy” – http://www.dcenr.gov.ie/Press+Releases/Making+the+smart+economy+real.htm
The Government plans to roll-out an electricity network that allows for a two-way flow of electricity. This will enable microgenerators, smart meters and a range of energy efficiency measures. The ESB has committed to developing an Electric Vehicle charging system to reach the Government’s electric vehicles targets.
Such a system requires communications technology linked with the electricity network. Developing the smart electricity network will sustain the 3,700 jobs already announced by the ESB and more in anticipated indirect employment arising from electric vehicles, smart meters, microgeneration and the Government’s wider sustainable energy agenda.”
Government policy: Smart meters in every home by 2013
The Government’s Smart Electricity Meter plan which is well underway. Pilot of 6,000 meters taking place currently to prepare for national rollout http://www.dcenr.gov.ie/Press+Releases/2008/Minister+Ryan+launches+the+National+Smart+Metering+Plan.htm
Government policy: Allow people to sell electricity back to the network
Minister Ryan changed the rules to allow people sell electricity back to the national grid and then announced an incentive scheme in February 2009 to help people work under the new regime http://www.dcenr.gov.ie/Press+Releases/People+power+Minister+Ryan+announces+incentives+for+micro-generation.htm
Government Policy: Revolutionary telecoms network to link to Smart Grid
Minister Ryan announced a new energy efficient telecoms Exemplar network which will form part of the Smart Grid. Announced April 2010 http://www.dcenr.gov.ie/Press+Releases/Press+Release+-+Ireland+to+build+revolutionary+high-speed+telecoms+network.htm
3. FG idea: Provide funds to utility companies to implement ‘Pay as you Save’ national retrofitting scheme
Government policy: National retrofitting scheme already underway, moving to a ‘Save As You Pay’ model next year
Programme for Government October 2009: “We will introduce new energy demand reduction targets for energy utilities, thus allowing the customer to “save as they pay” through energy efficient measures.”
Consultation already underway with utility companies and industry stakeholders.
In short: FG proposes more renewable energy, grid to support, smart meters, electric vehicles, micro-generation and national retrofitting plan.
The Government is DOING all of these
Broadband
4. FG idea: Broadband 21 will amalgamate and build out the diverse telecom assets of existing state companies including Bord Gáis, CIE, ESB and MANs.
FG suggest investment of €1.8 billion over 4 years
Government Policy
Already, investment in Broadband by Government and private sector has reached almost €1.5 billion in just two years:
2008 €516m
2009 €700m
NBS €230m
Total €1.446 bn
The “one-stop shop” for State broadband infrastructure is to provide service providers with integrated access to State-owned infrastructure. (June 2009)
National Broadband Scheme (underway) to provide broadband to blackspots in the country by end of this year.
100 mb in course of being delivered to every post primary school in the country – networks and equipment already installed in 78 schools nationwide.
Competition delivering higher speeds e.g. 100 mb announced by Imagine Wi-Max, UPC broadband and Eircom Broadband and others, all delivering higher speeds.
