Contents:

• Opening remarks Aimée Treacy, Chairperson, NEPPC
• The case in favour of undergrounding Padraig O’Reilly
• Concluding remarks Aimée Treacy

Opening Remarks – Aimée Treacy

A Chathaoirligh, a Theachtaí Dála agus a Sheanadóirí

Chairman, on behalf of the North East Pylon Pressure Campaign (NEPPC),  I want to thank you and the members of your Committee for the opportunity you are affording us this afternoon to advocate the case for putting the proposed North-South interconnector underground.

My name is Aimée Treacy. I am Chairperson of the North East Pylon Pressure Campaign.   With me are my colleagues Padraig O’Reilly, Dr. Colin Andrew and Bernie Andrew and also councillor and former TD Mr John Farrelly.  After my short introduction, I will ask Padraig to brief you on the overall case in favour of undergrounding the power lines.

NEPPC is the overall representative group for some 45,000 people of the North East who advocate that high power electric cables should go underground. The group was formed in November 2007, in response to the massive public outcry emanating from the EirGrid announcement of its plans for a North-South interconnector from Meath to Tyrone. The strong consensus is that the interconnector should be established using underground cables instead of overhead transmission power lines.

Our campaign objectives are as follows:

• Build a rational, cohesive and comprehensive case for an underground cable alternative
• Influence the political process to achieve consensus on undergrounding
• Achieve a change in policy through public support

NEPPC has engaged a range of professional expertise and commissioned a significant number of reports in such areas as technology, agriculture, health, environment, ecology, geology, heritage, landscape and visual impact and land and property devaluation. These reports have resulted in a technically and scientifically well researched case in support of undergrounding the North-South interconnector.

NEPPC has made submissions to the Joint Oireachtas Committee on Communications, Energy and Natural Resources in February 2008 and December 2008. We have made a submission and presentation to the Northern Ireland Environment Committee in Stormont in April 2009. NEPPC also met with and shared the reports with the Danish Transmission System Operator, Energinet.

We favour a strengthened national electricity grid.  But it is a recognised fact that extra high voltage power lines and pylons are internationally regarded as being the most objectionable form of public utility infrastructure on land. In contrast to other countries, we have not yet been subjected to a blight of pylons across our countryside, and we must not allow it to happen. They impose significant negative effects when established, in relation to visual and environmental impact, land and property devaluation, and health and safety concerns.

NEPPC welcomes the initiative taken by Government to engage a set of respected international experts to independently examine and report on the feasibility and cost of undergrounding the North-South interconnector. NEPPC has argued from the outset that undergrounding the North-South interconnector is feasible, given the technological advances happening at a rapid pace.

We welcome the Joint Committee’s decision to hold public hearings on this issue.   A decision on the undergrounding of future high power cables is not a single one-dimensional decision.   It must be a balanced decision, encompassing not just cost or technology, but health, environment, heritage, tourism, agriculture and people’s livelihoods.

Such a decision is the very essence of democracy and of politics.

NEPPC is recommending that the North- South interconnector is constructed using the latest underground cable technology and furthermore that this technology should become a core component of the overall Grid 25 Development Plan.

Thank you Chairman. I now call on my colleague Padraig O’Reilly to outline the rationale behind this recommendation.

The case in favour of undergrounding

Chairman, Deputies and Senators

The ‘Grid 25’ grid development strategy lies at the heart of this hearing.  Although the focus today is specifically on the North-South interconnector it is important to bear in mind that each and every political constituency in the country will be impacted by the Grid 25 Development Plan. The major backbone projects planned by EirGrid serve to emphasise this point. These include the ‘Grid West’ Mayo project, the ‘Moneypoint to Cork’ project, the ‘Grid link Cork to Kildare’ and ‘Dublin Ring’ projects, the ‘North-South interconnector’ in the North-East and the ‘Renewable Integration Development Plan’ in the North-West.

The North-South interconnector is the first of these backbone projects to have been submitted for planning approval to An Bord Pleanála in 2009, but was withdrawn by EirGrid in June 2010, under controversial circumstances. It is 140km in length, and runs from Dunboyne in Meath, through Cavan, Monaghan and ends at Turleenan in Tyrone. EirGrid’s published cost for the project is €280Million, as a 400kV overhead line. It has never examined an underground specific route or costing.

As outlined by our chairperson NEPPC has actually spent more money on commissioning expertise to examine undergrounding the North-South interconnector than EirGrid or any other organisation in this country. Importantly, we have commissioned studies on aspects such as the impact on agriculture, on land and property devaluation, on landscape and tourism and on rural business. These reports are crucial to obtaining an accurate cost-benefit analysis.

It is the contention of NEPPC that four decision criteria need to be met in justifying the recommendation for undergrounding the North-South interconnector, namely feasibility, affordability, acceptability and achievability.

Firstly, the undergrounding option must be examined for technical feasibility, including safety, reliability and security of supply. Responsibility for this decision rests with Eirgrid, but also important insights and inputs can be gleaned from Transmission System Operators in other countries and from independent experts in industry and academia. In this regard, the International Expert Commission and the Meath-Tyrone report have particular relevance.

The next decision relates to affordability, including a full project cost-benefit analysis and value for money. Responsibility for the decision lies with the Government, as part of its strategic direction on transmission infrastructure.

The acceptability of electricity infrastructure is very much centred on concerns related to impact on health, environment and local communities. Responsibility for this decision rests with the public in general, but particularly with affected landowners and communities.

Finally, overall achievability of the North-South project is the responsibility of all stakeholders in terms of engagement, cooperation and a level of trust.

NEPPC believes that undergrounding the North-South interconnector is feasible, for a number of reasons:

1. The Meath-Tyrone report points out that over the past few years there have been tremendous developments in transmission technology that were not considered by several previous reports and thus not considered as an alternative by EirGrid. It further states that for HVDC lines undergrounding with cables is today a realistic solution. The most recently developed HVDC system, the VSC-HVDC technology has in recent years seen a significant technical development and a commercial break-through, particularly in Europe. There are now three European manufacturers offering full off-the-shelf solutions of VSC-HVDC Convertors and three European manufacturers offering extruded HVDC cable.
2. The choice of similar technology by EirGrid for the establishment of the East-West interconnector and its statements on reliability and security of supply are strong supporting information to its use for the North-South interconnector.
3. The increasing adoption by other countries of HVDC underground systems, as highlighted in the Meath-Tyrone report.
4. The suitability of the terrain and sub-surface geology in the North-East for an undergrounding project, and the available options of old rail beds, existing road infrastructure or agricultural land.

A key area of discussion centres on affordability of the underground system. A comprehensive analysis of affordability needs to encompass the full range of costs and benefits involved. These clearly must include capital costs, operating or lifecycle costs, and impact costs such as land and property devaluation and project delays.

The report estimates the capital cost of the overhead line option at €167Million compared with costs of €286M, €350M and €500M for the underground options, depending on power flow capacities assumed. NEPPC is of the view that the €286M or €350M options are the appropriate comparisons to use, given Eirgrid’s published statements on expected power flows. Using EirGrid’s initial estimate of €280 Million for capital costs alone of the overhead line the comparative capital cost of underground to overhead ranges from virtually equal to 1.25 times higher.

The Meath-Tyrone report highlights that costs can vary considerably, depending on for instance the terrain involved, tower design being used, metal prices and many other factors. From a solely technical cost perspective undergrounding has reduced dramatically from an estimated 25 times overhead lines cost to a range of 1 to 3 times nowadays. The key message is that with ongoing technological advances, and when all other associated comparative costs are factored in, the undergrounding option is now reaching a point of being more competitive than the overhead lines alternative.

But the human impact of overhead lines on people’s livelihoods and assets such as land and property devaluation is also a key component of an affordability analysis. A large number of international studies have been carried out over the last fifty years to assess the impact of overhead power lines on the value of residential property and land in close proximity to pylon towers.

The results of numerous such studies have shown that such power lines have a statistically significant negative impact on both land and property values. Furthermore properties with unrestricted views of such overhead lines are also significantly negatively affected for up to several kilometres distant.

The most common effects identified and cited in court cases around the world are reduction in market value, properties being slower to sell, unsightliness of pylons, and visual and noise pollution.  In fact in Denmark Energinet, the Danish Transmission System Operator, routinely compulsorily purchases all residences within 80metres of new lines and has a sliding scale of compensation to 180 metres distant.

In 2009, a detailed and route specific study was performed by NEPPC, in association with Lisney Associates, using international standards to estimate the loss of property value along the proposed route for planning. This took property proximity to line, type of house and market prices then effective and applied a formula to estimate the loss in value. A similar study was performed in association with Phillip Farrelly & Company to examine the losses in land and agricultural productivity value.

This very detailed analysis reported that property losses could be expected to total €387Million and farm devaluation losses of €651 Million. Even allowing for a 50% reduction in both property and land values the combined devaluation and potential liability figure is nevertheless still over €500M.

The delays incurred in upgrading the grid also carry a significant cost element. Chambers of Commerce Ireland, which likely has received its statistics from EirGrid and ESB, estimates this at circa €30Million per year. Planning delays are a significant obstacle to efficient roll-out of the grid upgrade. Undergrounding, however, does not require planning and so provides an immediate solution to this problem.

It is assumed that delays are caused solely by public opposition to new overhead lines. This is not the case. The North-South interconnector planning application was withdrawn by EirGrid after 21 days of an An Bord Pleanála hearing and awaits resubmission. Many of the challenges relate to onerous compliance requirements and the practical difficulty in finding a straight line route option through a countryside where one-off housing has been facilitated.

Other impact costs that are real but have not been quantified relate to tourism and local business effects in the vicinity of an overhead line.

Taking these costs into account the overhead line option is significantly more expensive than the underground alternative, ranging from 2 to 4 times, depending on what level of property and land devaluations is chosen. When you factor in all of the additional costs associated with overhead lines that are not covered in this report it makes the undergrounding option economically justified and viable and thus affordable.

The next decision criterion is that of public acceptance. This is not specific to Ireland. Across Europe twenty of the 32 main electricity infrastructure projects face delays. This is in stark contrast to the main underground gas pipeline projects, where no significant delays have been reported. The reasons for delays in ten of the eleven top priority electricity projects include the common theme of opposition from the local populations for health, environmental and visual intrusion reasons.

To this end, the Commission considers that ‘it is vital to reduce the planning and construction time for prioritised EU infrastructure, in a way that duly takes into account environmental, safety and health concerns.’

Health effects from proximity to pylons are the key public concern. As evidenced from many international studies and opinion surveys the overwhelming majority of people believe that electro-magnetic fields (EMF) emitted from overhead electricity lines adversely affect their health. Underground cable systems solve both the health and proximity to property concerns. No electric fields are emitted from underground cables, and, importantly, the magnetic field is also greatly reduced. Underground cable routes can, if necessary, be placed within 11 to 17 metres from dwellings versus 95 metres for overhead lines, in order to comply with exposures below the 1microtesla level. Many European countries (for example, Italy, Sweden and the Netherlands) have, based on research related to childhood leukaemia, set safe precautionary levels for human exposure to EMF up to 500 times lower than the informal levels adopted in this country and used by EirGrid. The electro-magnetic field from an overhead electricity line cannot be shielded and residences need to be more than 90 metres from the line to meet the precautionary safe reading presently adopted in this country.  In contrast, even during peak loads, the EMF levels above underground cables reduce to 1microtesla within 11 metres distance or less. EirGrid are only willing to commit to a 25 metres distance for overhead lines from residential properties. This distance would be acceptable only if undergrounding was adopted.

The key players in terms of acceptability are affected landowners. These landowners have recently signed ‘Form of Authority’ contracts with NEPPC, requesting that we represent them in all dealings with EirGrid related to the North-South interconnector. The Form of Authority contract also serves notice on EirGrid not to enter any lands or property without approval from NEPPC.

NEPPC carried out a comprehensive survey of such landowners along the proposed route. The survey comprised of over 200 fully completed detailed questionnaires and interviews, representing 95.1% of the non-state landowners or close to 98% of the overall proposed route in terms of distance. Some crystal clear messages were recorded. Ninety nine percent of landowners “Object Strongly” to EirGrid’s plans for overhead transmission lines. Ninety nine percent of landowners “Prefer Underground Cables” as an acceptable alternative. It is encouraging to note that 89% have stated they “Would permit their land to be crossed by underground cables”.

Finally, the achievability of this project requires clear leadership by Government, and full involvement of all stakeholders.

I now hand you back to Aimée Treacy who will make the concluding remarks.

Concluding Remarks – Aimée Treacy

Mr Chairman,

You have heard the broad arguments justifying our recommendation to put the North-South interconnector underground. These arguments have focused primarily on the quantifiable costs and impact of the North-South interconnector project. But there are also the unquantifiable effects. What value do we put on our heritage? What value do we place on our environment and on our landscape? What value do we place on the support and goodwill of our people?

Imagine a scenario where one of the most important and necessary infrastructure projects proceeds in a structured and progressive manner, with optimum cost-benefit efficiencies and with a spirit of cooperation and goodwill between all stakeholders involved. Imagine the message that this will send out to our international business community, and indeed to the European Commission who are desperate to see better progress on prioritised infrastructure. This indeed would herald the beginning of a new era.

This is the prize that is waiting to be grasped by taking the courageous but right decision to use the latest undergrounding technologies as a core component of the Grid 25 rollout.

For our part, NEPP commits to working very closely with EirGrid, in liaison with the landowners that we represent, to ensure a smooth and efficient construction of the North-South interconnector using underground cable technology.

The public are largely unaware of the major transmission infrastructural plans for our countryside over the coming years, but it is only a matter of time before this happens. Our campaign looks to our elected representatives, and in particular this Joint Oireachtas Committee, to have the vision and the knowledge to understand the value of an underground strategy.

We thank you for your time and are happy to answer any further questions.

Go raibh maith agaibh

On Tuesday 21st February last, the Joint Oireachtas Committee on Communications, Natural Resources & Agriculture held hearings related to the recently published Meath-Tyrone report by the Government appointed International Expert Commission. The Committee received submissions from a number of organizations, including the Commission experts, EirGrid and NEPPC, all of which reviewed the feasibility and cost of undergrounding the North-South interconnector.

The main findings and discussions strongly support the long standing position of NEPPC that the North-South interconnector can and should be undergrounded.

The International Expert Commission reiterated the conclusions of their report, stating that undergrounding the North-South interconnector is now a ‘realistic solution’, using latest HVDC technology. They further stated that there is movement across Europe to higher acceptance of this technology as a practical alternative to overhead lines. From a cost perspective the experts highlighted that there is a tendency towards the price gap between overhead and underground costs to be reducing all of the time, with latest contract costs confirming this trend.

EirGrid, however, remains steadfast in its refusal to accept the underground alternative, because of the ‘unique set of challenges’ posed by the current grid structure, despite the statement by EirGrid CEO, Mr Dermot Byrne,that “the issue of general community acceptance is at the heart of this matter”.

NEPPC, for its part, highlighted the results of some key research and reports it had commissioned:

1. In 2009, a route specific study was performed to estimate the loss of property and land value along the proposed route for planning. This very detailed analysis reported that property losses could be expected to total €387Million and farm devaluation losses of €651Million. Even allowing for a 50% reduction in both property and land values the combined devaluation and potential liability figure is nevertheless still over €500M.
2. The delays incurred in upgrading the grid also carry a significant cost element. Chambers of Commerce Ireland estimates this at circa €30Million per year. This was confirmed by EirGrid during the hearing as already running at €150 Million over the last 5 years, for this project alone.
3. “Taking these costs into account the overhead line option is significantly more expensive than the underground alternative, ranging from 2 to 4 times, depending on what level of property and land devaluations is chosen”, stated Bernie Andrew, spokesperson for NEPPC. “When you factor in all of the additional costs associated with overhead lines that are not covered in this report it makes the undergrounding option economically justified and viable and thus affordable”.

Councillor John Farrelly, Fine Gael, and chairman of Meath Tourism, highlighted the potentially significant negative impact on our landscape and heritage and on our tourism industry, should overhead lines go ahead.”There are thousands of jobs to be created, provided we protect our heritage and our landscape”, stated Councillor Farrelly.”EirGrid should be forced to change its policy and to place all cables underground”.

1. Health effects from proximity to pylons are the key public concern. As evidenced from many international studies the overwhelming majority of people believe that electro-magnetic fields (EMF) emitted from overhead electricity lines adversely affect their health. Underground cable systems solve both the health and proximity to property concerns.
2. The key players in terms of acceptability are affected landowners. NEPPC carried out a comprehensive survey of such landowners along the proposed route. Some crystal clear messages were recorded. Ninety nine percent of landowners “Object Strongly” to EirGrid’s plans for overhead transmission lines. Ninety nine percent of landowners “Prefer Underground Cables” as an acceptable alternative. It is encouraging to note that 89% have stated they “Would permit their land to be crossed by underground cables”.

“Now that a realistic and cost effective alternative to overhead lines exists, landowners will never accept the overhead lines option. EirGrid persists in trying to sell a product nobody wants to buy” stated Aimée Treacy, chairperson of NEPPC.

“Imagine a scenario where one of the most important and necessary infrastructure projects proceeds in a structured and progressive manner, with optimum cost-benefit efficiencies and with a spirit of cooperation and goodwill between all stakeholders involved” she stated.

“Imagine the message that this will send out to our international business community, and indeed to the European Commission who are desperate to see better progress on prioritised infrastructure. This indeed would herald the beginning of a new era. This is the prize that is waiting to be grasped by taking the courageous but right decision to use the latest undergrounding technologies as a core component of the Grid 25 rollout”, she further stated.

Ends –

Further information: Michael Keane, Insight Consultants
01 2939976 or 086 8244500

The Minister for Energy, Pat Rabbitte T.D., has today brought to Government and published the report on the International Expert Commission which he had established in July 2011 to “review and report, within six months, on a case for, and cost of, undergrounding (all or part of) Meath-Tyrone 400KV power lines”.

The North Easy Pylon Pressure Campaign (NEPPC) welcomes the initiative taken by Fine Gael, spearheaded by Minister Shane McEntee, to engage a set of respected international experts to independently examine the feasibility and cost of undergrounding the North-South interconnector. NEPPC also welcomes the establishment of this expert group by Minister Rabbite and his decision that the report will have the opportunity to be objectively  analysed and discussed by the Joint Oireachtas Committee on Communications, Natural Resources and Agriculture, prior to a Cabinet recommendation.

The Report is of significant value to the two key arguments surrounding the use undergrounding technology, namely feasibility and cost.
NEPPC have argued from the outset that undergounding the North-South interconnector was feasible, given the technological advances happening at a rapid pace. The Expert Report states quite clearly that undergrounding the North-South interconnector is now a ‘realistic solution’. This is primarily driven by ‘significant technical developments and a commercial breakthrough’ of the most recently developed VSC HVDC technology.

The Independent Expert group focused solely on technical costs of undergrounding versus overhead lines options. It did not examine other critical costs such as impact on agriculture, land and property devaluation, impact on landscape and visual consequences, or on the comparative health aspects of these options.

From the outside of the North-South interconnector project EirGrid refused to examine the undergrounding option, stating that it could be in the region of 25x higher than overhead lines. The Report published indicates a figure of €286Million for undergrounding which is equal to EirGrid’s stated costs for overhead lines for the North – South interconnector (€280M) at assumed power loading expectations.

‘When you factor in all the additional costs associated with overhead lines that are not covered in this report it makes the undergrounding option economically justified and viable’ stated Aimée Treacy, chairperson of NEPPC.

‘Furthermore, the Report clearly highlights that undergrounding is the only practical and publicly acceptable way forward for the vast majority of current major projects in Europe’, she stated. The Report notes that within the EU over 2,470km of Overhead lines are presently substantially delayed (only 450km are under construction), whilst some 700km of underground cables are currently under construction.  This is nearly twice as much going underground as on pylons’.
‘Technological progress is opening up a whole new opportunity for the grid to be upgraded using undergrounding’, she further stated.
‘ This Report clearly shows that it is “game on” in terms of undergrounding technology for Ireland, and we are confident that the Minister will now give undergrounding serious consideration as a key component of the ‘Grid 25’ project’ stated Aimée.

Ends –
Further information:
Michael Keane, Insight Consultants
01 2939976 or 086 8244500
www.nepp.ie

TUESDAY 1st NOVEMBER 2011

ARDBOYNE HOTEL 8.30 pm

Update on Fine Gael financial committments

Update on EirGrid planning application

Update on landowner rights

Important to attend

Please spread the word!

In  September, 2010, NEPPC was informed by EirGrid that it was refusing to compensate NEPPC for the significant costs incurred, outlining as part of its arguments that it needed to perform its duties economically and in a way that minimised costs.

The reality is very different, and the lavish expenditure by EirGrid in many areas highlights issues of uncontrolled spending, unaccountable behaviour and a blatant attempt to use what is in essence taxpayers’ funds to influence the same taxpayer’s in favour of its Grid 25 projects. NEPPC has written to Eirgrid requesting details of its promotional expenditure in the last 12 months, but has yet to receive a response. The following spending activities, however, provide examples of the promotional expenditure by EirGrid on sponsorships and programmes that are totally unrelated to its functions and duties:

August 2011 – EirGrid committed €50,000 to the Cavan Fleadh festival which was held this August 2011. NEPPC is of the opinion that this is a blatant attempt to buy support for the North-South interconnector, using taxpayers’ monies.

August 2011 – EirGrid sponsored the Ratoath GAA club for the recent Intermediate football 7’s tournament.

May 2011 – Eirgrid gave €100,000  to 39 Fingal community groups.  These included chess, cricket, badminton, GAA, and parent and toddler groups.

May 2011 – Eirgrid sponsored the ‘Best International Trade Award ‘ at the Midlands Ireland Gateway to Excellence Awards, Mullingar

April 2011 – Eirgrid sponsored a Welsh Irish Cultural event to celebrate St David’s day and St Patricks day. Over 100 people attended dinner and evening entertainment.

Oct 2010 –  EirGrid sponsored the ‘Euro Toques Food Awards’ (the Irish Branch of the European Community Chefs and Cooks).The EirGrid Euro-Toques food awards were presented last week.

Spring 2010 – EirGrid has shown disregard and disrespect for the integrity of the 2010 Oral Hearing process by launching a national media blitz in the run-up to this event, including:

• National TV advertising across all of the main channels, amounting to 1,555 TV ‘Spots’ in the month of April alone.
• Numerous Press advertisements in the main national newspapers.

The costs of such advertising activities were estimated to be €600,000, even though the company has no product to sell directly to the public.

These examples of EirGrid’s expenditure serve only to ridicule any arguments it has made in relation to refusing to pay NEPPC costs on the basis of economic efficiencies. It also serves as an affront to the people of the North-East, who stand to be very negatively affected by this project.

NEPPC has made numerous representations to Fine Gael, outlining the importance of public accountability by EirGrid and the need for reimbursement to ensure ongoing facilitation of effective public consultation in this project. At an NEPPC public meeting on 21st February, attended by over 350 people, a clear and unambiguous commitment was given by Fine Gael that NEPPC would be reimbursed for all relevant costs associated with the Oral Hearing.

To date, this commitment has not materialised. On the contrary, Eirgrid has restarted its preparation for a new planning application, with a target of resubmitting in November or December of this year. Furthermore, Eirgrid has embarked on an aggressive approach towards landowners in terms of written correspondence and unannounced visits, which has sparked significant negative reactions in communities around the North-East. EirGrid also has made it clear in its media communications that it is ignoring Fine Gael’s direction to freeze any activities on the North-South project subject to an independent study being carried out.

NEPPC  are holding an important public meeting on Tuesday evening next (1^st November) at in 8.30 pm in the Ardboyne hotel, where Fine Gael TD’s will give an update on their pre-election commitments on this project.

‘It is unacceptable that our elected representatives stand idly by, watch EirGrid throw money around like snuff at a wake, and then communicate to NEPPC that there may be difficulties in delivering on their pre-election committments’ stated Aimée Treacy, chairperson of NEPPC. ‘The Government is the main shareholder of EirGrid and as such can direct it to take responsibility for its action of withdrawing its planning application in 2010. The lavish spending by EirGrid on non-business related projects means it has nowhere to hide in terms of reimbursing NEPPC. It also means that our elected representatives have nowhere to hide in terms of delivering on their pre-election commitments. NEPPC calls on all people in the North-East to attend its meeting next week to ensure that  a full and frank debate occurs’ stated Aimée Treacy.

-       Ends –

Further information:

Michael Keane, Insight Consultants

01 2939976 or 086 8244500

www.nepp.ie