Northern Ireland consults on new renewable energy support scheme design

The 80% figure is set out in the Climate Change Act (Northern Ireland) 2022 and follows a vision of net zero carbon emissions and affordable energy by 2050 set out in the Energy Strategy for Northern Ireland in 2021.

The RESS-NI is designed to increase the supply of power from green energy sources to the country’s electricity grid. It also aims to provide a route to market for new renewable projects, helping to position Northern Ireland as a competitive and attractive option for investment in the renewable energy sector.

The planned scheme, as set out in the government’s response to an earlier consultation on its proposed high-level design (29 pages / 835 KB), is expected to be a catalyst for reducing carbon emissions and fostering growth in the green economy.

The recently published document serves a dual purpose. The publication provides an overview of the feedback received on the design consideration consultation published by the Department in February 2023. The publication also presents the intended high-level design for development of the scheme and auction roadmap, with a proposed timeline and volume of renewable generation to be supported in line with the 80% by 2030 target. However, the plans are not final and are subject to change, particularly in relation to offshore wind, with a view of accelerating development where possible.

Richard Murphy, an expert in renewable energy projects at Pinsent Masons said: “This new scheme will be a key enabler of the 80% target. It is good to see the Department learning lessons from support scheme designs in our neighbouring markets across areas such as indexation of support and compensation for dispatch down to ensure risks are allocated fairly that will deliver better value for money outcomes for consumers.”

The publication sets out the wider policy objectives of the new RESS-NI, the intended features underpinning the scheme, and an illustrative roadmap for renewable generation to be procured under the support scheme in the next six years.

The next stage of the scheme development will include technical modelling as well as the beginning of work by the Department to assess the financial impact of the scheme. The Department is also beginning to develop plans for how it will legislate for the scheme, as well as setting out the institutional roles and responsibilities necessary for its delivery.

Murphy said: “Another key aspect will be ensuring that the delivery of obligations under the scheme are fair and proportionate, particularly around energisation dates which may be impacted as a result of grid delays beyond the control of developers.”

Consultation on the detailed design and terms and conditions of the scheme will continue throughout 2024 by way of industry engagement through workshops and seminars, in preparation for the announcement of the first auction, which is expected to take place in 2025/26.

“It will be interesting to see the outworkings of the further work on areas such as the funding mechanism and the ability of mature projects scheduled for repowering soon to participate,” Murphy said.