Energy Strategy Update

Energy Strategy Update

The new Energy Strategy must set out how Northern Ireland will deliver on the need to decarbonise our economy in line with the UK Government’s ‘net zero’ by 2050 requirement and set ambitious targets for 2030. Achieving decarbonisation will require a dissolution of the old silos of heat, transport and power. For example, the electrification of heat and transport presents a significant opportunity to reduce the emissions of these sectors as the technology and know-how already exists to significantly decarbonise power at a reasonable cost to the consumer.

Farm Energy are members of NI Renewable Industry Group (NIRIG) and our voice and that of our members were included in the NIRIG consultation response to the Dept of Economy on the Energy Strategy for NI. NIRIG believes the following elements are vital to deliver a net zero power sector:

1. Renewable Electricity Generation Targets

• 80% by 2030, 100% by 2035, Net Zero by 2040

2. Route to Market

• Specific Northern Ireland market mechanism following Renewable Energy Support Scheme (RESS) or Contract for Difference (CfD) design
• Facilitation of Corporate Power Purchase Agreements (PPAs) with public sector showing a lead in power procurement from renewable sources

3. Grid Investment

• Delivery of the North/South interconnector
• Completion of the reinforcement in the west of Northern Ireland to provide firm access for the renewable generators connected to achieve the 2020 targets
• Release of funds to invest in the electricity grid to allow for increasing volumes of renewable generation

4. Planning

• Ensure that planning policy for renewable electricity generation and grid infrastructure is consistent at all levels and across all locations
• Department for Infrastructure to be proactive in ensuring Local Development Plans and strategies are consistent with regional planning policy

NI begins from a point were onshore wind has been a considerable success story, with 1.4GW of installed capacity and emissions in the power sector 24% lower than they were in 1990. More broadly, the all-island Single Electricity Market (SEM) is notable as it is a small, isolated power system, with a high penetration of renewable generation, low levels of interconnection, as well as constraint challenges. NIRIG’s assessment is that for NI in the next decade, onshore wind and solar will continue to be the primary sources of low carbon electricity generation.

NIRIG believes that NI, with a starting point of 44% renewable electricity generation, should set itself a stretch target of 80% by 2030 and 100% renewables by 2035. If NI is to stimulate the level of investment needed to meet decarbonisation targets and maximise the economic benefits of renewables, it will be necessary to introduce a price balancing mechanism akin to either the RESS scheme or the GB CfD. NIRIG is supportive of a replication of either scheme in NI.  Working with GB or ROI counterparts would allow for savings in terms of design costs of any market system.  In fact, with a parallel RESS scheme running in NI, the benefit of SONI (System Operator for Northern Ireland) being part of the EirGrid Group could be maximised with systems replication being relatively straight forward. Furthermore, without a similar market mechanism, NI will be discriminated and disadvantaged in the SEM with a consequence loss of carbon savings and increased consumer bills.

Achieving 80% renewable electricity by 2030 will require the development of new renewable energy infrastructure and the repowering of existing sites. Repowering has many associated benefits such as allowing for more efficient use of operational sites and the continued use of grid infrastructure. We believe a strategy for repowering is required covering planning, grid connection and route to market.

In order to deliver new renewable projects, and the grid infrastructure required to support them, it is vital that we have a facilitative planning system.  NIRIG is supportive of new Strategic Planning and Planning policies . However, while these have facilitated the growth of renewables across NI, NIRIG is concerned that policies being brought forward at a local council level could severely inhibit the growth of renewables.

An ambitious target for renewable generation must be matched by the release of investment in grid infrastructure. There is limited capacity left on the grid in NI to connect new renewable electricity capacity, so it is vital that new grid is built within the coming decade or otherwise, the renewable electricity required will not be able to connect. SONI and NIE-N should progress with the design and consent of this, which is relatively low cost compared to the construction phase but can often take the most time. This would provide reassurance to renewable projects that the grid will be available when their project is built. Without the necessary grid reinforcements, new projects looking to develop and secure a route to market will likely see very high constraint levels which will add to the cost of renewable deployment.

To read the full NIRIG summarised response please click here