Green energy support scheme could start next year

Stormont has a target for 80% of NI's electricity to come from renewable sources, such as wind, by 2030

A new support scheme to encourage renewable energy generation in Northern Ireland could be operational next year, the economy department has indicated.

It intends to introduce a competitive auction process, similar to those seen in Great Britain and the Republic of Ireland.

The first auction could be held next year with projects delivered by 2027.

Stormont has a target for 80% of NI's electricity to come from renewable sources, such as wind, by 2030.

Last year, about half of Northern Ireland's electricity was generated by renewables.

Development of new renewable energy projects has slowed in recent years after the closure of a subsidy scheme known as the Northern Ireland Renewables Obligation (NIRO).

The planned new scheme would be a Contract for Difference (CfD) auction.

What is a CfD scheme?

CfD schemes involve companies bidding to develop renewable energy projects to supply the grid with electricity.

Such schemes ensures projects receive a guaranteed price for the electricity they will generate.

The competitive nature of the process should also mean that only the most efficient schemes are developed.

• Call for action after dip in renewable energy in NI

In the GB CfD scheme, if electricity prices rise above the price set at the auction, the generation companies pay the excess back to energy suppliers.

If prices fall below the guaranteed price the energy suppliers - and customers - pay the company the difference.

The Department for the Economy has published an update on the design of the NI scheme which it says will be finalised after further work which will include a financial impact assessment "to determine the potential financial implications of the scheme on consumers' bills".

Progress towards a new support scheme has been welcomed by the industry group RenewableNI.

Its director Steven Agnew said: "There is a massive pipeline of renewable projects just waiting on the right policy signals to hit go.

"RenewableNI is looking forward to working constructively with the Department for the Economy to get this right.

"Working together, we can protect consumers from high costs of energy and ensure a security of supply.

"Everyone knows the decisions made over the next year will determine the success or failure of the 2030 target."