When the UK Government set its clean power 2030 mission, it raised the bar for climate action. This is a Great Britain target, but Northern Ireland should be a fast follower.
This year will be a crucial time for the renewables industry. The publication of the Energy Strategy and the Climate Act, in 2021 and 2022 respectively, is finally beginning to result in policy actions that will deliver against the targets set; including the 80% by 2030 renewable electricity target.
The review of the Energy Strategy in 2025 gives us the opportunity to look beyond 2030. We need our own clean power mission. RenewableNI has long argued that 2030 is a staging post to a fossil free system. Knowing our final destination means charting the most effective economic and infrastructure journey.
Those who forget the past are doomed to repeat its failures, but the scars of energy policy mistakes are still fresh and must be learned from. We achieved our 2020 target for 40% renewables ahead of time and we then we faced by a policy vacuum. As a result we saw a drop off in grid investment, we became the only part of these islands with no support scheme for renewables and we have connected only a few new projects as a result.
It is vital that we avoid a similar post 2030 cliff edge. Having a clean power target will give investor confidence that policy makers will not lead us into another boom/bust cycle.
Renewables have the potential to support multiple targets of the NI Executive beyond energy policy. Economy Minister Conor Murphy has said he wants to promote regional balance, and highlighted the north west as a region that needs particular attention. We know there is also an urban/rural divide. RenewableNI members want to invest west of the Bann, we need to work in partnership with our rural communities and we are determined to maximise the benefits to those that host our projects. We hope that policy makers will support us to achieve these aims this year.
We are not content with simply building more renewables for their own sake: ultimately, we exist as an industry as there is a need to decarbonise. Northern Ireland continues to operate with three fossil fuel units online at all times to provide back up generation for renewables and to provide other system services.
With roughly half of our electricity coming from renewables, and increasing volumes of battery storage on the system, RenewableNI would like to see us reduce to two fossil generators in 2025. This would result in significant carbon savings as well as allowing better utilisation of our renewable resources. Procurement policy for long duration energy storage will also allow us to provide clean power when the wind doesn’t blow and the sun doesn’t shine.
Last year’s Renewable Rewards report demonstrated that every new wind turbine erected and every new solar farm installed, is saving you money. Since 2020, investment in wind and solar has resulted in an average of £160 savings off consumer bills. Achieving the 80% target would see an additional £110m a year saving for consumers across Northern Ireland.
The publication of the design of the new Northern Ireland renewable electricity support scheme, expected early this year, will help stimulate a new wave of renewable investment. The scheme will effectively act as a contract between consumers and generators, setting a fixed price for electricity from new projects, protecting consumers from the type of price spike we saw following the invasion of Ukraine and derisking investments for developers. This in turn, reduces the cost of project financing, savings that will be passed on to bill payers.
None of this will be achievable without good planning policy and process. Planning authorities need to take decisions that are in line with our climate objectives. The system also needs to be resourced so that decisions are taken in a timely manner. Our members have accepted the recent raising of planning fees, now we need to see the value.
Unfortunately, 2024 saw a stalling of offshore policy that must be reenergised this year. After encouraging early progress, inertia has set in. Despite the draft Offshore Renewable Energy Action Plan being published at the end of 2022, we are still waiting for the next step. In 2025 we need the plan publication and the key strategic environmental assessment that will indicate where projects could be developed.
The renewable energy industry is in the blocks – there are enough projects in the pipeline to achieve the 80 by 30 target. In 2025 the policies need to be in place to fire the starting pistol. Job creation, guaranteed rates for local councils, savings for consumers and a better climate for our children are the rewards of action this year.
Steven Agnew is director of RenewableNI