Households living close to new renewable energy projects could see discounts on their electricity bills under a new scheme unveiled by Stormont.
The Renewable Energy Price Guarantee (REPG) is designed to attract investment in wind, solar and energy storage, while helping Northern Ireland meet its target of producing 80% of electricity from renewable sources by 2030.
Economy Minister Caoimhe Archibald said the initiative would “boost renewable generation and deliver lower electricity costs to households than they are paying today”, while ensuring that local communities share in the benefits of the transition to net zero.
Lower bills and greater stability
The Department for the Economy said the final scheme design recognises that success will depend on unlocking a pipeline of projects and building grid infrastructure to support additional capacity. Current grid constraints mean some wind farms are still being “dispatched down” – temporarily switched off – to prevent overload.
Industry leaders welcomed the announcement but stressed the need for swift action. Tamasin Fraser, chair of RenewableNI, called it one of the most significant moves yet to power economic growth, especially in rural areas.
“We’ve all seen the impact of relying on imported fossil fuels, particularly during the war in Ukraine,” she said. “Harnessing our own clean, green resources will provide stability, cut costs and hedge against future volatility.”
RenewableNI estimates that hitting the 80% target would bring a net annual benefit of around £110m to consumers.
Auctions and community benefits
The first auction for generation contracts will take place in 2027, aiming to secure between 750 gigawatt hours and 1,250 GWh of power each year. Prices will be set through the auction process.
The REPG will be funded through a fixed levy on electricity bills under a two-way payment system. When wholesale prices fall below the agreed contract level, generators will receive a top-up. When prices rise above it, excess profits will be returned to suppliers and then passed back to households.
Over time, ministers argue, this mechanism will stabilise and lower bills as fossil fuel dependence declines.
A “community benefit” element is also being considered, offering direct financial rewards to households living near new projects, similar to schemes already in place in the Republic of Ireland and Great Britain.
Overcoming challenges
Despite earlier progress – renewable power peaked at 51% of Northern Ireland’s electricity supply in 2022 – growth has since stalled. Only five new wind farms have been connected in the last five years, compared with 400MW of capacity added in 2016 under the previous support programme.
The sector has warned that planning delays, grid bottlenecks and a lack of clear policy have slowed development. Ms Fraser urged ministers to publish a detailed implementation plan to overcome these barriers and restore momentum.
“The ambition is welcome,” she said. “But it must now be matched by delivery if we are to unlock investment, create jobs and ensure Northern Ireland plays its part in tackling climate change.”
