Target 2030: NI’s New Renewable Electricity Price Guarantee

The Department for Economy (DfE) on Friday 19 September 2025 published the final design for a Renewable Electricity Price Guarantee (REPG) scheme for Northern Ireland, presenting the first support for renewable projects in the jurisdiction since the closure of the ROCs in 2018 and a vital step in achieving 80% of electricity consumption by renewable sources by 2030, and the eventual ‘Path to Net Zero Energy’.

The process of developing the Renewable Electricity Price Guarantee (REPG) has involved extensive stakeholder engagement and consideration of best practices from other jurisdictions, though the DfE is keen to differentiate it from the Contracts for Difference (CfD) scheme in Great Britain and the Renewable Electricity Support Scheme (RESS) in Ireland. While all three aim to provide revenue stability and encourage investment, they are specifically tailored to the local market conditions and policy objectives of their respective jurisdictions and the REPG seeks to meet the specific needs of Northern Ireland’s unique landscape.

We outline the REPG scheme and the broader policy objective as provided by the DfE below, with the April 2024 high-level design (HLD) revisited. It is important to note that this draft is subject to a further terms and conditions consultation and to implementing legislation being passed by the Assembly. There is still no definite date for primary legislation, although it is anticipated later this year.

The headline features of the REPG scheme are:

• Auction timeline: Subject to the Assembly passing the necessary legislation, the first auction is still scheduled for Q1 of 2027, with contracts awarded shortly after.
• Auction pots: DfE has confirmed a single technology-agnostic auction pot (with no separate pots for different technologies as in Ireland), with each technology having a specific strike price.
• Key roles: The System Operator for Northern Ireland (SONI) has been tasked with running the auctions and determining developer eligibility for contracts, while the Northern Ireland Authority for Utility Regulation (UR) shall monitor the auction process and deal with appeals. The Low Carbon Contracts Company (the LCCC) will be the contract counterparty as under the CfD scheme in Great Britain.
• Auction capacity: Auction 1 will be for 750-1,250GWh/year. Auction 2 may be for 3,250-3,750GWh/year. The increased capacity at the second auction may be achieved by diversifying into other technologies beyond onshore wind and solar.
• Eligibility: Projects with planning permission, a grid offer for connection within the long stop date timeframe, and above 5MW will be eligible in the first auction. More detail is required, but it seems likely that projects under construction will be eligible but energised projects will be ineligible.
• Smaller projects: It has not yet been confirmed whether sub-5MW projects will be included in the second auction, or whether Northern Ireland will adopt a separate Small-Scale Renewable Electricity Support Scheme (SRESS) as in the Republic of Ireland.
• Technology: As anticipated, the first auction will be limited to onshore wind, solar and hybrid projects (defined as multi-technology sites, e.g. wind, solar and/or battery storage). Other technologies may be supported in future auction rounds.
• Contract length: The contract length under the REPG is 15 years, although projects which commission after the two year period but before the three year longstop, will receive a shorter period as low as 14 years.
• Dispatch down compensation: Full dispatch down compensation is to be provided as an interim measure, until other compensation is available, clearly a reference to the ongoing court case in Ireland regarding Article 13. More details regarding curtailment and constraint will be provided once the results of the T&C consultation are made available.
• Long Stop Date: The Long Stop Date is the latest possible date that the awarded contract could begin, after which the contract may be terminated for non-completion. In the context of the REPG, the 3 year long stop date proposed would ensure that projects awarded contracts in the 2027 auction would become operational by 2029. This does however raise questions regarding the possibility of achieving the 80% target by 2030.  
• Repowering: The upgrading or replacing of old renewable assets with more efficient, higher capacity equipment is included in the first auction, but only for end-of-life projects. We will need to wait for more detail to see what the exact criteria will be. Nonetheless, repowering is expected to play a more significant role in future auctions.
• Funding mechanism: The REPG scheme will be funded through a pass-through charge on customer bills that is bidirectional in nature, with consumers contributing during periods of low market prices and will receive payments or bill reductions during periods of high prices when generators shall repay the difference. This two-way payment system is intended to encourage price stability and is a similar concept to the CfD in Great Britain.  
• Non-Price Factors (NPFs): NPFs seek to incentivise developers to pursue renewable projects that are deliverable, on time and on budget, and provide long term value to society and the environment. NPFs risk overcomplicating an auction and it has been decided to not include NFPs in the first auction, barring a change to the Windsor Framework that would necessitate the inclusion of NPFs.
• Community benefit: While Community Benefit had not been expected to be a mandatory aspect of the first auction, discussions outlined three potential models to be adopted by REPG:
  • Voluntary contribution (as in GB),
  • Mandatory contribution (like ROI’s €2/MWh), and
  • Discounted electricity bills for nearby residents.
• The DfE have shown a clear preference for the third option though have admitted to the complexities involved in such a model meaning this is not a guaranteed outcome. This socialised approach has not yet been legally tested and so it remains to be seen whether this model is feasible. Community Benefit has therefore been left to be pursued as the scheme develops. This is welcome for industry as there was concern that work in this area could lead to a delay in the first auction.

Conclusion

The introduction of the REPG in Northern Ireland has been eagerly awaited and is set to drive significant growth across multiple sectors in this jurisdiction. By providing stability and predictability for investors, the scheme will attract further private sector funding into renewable projects, accelerating the transition to a net zero energy network.

For further information in relation to this topic, please contact any member of the Energy and Natural Resources Belfast team.

Date published: 22 September 2025