On the 19 September 2025 the Department for the Economy (‘DfE’) published the Final Scheme Design (‘FSD’) in respect of a renewable electricity support scheme for Northern Ireland being the Renewable Electricity Price Guarantee (‘REPG’).
This scheme introduces a robust framework to attract investment, stabilise consumer prices, and accelerate clean energy deployment in Northern Ireland.
REPG will play a central role in accomplishing Northern Ireland’s target of 80% renewable electricity consumption by 2030, as set out in the Climate Change Act (Northern Ireland) 2022. It should however be noted that there is no confirmed date for primary legislation although the FSD does set out that the Auction 1 (for 750-1,250GWh/year) is anticipated in Q1 of 2027.
Under this scheme, prospective investors will be given an opportunity to place their projects into a bidding pool for DfE to evaluate. The model being utilised for this auction incorporates established strengths from successful auction-based schemes in Britain and the Republic of Ireland while also employing unique mechanisms that appeal to Northern Ireland’s local market.
Prior to the Auction taking place, the DfE will release the eligibility criteria. The DfE detailed that likely criteria may include:
- project size, technology, target commissioning date,
- valid planning permission,
- an accepted grid connection offer to the transmission or distribution network,
- evidence of financial commitment towards the construction and development of the facility.
Any investors interested in the first auction should note that DfE intends to limit this pool to ‘mature, well-established technologies capable of delivering clean electricity at the lowest possible cost to consumers. This will likely include:
- Onshore renewable electricity generation
- Projects with a minimum capacity of 5 MW
- Battery Storage Technologies
Successful applicants are expected to receive up to 15 years contracts.
This scheme aims to benefit investors and consumers alike. A bi-directional payment mechanism whereby consumers will contribute during low market periods and benefit from reimbursements or credits during high market periods has been applied. The DfE emphasised that ‘this two-way payment system promotes price stability and levels the cost of electricity across the lifetime of the contract, thereby minimising potential price spikes for consumers.’
The DfE have withheld the right to amend and update elements of the auctioneering model as the initiative progresses. Any amendments will be reflected in revised T&C’s which will be issued prior to the next auction launch.
In line with the above, it is important to highlight that the details currently released are specific to the first planned auction. The current proposal suggests the final T&C’s for the first auction should be made available in 2026.
Conclusion
This scheme should boost investment in local renewable energy projects while protecting consumers from global energy price shocks. This welcome update should ensure that Northern Ireland can benefit from renewed investment in its energy infrastructure and achieve the aims of reducing price volatility, increasing levels of renewable generation and meeting the commitments of the Climate Change Act (NI) 2022.
This article has been produced for general information purposes and further advice should be sought from a professional advisor. Our Energy Sector team at Cleaver Fulton Rankin can provide you with the specialist advice you need.
For further information, please contact a member of our Energy Sector team team
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