energy report 2024

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Energy report

Investing in the future

As NIE Networks prepares to invest up to £4 billion upgrading Northern Ireland’s electricity network over the next decade, newly appointed Finance Director, Ted Browne, outlines the organisation’s role in delivering a reliable and sustainable energy system for all.

Browne brings over 25 years’ finance and utility experience to NIE Networks at a time when the organisation is embarking on one of the largest public sector investments in the history of Northern Ireland.

Having previously worked for the Republic’s electricity network owner, ESB, Browne has extensive experience in finance strategy and business

transformation, including responsibility for ESB’s international debt investors who lent £5 billion to ESB.

Recognising the transformational power of strategic investment, he believes that the opportunity presented by the journey to net zero for NIE Networks and Northern Ireland as a whole is one that must be fully grasped.

“As we approach a net zero future, the role of the electricity network will undergo fundamental reform involving the investment of billions of pounds into the local economy. We are at a critical point in time in the company’s history and we are working with a great number of stakeholders to ensure we get it right,” Browne explains.

The company collaborated with the Department for the Economy (DfE) and other stakeholders on developing Northern Ireland’s Path to Net Zero Energy strategy, which was published in December 2021. The strategy sets ambitious targets for net zero carbon energy, while seeking to maintain affordability, and key elements of the strategy are enshrined in the Climate Change Act (Northern Ireland) 2022.

NIE Networks is the owner of the electricity transmission and distribution networks in Northern Ireland, transporting electricity from generators to over 910,000 customers. Its employees maintain and extend the electricity infrastructure across Northern Ireland, connect end user and generation customers to the network and ensure that equipment is safe and reliable. It also provides electricity meters and metering data to suppliers and market operators and develops and reconfigures the electricity network to facilitate the connection of further renewable generation.

However, much of that is due to change according to Browne: “Our future network will need to not only deliver electricity to homes, farms, and businesses but also receive significant amounts of renewable generation from multiple sources across Northern Ireland. It is a large body of

Delivering a sustainable energy system for all

work, one that will require a significant private sector investment in Northern Ireland and will see NIE Networks evolve to be a fully active Distribution System Operator (DSO).”

Interest to investors

Browne outlines how net zero is also an area of significant interest to investors:

“The production of green energy is a growing market and Northern Ireland is already of interest to those wishing to invest in this area. Wind farm investors, for example, are eager to avail of our ever-prevailing Atlantic winds. To date, NIE Networks has successfully connected around 26,400 renewable generators, significantly increasing the available capacity and resulting in approximately 1.8GW of renewable electricity connected to the network which supplied 47 per cent of Northern Ireland’s annual electricity consumption in 2023.”

The net zero target is to have 80 per cent of annual electricity consumption from renewable consumption by 2030 and 100 per cent by 2050.

“Helpfully, there continues to be interest from generators to connect potential further renewable capacity to the network. However, investors need to be assured that they will be able to connect

that generation to the network before they proceed. In order to provide the required assurances, we must ensure that the capacity to connect low carbon technologies is increased and that we can enable a net zero future.

“At the same time, NIE Networks needs to map the priority areas using data from the market and digital technology to efficiently plan network upgrades in such a way as to maximise the investment and renewable outputs possible,” Browne explains.

Many elements of NIE Networks’ own Networks for Net Zero report are mirrored in the DfE’s Path to Net Zero

Energy. There is strong alignment between the two strategies and NIE Networks’ draft Business Plan for the next seven years (RP7).

NIE Networks’ RP7 Business plan submission is currently with the Utility Regulator which requested an investment of approximately £2.6 billion over the next seven years. The plan outlines the investment required to facilitate the decarbonisation of society, maintain a safe and reliable network and ensure customers continue to receive excellent customer service. The Regulator’s final determination is due in October 2024.

Delivering a sustainable energy system for all

Impact on society

Net zero will transform how the people of Northern Ireland live and work as the electrification of heat and transport will play a fundamental role in meeting the 2050 target.

Browne explains: “The challenge for NIE Networks is to make sure that customers are supported in their own efforts to cut emissions and live a more sustainable life. So, whether you wish to install an electric vehicle charger in Belfast or a heat pump in the Sperrins, NIE Networks needs to enable that to happen. That will be a significant challenge for us as society evolves to become overwhelmingly focused on renewable living.

“In years to come it is possible that we will begin to see communities introducing their own generation and, in addition to homes having electric vehicle chargers and heat pumps, it will become typical for a property to have battery storage facilities. Indeed, we are already seeing an increase in interest from customers connecting integrated micro generation and battery storage.

“Consumers will become more involved in managing their own electricity consumption. To support this, NIE Networks needs to increase digital visualisation on the network, particularly the distribution network, which did not previously require this level of monitoring. In turn, the people of Northern Ireland will be able to trust that the electricity network will continue to be reliable as they use electricity to replace fossil fuels in their homes, businesses, and transport.”

The company will evolve from a Network Operator to a Distribution System Operator (DSO) managing the two-way flow of electricity, supply of data, and digital mechanisms to facilitate consumers to manage their electricity consumption in a similar manner to their heating system.

In 2023, the board approved changes in the leadership team structure in readiness for RP7 and in recognition of the organisation’s transition to a Distribution System Operator (DSO). A Future Networks Director and business function was established along with the recruitment of a Chief Information Officer to give focus to the part that technology and data will play in the future.

Staffing and capability resource

The delivery of the increased level of investment will require a considerable increase in our workforce, contractors, and the development of new capabilities.

NIE Networks has already begun to recruit and enhance capabilities estimating an increase of 35 per cent in their current workforce to bring the total number of people employed to around 2,000 by 2030.

A recruitment drive for both newly qualified and experienced engineers closed on 6 May 2023. Browne explains that it is not solely related to electrical roles: “In addition to electrical skills, there is a considerable increase in the

supporting functions; surveyors, procurement, finance, IT and data specialists. To support our own efforts in sustainability, and ensure we have optimum reporting mechanisms for investors, there are also opportunities in sustainability and ESG roles.”

It is a major area of focus for anyone involved in the energy transition so the market is competitive – not just in Northern Ireland but across the world.

Vital talent pipelines for the company are their student opportunities; traineeships, apprentice academy, higher level apprenticeships and scholarships for undergraduates. NIE Networks has an employee retention rate of 98 per cent and considerable development opportunities for career progression. Several of the Directors started out their career as apprentices in the company and it is not unusual to meet employees with more than 30 years’ experience.

NIE Networks has plans to develop and expand these talent pipelines, alongside the learning and development function, over the coming years.

One key challenge for the green energy sector as a whole is the societal culture, as Browne explains: “The majority of young people are persuaded to follow a university route without considering alternative options that may be more appropriate for them. While highly skilled graduates will always be required, the industry will undoubtedly rely on young people coming through the traditional skills route. The challenge

Delivering a sustainable energy system for all

lies in persuading future talent – and their influencers – to realise the potential in the vocational route and take up traineeships and apprenticeship.

“Skills are a fundamental enabler for the net zero target. If we do not have enough people with the right skills it will not happen. The Green Energy Sector has a hugely exciting future ahead but we need the best skilled talent to ensure the sector and the wider economy in Northern Ireland reaches its full potential. It is important that all employers within the sector, Government and the education sector collaborate effectively and take ownership of developing the correct talent pipelines.

“It is the right thing to do for our people and for the planet.”

The finances

As a gateway for net zero the company is investing significantly in the electricity network to increase its capacity and resilience for the benefit of customers. Underlying capital expenditure was £219 million in 2023, up £32 million or 17 per cent on 2022. Supporting this investment, and future projected investment of up to £4 billion over the next decade, will require careful financial management to deliver and fund this investment cost effectively for the benefit of customers.

Browne is keen to emphasise the benefit to Northern Ireland: “Over £190 million was contributed to the Northern Ireland economy in 2023 and this will only increase as the years progress. NIE Networks will ensure that, through the right planning and investment, costs for customers are minimised and they are supported in their own efforts to cut emissions and live a more sustainable life.

“It is dependent on good partnership and collaboration with industry participants, customers, and other stakeholders.”

Browne concludes: “It is a once in a generation opportunity and we have a responsibility to get it right for the people of Northern Ireland and future generations. I am personally enjoying working with the capable and committed people in NIE Networks and key stakeholders to enable the delivery of a sustainable energy system for the benefit of Northern Ireland and its economy.”

“Over £190 million was contributed to the Northern Ireland economy in 2023 and this will only increase as the years progress.”
Ted Browne

Ted Browne was appointed Financial Director of NIE Networks in September 2023, having previously served in a variety of senior roles for ESB, including as Financial Controller of ESB’s Engineering and Major Projects division, and as Chief Financial Officer for ESB Networks. He began his career as a senior auditor for KPMG Ireland in 1988 and is a fellow of the Institute of Chartered Accountants.

Outside of work Browne is enjoying getting to know Northern Ireland and its people. He enjoys travelling, almost all sports, and spending time with his wife Deirdre and their four children, who he explains keep them busy in a good way.

Accelerating to net zero

joined by Chair of the newly appointed independent board, Peter McNaney, to discuss the importance of plan-led acceleration of a net zero electricity system.

In 2021, Northern Ireland reached a major milestone by becoming among the first power systems in the world to enable up to three-quarters of the electricity on the grid at any one time to come from variable renewable sources.

Credit for the engineering feat, which has served as an exemplar for neighbouring and global power systems, lies with the

System Operator Northern Ireland (SONI), and should be viewed in the context of major challenges posed to the safe, secure, and constant flow of electricity in the region.

SONI is responsible for balancing consumer demand with generation to ensure a constant supply of power in Northern Ireland, but also takes the lead

on planning for Northern Ireland’s future energy needs by developing projects to upgrade and enhance the high-voltage electricity grid.

As SONI’s Chief Executive Alan Campbell explains, there is no room for SONI to rest on its laurels, with less than six years left to meet the ambitious target set by the Climate Change (Northern Ireland) Act

2022 of 80 per cent of electricity consumption coming from renewables by 2030.

“If Northern Ireland is to meet ambitious targets of the integration and use of significantly more renewable energy, the electricity grid, and how the system is operated, has to be upgraded in an unprecedented manner,” he states.

Recently, SONI published an update to Shaping Our Electricity Future, its longterm roadmap to balance increasing power demand with ambitious climate change policies.

Explaining the fundamental vision for the roadmap, Campbell says: “To achieve these targets by 2030, more energy from renewable sources needs to be connected to the power system. This means that the electricity grid will need to carry more power from energy sources that vary depending on the weather. This power will also need to be carried over longer distances. As a result, we need to make the grid stronger and more flexible.”

The appointment of a new independent board to SONI towards the end of 2023 marked a significant change in the governance and operations of the Transmission System Operator (TSO).

The operation and governance changes come at a critical time for the TSO, as it seeks to be an enabler of a net zero electricity grid in Northern Ireland.

The establishment of the board is one of a suite of changes being driven by the Utility Regulator’s license modifications to SONI, which has mandated greater managerial and operational independence from its parent company, EirGrid plc.

As well as transitioning from Managing Director of SONI to its new Chief Executive, Campbell also sits on the new board chaired by McNaney along with four other independent members, all of whom are geared towards meeting the challenges and harvesting the opportunities that exist in the creation of a fully integrated and decarbonised power system.

Discussing the implementation of the board, Campbell says: “At this crucial time in the energy transition, our team

“SONI’s direct cost to the consumer is on average only around 2 per cent of their electricity bill, however, our influence on the whole cost to electricity consumers is much more significant.”
SONI’s Chief Executive Alan Campbell

looks forward to working with the new board members, who each bring considerable expertise and experience, to drive forward our mission to deliver a cleaner energy future for everyone in Northern Ireland.”

Describing his attraction to take up the position as SONI Chair, the experienced Peter McNaney, a former chief executive of Belfast City Council and chair of the Belfast Health and Social Care Trust, explains that SONI has the foresight, opportunity, and talent to make a lasting change to the region.

“In the coming years, delivering the challenging ambitions set by the Northern Ireland energy strategy and Climate Change Act is going to require a step change in the intensity of ideas, collaboration, and delivery within the energy industry and beyond.

“Along with the other new members of the board, I look forward to working with the team in SONI to deliver its vision for the future and ensuring it can thrive as a successful TSO for the benefit of local communities, businesses, and farms across Northern Ireland.”

Campbell echoes McNaney’s sentiments that the largest upgrade to the electricity system since electrification itself is a defining topic of our age and welcomes the “fresh perspective and challenge”.

“While Northern Ireland’s 2030 renewable energy targets are very ambitious and challenging, the social, economic, and environmental opportunities afforded by this once-in-ageneration transition are huge,” he adds.

SONI and its board retain a close collaboration with their parent company EirGrid, however, the change has

enabled a restructuring of SONI’s leadership in Belfast, including plans to recruit four new directors. Additionally, the board has set about an engagement process with key stakeholders in the electricity system, not least the Utility Regulator and the Northern Ireland Executive.

SONI’s future vision for the electricity grid is being delivered in the context of challenging short-term delivery conditions. The Winter Outlook, published at the end of 2023, showed that SONI was cautiously optimistic that there would be sufficient electricity generation to meet expected demand in normal operating conditions.

However, the complexity of balancing supply and demand on a daily basis was evident in a warning that risk of supply had increased due to the “tightening of electricity buffer margins”. A similar theme was evident in SONI’s Ten-Year Generation Capacity Statement 20232032, an annual all-island study that sets out the likely balance between electricity supply and anticipated demand over the next 10 years, which pointed to challenges ahead.

The analysis was a clear signal to the electricity market that investment in new generation and the subsequent timely delivery of secured contracts will be required to ensure a stable and secure supply of electricity for consumers in both Northern Ireland and the Republic of Ireland. As the System Operator, SONI relies on the market to deliver the required generation to plan the system to meet Northern Ireland’s energy needs.

Campbell is quick to point out that the short-term challenges associated with maintaining supply while also undergoing 4

a significant modernisation process is not unique to Northern Ireland, but adds that SONI and all relevant stakeholders must work together to manage the reliable supply of electricity,

Acknowledging the scale of the challenge, McNaney says that evidence to date indicates that SONI is well-placed to meet the needs of the region.

“SONI’s Shaping our Electricity Future Roadmap, in its original form, predated the release of the energy strategy and the Climate Change Act and it is telling that the ambition already existed to reach those high 70 to 80 per cent renewable electricity targets.

“SONI is well placed to support the energy transition because the foresight enabled by their research and evidencebase means that the organisations are already turned in that direction. Their direction of travel is clear, concise, and well-documented, something that was very appealing to me when I applied for the post of chair.”

SONI’s Tomorrow’s Energy Scenarios research programme explores a number of likely scenarios to understand how much electricity we might need and how it can be provided, beyond 2030, up to 2050.

As Campbell explains, SONI’s scenario planning and forecasting is a critical part

of its role as an independent and trusted advisor to government energy policy, ensuring that decision-makers are best informed on the potential long-term implications of policy decisions.

This collaboration with decision-makers and key energy market stakeholders is something that must be fostered if Northern Ireland is to maximise the opportunities of a transition to a net zero future. Outlining that currently SONI must approach connections to the grid and plans to increase grid capacity reactively, in response to demand for developers, Campbell believes this approach to be inefficient and contributory to increased costs and timescales.

Instead, he has called for a shift to a more plan-led approach in collaboration with industry, government, and regulatory partners.

“SONI can increase grid capacity in a more strategic, proactive, and timely manner through more anticipatory investment while reducing costs and timescales for grid connections,” he explains.

Such collaboration is a crucial part of SONI’s forthcoming Transmission Development Plan for Northern Ireland (TDPNI), a 10-year roadmap for the strategic development of the electricity transmission network, for which consultation closed at the end of 2023.

McNaney explains that the Transmission Development Plan will also be critical to the delivery of SONI’s next price control submission out to 2030, work on which is already being undertaken.

However, SONI’s Chief Executive is insistent that transformational plans for the future grid must also acknowledge the short-term challenges of managing a power system in transition, highlighting that SONI’s priority must be to maintain security of supply of electricity for consumers. To this end, he welcomes the forthcoming delivery of a new renewable energy support scheme to increase renewable generation but stresses the importance of the appropriate market incentive mechanisms to ensure the “right generation is delivered in the right place at the right time”.

“SONI’s direct cost to the consumer is on average only around 2 per cent of their electricity bill, however, our influence on the whole cost to electricity consumers is much more significant. That is why it is so important that we strike the correct balance between increasing the levels of renewable electricity on the grid to meet demand but doing it in the most costeffective way which does not threaten security of supply.”

McNaney highlights that in recognition of the role SONI has in providing this balance, the grid operator launched a

fundamental review of its engagement strategy in February 2024, with the aim of improving how it engages with local communities, businesses, landowners, and the energy industry, as it seeks to make fundamental changes to the electricity grid.

Technology solutions

Greater levels of renewables on the system also means greater levels of intermittence, and a geographic realignment of where generation must be transported from, if Northern Ireland is to transition away from on fossil fuel power plants. Campbell describes it as “vitally important” that the second North South Interconnector is built, to provide greater stability through the Single Electricity Market (SEM).

He indicates Northern Ireland’s planning system as a potential barrier regarding the need to double the amount of renewable generation connected to the grid by 2030 and questions the deliverability of a total overhaul of the planning system given the pressing timescales.

“Ultimately, the planning system needs to be appropriately resourced to meet the level of demand being placed on it, and the increased demand set to come forward. If planning authorities are going to deliver on tight timelines, then they must have the adequate resources to do so. I believe having that overarching plan-led approach to renewable development and grid expansion will be beneficial to allowing those authorities to prioritise.”

Alongside greater levels of interconnection, SONI is also engaged in several programmes of service development, integrating technologies that will help maintain stable supply. Four large battery sites in Northern Ireland have already been connected to the grid, and in October 2023, SONI published a call for evidence on the market procurement options for long duration energy storage.

McNaney illustrates that as well as managing and deploying those on-grid services, SONI also has a role in helping to shape behavioural change in relation to energy use and how consumers engage with the electricity grid.

“As we look to electrification as the primary driver of decarbonisation, there is a widespread recognition that keeping the same societal behaviours will result in higher and frankly unsustainable demand for renewable electricity. We need a smarter approach to our electricity use, so that we can minimise the amount of additional infrastructure required and the technology that will need to be deployed.

“The Department for the Economy is set to develop a plan for the implementation of electricity smart meters and systems, and this is a welcome step to encourage and incentivise households to engage with and help manage the electricity grid.”

He continues: “As a board, we are very mindful of the need to ensure the energy transition is affordable to the consumer but we are also keen to ensure that the actions being taken to reach the ambitious decarbonisation targets are being done with consumers, and not to consumers.

“SONI’s track record of community engagement to date is well

documented and has been successful, but as we move faster and further it is important that we build on those relationships and bring people along on the journey.

Concluding, Campbell says: “While Northern Ireland’s 2030 renewable energy targets are very ambitious and challenging, we know collectively what we need to do and we have a plan. The key challenge is time, and now is the moment to rise to that challenge.

“As an organisation, SONI is geared to help maximise those opportunities and our people are driven by potential to make lasting change to through world-leading engineering solutions and to benefit the consumer.

“The substantive policy direction and the required measures to deliver Northern Ireland’s renewable energy targets are largely in place. The key focus now needs to be on removing the barriers which risk falling short and proactively identifying opportunities to accelerate delivery. As Northern Ireland's Transmission System Operator, SONI is committed to working collaboratively to meet this challenge."

McNaney adds: “There is nothing I have seen in the past six months that causes me any concern about the ability of this organisation to rise and meet the challenges ahead, driven by the right values. As we stand at a historical point in time, SONI is well placed to ensure Northern Ireland, through its expertise in technology and engineering, can realise the opportunities and potential of this energy transition.”

Alan Campbell Chief Executive, SONI

Alan Campbell was appointed Chief Executive in October 2023, having been the Managing Director of SONI since July 2020. He joined SONI in July 2017, as Head of Grid Infrastructure Projects and Connections moving from ESB, where he managed the Coolkeeragh Power Station. He is a mechanical engineering graduate from Queen’s University Belfast.

Peter McNaney Chair, SONI

Peter McNaney practised as a corporate lawyer for 20 years before serving as Chief Executive of Belfast City Council between 2001 to 2014. As a non-executive, he was chair of the governing body of Belfast Metropolitan College and served as a member of the board of Invest NI. He was also the senior independent director and chair of the audit committee of Northern Ireland Water and recently stood down as chair of the Belfast Health and Social Care Trust after nine years.

Delivering

2030 target to be met by two

renewable electricity support auctions

An

ambitious target of 80 per cent renewable electricity consumption by 2030 will need to be met by just two project auctions under the forthcoming renewable electricity support scheme (RESS).

Although not finalised, design considerations by the Department for the Economy for the RESS scheme suggest that only projects procured in the scheme’s first two auctions will be operational by 2030.

Currently, around 45 per cent of Northern Ireland’s electricity consumption comes from renewable sources, mostly onshore wind, and a significant gap exists in reaching the 80 per cent target mandated by the Climate Change Act in less than six years.

An estimated 3.5 TWh of generation are expected to require support if Northern Ireland is to meet the 80 per cent renewable electricity target and the Department’s proposed auction roadmap sees 1,000 GWh (~500MW), procured in 2025/26 for delivery in 2027. This means that auction one of the new support scheme is expected to

deliver around 30 per cent of the supported energy volumes required to meet the 2030 target, with the vast majority being from onshore wind and solar projects.

Auction two, therefore, which is set to be held in 2027 for project delivery in 2029 will need to procure around 70 per cent of supported energy needed, a volume of some 2,500 GWh (~1250 (MW).

The Department says that this second auction will be used to increase the procurement volume of other technologies beyond onshore wind and solar, but it is not expected to support offshore wind projects.

Interestingly, no timeline has been offered for offshore wind support, despite recognition of the critical role it is intended to play in Northern Ireland’s transition to net zero. The Energy Strategy Action Plan 2022 commits the

Department to a target of 1GW of offshore wind capacity from 2030 and the Department says that while it continues to “refine the timeline for offshore wind delivery, at this stage in development, it is not possible to confirm the scale and timing of offshore renewable generation deployment in Northern Ireland”.

The Department for the Economy first held a consultation on design considerations for a renewable electricity support scheme in February 2023 and in early April 2024, the Department issued its Proposed High Level Design on the RESS.

Calls for a renewable electricity support scheme had been longstanding with recognition that market conditions provided little incentive for developers to build further generation. The Northern Ireland Renewables Obligation (NIRO) was Northern Ireland’s last

Delivering a sustainable energy system for all

• Procure projects at advanced stages of development.

• Procure ~30% of the suppor ted energ y volumes required to meet 2030 target, mainly through Pot 1

• Procure remaining ~70% of suppor ted energ y volumes required to meet 2030 target.

• Increase procurement volume of Pot 2 to diversif y the supply mix 2

Source: Department for the Economy

support scheme for encouraging increased renewable electricity generation in Northern Ireland and successfully catapulted the region to a world leader in renewable electricity.

However, the scheme closed in 2016/17, with the substantial delivery of new clean energy development in the region largely ending with it.

Outlining the primary aim of the scheme as “to encourage investment in local renewable electricity projects whilst also protecting consumers from global price shocks”, the Department stresses that the high level design paper is a “preliminary proposition only” and that the detailed design will be developed throughout the remainder of 2024.

The Department’s high level design paper was informed by analysis carried out by Aurora Energy Research on its behalf, which included a range of preliminary recommendations.

The design proposes a contract for difference (CfD) scheme, based on successful deployment internationally, for a variety of eligible technologies ranging from onshore wind and solar through to tidal energy and storage infrastructure.

Importantly, the scheme is likely to be voluntary, recognising that a mandatory migration to a CfD scheme for legacy projects would significantly alter the financial business model. Additionally, potential delays caused by legal objections to inclusion in a mandatory scheme should be avoided. Finally, feedback suggests that a mandatory scheme could pose a barrier to

alternative routes to market, such as corporate power purchase agreements (CPPAs).

Subject to change is the proposal that the scheme proposes a minimum capacity for eligibility of 5MW, however, this is likely to be reduced following industry feedback. The Department notes no “broad consensus” for a dedicated support scheme for microgeneration, however, there is recognition that microgeneration could continue to make an important contribution to reaching targets, leaving open the possibility of delivery of a future scheme.

Also likely to be included in the final scheme is a community benefit fund, with the Department recognising widespread agreement that communities hosting renewable projects should benefit from the wider advantages gained by consumers in Northern Ireland.

The majority of feedback agrees that the optimal frequency for access to the scheme would be between one and two years, with a proposed contract length of 15 years. However, technologyspecific contract lengths are an option.

“A clear roadmap for upcoming auctions was also widely identified as critical to providing enough predictability for developers to manage risk,” the Department states.

On price, pay-as-clear stands out as the most suitable price clearing process, on the basis that auctions need sufficient competition for this approach to be effective. As expected,

strike prices are likely to be indexed to inflation, minimising revenue uncertainty over the lifetime of the contract for generators.

Finally, there is wide agreement that Planning Permission and a Grid Connection Offer should be required for projects to be eligible. It is also noted by respondents that these requirements are essential to protect customers from non-delivery or overly speculative bids. However, it has been warned that a balance must be found, and that additional requirements beyond planning permission and a grid connection offer may deter achievable projects, resulting in reduced competition in the auction process.

This eligibility poses a challenge. The Department estimates that the 30 per cent contribution from auction one will be from projects already in the planning pipeline. The planning system in its current format has been criticised as slow and cumbersome, particularly when it comes to major infrastructure projects.

With only projects procured in the first two auction round of a new renewable electricity support scheme likely to be operational by 2030, meeting the ambitious 80 per cent electricity consumption from renewable sources target by that timeframe will require a substantial shortening in determination times for planning applications.

Calor’s renewable energy journey

Calor is pioneering sustainable solutions for Northern Ireland's rural communities, writes Mary Coughlin, Calor’s Regional Sales Manager.

Calor has been a reliable supplier of energy solutions for over eight decades, particularly catering to rural consumers off the natural gas grid here in Northern Ireland.

Our product range caters to a wide array of sectors, spanning agriculture, hospitality, industrial settings needing high-temperature heat, and residential

properties. Deeply attuned to consumers’ and businesses’ unique needs, our journey to net zero is well underway and is committed to offering a variety of options to fulfil current and future energy requirements.

This commitment extends to our role in guiding them through the transition to more sustainable energy solutions. Still,

with this move, there’s a necessity for robust governmental support and a collaborative approach to marketing efforts to ensure that customers are adequately informed about the available options, empowering them to make wellinformed decisions regarding their energy choices.

For the past 80 years, Calor has been synonymous with LPG (liquefied petroleum gas) supply, and in 2018, we introduced our first renewable fuel, BioLPG. This marked a significant milestone in achieving our aspiration of offering 100 per cent renewable and sustainably sourced energy, in line with our ethos of caring for future generations.

Our BioLPG is a significant part of this journey and delivers up to 80 per cent certified carbon savings compared to fossil fuels*, offering an environmentally conscious choice as a drop-in fuel compatible with existing infrastructure, simplifying the transition for users.

BioLPG can also blend seamlessly with LPG. This flexibility empowers users to dictate their own green trajectory while balancing the associated financial costs because they can blend from 10 per cent to 100 per cent BioLPG — the option is theirs.

BioLPG, while a massive part of our net zero efforts, will be one of many innovative products. As part of SHV Energy, a global leader in LPG, Calor draws on vast insight and experience, and we are proud that Northern Ireland is leading the way in our parent company’s broader adoption of BioLPG.

Since we introduced BioLPG in 2018,

Northern Ireland has been among the earliest global adopters, driven by local businesses embracing our products. Additionally, with our parent company, we are actively pioneering alternative fuels like renewable dimethyl ether (rDME) — a clean-burning fuel produced from renewable sources such as organic waste or biomass. Through the joint venture Dimeta, SHV aims to expedite rDME production, offering another clean fuel option while supporting local waste management.

At Calor, we believe partnerships play a crucial role in achieving our and society’s net zero goals. Our partnerships with leading universities, including Queen’s University Belfast, enable us to undertake groundbreaking research and development projects to meet the evolving needs of our customers and the environment.

Calor also adopts a mixed technology approach, which we know will be a valuable asset in the transition to more sustainable energy solutions. This combines traditional LPG and BioLPG with renewable energy technologies such as solar panels and heat pumps. It enables us to offer a range of economically viable solutions for off-grid homes and businesses, ensuring reliable warmth while cutting carbon emissions. Our ongoing exploration of hybrid solutions is another part of our commitment to meeting evolving customer needs and advancing towards a more sustainable energy future.

However, this energy transition comes with challenges, particularly in rural areas. Limited public knowledge and the upfront costs of transitioning remain significant barriers. Research carried out by Calor in March 2024 cited cost as the primary barrier in the shift towards lower carbon or renewable energy, followed by 38 per cent indicating a lack of access to infrastructure.

Educating consumers and providing financial support for equipment upgrades are essential steps in overcoming these challenges. Government policies that promote mixed technology solutions and support energy efficiency improvements can further facilitate this transition.

The survey showed that more than half (54 per cent) of respondents said the Government is not giving enough support in facilitating the transition to lower carbon or renewable energy sources. This highlights the need for government

leadership through policy to address this gap.

Four key challenges for the adoption of renewable liquid gases require collective action; firstly, the need for clear policy direction is crucial. The Northern Ireland energy strategy and subsequent yearly action plans by the Department for the Economy (DfE) is a promising step.

Secondly, as part of the broader LPG sector, collaboration with Liquid Gas UK is vital to address these challenges.

Decarbonising heat is another pressing issue to achieve net zero by 2050. It is essential to offer consumers a mixed offering rather than relying solely on one solution such as electricity. We can learn from neighbouring countries, where policies favouring one solution over others have proven ineffective, emphasising the importance of providing choice.

Lastly, time is of the essence, and adopting a multi-technology approach is paramount. We view LPG as the initial

step, followed by renewable gases, to tackle these challenges effectively.

As a business, Calor is committed to leading the transition to greener energy in Northern Ireland – particularly in rural areas. Through innovative products like BioLPG, ongoing research into renewable fuels like rDME and eventually Hydrogen, alongside our strategic partnerships we are helping shape a more sustainable future for generations to come.

Right now, Calor will continue to communicate and support people to join in using lower carbon LPG and BioLPG. We are aiming to invest, and we’ve taken this step and journey before there was a policy there and we will continue to work towards that to enable our customers to make lower carbon choices.

E: Mary.coughlin@calorgas.ie

W: www.calorgas.ie

Hydrogen and the future of energy in transport

Hydrogen use will become “an important lever” in the transport sector after projected advances in technology, production, and storage capacity, and will be particularly prominent in the decarbonisation of aviation, the International Energy Agency’s (IEA) Shane McDonagh claims.

Shane McDonagh, an IEA research analyst and former researcher at UCC’s MaREI, has outlined that by 2050, hydrogen will be in widespread use throughout the heavy-duty transport sector both directly and in the form of hydrogen-based fuels, and that the most significant scope for development is in the aviation industry, although there are wider roles to be played in maritime and to a lesser extent road transport.

McDonagh acknowledges that these are long-term aspirations as hydrogen production is “likely to be limited” prior to significant demand emerging in these sectors and before the introduction of

In November 2023, a Virgin Atlantic Boeing 787 became the first aircraft to complete a transatlantic flight powered by green hydrogen.

Delivering a sustainable energy system for all

Hydrogen demand by sector in a net zero emissions by 2050 scenario

Source: IEA

Over 45% of hydrogen demand in 2050 in the NZE goes to support transport, either directly or in the form of hydrogen-based fuels

adequate storage and distribution capacity, which is not anticipated to happen prior to 2030. Furthermore, he indicates that as electricity becomes the dominant source of energy for road transport, the use of biofuels will shift to shipping and particularly aviation.

McDonagh says that the key lesson being drawn from IEA research thus far is that there is a need to “use electricity directly where possible”, suggesting where practical, direct electrification generally provides the lowest costs and carbon emissions of the competing solutions.

Given the current limitations of batteries, this still leaves significant room for hydrogen and in the IEA’s net zero emissions by 2050 scenario “electricity demand for hydrogen-based fuels production will increase total transport electricity demand by 6,000 TWh to reach a total of almost 17,000 TWh,” he explains.

Opportunities and limitations

Hydrogen is touted by McDonagh as having a “prominent” role to play in the reduction of emissions. However, in concluding, the analyst is mindful that hydrogen will play a role which is

“complementary” to wider electricity and bioenergy use in all transport sectors.

“In shipping, biofuels are increasingly used, reaching about 20 per cent of fuel demand, but due to limits on sustainable biomass availability and competition with the aviation industry, we could see green ammonia emerge as the most dominate zero emission fuel in 2050, meeting about 50 per cent of fuel demand.

“Hydrogen, which is not as well suited as ammonia and biofuels for long, transoceanic journeys, is used for shorter range coastal vessels. Hydrogen could account for 15 per cent of shipping fuel demand in 2050; and the other 15 per cent of fuel will still come from oil.”

He concludes, rationalising: “One of the reasons for the slow transition of maritime shipping to zero carbon fuels is that for ammonia and hydrogen especially, new ship designs and standards will be needed.” Even once these ships are built, turnover will be low as “shipping vessels have lifetimes of 20 to 30 years”.

ABO Energy’s £450 million investment plans

Patricia McGrath, Head of Project Development at renewable energy developer ABO Energy discusses Northern Ireland’s renewable electricity target and the opportunities presented by the need to decarbonise.

Whilst Northern Ireland has shown in the past that it has the expertise and ambition to meet and exceed renewable energy goals; a number of factors have slowed the delivery of new projects in recent years. However, a renewable electricity consumption target of at least

80 per cent by 2030 and recent announcements from the Department for the Economy mean the sector is focused and ready to deliver once again.

“There is no doubt the last six or seven

years have been frustrating when it comes to delivering new projects in Northern Ireland,” says McGrath. “Being the only region in the UK and Ireland without a government support mechanism meant we were effectively operating with our hands tied behind our back. Most of the financial investment went to other areas that were simply more attractive to investors.”

During those difficult years, most large renewable energy companies scaled back their involvement in Northern Ireland, with many leaving the region completely. However, ABO Energy continued to invest in its team and in new opportunities, which means it is now perfectly positioned to support the drive to 80 per cent by 2030.

“Our confidence in and commitment to Northern Ireland never wavered. Even when there was little cause for optimism, we focused on identifying opportunities, securing new sites and further developing our own expertise and experience. We are very proud of our fantastic team,” explains McGrath.

This approach has paid off. With a team of almost 20 full-time professionals in its Lisburn office, ABO Energy has expanded its interests here from its original involvement in onshore wind, to a portfolio of projects that now also includes battery energy storage, green hydrogen, and solar PV.

The company’s growing expertise in a wide range of technologies prompted a recent name change, having previously been known as ‘ABO Wind’.

“We had many successful years under our previous name, but ABO Energy much better reflects the breadth of skills and expertise we now have. A fundamental part of our approach is developing trusted partnerships with landowners and we want them to know from the start that we can work with them on much more than just wind energy projects.” says McGrath.

“Our new branding has been so well received but we are also very keen to emphasise that we are still the same

Patricia McGrath, Head of Project Development, ABO Energy.

company with no change in ownership. Our ethos remains unchanged and everyone who deals with ABO Energy will see the same ambition, professionalism and respect they are used to from our team.”

The ambition McGrath refers to has made ABO Energy one of the most active developers in Northern Ireland, with a pipeline of developments that will make a substantial contribution to the 2030 renewable electricity target.

“As things stand we have achieved planning approval for over 375MW of projects in Northern Ireland. That includes wind farms, a green hydrogen facility and one of the largest battery energy storage projects consented on the island of Ireland,” says McGrath.

“We also have live planning applications for further projects totalling over 300MW and we expect this to grow further in the coming months. When built-out, our consented and currently proposed developments will involve an investment of £450 million.”

McGrath believes there are very few, if any, other industries that offer such significant promise across Northern Ireland: “As a sector, we are proposing generational levels of private investment here. It is Northern Ireland’s single biggest economic opportunity.”

Born and raised outside Dungannon, County Tyrone, McGrath studied at Queen’s University Belfast and now

lives with her husband and three young children close to where she grew up. “I particularly like the fact our investments create benefits across the region –mostly in rural areas that otherwise really struggle to attract funding and economic growth. That is important to me personally, as well as the investment needed to build and operate our projects, our community benefit funds will support local groups and organisations long into the future.”

ABO Energy has an extensive educational programme in Northern Ireland, where an experienced teacher, Mrs Pauline Davison works with local primary schools on renewable energy and sustainability classes. “We see such enthusiasm from the children who are not only very conscious of the need to look after our planet, but also enjoy learning about renewables as an industry that they might one day work in,” says McGrath.

Slow and inconsistent planning decisions remain a barrier to new developments, but it is hoped recent announcements about a new support mechanism will boost activity in the renewables sector further.

“The planning issues are well rehearsed and go beyond the renewables sector, but we need to see urgent progress in that regard,” explains McGrath. “On a more positive note, we very much welcome the Department for the Economy’s announcement that a

renewable energy support scheme is to be put in place, with the first auction –where projects can bid for contracts – to be held in early 2026.

“Although we feel the auction should be held sooner given the 80 per cent target date of 2030 is fast approaching, I do expect to see more interest across the sector in Northern Ireland now that we know the support scheme is on its way. It will help make new projects viable.

“That is good news for everyone, as ultimately the more locally produced green energy we can generate the less reliance we have on polluting and expensive fossil fuels.”

Concluding on whether she ever considers moving to ply her trade in another sector, McGrath, who holds an undergraduate degree in geography and a Master’s in environmental planning, responds: “No. I love the challenging nature of working on renewable energy projects, even after 12 years; and most importantly I believe we are doing the right thing.”

T: + 44 28 9099 6445

W: www.aboenergy.co.uk

E: info@aboenergy.co.uk

ABO Energy develops solar PV, energy storage, hydrogen and onshore wind projects.

Renewable energy and net zero in Northern Ireland

With the 2030 energy deadline fast approaching, several challenges, such as regulatory hurdles, energy price rises, and consumer affordability, are significantly stalling progress, MPs have been told.

These challenges are the focus of the Northern Ireland Affairs Committee (NIAC), aiming to evaluate Northern Ireland's strategy for meeting its 2030 and 2050 energy targets.

To help the UK Government fulfil its 2050 net zero commitment, Northern Ireland’s Executive set a target for 80 per cent of its electricity to come from renewable sources by 2030. Yet, latest statistics reveal that progress towards this ambition is regressing, prompting the committee to launch an inquiry into the issue in the absence of Stormont.

Ian Snowden, Permanent Secretary of the Department for the Economy, highlights: “There is a fantastic opportunity in Northern Ireland to

achieve energy self-sufficiency, possibly for the first time in history of the region... It will be extremely challenging to push all of that through in the timescale, but it is possible.”

However, Richard Rodgers, Director of Energy for the Department for the Economy, underscores the tight timeline, stating: “What we have done in 23 years now has to be done in six.” This urgency was echoed by Steven Agnew, Director of RenewableNI, who cited a report, based on the latest research from SONI in Tomorrow’s Energy Scenarios, indicating that Northern Ireland might not achieve zero carbon electricity until 2040 at the earliest.

Delivering a sustainable energy system for all

Renewable energy landscape and infrastructure

Derek Scully, Head of Corporate Affairs in Energia Group points out that Northern Ireland has made “exceptional” achievements, with up to 50 per cent of its electricity coming from renewables, primarily onshore wind.

“Some 40 per cent to 50 per cent of electricity in Northern Ireland is from renewables. We can look anywhere else in the world, and you will find higher renewable numbers, but you will not find it where it has been almost exclusively onshore wind.” However, Scully acknowledged that “the 80 per cent target by 2030... is going to be a real challenge”.

Other experts, like Professor David Rooney, who specialises at the Research Centre in Sustainable Energy at Queen’s University Belfast emphasises the need to speed up processes and planning, with James Richardson, Chief Economist of the UK Climate Change Committee, adding that several factors have been detrimental to progress, stating: “planning has been an issue, regulations have been an issue, connection charges have been an issue.”

To increase renewable energy generation, the committee acknowledges that expanding grid capacity and improving infrastructure are crucial. Agnew warns: “Business as usual will mean that we do not just miss our 2030 target, but miss it by a mile.”

Mark Fitch, Corporate Development Director at Transmission Investment, calls for stable policies and regulations to encourage investment. Furthermore, Fitch suggests that Northern Ireland could benefit from adopting practices that are already proven elsewhere, such as the UK and Republic of Ireland. This, in turn, would help speed up the planning process and therefore accelerate growth in relation to renewable energy within Northern Ireland.

Consumer energy prices and public perception

Affordability and consumer perception are significant barriers to achieving renewable energy targets. Peter McClenaghan, Director of the Consumer Council for Northern Ireland, notes that “97 per cent of people... are significantly worried about energy prices”.

Addressing these concerns requires clear data collection and a shift in energy pricing. Snowden explains that data collection is “key” in terms of “either a surcharge on those using fossil fuels or a discount on those using renewable energies”.

Investor confidence and support schemes

Investor confidence is essential for driving renewable energy projects forward.

Paddy Larkin, CEO of Mutual Energy, states:

“We do not have a support scheme for renewable generation, so there is not any being built.” The absence of consistent support schemes has driven investment to other regions, such as the south of Ireland.

In February 2023, the Department for the Economy issued a consultation to gather insights for the development of a renewable electricity support scheme (RESS) in Northern Ireland, and subsequently a ‘Proposed High Level Design’ was issued in April 2024.

Fitch reinforces the need for stability during this time, suggesting that adopting established support systems would attract investors.

Grid connections

Agnew firmly believes that the status-quo in achieving 2030 targets will not achieve the renewable energy needed, stating: “You will not be connected (via grid connections) until 2030, no matter how quickly you can build it.”

James Richardson, Chief Economist at the UK Climate Change Committee believes that limited grid capacity is a key challenge in Northern Ireland: “It is mostly going to require upgrading the grid. There are certainly things that you can do, which mean that you do not have to upgrade the grid by as much as you are upgrading the use of electricity, by putting more flexibility into the system and shifting demand out of the peaks, because you have to build these grids for the peak. It is typically in the evening when you can shift demand for things like electric vehicle charging. Heat pumps are pretty flexible about when you can put them on.”

Rooney emphasises this point, stating, “I would agree. Large-scale investment in the main energy carriers in the future, which is electricity, needs to happen and needs to happen as soon as possible.”

Fitch suggests: “I would say, “Let us look at our close neighbours and what they are doing and seek to copy the mature things that are going on there to bring more people in to deliver it more quickly, cheaper, and better.”

David Blevings, Ireland Manager of OFTEC suggests a “fast, streamlined process for energy policy”, emphasising the need for government intervention to accelerate planning.

Journey towards net zero

Northern Ireland’s journey toward net zero and renewable energy is filled with challenges, from infrastructure to investor confidence and consumer affordability. The NIAC discussions highlight the need for a cohesive strategy, robust support schemes, and expedited planning processes. Without these changes, achieving the 2030 target could be an uphill battle.

Power-to-X and e-fuel synthesis

Managing Director of B9 Energy Storage

Ltd, David Surplus, outlines the opportunities of using the maritime e-methanol market to fast-track deployment of large-scale offshore wind.

It is important to mention that B9 Energy always supports direct electrification whenever possible because it is the most efficient route to decarbonisation. However, when industry sectors, such as marine transport need liquid fuel alternatives, then Power-to-X and e-fuel synthesis become a priority.

Ulster Hydrogen Valley

Decarbonising the Northern Ireland economy by 2050 will require the deployment of large-scale offshore wind farms. These will be additional to the existing onshore capacity and have both geographical and hourly correlation to the electrical loads being supplied.

The existing electrical grid network is not

capable, in the time and budgets available, of transporting such large amounts of power on its own but assistance can be provided by Powerto-X systems to allow crossover of hydrogen into gas networks.

The infrastructure map (figure 1) shows offshore wind, Power-to-X (P2X) electrolyser stations, dedicated sub-sea cables and pure hydrogen pipelines. It also shows the location of the proposed 500 million m3 salt cavern storage facility at Ballylumford, Islandmagee, which can store green hydrogen. The total system shown is 3.45GWe capacity, requires €9 billion CAPEX from private investors and is called ‘Ulster Hydrogen Valley’ 1

Routes to market for H2 gas include blending into natural gas pipelines and delivery to existing power stations to provide future security of supply during periods of low wind. Unfortunately, slow policy development in these areas means there is insufficient legislation or regulations to support the ambitious project development needed to solve the climate emergency.

A faster and larger route to market for green hydrogen is offered through the development of an e-methanol economy, particularly as it relates to the fastgrowing maritime fuel sector. Note that methanol is a chemical fusion of hydrogen and CO2

NI/GB Green Shipping Corridor Project:

B9 Energy Storage together with partners: DFDS Seaways, DFDS Logistics, Larne Harbour, JG Maritime Consultants, Mutual Energy and the Net Zero Industry Innovation Centre at Teesside University are being funded by Innovate UK and Department of Transport through the Clean Maritime Demonstration Competition round 4 (CMDC4) to carry out feasibility studies and pre-deployment trials in respect of a

‘NI/GB Green Shipping Corridor’ between Larne in Northern Ireland and the north west of England (preferably Liverpool) using a ro-ro freight ferry design optimised for the carriage of unaccompanied trailers and powered by hydrogen reformed onboard from green methanol delivered in road mobile ISO tank containers.

The green methanol would be synthesised at Larne Harbour from green H2 and CO2 as an extension of the Ballylumford Power-to-X Project. The main innovation in the project is to capture CO2 from the onboard reformer and return it to the methanol synthesis plant in the same (now empty) tank containers that delivered the methanol, thereby setting up a circular CO2 economy that avoids the inevitable future supply constraint of green CO2

The port based flexible green methanol plant will use otherwise curtailed wind power to drive a PEM and/or Alkaline electrolyser that feeds green hydrogen to a catalytic reactor. The Domestic Green Shipping Corridor would have ‘true-zero’ emissions, would not be reliant upon limited supplies of bio derived CO2 or direct air captured CO2 and would not need any carbon offsetting to meet net zero objectives.

The system diagram of Figure 2 relates to the recirculation of CO2 to enable scale-up of e-methanol as a marine fuel. It also shows the ‘linear’ application of

1. https://h2v.eu/hydrogen-valleys/ulster-hydrogen-valley

captured green CO2 from biogenic sources (anaerobic digestion) and direct air capture (DAC) from the atmosphere to serve the linear end uses of emethanol, such as blending into E10 specification petrol, selling as pure methanol (M100) for spark ignition engine powered vehicles and for subsequent synthesis into Dimethyl Ether (DME), which is a substitute for LPG, and e-kerosene, which is a sustainable aircraft fuel. These linear CO2 applications end up with CO2 being vented to atmosphere and so they can deliver carbon neutral performance.

Direct air capture for supply of ‘linear CO2’

B9 Energy storage is hosting a DESNZ funded DAC demonstration project at its HQ office in Larne. The unit has been designed by CO2CirculAir for intermittent operation using wind power without the need for energy storage or forced draft fans. Deployment of DAC machines driven by off-grid single wind turbines, ranging in size from 250kW to 1MW, can usefully be carried out at up to circa 1,000 different farm locations in Northern Ireland.

Wind can be augmented with low-cost ground mounted solar PV arrays. In many cases these sites already have planning permission for wind turbines but no cost-effective grid connection

offer. Collection of the liquid CO2 would use similar logistics operations to bulk milk collections and animal feed deliveries. The DAC sourced CO2 is pure enough to be used in the food and drink sector.

There are several turnkey suppliers of methanol plants that have specifically designed for variable inputs of green hydrogen from renewable energy driven electrolyser installations. An example is ‘FlexMethanol’ from BSE Engineering which claims flexible operation in the range 10 per cent to 120 per cent in less than 15 seconds. Use of such a flexible system would remove the need for large scale hydrogen compression and storage, which are expensive operations.

B9 Energy Storage Ltd

E: d.surplus@b9energy.co.uk

W: www.b9energystorage.co.uk

2. https://www.shippax.com/en/news/green-methanol-on-track-to-become-a-scalable-zero-emission-fuel-in-the-maritime-sector.aspx

Abattoirs
Granville
Scrubber
Figure 2.
The role of long-duration storage in a net zero future
Mutual Energy hosted a roundtable discussion with experts from across the industry to discuss the role of energy storage can play in decarbonisaing Northern Ireland's energy system.

How does long-duration storage have a role in delivering an integrated, decarbonised energy system for Northern Ireland?

Long-duration energy storage is a fundamental part of decarbonising the power system and has various benefits. One obvious benefit is the potential for SONI, as Transmission System Operator, to reduce the dispatch down of

renewable generation in times of high supply, while also minimising the use of fossil-fuelled peaking plants in times of low supply, particularly over prolonged periods, which will reduce costs and help with delivering a net zero carbon energy system. Another potential benefit is assisting with grid congestion and the challenges that come with the east-west imbalance of supply and demand that we have on the power system. Ultimately, if long-duration energy storage can be deployed quicker than grid investment, then it could enable the

Round table discussion hosted by

use of more renewable generation sooner and defer or potentially remove the need for some grid investment.

Wind and solar are the leading technologies for decarbonising our electricity network but the supply given by these technologies is not only intermittent, but also unpredictable. Ultimately, this leads to a mismatch between supply and demand. Modelling suggests that over the course of a year, with same levels of generation, and the same levels of demand, the mismatch is around 40 per cent. This is where the need for storage comes in. The benefits of increased wind generation are starting to be diminished because of the marginal cost of curtailment across the board. Developers are no longer going to absorb the risk factors of dispatch down and curtailment, so society and

government will be required to take on that risk to enable the build out of the renewables needed.

David Surplus

Long-duration storage enables the management of intermittent renewables by providing instantaneous balancing of electrical load. A typical curtailment episode in Northern Ireland could last for 10 hours, which exceeds the capacity of conventional batteries being operated today.

Sean Kelly

For the past 25 years flexibility in the electricity grid has been afforded by generation from natural gas stations. Now, the reality is that climate change and low carbon targets mean that we need a new approach. The island of Ireland, as an islanded electricity network, albeit with some interconnection, is at the cutting edge of incorporating high levels of renewables and the means to tackle that lie in having flexible options including a mix of shortterm, medium-term, and long-term storage options.

Tony Roulstone

The future electricity system is going to be driven by supply rather than demand because of the level of variation on a grid fuelled by solar and wind generation. Our modelling for Great Britain indicated that in such a system, if you built renewable supply on a nominal basis, you would have a shortfall some 20 per cent of the time. If 20 per cent of your energy is mistimed or mismatched then you have a security of supply issue, and that is where energy storage comes in. Our research highlighted the requirement and importance of energy storage for different time periods. To move energy through time, the question is: How long does it need to be stored? We found most of the energy needed to be stored for days rather than hours, with 12 per cent only a few hours and balance for months or longer.

Peter Russell

I think it is important to note that the overarching aim is to decarbonise across power, heat, and transport – not just to decarbonise the energy sector. Northern Ireland has a lot of advantages, because of its size and agility while also already moving at pace across many different sectors to meet ambitious decarbonisation targets. We can get the right people in a room to discuss these challenges more easily that other jurisdictions. Long-duration storage is key to addressing the intermittent and

Round table participants

Sean Kelly

Sean Kelly is the transmission grid manager for the SSE Renewables 1500MW Coire Glas Hydro Pump Storage Project. He has been involved in this project since its inception in 2010 and led the project consenting phase achieving planning consent from the Scottish Government in 2020. Kelly is chartered engineer and IET Fellow.

Paddy Larkin

Paddy Larkin joined Mutual Energy (then Northern Ireland Energy Holdings) in 2007 as an Executive Director and Managing Director of Moyle Interconnector Ltd and, in 2010, took over as Chief Executive of the Group. Previously, Larkin was the Chief Executive of Premier Power, a subsidiary of the BG Group and owner of Ballylumford Power Station. He is an engineering graduate from Queen’s University Belfast, a fellow of the Irish Academy of Engineering and serves as a non-executive director of Northern Ireland Water.

Tony Roulstone

Tony Roulstone worked for Rolls-Royce for 20 years culminating in running a group of power businesses. He was a key contributor to the Royal Society’s 2023 study of long duration energy storage. Also, he established the nuclear energy master’s programme in the department of engineering at the University of Cambridge. He is also involved with the design of national energy systems for net-zero in 2050 and the industrialisation and the economics of fusion. He is a Fellow of the Institution of Mechanical Engineers and a Fellow of the Nuclear Institute.

Peter Russell

Peter Russell has been the Utility Regulator’s Executive Director of price controls, networks and energy futures group since January 2024. Prior to joining the Utility Regulator, he was Director for electricity and security of supply in the Department for the Economy. Russell is an economist and has a master’s degree from the University of Glasgow and an MBA from the University of Strathclyde.

David Surplus

David Surplus is a chartered marine engineer and former Lloyd’s register surveyor who moved from offshore oil and gas into renewables 32 years ago to form the B9 Energy group of companies. B9 has developed wind farm, AD, landfill gas, solar PV, and power-to-X projects and is now focused on GW scale emethanol synthesis for the roll-on/roll-off freight ferry sector.

Eimear Watson

Eimear Watson is Head of Networks at SONI and is responsible for transmission system and connections planning, transmission infrastructure delivery and connections contract management. Watson holds a Master’s in Electrical and Electronic Engineering from Queen’s University Belfast.

“A good mix of short and long-term energy storage options offers the greatest potential to maximise the renewable generation we have coming onto the system.” Eimear Watson

predictability challenges of renewable supply, while providing other system benefits, but it ultimately needs to delivered at a fair price for consumers and the technology options used need to be right for Northern Ireland.

Outline the long-duration storage options available that could suitably be deployed in Northern Ireland

The conclusion we came to with the Ballylumford Power-to-X project is that you can use the natural gas pipe network as a store. Gas infrastructure possesses five times the energy carrying capacity that the electricity grid has. Additionally, our research indicates the salt caverns at Islandmagee will be suitable for hydrogen gas storage. That would give us an almost infinite ability to put electrolyser load on to the grid and balance both wind and solar variation. Only around one-quarter of the fossil fuels consumed in Northern Ireland are for the electricity sector, as the majority are used to fuel both heat and transport. It must be recognised that as we increase renewable electricity generation, predominantly through offshore wind, not all of it will be used in the electricity

sector. Consequently, there is a real opportunity to address heat and transport emissions through various eFuels.

Sean Kelly

Northern Ireland’s electricity system is heavily dependent on fossil fuels for periods of low renewables. Therefore,

“It must be recognised that as we increase renewable electricity generation, predominantly through offshore wind, not all of it will be used in the electricity sector.”
David Surplus

storage considerations must prioritise decarbonisation. There are several options and technologies available but hydro pumped storage has been around longest and represents the most mature option, at the greatest scale to date. Hydrogen also presents great potential to ‘load shift’ renewable power. Looking beyond security of supply, energy storage presents a huge economic opportunity. The industrial revolution was built on the availability of cheap fuel. Ireland has the best renewables resource in western Europe and therefore the opportunity to capitalise on the growing demand for clean energy, not just through export, but through building the manufacturing and processes aligned with clean energy storage.

The options available can be categorised into three types of solution. The first is short-term, for a few hours – battery systems. The second are physical-based systems which are useful in the short-tomedium term up to a week and include the likes of pumped hydro, compressed air and liquid air energy storage. Finally, chemical-based systems such as hydrogen, ammonia and synthetic fuels cover longer storage timeframes beyond a week. Cost is important. Battery systems are cheap in terms of power capacity, but expensive when you consider energy volumes. Physicalsystems are between two and three times more expensive in terms of power but could be 10 times cheaper in terms of volume. Chemical systems are even more expensive when compared to batteries for providing power but can be vastly cheaper in terms of storing volume of energy. Governments need to support the demonstration of both physical and chemical storage systems, bringing them to the stage where they become replicable with supply chains that will bring down costs. While the initial cost estimates are high, replication can have a big effect as it has with wind turbines.

I believe all the options will be needed when you consider the scale of the storage requirement, which is around one month of energy. A completely decarbonised electrical network is likely to need some 600 GWh of storage. For context, Turlough Hill Power Station, the only pumped storage in Ireland, offers around 3 GWh, giving a sense of the scale needed. We need short-, mediumand long-term options and these options have three drivers: cost; turnaround

“An evident flightpath for energy storage volume for the near, medium and long-term is key to energising progress in this area.” Paddy Larkin

efficiency; and scale. The reality is that no option will provide all three and that is why it is important that there is a holistic approach. If we are focused on 2030 targets then batteries, with a 15-to-20year lifespan, are the best option for quick and fast deployment but if we are decarbonising our future, then we need to be thinking longer-term about what options will pay back over 100 years, rather than 20. In making those decisions, we need to have consideration for what works best in

Northern Ireland’s geology and geography, and what delivers the right value for customers.

Eimear Watson

As a Transmission System Operator we would like to see a diversity of energy storage options connected to the power system. A good mix of short and longterm energy storage options offers the greatest potential to maximise the renewable generation we have coming on to the system.

“Energy storage must be available to meet gaps in supply when needed, not run to maximise revenue.”
Tony Roulstone

Would Northern Ireland’s energy system benefit from selecting and supporting a single long-duration storage technology?

Peter Russell

Fundamentally, the technology requirements of long-duration energy storage in Northern Ireland will be defined by the parameters of what we, as a region, are trying to achieve. All options are on the table, but 2030 is not that far away and we need to consider what is best for the long-term, as well as realising the economic opportunity that exists. It is important to define what we need from the technology, and then let the market bring forward solutions.

Tony Roulstone

If the focus is on the short-term 2030 targets, then the solution will be driven by what is available and doable today, which will be battery systems plus carbon emitting gas turbines. Northern Ireland potentially will need between 200 to 300 GWh each year to balance supply and demand, while meeting its 2030 renewables target. Capital cost of batteries is estimated to be £10 billion per 100 GWh. This £20 to £30 billion is not feasible and it will not deliver net zero because of the continuing use of fossil fuel. The UK, as a whole, needs a

strategy for energy storage beyond nearterm targets and for the demonstration of longer term physical and chemical systems.

David Surplus

The deployment of windfarms in Northern Ireland effectively stopped in 2018 with the end of Renewable

Obligation Certificates and the rise of curtailment and constraint. That undermined investor confidence to build and that is a problem when you consider the targets for 2030 and beyond. Having that long-duration controllable electrical load, in whatever form that takes, is important as a basis for increasing generation.

Paddy Larkin

The scale of the storage required is so large that there needs to be a multitude of technological solutions coming forward, and it will require most of them. However, it is worth noting that longterm storage projects in Northern Ireland would be transformational in scale. With projects that size, comes an element of risk.

What are the existing barriers to the delivery of long-duration energy storage options?

Tony Roulstone

Market-based approaches that depend on subsidies needs to be rethought because the risks to security of supply are much too high. Long-duration storage needs are strategic. Energy storage must be available to meet gaps in supply when needed, not run to maximise revenue. With market base methods, either stores could be empty when needed, or for the longest durations they will never be built.

“The biggest barrier is the lack of investment signals for long-duration energy storage.” Sean Kelly

Sean Kelly

The biggest barrier is the lack of investment signals for long duration energy storage. Currently, the drivers to develop storage are not great enough and whilst there is a recognition that while more operational storage on the grid will drive down peak costs for the consumer, the arbitrage for the developer will be lower. The question is how do we finance it in the longer term if there is no incentive for developers and manufacturers?

Eimear Watson

I agree, the main barrier to the delivery of long-duration energy storage is the missing money gap that comes from the existing market mechanisms. There is a renewables support scheme being developed by the Department for the Economy, should there equally be an energy storage support scheme developed to support these renewables connecting to the electricity system? Existing market mechanisms should be reviewed and new market mechanisms explored as well. SONI and EirGrid published a Call for Evidence on Long Duration Energy Storage in 2023 and are currently finalising our response.

Paddy Larkin

In current market mechanisms, security of supply provision through storage is not rewarded. Not only is the arbitrage ability very low, but there is no certainty around what the grid will require. If you consider these projects being long-life, what is the incentive for a developer to assume risk on what is going to happen in 40 or 50 years’ time? The introduction of interconnectors in Great Britain is a good exemplar of how other mechanisms were deployed in recognition that the market would not function if such high risk remained. The underpinning of risk by things like a cap and floor regime should be explored.

Identify one priority policy lever required to ensure that long-duration storage delivers a balanced and cost-efficient energy system?

Sean Kelly

The speed of the planning system is creating real challenges in delivering new infrastructure at the speed of change we need to meet decarbonisation targets. The planning system must be properly resourced, and planning polices aligned with climate policy.

“It is important to define what we need from the technology, and then let the market bring forward solutions.” Peter Russell

Tony Roulstone

You cannot design long-term energy storage systems using one-year models of weather and demand. Current models are adaptions of power matching models. If we want to ensure security of supply for the long-term, we need to match long-term weather data (decadal) with long-term solutions.

Peter Russell

A good starting point is defining what type of a system we require and then fully assessing how that would operate. For example, how much risk does the government and the consumer take on these projects, and does there need to be a capacity requirement that is set aside as strategic reserve, rather than allowing them to fully arbitrage in the market, to ensure security of supply? A study of deployment of long-duration storage in other small countries could provide some insight.

Eimear Watson

If we can get the right people together in a room from across the industry and come up with a strategic spatial energy plan for Northern Ireland, which sets out what we need, the volumes required and suitable locations then I think we would have a strong basis to deliver a balanced and cost-efficient energy system.

David Surplus

My ideal policy lever would be to have some consideration of private wires and how they would be facilitated to enable a hydrogen network. If you now accept that the lifespan of an offshore wind turbine is 35 years and that the electrolysers are 35 years, then there is no such thing as an electricity price because you are not trading on any markets. We have a 35-year certainty on what our energy input costs will be, and that resource could be retrospectively available to the electricity market at a fraction of the cost of in-market conditions with legislative and system changes.

A secure revenue stream is critical. Where risk is transferred to customers to ensure a secure revenue stream, it needs to be managed in a way that maximises the value attained, under normal circumstances, from a project that did not have that security. Additionally, as can be seen by the 80 per cent renewable consumption target for 2030, targets work to drive progress. An evident flightpath for energy storage volume for the near, medium and longterm is key to energising progress in this area.

Delivering a sustainable energy system for all

Oil and gas exploration to be banned

The Department for the Economy has announced plans to bring forward proposals that would ban all forms of petroleum exploration and production.

The Department for the Economy (DfE), which has responsibility for energy policy, currently has the power to grant licences to companies to search for and extract onshore oil and gas. If the DfE’s proposal is accepted by the Executive, the proposed changes will involve amendments to the Petroleum (Production) Act (Northern Ireland) 1964.

The announcement, made by then Minister for the Economy Conor Murphy MLA, follows a consultation on the current petroleum licensing system, which was open between 15 January and 12 April 2024. Although the findings of the consultation are not yet public, Murphy stated that the “vast majority of respondents to the consultation supported the move away from fossil fuels”.

The Republic of Ireland and Wales have both banned all onshore oil and gas activity, and the Scottish Government has introduced a ban on hydraulic fracturing i.e. ‘fracking’.

There are currently no active petroleum licences in Northern Ireland with the last active one relinquished in 2020. However, the Executive has yet to issue decisions on two applications which cover Fermanagh, Tyrone, Armagh, and Antrim.

The DfE’s proposal comes in the aftermath of a two-year long campaign by pressure groups including LAMP Fermanagh, Friends of the Earth NI, and Frack Action, and has been supported by both Murphy and his predecessor Gordon Lyons MLA.

In January 2022, a Department for the Economy paper recommended that the Executive should agree a preferred policy option of a moratorium on all forms of exploration and extraction of oil and gas, to be followed by the introduction of a legislative ban.

Speaking in April 2024 on the proposal, Murphy said: “As climate change is one of the defining challenges of our time, one of the key objectives of my economic vision is to reduce carbon emissions. To meet our net zero targets, a priority will be to move away from petroleum to renewables.

“I intend to ban all forms of onshore petroleum exploration and production –including fracking. This will not only help us transition from fossil fuels to renewables but also towards a greener economy and more sustainable way of life.

“I will soon ask Executive colleagues to approve a ban and, if this is granted, I

will introduce legislation to this Assembly to ban onshore petroleum licensing. This will require amendments to the Petroleum (Production) Act (Northern Ireland) 1964 and other regulations.”

DUP MLA Phillip Brett described the proposals as “meaningless unless we offer an affordable and accessible alternative for households across Northern Ireland”, and called on the Minister to outline “how he plans to swiftly bring forward a strategy to enable households to make the transition to renewable energy as a means of heating their homes”.

The introduction of legislation will be a relatively lengthy process. If the Executive grants its support, there will be subsequent scrutiny to be taken by the Economy Committee, with the Minister outlining 2025 as a possibility for the introduction of legislation.

In the meantime, however, the Minister has stated that the DfE will not accept or process onshore petroleum licensing applications.

Market support a milestone opportunity

RenewableNI, the voice of the renewable electricity industry, is poised for growth in the sector following the announcement of plans for a new renewable electricity support scheme.

The organisation has doubled in size in under three years and has introduced new membership levels to reflect the diversity of companies represented.

Director, Steven Agnew, says: “We are delighted that many of our current members took the decision to upgrade to the new gold or silver tiers. This shows confidence in the value and engagement that RenewableNI has brought.

“Since the Executive returned, we have addressed the Northern Ireland Assembly’s Economy Committee and will be addressing the Infrastructure Committee and meeting the new economy and infrastructure ministers in May 2024.”

RenewableNI’s close engagement was highlighted in April with two sold out renewable energy seminars. The first with the chief planner and director of Department for Infrastructure (DfI) and the second with the Department for the Economy’s (DfE) renewable electricity team on the new renewable support scheme.

The always popular series set new records for the organisation booking up in under two hours. Representatives from SONI, Utility Regulator and NIE Networks joined DFE, DfI and Department of Finance, along with those from industry.

Agnew continues: “The new support scheme is a milestone for the sector. When surveyed, 82 per cent of renewables developers said Northern Ireland is an unattractive place to develop. A lack of market support is the number one reason given, followed by uncertain planning timelines and limited grid capacity.

“Every new wind turbine and every new solar panel connected to the grid will reduce consumer bills and lower our carbon emissions.

“As an organisation we have been advocating for an accelerating renewables taskforce to bring everyone together to ensure reform happens at the pace necessary.”

A valuable part of RenewableNI’s work has been the production of popular reports that are independently produced. The organisation also produces an annual pipeline survey in consultation with their members. This data has been shared with government departments, SONI and NIE Networks to help plan for future investment.

Northern Ireland has gone from renewable electricity leaders to laggers. In 2022, over half the electricity used was from renewable sources. In March 2023, as Great Britain and Republic of Ireland celebrated new records of renewable generation, Northern Ireland dropped by over 5 per cent.

Agnew explains: “Our current generation is from the success of 2010s when we last had a renewable electricity support scheme. Over 400MW of renewable electricity was connected in 2017 when the NIRO scheme closed to new generators. It came in under budget and overachieved; Northern Ireland was envied globally. Support stopped and new projects stopped – only 86MW of new large-scale generation has been connected this decade.

“The industry is ready to address the climate emergency. We need Executive Ministers to become champions of renewables and remove the hurdles to achieving a better future for Northern Ireland’s citizens.”

Contact Steven Agnew

T: 078 3729 1699

E: Steven.Agnew@RenewableNI.com

W: www.RenewableNI.com

RenewableNI Director Steven Agnew with new Chair Tamasin Fraser (left) and Deputy Chair Sara Tinsley.

Heat pumps for decarbonisation and good jobs: A compelling combination

Marie Cowan, Director of GSNI, and Ulster University’s Director of the Centre for Sustainable Technologies, Neil Hewitt, outline the potential for heat pumps to reduce carbon emissions, explain how they work, and highlight a forthcoming event for this sector.

UK Context

The UK Government was the first major economy to pass laws to end its contribution to global warming by 2050. This approach was made legally binding through the Climate Change Act 2008 (2050 Target Amendment) Order 2019 and commits the UK to reduce greenhouse gas emissions to net zero by 2050 relative to 1990 levels.

Northern Ireland

Recent figures suggest that between 45 and 50 per cent of electricity consumption is generated from renewable sources however heat still represents over half of the emissions in the energy system with a heavy reliance on fossil fuels. The Climate Change Act (NI) 2022 now commits the region to reduce emissions to net zero by 2050

with an interim target of a 48 per cent reduction in emissions by 2030.

The potential of geothermal energy to support the emissions reduction targets through its direct use as a low carbon energy source is acknowledged in the Northern Ireland Executive’s energy strategy – The Path to Net Zero Energy – and associated actions plans 2022, 2023 and 2024.

Electrification of heating

The Intergovernmental Panel on Climate Change’s (IPCC) Sixth assessment Report (March 2023) said that net zero energy systems will include the electrification of heating which will “rely substantially on heat pumps. Space cooling and water heating are expected to be largely electrified. Building electrification is expected to rely substantially on heat pumps, which will

help lower emissions both through reduced thermal requirements and higher efficiencies”.

In Northern Ireland, access to low carbon electricity provides a significant opportunity to electrify heat with heat pumps and heat networks set to play a foundational role.

Knowledge exchange and networking event

The Geological Survey of Northern Ireland, an office of the Department for the Economy (DfE), and Ulster University are hosting a Heat Pumps: Knowledge X-Change and Networking Event on the 20 June 2024. The aim is to support a cluster scale-up and will focus on innovation, entrepreneurship, standards, and skills.

This event is for SMEs, entrepreneurs, academics, policymakers, estate managers, corporates, investors and third sector participants involved and/or interested in the heat pump engineering, manufacture and installation supply chain.

This initiative is supported by professional scientific and technical advice from the NI Geothermal Advisory Committee (GAC).

NI Geothermal Advisory Committee

The purpose of the GAC is to inform and advance the development of geothermal as a strategic low-carbon source of heating, cooling, energy storage, power, and jobs in Northern Ireland.

One of its roles includes considering how to enable the growth of a geothermal sector, and the related jobs, productivity, competitiveness, and skills, and one associated action is to understand and communicate the needs of businesses and help identify critical policy levers necessary to establish a geothermal sector in Northern Ireland.

The case for heat pumps

Jan Rosenow, Director of the European Programmes at Regulatory Assistance Project and Honorary Research Associate at Oxford University, regularly analyses the shifting running costs of heat pumps compared with gas boilers. In a paper for Carbon Brief in March 2024, Rosenow explained that heat

pumps have similar running costs to a gas boiler, even though electricity is more expensive than gas, because they produce heat at a more efficient rate: “It is also the high efficiency of heat pumps that makes them particularly interesting. You put in about one unit of electricity and get about three units of heat out of your heat pump. That is much more efficient than a typical gas boiler, which would usually have an efficiency of

How does a heat pump work?

A heat pump operates just like your refrigerator, i.e., in a fridge, heat is taken from an insulated box and releases it into your kitchen, whereas a heat pump takes heat from outside and releases into another insulated box i.e., your house. To do this, we take a refrigerant that boils at a lower temperature (and pressure) to that of for example outside air and compress that gas (typically with an electrically driven compressor) to a higher temperature (and pressure) above that of your home. Thus, the gas now condenses to a liquid, releasing its heat to the home, and the high-pressure liquid is expanded back to a low-pressure liquid to start the process again.

Geothermal heat pumps, also known as ground source heat pumps (GSHPs), utilise heat from the ground e.g., soil, rock, aquifers etc. as opposed to air source heat pumps (ASHPs) which utilise ambient air as a heat source. The advantages of GSHPs are that they typically provide higher heat supply temperatures in winter than ambient air, and the heat pump would require less electricity to run the compressor. Subsequently this has a lesser impact on existing electricity distribution networks. However, this does come at a higher capital cost of the options such as ground coils, vertical boreholes etc.

maybe 90 per cent. You have an efficiency of 300 per cent on average, which makes this a very compelling proposition and minimises the size of the energy system as a whole.”

Marie Cowan, GSNI and Professor Neil Hewitt, Ulster University.

Therefore, what sort of performance can be achieved? An ASHP heating a typical Northern Ireland home will experience a typical coefficient of performance (COP) of two to three i.e., for every KW of electricity consumed, the heat pump will deliver 2KW to 3KW of heat to the building. A ground source heat pump on the other hand will deliver 3KW to 4KW of heat for every KW of electricity consumed. Taking a typical home of 12,000 kWh of heating required annually, the electrification of heating with an air source heat pump will cost between £1,200/year to £1,800/year, a ground source heat pump will cost £900/year to £1,200/year, whereas an oil boiler running cost is £880/year and a gas boiler will cost £1280/year to heat this home. The carbon emissions are however radically different with heat pumps being able to reduce CO2 emissions by up to ¼ when compared to an oil boiler.

“Northern Ireland is blessed with an accessible geothermal heat resource, that when boosted with heat pumps can achieve a COP of almost nine. We will need low temperature (the so-called 5th Generation) heat networks to bring this valuable heat resource to our homes.

“Research at Ulster University has developed such heat pumps, that can also deliver much higher temperatures i.e., those required by the Northern Ireland dairy industry for example. Thus, pathways to decarbonisation of heating are opening, and while with many challenges remaining, opportunities for Northern Ireland companies to develop such systems is emerging,” explains Neil Hewitt, Professor of Energy and Director of the Centre for Sustainable Technologies, Ulster University.

The role of long-duration electricity storage for net zero
Reaching and maintaining a net zero society may require market reform to incentivise the build-out of long-duration electricity storage.

A major academic study analysing the role of long-duration electricity storage in Great Britain reaching net zero could provide lessons for Northern Ireland in long-term planning for electricity grid stability.

Great Britain has a more ambitious target of decarbonising its electricity system completely by 2035, on the recognition that the electrification of heat, power, and transport will be main drivers of net zero by 2050. Although not as far-reaching, Northern Ireland’s target of 80 per cent of electricity consumption from renewable sources by 2030 is equally challenging.

To meet these targets, wind and solar, as the recognised cheapest forms of low-carbon generation, will lead the decarbonisation of electricity. However, the challenge lies in the volatility of

these two forms of generation and the need for this volatility to be complemented by other flexible lowcarbon sources and/or energy storage, if grid stability is to be ensured.

Large Scale Electricity Storage, a report compiled by the Royal Society, has modelled wind and solar supply against demand over an almost 40-year period, using real weather data, and highlights the significant gap that will need to be plugged if security of supply is to be maintained.

The report details how the availability of wind and solar power varies on time scales ranging from seconds to decades, depending on the weather. Demand is also variable, and mismatches between supply and demand occur on time scales ranging from milliseconds to years.

“As there are times when the sun is not shining and the wind is not blowing, wind and solar supply cannot meet demand directly on their own, however much generating capacity is installed,” the authors state.

In short, if relying on wind and solar generation, balancing supply and demand would require tens of terawatt hours (TWhs) for over several decades. While Northern Ireland’s storage requirement will not be as high, the underpinning need for storage beyond short-term balancing is recognisable.

As renewable generation from wind and solar has increased in recent years the need for storage capacity has been recognised, however, much of the focus has been on battery storage, in the context of stretching near-term electricity decarbonisation targets.

Delivering a sustainable energy system for all

While batteries will play an increasing role in providing short-term balancing, the costs of utilising batteries alone to bridge the longterm mismatch between supply and demand is unrealistic when considering the cost of investment in a technology with a lifespan of around 20 years.

The report groups storage technologies into three categories according to the typical time in which their contents must be cycled:

1. Minutes to hours: conventional (non-flow) batteries;

2. Days to weeks: flow batteries, advanced compressed air energy storage, Carnot batteries, pumped thermal storage, pumped hydro, liquid air energy storage; or

3. Months or years: synthetic fuels, ammonia, hydrogen.

Meeting the demands of net zero will likely require deployment of technologies within all three groups, and the implications on the cost of electricity will be determined by the scale of deployment. Renewable generation provided directly to the grid will invariably be the cheapest form of electricity, with electricity provided by storage costing more. However, meeting the need for long-duration storage will require very low cost per unit energy stored.

Market reform

As the report’s authors point out, in current wholesale electricity markets, both long-term investment decisions and short-term dispatch are largely governed by a single price signal and this is a challenge for long-term investment because of future price uncertainty.

“The large-scale long-term storage that this report finds will be essential, could never recover its capital costs in such a system since it will be idle much of the time. Existing markets and regulations will also not be able to deliver the operational coordination between wind and solar generators and operators of storage that will be needed to schedule the use of different types of store cost effectively and ensure that they do not become empty. There is an urgent need to recognise these problems and explore possible solutions.”

In short, the report finds that current market structures may incentivise the construction of significant amounts of short-term storage, however, new mechanisms, including forms of guarantees, will be needed to make investment in large-scale, long-duration storage attractive.

It adds: “To contain storage costs, generators and owners of storage will have to cooperate to an unprecedented degree in scheduling charging and dispatch of energy from different types of store. Ensuring this cooperation is likely to require radical reforms.”

While the report’s focus was solely on great Britain, correlations between Great Britain’s island electricity market, and the all-island Single Electricity Market (SEM) can be drawn. Northern Ireland’s demand and supply will ultimately be lower than that of Great Britain but will ultimately face the same challenges of addressing the long-term mismatch of supply and demand in an electricity system largely powered by intermittent wind and solar.

As the Department for the Economy prepares to publish a new renewable electricity support scheme (RESS), aimed at increasing levels of renewable electricity, increased use of battery technologies will be the leading technology in providing grid stability in the push to achieve the 80 per cent electricity consumption from renewables by 2030 target.

Increasing interconnection with the Republic of Ireland will be critical to maximising increased renewable generation across the island, and utilising storage options on a larger geographical area.

As to will policy decisions on the technologies which could and will be deployed to best meet the needs of Northern Ireland’s consumers. The Large Scale Electricity Storage report indicates the need for consideration of short; medium; and longduration storage options to meet the demands of net zero by 2050 and beyond. Incentivising these technologies will require significant market reform.

Changing attitudes to the energy transition

Fulfilling our commitment to address climate change will significantly impact consumers in the coming decades. Just how the ambitious targets within the 2022 Northern Ireland Climate Change Act will affect society and consumers is yet to be fully understood.

To address this knowledge gap, the Consumer Council established an annual tracker survey. It is intended to provide policy makers and industry experts insights into consumers’ experience of the energy transition. The survey is now in its second year.

Peter McClenaghan explains how the survey is providing an interesting picture of consumer attitudes regarding the energy transition.

Peter McClenaghan is Director of Infrastructure and Sustainability. He is responsible for the strategic leadership of the Consumer Council’s statutory functions in the energy, water, and transport sectors.

The Consumer Council is Northern Ireland’s statutory consumer body, working to promote and protect the interests of consumers. The organisation’s statutory obligations in the utilities sector include consumer research, consumer empowerment, complaints handing, consumer advocacy, and the provision of guidance to public authorities.

The Consumer Council’s annual ‘Attitudes to the Energy Transition’ tracker research is designed to provide detailed evidence to underpin transition planning undertaken by policymakers and the energy sector.

Informed decisions

The second annual Consumer Council ‘Attitudes to the Energy Transition’ research study provides a contemporaneous picture of consumer experiences of one of the most important issues in our lifetime.

As experts in the field of consumer research, regularly carrying out research and face to face engagement with consumers, the Consumer Council is perfectly placed to undertake this work.

The energy transition will mean significant changes to how people live, eat, travel, and heat their homes. As significant barriers to individuals’ energy transition remain it is crucial that the annual consumer insights we capture are used to inform decision-making.

Growing knowledge of terminology

The Northern Ireland Executive’s Energy Strategy provides a strong grounding to address the needs of consumers’ during the energy transition. The strategy places consumer needs at the heart of the energy transition.

However, without understanding consumer needs and addressing them we will not meet Northern Ireland’s carbon reduction ambition.

The Consumer Council ‘Attitudes to the Energy Transition 2024’ demonstrates a welcome uplift in consumer understanding of key terminology. For example, more than seven in 10 consumers report understanding of the terms ‘decarbonisation’, ‘net zero’, and ‘greenhouse gas emissions’.

The survey also finds a year-on-year increase in understanding of each of these terms, with almost nine out of 10 consumers now expressing an understanding of the term ‘greenhouse gas emissions’.

Peter McClenaghan, Director of Infrastructure and Sustainability at the Consumer Council for Northern Ireland.

Warning signs: Impact not understood

While consumer understanding of important terminology has increased, there has been no corresponding increase in consumer awareness of the technologies they may be asked to rely on to heat their homes in future.

More worryingly, the survey shows a year-on-year decrease (down to 52 per cent from 56 per cent) in awareness of the need for households to switch from fossil fuels to zero carbon alternatives to achieve decarbonisation targets.

As consumers first need to understand what is being asked of them, this lack of awareness demonstrates the need for better public information regarding the energy transition.

Consumers must be presented with simple information so they can begin to embrace the energy transition.

Warning signs: Lower support for renewables

Seven in 10 consumers indicate they support the use of renewable energy. Such support will be invaluable in driving forward with the energy transition.

However, consumer support must not be taken for granted. This is evidenced by the changes in findings since last year’s Consumer Council survey. The 2024 survey indicates a decrease (down to 70 per cent from 78 per cent) in the number of consumers who support the use of renewable energy for providing our power, heat, and transport.

The number of consumers who would support the construction of new infrastructure in their local area to aid the increased use of renewable energy has also decreased from 2023 to 2024 (down to 50 per cent from 58 per cent).

As the energy transition will necessitate significant infrastructure investment and potential in-home disruption, it is important that work is undertaken by government and industry to engender consumer support for the energy transition.

Consumer dislike of punitive measures

One means to negatively impact consumer support for the energy transition is to impose upon people measures they deem to be punitive.

“This lack of awareness demonstrates the need for better public information regarding the energy transition.”

Such measures should only come after providing adequate support to enable household’s carbon reduction activities.

This dislike of punitive measures is shown by lack of support for a ban on peat, coal, or oil for home heating. Only 25 per cent of consumers indicate they would support a policy of that nature to help Northern Ireland reduce greenhouse gas emissions.

Affordability is key

Pleasingly, most consumers continue to support policies to reduce greenhouse gas emissions in Northern Ireland.

However, the survey finds a reduction in consumer willingness to drive their car less, fly less, and use public transport more to reduce their own carbon emissions.

Consumers were also less concerned than a year previously about the how much energy is used in their home (down to 49 per cent from 62 per cent).

These factors could be due to an increase in environmental scepticism but are more likely to reflect a reduction in energy prices that were extremely high when the first survey was undertaken.

The cost of living challenges facing consumers may also be a reason for a reduction in consumer support for increased taxes on fossil fuels to advance carbon reduction initiatives.

The survey finds a year-on-year decrease in support for the use of carbon taxes to further develop new and clean energy sources (down to 57 per cent from 75 per cent); help pay for energy efficiency improvements in lowincome households (down to 68 per cent from 74 per cent); fund improvements to

transport infrastructure (down to 67 per cent from 74 per cent); and to fund programmes to help communities prepare for and adapt to the impacts of climate change (down to 62 per cent from 66 per cent).

There was also a reduction in support for government grants for electric vehicles, to install cleaner more efficient domestic heating systems, and to increase investment in public transport.

Empowerment is critical

It is essential that we achieve a just and fair transition by ensuring affordability, security of energy supply and protection for all consumers, particularly our vulnerable citizens.

Consumers play an essential role. Empowering individuals, and mobilising communities, to actively embrace Northern Ireland’s energy transition is critical.

Contact:

T: 0800 121 6022

E: info@consumercouncil.org.uk

W: www.consumercouncil.org.uk

Delivering a sustainable energy system for

Renewable electricity from offshore wind expected after 2030

An indicative timeline contained within the first draft Offshore Renewable Energy Action Plan (OREAP) suggests that Northern Ireland’s first offshore wind farm will be operational shortly after 2030.

The indicative timeline published by the Department for the Economy correlates with the recently published proposed high level design for a renewable electricity support scheme for Northern Ireland, which suggests that offshore wind is unlikely to play a role in Northern Ireland’s target of 80 per cent electricity consumption from renewable energy sources by 2030.

The Energy Strategy Action Plan 2022 committed the Department to a target of 1GW of offshore wind capacity from 2030, with a view to accelerating deployment where possible.

While the contribution offshore wind generation to Northern Ireland’s net zero by 2050 target has been acknowledged, the Department say it is not possible to confirm the scale and timings of offshore renewable generation deployment in Northern Ireland.

Therefore, a proposed auction roadmap indicates two auctions will take place to support renewable projects and enable operation before 2030, with offshore wind potentially featuring in a third auction, a timeline for which has not been set.

The draft Offshore Renewable Energy

Action Plan, for which submissions for the consultations process closed on 16 March 2023, has been developed with three proposed principles to guide the implementation of the action plan. These are:

1. sustainable development in the marine environment;

2. adaptive approach; and

3. collaboration and partnership.

The draft action plan states that four expert stakeholder working groups are to be established, which identify “key actions required to deliver offshore wind deployment in Northern Ireland waters”. The working groups are:

• planning, licensing, and consenting;

• network development;

• legislative powers; and

• sectoral growth.

These working groups are complemented by an Offshore Renewable Energy Action Plan Steering group which aims to oversee the delivery of the action plan. The OREAP Steering Group also has the function of monitoring and ensuring that actions within the OREAP are delivered in an “environmentally, socially, and economically sustainable way”.

The offshore wind action plan outlines 2028 as a prospective timeframe for the issuing of offshore generation and transmission licencing.

Currently, Northern Ireland has no offshore wind generating capacity. However, potential scope for progress exists from a 2023 announcement on enabling the construction of offshore wind infrastructure.

In January 2023, a Statement of Intent between the Department for the Economy (DfE) and The Crown Estate was announced which commits towards establishing offshore wind leasing in Northern Ireland.

Biomethane: A circular opportunity

firmus energy CEO

Niall Martindale outlines how Northern Ireland’s unique biomethane opportunity can deliver a low carbon future.

As the need to tackle climate change is being grappled with across the world, Northern Ireland is positioned better than most to address this challenge, and furthermore to take no-regret actions immediately which reduce our reliance on imported fossil fuels and support the growth of a local, circular economy.

For firmus energy, and our peers within Northern Ireland’s gas industry, biomethane will play a critical role in delivering our collective ambitions for a lower carbon future and will contribute to achieving the goals set out in the Government’s energy strategy.

Biomethane will play its part alongside a suite of renewable energy sources, from more established technologies such as wind and solar, to those in a more developmental stage within Northern Ireland such as geothermal and hydropower.

Each of these sources of renewable energy will play its own role in a more diverse, regionalised yet collaborative energy landscape. Without doubt, the key to optimising delivery of our lower carbon energy future is collaboration within a clear policy context.

Biomethane is derived from organic waste materials such as agricultural waste, grass silage, and food waste through a process known as anaerobic digestion (AD). Biomethane is very similar to natural gas, and its introduction will be seamless for any customers connected to Northern Irelands’ gas network.

Using biomethane will not require any changes to heating systems or appliances for households or businesses

connected to the network, however unlike natural gas, biomethane is a renewable energy resource.

In Northern Ireland, where agriculture plays a significant role in our economy, biomethane presents a compelling opportunity to effectively utilise organic waste. Recent studies have quantified this enormous opportunity, with a case study in 2022 stating that within 10kms of the gas network, there is sufficient feedstock from underutilised silage and agricultural waste to satisfy 83 per cent of current natural gas demand in Northern Ireland1

Again, capturing methane emissions from agricultural activities and converting them into biomethane will not only reduce our carbon footprint but support the development of our circular economy, by re-purposing waste into a valuable energy resource.

Supporting investment in local biomethane production facilities is crucial. We have been greatly encouraged by the return of Stormont and the recognition for the potential of biomethane by both the Department for the Economy (DfE) and Department of Agriculture, Environment and Rural Affairs (DAERA) ministers.

In particular, the appointment of Professor David Rooney as an expert advisor to support the ministers’ objective to reduce carbon emissions is laudable and represents a very important step towards delivering policy to support and encourage investment into our future energy landscape. The work being undertaken by Professor Rooney will also help inform and define

the collaboration required between energy companies, and indeed energy industries.

The gas industry has been helping to decarbonise energy in Northern Ireland since 1996, with every household moving from home heating oil to natural gas reducing their carbon footprint by 50 per cent2. The introduction of biomethane will increase these savings exponentially, and in doing so, reduce our reliance on imported energy, thereby supporting energy security and supporting the development of our circular economy, not least in the more rural regions of Northern Ireland. firmus energy and our gas network peers are firmly committed to a lower carbon energy future which optimises the enormous potential for local biomethane production, and we are excited at the prospect of collaborating with all energy stakeholders to deliver the benefits of a sustainable, affordable and lower carbon energy landscape to all homes and businesses across Northern Ireland.

T: 0330 024 9000

E: furtherinfo@firmusenergy.co.uk

W: www.firmusenergy.co.uk

Retrofit advice in Northern Ireland

A dedicated national advice service can support the delivery of a just energy transition for all by delivering comprehensive, impartial, and tailored advice, writes Darryn Mallon, Energy Saving Trust policy lead (Northern Ireland).

Decarbonisation

in Northern Ireland

The Climate Change Committee’s (CCC) 2023 advice report, Path to a Net Zero Northern Ireland, strongly emphasises the need for an urgent “step change in action” to address declining rates of decarbonisation.

Whilst there has been a notable increase in activity related to development of energy policy since these warnings were issued, it is worthwhile considering how these resonate with consumers and how attitudes have changed since the UK Climate Change Act (2008) became law, when four-fifths of UK electricity came from fossil fuels.

We have been aware of the risks of dependence on imported fossil fuels for some time and a glance into our archives reaffirms this, with a feature from 2009 in agendaNi forecasting our dependence on imported fossil fuel was “an economic time bomb rendering us particularly vulnerable to the price and politics of fuel”.

A key focus should be the energy we use in our homes and businesses. Recent surveys indicate 78 per cent would welcome renewable energy in their home1 but 84 per cent reported having little to no knowledge of low-carbon heating systems. This indicates the challenge is no longer about raising awareness of the climate emergency but

empowering consumers with the knowledge and tools to contribute towards net zero2

The need to retrofit Northern Irish homes

Reducing immediate energy costs is crucial, but investing in permanent solutions is equally essential. With Northern Ireland homes among the least efficient in Europe, 60 per cent (50,000 annually) need to enhance their energy efficiency to meet emission targets3

Building emissions need to fall 33 per cent between 2020 to 2030, having increased by 1 per cent since 2009 and advice services can help accelerate proactive engagement necessary to achieve this.

Helping consumers navigate the energy transition is key to an effective enabling framework, such as effective awareness raising, entitlement checks, access to networks of exemplar homes, post installation support, and a single point of contact responsible for project coordination and redress if necessary4

Development of an advice service

Supporting access to impartial advice is vital when helping consumers understand how to decarbonise their homes.

However, as Shane Donnellan, behavioural scientist at Energy Saving Trust explains: “The complex and fragmented nature of energy advice is mirrored by varied and often contradictory sources of advice. The Utility Regulator recently reported an array of providers commonly considered by consumers. This causes confusion and impedes impact at scale, with the CCC’s estimate that 62 per cent of emissions reductions need to come from individual behaviour, emphasising the significance of centralised advice.”

Advice can also encourage social and private sector landlords to see the full property investment case for improving energy efficiency.

Current energy advice and support services

Multiple trusted local and national organisations currently offer discrete advice, which collectively contribute towards a just energy transition.

Domestic and commercial properties can access support through the Northern Ireland Sustainable Energy Programme (NISEP), which Energy Saving Trust administers on behalf of the Utility Regulator. Scheme managers registered under NISEP offer energy efficiency advice to consumers accessing fully and partially funded grants.

Beyond NISEP, the Department for Communities currently funds the Housing Executive to deliver a free tailored ‘Energy Advice Service’ to households. Additionally, the Housing Executive has partnered with Energy Saving Trust to create an online ‘home energy saving tool.’ This helps consumers determine the energy efficiency of their home.

Further advice is available from the Consumer Council for Northern Ireland, which provides support for consumers related to gas and electricity supply.

However, more comprehensive, impartial and tailored advice is needed to make the key changes in our homes and businesses.

Progress on a centralised energy advice service

Since the Northern Ireland Energy Strategy – The Path to Net Zero Energy5 was introduced in 2021, the necessity for centralised energy advice through a onestop shop has featured prominently.

A public consultation on the development of an energy one-stop shop6 was launched in 2023, recognising: “Northern Ireland would benefit massively from an accessible, trusted organisation for consumers needing advice, information and support on energy matters.”7

Benefits of a one-stop shop

A one-stop shop can reduce costs, increase private investment, protect government schemes from fraud and inefficiency and boost the economy through job creation and energy security8

With over 25 years delivering energy advice, Energy Saving Trust has

extensive expertise supporting retrofitting through one-stop shop style programmes such as Home Energy Scotland, Business Energy Scotland and Local Energy Scotland’s Community and Renewable Energy Scheme on behalf of the Scottish Government, NISEP on behalf of the Utility Regulator and NEST for the Welsh Assembly.

International approach to energy advice

In response to the energy crisis, there has been global recognition that tailored, impartial advice, is central to successful retrofit schemes.

Scotland and France’s major national retrofit programmes offered at local and national levels particularly stand out.

Scotland’s Home Energy Scotland service offers free, impartial, and customised advice over-the-phone, faceto-face or online to all householders. There were over a million interactions during 2022/23, saving over £1 billion on domestic energy bills since 2008. The Home Energy Scotland Grant and Loan scheme and other financial support, including the national fuel poverty programme Warmer Homes Scotland are also offered.

European Union – Recent policy updates

The EU’s recast Energy Performance of Buildings Directive, adopted on 12 April 20249, requires members to facilitate “the

6. Energy “One Stop Shop” Implementation Plan - consultation on policy options | Department for the Economy (economy-ni.gov.uk)

7. Minister launches “One Stop Shop” consultation | Department for the Economy (economy-ni.gov.uk)

rolling out of one-stop shops”. Northern Ireland’s pre-consultation on ‘energy efficiency requirements and related areas of building regulations’10 acknowledges the influence this could have here.

Conclusion

Northern Ireland is a major outlier regarding retrofit advice provision, with multiple disjointed services making it challenging to navigate. International case studies demonstrate that national advice services improve energy security, affordability and decarbonisation and will support the delivery of a just energy transition for all.

For more information on energy saving advice and tools:

Visit: energysavingtrust.org.uk/northernireland

Email: EnergySavingTrustNI@est.org.uk

8. https://energysavingtrust.org.uk/report/national-or-local-retrofit-advice/ 9. Energy Performance of Buildings Directive adopted (europa.eu) 10. Review of energy efficiency requirements and related areas of Building Regulations

Moving into the future:

UK renewable energy

While the future of renewable energy in the UK looks promising, there are complex risks that need to be navigated. Early engagement with renewable energy insurance specialists is crucial for the success of projects.

The UK is at a critical juncture when it comes to its energy future. With a clear goal of achieving net zero emissions by 2050, the nation is moving towards a future powered by renewable energy sources.

However, there are inherent risks involved in this transition. Unfamiliar technologies, volatile markets, and complex supply chains introduce uncertainties that could derail even the wellplanned projects. To navigate these challenges, a robust safety net and early planning are necessary.

“The renewable energy sector is not without its challenges in terms of, for instance, skill sets and supply of materials. However, particular to this sector, in terms of what businesses want to deploy; what is best suited for their business, and how do they start decarbonising their organisation to get on that green journey,” says Carl Gurney, Renewable Energy Director, Gallagher.

The UK Government has set ambitious targets for the closure of coal-fired power plants and the

transition away from fossil fuels. The contribution of coal to the UK's electricity generation has already plummeted from 40 per cent in 2010 to around 2 per cent in 2020. The recent global energy crisis caused by the Russia-Ukraine war has highlighted the vulnerabilities of relying on imported fossil fuels and the importance of seeking energy independence. Avoiding wholesale pricing volatility has become urgent.

To achieve the goal of net zero emissions by 2050, a full range of renewable and clean energy technologies will be required. Wind power is currently the dominant contributor, with offshore and onshore wind farms producing 80,000 GWh and providing nearly 60 per cent of all renewable power generation. Biomass power and solar energy also make significant contributions. Other renewable technologies like anaerobic digestion, hydro and tidal plants, and waste-to-energy generation are growing and expected to contribute more in the coming years.

Chris Noah, Gallagher’s Renewable Energy Managing Director, explains:

“Long duration energy storage systems and EV charging stations need to be developed to meet demand, but these are huge infrastructure changes that require government impetus. Loss control for projects needs to be included in the build because retrofitting down the line is not only costly, the downtime causes business interruption.”

Government policies, such as the Climate Change Act and the Net Zero Strategy, are acting as catalysts for the development and adoption of renewable energy sources. Financial incentives and regulatory frameworks are being put in place to accelerate the transition. The Government has allocated significant funding to projects in the hydrogen sector, with the aim of achieving 1GW of electrolytic hydrogen production by 2025.

Government legislation is playing a significant role in shaping waste management practices. In England, separate food waste collections will become mandatory by 2026, as mandated by the Government. The Department for Environment, Food, and Rural Affairs (Defra) has identified anaerobic digestion (AD) plants as the preferred treatment method for this waste stream. This legislation reflects the Government's commitment to reducing food waste and promoting sustainable waste management practices. By implementing separate food waste collections and prioritising

AD plants, the Government aims to minimise the environmental impact of food waste and maximise its potential for energy generation through anaerobic digestion.

Stephen Skelly, account director, public sector, education and housing at Gallagher comments: “Local Authorities are increasingly focused on climate change, clean air, and energy security. They recognise the importance of addressing these issues and are taking steps to prioritise them. This shift in focus aligns with the UK's goal of achieving net zero emissions by 2050 and transitioning to renewable energy sources. By prioritising climate change, clean air, and energy security, local authorities are playing a crucial role in driving the nation’s energy transition and creating a sustainable future.”

Technological advancements are also driving the renewable energy sector forward. Floating wind farms, which were once seen as a futuristic dream, are now a reality in the UK. The Kincardine wind farm in Scotland, the world’s largest floating wind farm, has been operational since 2021 and is generating enough electricity to power 50,000 households. Hydrogen, produced from renewable energy sources, holds immense promise and could revolutionise transportation, heating, and industry. The UK is a pioneer in leveraging this technology. While the future of renewable energy in the UK looks promising, there are complex risks that need to be navigated. Insurers face challenges in underwriting risks associated with emerging technologies, volatile pricing, and a lack of historical data. The sector also faces a shortage of experienced engineering, procurement, and construction contractors, as well as supply chain issues. Securing essential materials and skilled labour can be a time-consuming and costly process.

A lack of historical data regarding the performance of renewable energy technologies has caused insurers difficulty in terms of pricing and risk profiling. With new technologies now entering the sector, such as LDES and hydrogen; coupled with larger more complex sites being developed, expertise and knowledge sharing is paramount to ensure long-term insurance security. Business continuity plans, contractual relationships with OEMs and system resilience will all compliment a robust insurance programme. This will in turn help mitigate supply chain constraints and ultimately protect your investment.

Early engagement with renewable energy insurance specialists is crucial for the success of projects. These

specialists can assess risks, provide mitigation strategies, and secure optimal insurance coverage. Gallagher, a global insurance brokerage and risk management company, has extensive experience serving clients in the renewable energy industry. Their team of experts understands the intricacies of the sector and can provide tailored solutions to mitigate risks.

“We love to get involved with clients as early as possible; help them build the necessary plans and loss controls into their designs. This ensures the projects are insurable and as such bankable and in addition, we can then provide longterm insurance stability. This coupled with fostering industry and client knowledge along with partnering clients with the right cultural approach to risk makes projects attractive to a wider pool of insurers,” says Gurney.

In conclusion, the UK’s renewable energy sector is at a pivotal moment. With ambitious targets for net zero emissions by 2050, the nation is moving towards a future powered by renewable energy sources. However, there are inherent risks involved in this transition. Navigating these challenges requires a robust safety net and early planning. Insurance plays a crucial role in securing a sustainable future for the UK's renewable energy sector. By understanding and mitigating risks, insurers can support businesses in reaching their goals and contribute to the nation's energy transition.

T: +44 (0) 2890 897 393

E : stephen_skelly@ajg.com

W: www.ajg.com

Smart meter rollout plan to

be finalised in 2024
The Department for the Economy intends to appoint a contractor to develop and finalise a plan for the design and rollout of smart meters by the end of 2024.

The details were included in the Energy Strategy –Path to Net Zero Energy 2024 Action Plan, which also indicated that a final Smart Systems Flexibility Plan will be published in the same timeframe.

Consultation on design considerations for a Northern Ireland Smart Systems and Flexibility Plan (SSFP) closed in April 2024, with the Department stressing that the SSFP will not be a policy document in itself but will set out a roadmap for developing policy.

It is expected that the SFFP will largely follow the structure of the Great Britain Smart Systems and Flexibility Plan 2021, with a Northern Ireland focus.

The Department’s ongoing work to develop a plan for the implementation of electricity smart meters and systems has been informed by a cost benefit analysis published in June 2023 which suggests that smart meter deployment “can offer a positive net present value to the consumer, network companies, retailers, and wider society”.

The analysis was mandated by the EU’s 2019 Electricity Directive which seeks the introduction of smart meters across the EU and the UK’s Net Zero Strategy: Build Back Greener. The Department for the Economy opted to extend the legislative requirement for a cost benefit analysis beyond

electricity smart meters to include gas smart meters.

In summary, the cost benefit analysis finds that all three scenarios considered in relation to electricity: 1) a fast rollout; 2) a phased approach; and 3) a hybrid approach, are viable in Northern Ireland and present a positive value for money outcome pending appropriate planning, specification, procurement, and delivery phases. An active rollout (scenario 1) suggested the highest value for money, but also required the largest capex investment.

The analysis concluded: “Whilst scenario 1 at a cost benefit analysis level presents the best value for money, future analysis should delve into the practicality of this type of deployment further. Considerations for nonquantitative market drivers, resourcing (network-side and government-side), and what is right for Northern Ireland should be made.”

In relation to gas, under a similar three scenarios, only a fast active roll-out indicated a material value for money. However, the analysis stresses the need for consideration to be given to the ability of pay-as-you-go meters to support smart services, and also suggests consideration of integration between the Gas Smart Service programme and an Electricity Smart Service programme.

Setting out some of the key considerations now facing the Department, the analysis further concludes that a successful smart service programme “will require significant management resource and capability to develop the programme and agree a funding, through to the delivery of key activities including smart service design, meter and associated technology procurement and through to roll out and the provision of smart tariffs”.

It adds: “Work to ensure alignment between all parties in order to bring smart tariffs to market and to protect consumers and their data from security and cyber threats are all essential. Consumers are the largest beneficiary of a smart service programme and consumer behaviour is the key driver to benefits overall. It is therefore critically important that an engagement campaign that informs, encourages,

“Consumers are the largest beneficiary of a smart service programme and consumer behaviour is the key driver to benefits overall.”

and educates consumers of all types and needs is developed.”

On 30 June 2023, the Department announced its intention to develop a plan for the implementation of electricity smart meters and systems, but will not proceed with smart gas meters.

SSFP

The aspects of the SSFP design consultation are wide-ranging and pose a variety of questions, answers to which will be considered by the Department prior to publication of the final plan.

Some of the key issues being considered are consideration of whether a future systems operator (FSO), or similar organisation/arrangements are appropriate for Northern Ireland, as well as a TSO/DSO cooperation review to be developed by the Department and the Utility Regulator (UR), which will look at the state of current TSO and DSO cooperation, and whether further changes are needed.

In addition, the Department and the Utility Regulator are set to consider the need to develop a consumer protection and/or licensing regime for aggregation, data and flexibility service providers, and any subsequent legislation.

Other notable outputs include:

• the Department working with the UR, SONI, and NIE Networks to deliver the SOs’ mandates to digitalise their networks in accordance with the Electricity Directive requirements;

• the Department working with the UR to consider the need for a licensing regime, and code of practice for aggregators (either suppliers or third-party aggregators);

• establishing a working group to consider Northern Ireland requirements in terms of energy and network cybersecurity;

• a proposal to conduct a review with the UR on the appropriate enduring regime for licensing electricity storage;

• an analysis of the costs and benefits to Northern Ireland of different levels of interconnection in light of the likely changes in generation and demand in Northern Ireland and also in neighbouring jurisdictions; and

• development of a policy on digitalisation of the energy system in Northern Ireland.

The above list is not exhaustive, and all feedback is set to be assessed by a steering group consisting of the Department for the Economy and the Utility Regulator, which will set the scope of the SSFP.

The steering group will retain policy responsibility and make recommendations for final proposals to the Minister for the Economy or DfE senior management. Development of the SSFP will be overseen by the steering group and supported by a working group.

Boosting Northern Ireland’s green growth potential

A renewable electricty support scheme is key to Northern Ireland reaching its green growth potential and ESB have the expertise and experience to help drive capacity.

Net zero or carbon reduction aspirations are now ubiquitous across leading global companies. That means that regions with abundant and affordable green energy supply have an advantage in attracting investment. Northern Ireland, with a strong industrial heritage

and an educated workforce, has a great opportunity to capitalise on that natural advantage to facilitate ‘green growth’ –not to mention the opportunity this offers to capitalise on the supply chain opportunities arising out of the deployment of this technology.

Paul Lennon, head of offshore wind, hydrogen and long-term storage at ESB explains how three technologies –offshore wind; hydrogen; and the use of hydrogen in certain sectors – can play a significant role in boosting Northern Ireland’s green growth.

The island of Ireland has enough offshore wind potential to meet its 2050 electricity requirements many times over, however, renewables such as offshore wind are variable and intermittent. This is where hydrogen can play a vital role.

“Offshore wind can be converted to hydrogen and be used for those hard-todecarbonise sectors such as heavy transport, shipping, aviation, and agricultural sectors,” says Lennon. “It can also be stored and used for conversion back to electricity when the wind is not blowing”.

A net zero economy needs all three of these technologies to be progressed, not just offshore wind, and that is why ESB have decided to progress all three in parallel.

What does the future hold?

ESB has significant investment aspirations across a range of technologies and large-scale capital projects in Northern Ireland. “Since our first investment in offshore wind in Galloper in 2018, ESB has built a 2GW pipeline of offshore wind projects. We are one of Crown Estate Scotland’s largest tenants and are currently developing six significant offshore wind projects there, including Malin Sea Wind, an innovative 100MW floating windfarm under development 25km from the north coast of Northern Ireland, which represents circa £400 million investment,” explains Lennon.

As a pre-commercial scale development, the project will deliver key

Paul Lennon, head of offshore wind, hydrogen and long-term storage at ESB.

enabling infrastructure and supply chain capabilities for the nascent offshore wind sector in Northern Ireland. A critical near-term objective of the Malin Sea Wind project is to establish the technical and economic feasibility of connecting to Northern Ireland. Northern Ireland has great potential signalled through the ambition from the Department for the Economy to have 1,000MW in development by 2030.

“We really welcome this and want to be part of developing this capacity,” says Lennon. “In addition, we would hope that Northern Ireland does not just stop at 1,000MW, and that additional sites are identified and progressed.”

ESB has been very active in investigating hydrogen production projects with the objective of developing energy ‘clusters’. An energy cluster colocates energy demand, hydrogen production, electricity generation, and energy storage. Decarbonising energy demand, through energy clusters, will not only help with security of electricity supply, but it will also accelerate local industrial decarbonisation in Northern Ireland, with the potential to increase industrial growth.

ESB sees a key energy ‘vector’ of the future as green hydrogen, where the electricity used is derived from renewable sources. This new use of renewable energy will enable the increased connection of further renewables and support industry decarbonisation to meet Northern Ireland’s 2030 targets. Green hydrogen effectively allows you to ‘store’ the energy from the wind for long-term uses, either to generate power, or to utilise in hard to abate applications.

In addition, ESB has built a significant fleet of grid-scale batteries and is exploring the possibility of similar investments in Northern Ireland, again to store renewable energy for times when the wind is not blowing, and the sun is not shining.

Since 2005, ESB has owned and operated the gas fired Coolkeeragh Power Station on the Foyle, which supplies 30 per cent of Northern Ireland’s electricity demand. Coolkeeragh contributes significantly to Northern Ireland’s security of supply and Lennon outlines how it is under consideration for ESB’s ambitious future investment plans for both a green hydrogen hub and a net zero (hydrogenfuelled) dispatchable electricity

“Getting a renewable energy support scheme on stream soon is key.”

generation plant: “We believe in cluster developments and renewable hubs. The area around the Coolkeeragh Power Station is therefore strategically well located from our perspective. The site has been identified as having a number of key requirements to successfully develop a cluster: access to potentially large volumes of offshore renewables, excellent transport links (port, airport, train, roads), and one of Northern Ireland’s largest industrial areas is adjacent to the power station.”

What can support Northern Ireland’s green growth potential?

Lennon highlights that there has been great progress in recent times in Northern Ireland. “The Department for the Economy’s Energy Strategy Action Plan 2024 has key actions that will accelerate the development and delivery of renewable energy in Northern Ireland. In particular, the Regional Strategic Planning Policy, which will hopefully lead

to a faster planning approval process,” he says.

All other regions in UK and Ireland have a support scheme for renewables and Lennon believes that a revenue support scheme would certainly incentivise the development of renewables in Northern Ireland. The need for a new renewable electricty support scheme (RESS) was clear with only 86MW of new connections in Northern Ireland since 2017, compared to 400MW in 2016 when there last was a support scheme in place.

Indeed, Northern Ireland was blazing a trail with installation of renewables. “With a 2030 target in place to deliver 80 per cent renewable electricity consumption as set out in the Climate Change Act, getting a renewable electricity support scheme on stream soon is key,” says Lennon.

For more information, visit: www.esb.ie

Coolkeeragh Power Station.

Energy Action Plan 2024: Final Fuel Poverty Strategy not expected until 2025

The Department for Communities (DfC) has set out its intentions to publicly consult on a new draft Fuel Poverty Strategy to support a ‘just transition’ by December 2024.

The details were included in the Energy Strategy’s 2024 Action Plan Report, published in March 2024 by the Department for the Economy (DfE).

Northern Ireland’s last Fuel Poverty Strategy was published 13 years ago in 2011 and the Department for the Economy’s Path to Net Zero Energy strategy identifies fuel poverty reduction as a key measure of its success.

In June 2022, in the face of rising fuel prices, fuel poverty charity NEA NI conducted a Northern Ireland-wide survey that suggested that at least 45 per cent of households are in fuel poverty (i.e. Spending more than 10 per cent of their total household income on their energy costs). Additionally, it found that one-in-10 households had admitted skipping meals to ensure they had enough money to pay for their energy.

Alongside the development of a fuel poverty strategy, the 2024 action plan

also indicates an intention by DfE to assess options to scale up the Northern Ireland Sustainable Energy Programme (NISEP) by augmenting its existing budget, while DfC says it will engage with stakeholders to inform the development of a replacement Affordable Warmth Scheme to enable public consultation in 2025.

The overriding objective of the action plan, which is the first to be published by a sitting minister, is to outline actions for 2024 which can reduce emissions from energy by replacing fossil fuels with indigenous renewables to decarbonise power, heat, and transport.

Alongside plans to launch of a public consultation on a new Fuel Poverty Strategy, key actions to be delivered in 2024 include:

• publication of a new Regional Strategic Planning Policy on renewable and low carbon energy;

• the delivery of an industry-led green skills delivery plan; and

• the development of a net zero accelerator fund;

Additionally, in 2024, the DfE intends to appoint a contractor to develop and finalise a plan for the design and rollout of smart metres, following a consultation on smart metering design. Similarly, the DfE says it will publish the Smart Systems Flexibility Plan consultation response, which will inform the finalisation of the plan.

With the objective of supporting decarbonisation, the action plan states that the DfE will publish a call for evidence for hydrogenated vegetable oil (HVO) and biofuels in supporting the heat decarbonisation transition.

The DfE has also outlined an objective to “analyse the Biomethane Call for Evidence results and develop a plan for next steps”.

DfE has also announced that it will “commission research into the costs and benefits to the Northern Ireland consumer “for different interconnection scenarios, multiple energy storage options, and the 80 per cent renewable electricity target up to 2030 and beyond”.

The action plan further announces that the DfE intends to complete a strategic environmental assessment and habitats regulations assessment for offshore renewable energy in the marine area which aims to enable plans for potential leasing areas to be developed.

The future of the power grid has arrived. Smart Grid Ireland’s member network comprising industrial partners, local councils and utilities are responding to the challenges of the energy transition, in driving new innovations, modernisation and grid technology adjustments supporting the changing landscape and redefining how the system operates

The mission of Smart Grid Ireland is to actively support the urgent deployment of a highly integrated, decarbonised and flexible electricity grid on the island of Ireland promoting economic growth and the social wellbeing of citizens. We are an independent, industry led. not-for-profit networking organisation that aims to bridge the gap between policy, regulation, investment, and delivery.

With offices in both Dublin and Belfast we support our members in many ways including:

• The co-ordination of expertise in integrated energy systems.

• The prioritisation and promotion of smart grid solutions.

• All island representation and engagement in Smart Grid Developments.

• Thought leadership webinars and best practice networking

• SGI is a foundation member of the international Global Smart Grid Federation (GSEF) engaging in shared innovations, publications, policies and trends.

For more information contact info@smartgridireland.org

Bob Barbour Secretariat, Smart Grid Ireland Bob.Barbour@smartgridireland.org

Ronan Staunton Policy Advisor, Smart Grid Ireland ronan.staunton@smartgridireland.org

Action needed to address renewable electricity 2030 target gap

A 5 per cent annual decrease in the consumption of renewable electricity in Northern Ireland has highlighted the need for the acceleration of offshore wind generation and grid storage if an ambitious 80 per cent target for 2030 is to be met.

Northern Ireland saw a decline in indigenous renewable electricity consumption in relation to total electricity consumed over the 12 month period, despite the 80 per cent 2030 target for renewable energy consumption.

Within the rolling 12 month average in 2023, 45.8 per cent of total electricity consumption in Northern Ireland was generated from renewable sources located in Northern Ireland.

The 2023 total renewable electricity consumption represents a decrease of 5.3 percentage points on the previous 12 month period (year ending December 2022).

Therefore, in order to meet targets outlined by the Climate Change Act and Path to Net Zero strategy, significant measures need to be taken to ensure that renewable energy consumption continues to increase consistently.

Northern Ireland, once a leader in renewable generation, has stagnated over the past decade, highlighted by the fact that only 86MW of new large scale generation has been connected in that time.

The Department for the Economy is expected to deliver a new Renewable Electricity Support Scheme, aimed at increasing levels of renewable generation, in 2024, while simultaneously producing an offshore renewable energy action plan. However, critical to meeting the target of 80 per cent renewable electricity consumption by 2030 will not just be increased generation, but also the electricity grid’s ability to store and balance renewables. Despite the annual decrease in renewable consumption, the report found that of all renewable electricity generated within Northern Ireland in the year ending

Delivering a sustainable energy system for all

Renewable electricity generation and electricity consumption volumes in Northern Ireland (GWh)

Source: Electricity Consumption and Renewable Generation statistics.

December 2023, 82.9 per cent is generated from wind. This compares to 85.3 per cent for the previous 12 month period, suggesting that there has been an increase in other sources for renewable generation.

The second largest renewable energy source in Northern Ireland is generated through biogas (6.6 per cent), followed by biomass generation (4.7 per cent), solar PV (3.7 per cent), landfill gas (1.5 per cent), and other (0.7 per cent).

For the year ending December 2023, non-wind renewable electricity generation in Northern Ireland was 571 GWh (17.1 per cent).

Furthermore, in December 2023 specifically, 59.5 per cent of total electricity consumption in Northern Ireland was generated from renewable sources located in Northern Ireland.

Annual volume generated and consumed

In terms of the volume of electricity consumption in the year ending December 2023, some 7,297 Gigawatt hours (GWh) of total electricity was consumed. Within the decade, total electricity consumption in Northern Ireland has fallen by 10.8 per cent.

Additionally, some 3,341 GWh was generated from renewable sources located in Northern Ireland. This equates to an increase of 135.4 per cent over the 10 year period.

Renewable electricity generation as a percentage of electricity consumption (%)

Source: Electricity Consumption and Renewable Generation statistics.

The Climate Change Act (Northern Ireland) 2022 outlines that “at least 80 per cent of electricity consumption” must be generated from renewable sources by 2030.

Furthermore, the Path to Net Zero Energy strategy aims to continue to drive short-term progress towards the ultimate goal of a decarbonised energy system in relation to all Northern Ireland’s heat, power, and transport needs.

Meeting long-term targets

Despite the variation of renewable electricity generation month-to-month,

the average of indigenous renewable electricity generation has been on a general decline since November 2022.

Therefore, irrespective of renewable electricity generation and electricity consumption volumes in Northern Ireland continuing on a general increase over the decade, there is still significant work to be done to continue to increase energy consumption on an annual basis, and thus meet its target of nearly double its current renewable electricity generation.

The next Electricity Consumption and Renewable Generation in Northern Ireland publication will be issued in June 2024.

First steps on our pathway to a renewable future

Northern Ireland is well positioned to leverage its resources and geography to deliver green and sustainable growth, writes David Rooney, Professor of Chemical Engineering at Queen’s University Belfast, and academic director of CASE.

It has been almost a year since the Department for the Economy and the Centre for Advanced Sustainable Energy held the first Northern Ireland Energy Summit.

Ten recommendations, to set us on a pathway for a renewable future, were contained within the accompanying White Paper. These spanned a broad range of areas including governance, finance, technology, and cooperation. Since then, the Northern Ireland Executive reformed, and a new economic

vision was announced. This focused on increasing prosperity, balancing the economy, good jobs, and delivering all of this against the legal and moral obligations of net zero.

Central to the opportunity within the document was the intersection of renewables, agri-tech, and manufacturing. Together, these presented a nexus of immense potential for the UK’s agriculturally rich regions, in particular, Northern Ireland. While this nexus is not unique, Northern Ireland’s

commitment to net zero emissions and its established agricultural, manufacturing, digital, and fintech sectors create an ideal environment for innovation.

To realise its potential, an investment in whole systems thinking is needed, to leverage Northern Ireland’s resources and its existing skill base. Analysis suggests that success will transform the regional economy into one which can thrive in the years ahead, providing future generations with secure jobs whilst protecting the environment too. Importantly, it can do this in a way which recognises and balances factors common across the UK and Ireland, with those unique to Northern Ireland.

The critical mass to deliver success is evident from the significant existing and planned investments across complementary areas. In November 2023, Science Foundation Ireland, DAERA and UKRI announced £60 million of funding to develop two collaborative all-islands co-centres focusing on climate change and sustainable and resilient food systems.

These co-centres build on the research excellence within the Institute for Global Food Security at Queen’s University Belfast (QUB). Specific research will seek to develop just transition pathways, disruptive business models and agronomic practices that can restore biodiversity and diversify land use, while increasing value chains and sustaining rural livelihoods. None of this will be easy, but the research investment is timely and it can be leveraged.

Access to significant quantities of clean energy will be critical. Marine resources cannot be overlooked, and CASE funded innovations have enabled QUB and partners to advance wave energy converter arrays, to optimise commercial tidal turbines, and to develop novel

underwater sensors which mitigate the risk of collision with marine fauna. These are all enabled through Northern Ireland’s geography, encompassing Portaferry and the Strangford Narrows.

Maximising the efficacy of existing technologies is also important. One of the most mature is anaerobic digestion (AD) which should be considered as a tool. Like all tools it will deliver a solution if it is used correctly, or it will lead to greater problems if it is misused. Viewing AD as a tool, allows it to deliver much more than biomethane to service the heating, power and transport sectors. Instead, it can be considered as supporting three different services to the regional economy and environment, namely energy, nutrient and carbon.

Energy services are obvious, given that biomethane is a direct drop-in replacement for natural gas. CASE research has already demonstrated that substantial resources exist and, in November 2023, the first direct-to-grid injection on the island of Ireland, occurred within the Evolve network. More connections are needed and, recently, the gas network operators jointly launched a collaborative request for information, to inform longer-term network planning.

Nutrient services are a direct consequence of the processing capabilities which support the concentration of nutrients into the digestate streams. To date, this has not been the primary focus, but it has become more important due to the ongoing environmental problems which were on show worldwide, because of Lough Neagh’s disastrous algal blooms.

AD can mitigate these issues when deployed in combination with improved land management and the use of multispecies swards. The economics and potential regulation of AD will be significantly easier for larger plants. Balancing smaller on-farm units with larger regionally centralised processing akin to agricultural cooperatives or community owned energy enterprises is important, and more work is needed to incentivise inward investment and adoption. The recent announcements by DfE, DAERA, and the Shared Island Fund are welcome, as they aim to support clean energy, control nutrients and to develop new transformative bioeconomies. Work in this area needs to be accelerated.

Carbon services recognise that biogenic carbon has an increasing value. AD can

supply carbon in multiple forms including CO2 for the agritech sector and future efuel markets which strongly complements green hydrogen. CASE work has identified specific niche areas in the marine and aviation industries, where Northern Ireland could significantly contribute. Similarly, the carbon embodied in the digestate, can be converted and valorised to a range of products, including organic rich fertilisers or biochar to support the wider construction sector and its supply chain. Inherent in all of this are the wider opportunities that arise from building capability in the measuring, validating, reporting and trading of energy, nutrients and carbon. Barriers to delivering net zero across the UK often arise from a poor evidence base. Good work in this area will quantify embodied carbon, as well as inform and communicate the interconnected business, financial, legal, political and regulatory decisions and frameworks needed for the transition. Tools which offer high levels of transparency and accountability for the carbon embodied in products and

services, will inform and accelerate decisions within business.

A global net zero future needs a CarbonTech sector to support decisions and to provide a blend of carbon, nutrient and energy services to industries and their supply chains. This nascent sector has echoes of Northern Ireland’s globally recognised FinTech capabilities that draw on an existing blend of talent, innovation and expertise. Northern Ireland could lead the way.

Since the summit, significant successes have been achieved and new opportunities have emerged. The central tenet remains – positioned correctly, Northern Ireland can leverage regional resources, in partnership with those in the UK and Ireland, amplifying the value of renewable and biogenic resources to deliver green and sustainable growth.

Let’s not miss the opportunity.

W: www.case-research.net

Ed Hawkins, Reading; Yvonne Buckley, TCD; and Mark Emmerson, QUB of the recently launched Co-centre for Climate, Biodiversity and Water.
agendaNi, 19a Maghaberry Road, Maghaberry, Co. Antrim, BT67 0JE
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