Northern Ireland unveils design for renewable energy electricity price guarantee to cut energy bills

Economy Minister Dr Caoimhe Archibald has unveiled the Final Scheme Design for the Renewable Electricity Price Guarantee (REPG), a major initiative aimed at cutting energy costs and accelerating Northern Ireland’s transition to clean power.

The scheme, published on Friday 19 September, is designed to incentivise renewable electricity generation while positioning Northern Ireland as a competitive and attractive destination for energy investment.

The REPG will play a central role in helping to achieve the Climate Change Act (Northern Ireland) 2022 target of 80% renewable electricity consumption by 2030.

Minister Archibald described the announcement as a “significant milestone” in the region’s energy strategy.

“Increasing investment in renewables is essential to reduce our reliance on high-cost fossil fuels and deliver on our net zero ambitions,” she said.

“The publication of the REPG Final Scheme Design will boost renewable generation and deliver lower electricity costs to households than they are paying today.”

Community benefits built into the scheme

In addition to lowering prices, the REPG will deliver direct benefits for local communities. Under the proposals, households located near REPG-supported projects will receive a discount on their electricity bills.

“The introduction of this scheme will increase investment in renewables and ensure that local communities benefit from the transition to net zero,” the Minister added.

How the REPG will work

The Final Scheme Design sets out:

• the proposed legal and governance framework to enable implementation;

• the core funding mechanism for the scheme; and

• the eligibility criteria and contract allocation process.

The Department for the Economy confirmed it will consult on the REPG Terms and Conditions later this year, giving stakeholders the opportunity to help shape the contractual details. The first auction for projects under the scheme is expected to take place in early 2027.

Tailored to Northern Ireland’s energy market

The design has been adapted specifically for the all-island Single Electricity Market, drawing on proven features of similar auction-based support schemes in Britain (Contracts for Difference – CfD) and the Republic of Ireland (Renewable Electricity Support Scheme – RESS).

The publication follows the Department’s consultation in April 2024 on design considerations for a renewable electricity support scheme, and aligns with the Energy Strategy Action Plan 2025.

The Final Scheme Design is available on the Department for the Economy’s website.