Groups address ETI Committee on renewables scheme closure

The Union and small-scale wind energy companies Simple Power, Renewable NI and Wind NI joined together to present to the ETI Committee on the early closure of the Northern Ireland Renewables Obligation (NIRO) scheme to new onshore wind generation from 1 April 2016.

The Department of Enterprise, Trade and Investment (DETI) have indicated their intention to follow the policy of the Department of Energy and Climate Change (DECC) at Westminster by closing the NIRO a year early – after a Ministerial statement by Jonathan Bell in June 2015 which initially set out that the scheme would be retained until 2017.

The organisations used the opportunity to highlight the unique benefits of the small-scale wind industry to Northern Ireland, not least for farmers and landowners who have been able to derive an additional source of income from renewable energy projects during difficult economic conditions.

The small scale renewable industry has faced huge challenges which have delayed projects, such as grid connection and planning, and an early NIRO closure compounds these issues. The DETI proposals also fail to protect significant investment made, in some cases on the basis of the original position adopted by Minister Bell in June. If enacted into legislation, the early NIRO closure could cost the local farming industry alone at least £20 million through committed planning, consultancy, wildlife survey charges etc.

During the presentation, an alternative approach was put forward by the organisations whereby small-scale and large-scale wind generation could be separated and the closure of the NIRO deferred for small-scale wind until 2018. This would bring the NIRO to a controlled and managed end, provide the best opportunity to secure investments already made and allow existing projects to reach completion at a low cost to the consumer.