Minister for the Economy, Dr. Caoimhe Archibald, has launched the Department for the Economy’s Energy Strategy Action Plan 2025, detailing the path to net zero energy for 2025 (the “Action Plan”). The Action Plan outlines 4 strategic priorities for this year, with 19 key actions to help drive the transition towards reliable, affordable and clean energy in Northern Ireland. The strategic priorities for 2025 are:

1. accelerating the delivery of affordable renewable energy;
2. focus on the electricity grid to support the delivery of the 80% renewable electricity target by 2030;
3. improving energy efficiency;
4. delivering for citizens and communities.

In terms of the Action Points, a lot of attention within the energy sector will be on the publication of the final design for the Renewable Electricity Support Scheme (which is due to be published in Q2 of 2025). However, the following are also of note:

• Offshore renewable energy: Continuing with last year’s strategy, DfE is keen to identify potential areas for offshore renewable energy. This, together with proposals to bring forward a draft bill on Offshore Renewable Energy Installations, and further consultations on environmental assessments, cements offshore renewables as an area of focus.
• Onshore renewable energy: The Department of Agriculture, Environment and Rural Affairs will lead market engagement with onshore wind suppliers to explore the potential of using forestry land to contribute to renewable energy generation.
• Biomethane: DfE expect to progress policy relating to the support of biomethane being utilised in the gas network.
• Hydrogen Energy: A consultation is to be launched to help gather views and inform the policy direction for hydrogen moving forward.

The Energy Strategy also flags the need to tackle grid connection costs to remove barriers to renewable energy adoption. In this regard, DfE is currently consulting on a number of options relating to the increased socialisation of connection costs in the electricity distribution network with the decision paper expected in Q2 2025.

Collaboration is key

The Energy Strategy clearly demonstrates DfE’s commitment to driving the energy transition and achieving the 2030 targets. Successful delivery will require sustained collaboration across government and with key stakeholders, ensuring a co-ordinated and effective approach to the energy transition in this jurisdiction.

Should you have any questions in relation to the energy market, please do not hesitate to get in contact with David White or your usual Arthur Cox contact.