Energy Policy: Where Things Stand with the Mandate Clock Ticking

The next Assembly election is close on the horizon, with a limited number of plenary days and committee sessions remaining before the current mandate comes to an end in March 2027.

As the mandate enters this final stretch, a number of key energy policy and legislative developments are now progressing through Stormont, with significant implications for the future direction of the sector.

Against this backdrop, there has been notable progress made on renewable energy generation, with 53% of Northern Ireland's electricity coming from renewable sources in the year to June.

The Renewable Electricity Generation Bill finally making its way to the Assembly floor is therefore timely. Passing its Second Stage of scrutiny just last week, the Bill will act as the legislative basis for the Renewable Electricity Price Guarantee (REPG) scheme, establishing the legal framework to run competitive renewable electricity auctions.

Investors are yet to establish how the REPG scheme will operate in practice, with further legislation to be brought forward to address this once the Bill becomes law.

The Economy Committee recently agreed to extend the Committee Stage of the Renewable Electricity Generation Bill to 29 January 2027, with a call for evidence remaining open until shortly before Halloween. This is therefore a key stage for vested stakeholders to influence a major piece of legislation that could go on to shape the renewable energy landscape in Northern Ireland for years to come.

The REPG scheme isn’t of course a silver bullet in the Executive meeting its legally binding target of at least 80% renewable electricity consumption by 2030. Serious issues continue to hamper energy progress in Northern Ireland, with critical areas to address such as grid development, improved interconnection and long-duration storage.

Executive departments have also announced setbacks and delays, such as the Offshore Renewable Energy Installations Bill being shelved until the next mandate. With some of the strongest wind resources in Europe, Northern Ireland still has a unique opportunity to harness offshore wind energy to drive forward energy independence in the future.

In light of the challenges highlighted, the Department for the Economy has recently made announcements that aim to set a more strategic direction for energy development, with Economy Minister Dr Caoimhe Archibald MLA confirming that both an Energy Policy Position Statement and Energy Storage Policy Statement will be published before the end of 2026.

This follows Minister Archibald recently publishing the Department for the Economy's new Interconnection Policy Statement setting the policy direction for East-West electricity infrastructure, providing greater certainty for investors and developers.

A biomethane policy is also on the horizon, with the Economy Minister recently stating she expects to launch a policy consultation next month which will be a joint development with DAERA.

As the end of current mandate nears, a significant amount of work remains to be done if Northern Ireland is to remain on course to meet its energy ambitions. With major legislation progressing through the Assembly and a range of key policy developments still to come, the months ahead will provide a valuable opportunity for stakeholders to engage with policymakers and help shape the framework that will underpin our energy transition in the years ahead.