Business

Deti follows Britain to close wind subsidy scheme early

The system for subsidising onshore wind projects is to close a year earlier than planned
The system for subsidising onshore wind projects is to close a year earlier than planned The system for subsidising onshore wind projects is to close a year earlier than planned

THE current system for subsidising onshore wind projects is set to close a year earlier than planned.

The Northern Ireland Renewables Obligation (NIRO) will run out in April 2016 with the north being brought into line with Britain.

Enterprise minister Jonathan Bell had previously said he would not fall in with plans from the Department of Energy and Climate Change (DECC) to shut the scheme.

However DECC told Stormont's Department of Enterprise (Deti) any additional cost for keeping the scheme open would have to be borne locally - with the ultimate cost falling to consumers.

Deti has launched a two-week consultation on the closure.

It includes proposals for a grace period in limited circumstances, as Andy Ryan, energy and renewables partner at TLT Solicitors Belfast explained.

“The criteria include a valid planning permission; an accepted grid connection offer in place, or confirmation that no grid connection is required; and that a director’s certificate has been provided confirming that the developer or proposed operator of the station has sufficient rights to the land for the project. The elegibilty date is September 30 2015 or October 30 2015 for cluster connected projects.

“If a project satisfies the grace period criteria, it will be able to accredit under the NIRO up to March 31 2017. A further 12-month grace period may be granted if further delay is due to grid or radar delays.”

The Ulster Farmers' Union (UFU) said the fortnight consultation was "inadequate in light of the implications for the small scale renewables sector in Northern Ireland".

Its rural enterprise chairman Gary Hawkes said the union would lobby DECC in London to extend the consultation period and allow small scale wind to continue to avail of NIRO until March 2017.

“The early closure will put at risk the use of small scale turbines located on day to day farming business. These are farms that would use wind energy to not only reduce energy costs, but to boost energy efficiency and reduce carbon emissions,” he said.