Strike Prices for Northern Ireland Announced
09 January 2014
Energy Minister Arlene Foster has confirmed the support levels for Northern Ireland large scale renewable electricity generation under the UK wide Electricity Market Reform (EMR) programme.
The EMR is intended to incentivise investment in diverse and low-carbon energy infrastructure by providing for Contracts for Difference (CfDs). The CfD is a contract between the generator and a new Government-owned counterparty which reduces the risk faced by generators by paying a top-up between the market price and a fixed price. The CfD will be introduced in Northern Ireland in 2016.
The strike prices for 2014/15 – 2018/19 are set out in a delivery plan published by the Department of Energy & Climate Change on 19 December 2013. This delivery plan sets the same strike prices for Northern Ireland as for the rest of the UK, thereby providing the industry with the greatest possible certainty and enabling a coherent UK wide system for supporting low carbon generation.
Announcing the new levels, Arlene Foster said: “The publication of strike prices today gives energy generators a sound, sustainable and long-term basis to invest in renewable energy. This will support the growth of the renewables industry in Northern Ireland with modelling showing that deployment of a 40% renewable electricity target by 2020 is achievable, at these strike prices. Actual deployment will of course depend on future technology costs.”
The Delivery Plan, confirming the strike prices for Northern Ireland, can be found at: https://www.gov.uk/government/publications/electricity-market-reform-delivery-plan