DIAL BEFORE YOU DIG

Mutual Energy welcomes the recent consultations on NI’s first Climate Action Plan (CAP) and the setting of the 4^th Carbon Budget. We view them as critical steps forward in defining a framework for delivering emissions reductions in Northern Ireland.

The CAP sets out metrics against which progress can be measured, helping to ensure that policy proposals are focused, funded, and achievable. The 4^th Carbon Budget sets a trajectory for climate action.

With clear targets, plans and accountability, Northern Ireland can move closer to meeting its climate goals while maintaining a secure, affordable, and resilient energy system.

Challenges in delivering the first carbon budget

We are now approaching the midpoint of the first five-year carbon budget period (2023–2027) however, without implementation of a CAP. A number of policies and proposals identified within the CAP as contributing to emissions reductions have not yet been consulted upon. For new policy measures to meaningfully contribute to delivery of the first carbon budget, they must be implemented before the end of 2027.

Another consideration is the two-year delay to reporting of greenhouse gas emissions, making it difficult to assess the progress made across the first half of the carbon budget period (in the absence of a CAP). This raises questions about whether any potential shortfall has been adequately taken into account in the measures being proposed.

The need for timely policy development and implementation

A further concern is the current slow rate of policy development and implementation in Northern Ireland, as evidenced by the recent NI Audit Office report on implementation of the Energy Strategy.[1] The long lead times required for policy development do not seem to have been considered when setting NI’s carbon budgets to date.

It is essential that policy development and implementation is carried out suitably in advance of when emissions reductions are required so there is sufficient time to secure necessary investment and deliver projects, as well as develop appropriate market and regulatory arrangements. In the context of major infrastructure projects, lead times can stretch to decades rather than years.

The cumulative impacts of non-delivery

Failure to deliver on the first carbon budget will create a cumulative shortfall, making future targets harder to achieve. An increasing cumulative deficit could exert substantial pressure on policy makers to rush policy decisions, chasing near term targets, rather than making sure the long-term interests of NI consumers are protected.

Ambitious but achievable targets on the other hand help build momentum and grow public confidence in Northern Ireland’s energy transition. They also help enable a strategic long-term approach, focused on ‘real-world’ delivery of emission reductions that are steady, sustainable, and fair.

A key role for renewable gases

Fuel switching of customers from oil to natural gas, where possible and practical, is recognised as a near-term means of reducing emissions within the draft CAP. In conjunction with biomethane, it also provides a long-term decarbonisation pathway for heat in NI alongside electrification. Producing biomethane at scale would also support nutrient management and the wider NI agricultural sector.

Northern Ireland can also develop a thriving green hydrogen economy given our ‘world class’ wind resources. The growth of the hydrogen economy can be accelerated through development of a Greater Belfast Green Hydrogen Hub, similar to the hydrogen clusters in Great Britain[1]. The idea of the hub is to develop a self-contained hydrogen economy within a limited geographical area, including hydrogen production, transportation, and storage infrastructure, as well as end user demand. More information on Mutual Energy’s Greater Belfast Green Hydrogen Hub concept can be found at Hydrogen Hub – Mutual Energy.

Our geology provides us with the ability to develop large-scale underground gaseous storage in salt caverns, allowing us to store locally produced renewable gases for long periods of time, from days, to weeks, or even years. Combined with strong fundamentals for the production of renewable energy, this can help ensure NI’s energy security throughout our decarbonisation journey.

Progressing potential solutions

Achieving net zero will require the radical transformation of the energy sector over the next 30 years. As well as helping to support the development of renewable gases in Northern Ireland, MEL is also exploring a number of energy transition projects including offshore grids and long-duration energy storage.

For example, the Higher Ground project is a feasibility study exploring the possibility of developing a Pumped Hydro Energy Storage (PHES) scheme near Carrickfergus, Co Antrim. The project could store significant volumes of otherwise surplus renewable generation for use later, when the output from renewable generation is low. This would help reduce our reliance on natural-gas fired generation to maintain the security of our electricity supply. For more information please visit Higher Ground – Mutual Energy

Looking ahead

Northern Ireland has a tremendous opportunity to deliver a secure, affordable, and balanced transition to net zero.

By setting realistic targets, supporting the development of renewable gases, and diversifying our decarbonisation pathways we can deliver the decarbonisation of our energy system and the wider NI economy.

At Mutual Energy, we remain committed to working collaboratively across the energy sector to support the delivery of the energy transition for Northern Ireland.

[1] NI Audit Office Report – NI Energy Strategy.pdf

[2] https://eastcoastcluster.co.uk/ ; https://theacornproject.uk/ ; https://hynet.co.uk/