Renewable Electricity Price Guarantee (REPG): Key Features and Implementation Pathway

The proposed Renewable Electricity Price Guarantee (REPG) represents a significant development in Northern Ireland’s energy framework, introducing a long-term support mechanism for renewable electricity generation following the closure of the Renewables Obligation.

The scheme is intended to support delivery of the Executive’s target of 80% renewable electricity consumption by 2030, while providing greater price stability for both developers and consumers.

Overview

The REPG is designed as an auction-based, contract-for-difference (CfD)-style scheme, adapted to operate within the Single Electricity Market (SEM).

Its core objectives are to:

• provide long-term revenue certainty for renewable generators;
• mitigate exposure to wholesale price volatility; and
• drive investment in large-scale renewable generation.

Key Features

Auction-based allocation

Support will be awarded through competitive auctions, with developers bidding a strike price for the electricity they generate. Contracts will be awarded to the lowest-cost qualifying projects.

Contract structure and pricing mechanism

Successful projects will enter into long-term contracts (expected to be 15 years) based on a two-way pricing mechanism.

Funding arrangements

The REPG is expected to be funded via a levy on licensed electricity suppliers, with costs ultimately passed through to consumers.

Eligible technologies and entry requirements

Initial auction rounds are expected to focus on onshore wind, solar PV and hybrid projects. Projects must meet eligibility criteria including planning consent, grid connection and financial readiness.

Regulatory Considerations

The REPG may engage both the UK Subsidy Control regime and EU State aid rules under the Windsor Framework. This creates the potential for dual compliance requirements.

Implementation Pathway

Legislation

Primary legislation will be required to establish the scheme.

Scheme rules and terms

Detailed Terms and Conditions will be published for consultation.

Project readiness

Developers must ensure projects are auction-ready.

Operational readiness

Auction systems and settlement processes must be established.

Timing and delivery risk

Although a first auction is targeted for 2027, there is a material risk of delay due to legislative, regulatory, planning and grid constraints.

Conclusion

The REPG represents a significant step forward in Northern Ireland’s energy transition, but will require coordinated delivery across multiple areas to be successful.

If you would like any further information or advice, please get in touch with a member of our Energy and Renewables team.