Delivering on decarbonisation

Ian Snowden, Permanent Secretary of the Department for the Economy, discusses progress on the Minister’s prioritisation of achieving net zero as a key objective in his economic vision.

Setting the context for the significance of the work to decarbonise Northern Ireland’s economy in the coming years, the Department for the Economy’s Permanent Secretary says: “We are never going to have to make such a radical whole system change to the way we generate, store, distribute, buy, or deal with energy ever again”.

In February 2024, a fortnight after the Northern Ireland Executive resumed, Economy Minister Conor Murphy MLA outlined a new four-pillared economic mission, one of which was the decarbonisation of the economy to help reach net zero by 2050.

Snowden echoes the Minister’s rationale for this inclusion, stating that the economic opportunity in decarbonisation, if properly grasped, “will be nothing short of transformative for the health and prosperity of our citizens”. However, he is clear on the need for urgency to deliver our energy future.

Pointing out that, at the turn of the year, there will be just five years, or 60 months, to reach major 2030 targets – foundations for net zero by 2050 – the Permanent Secretary lays down a challenge to his own officials and wider energy stakeholders not to look back in the future and “rue our inaction”.

“With 60 months to go to 2030, we all need to collaborate with a real sense of urgency to help transition to a net zero future, and an energy economy based on renewables,” he states.

Investment

Outlining the ultimate ambition to stop the importation of fossil fuel, and instead pay a fair price for the fuels that are available indigenously “to satisfy all of our energy needs and more”, Snowden says that there is a need to accelerate investment to achieve affordable, renewable energy for Northern Ireland.

“As we accelerate towards net zero, protecting low-income and vulnerable consumers is key,”
Ian Snowden, Permanent Secretary, Department for the Economy

On how this can be achieved, he says that the public sector must show leadership in delivering the net zero pathway, and points to investment of over £70 million to date in invest-to-save solutions, designed to provide energy cost stability and a carbon footprint reduction across the public sector, as well as larger sums in further planned investment in this area over the course of the mandate.

Additionally, he outlines plans that will see the Department invest £20 million to support local businesses to reduce their energy bills and carbon emissions through Invest NI, in the same timeframe.

Offering a snapshot of the work underway to accelerate the journey to net zero for the energy industry and consumers, Snowden points to plans to change the Electricity Connection Policy Framework, to lower a barrier to renewables and other low-carbon technologies, following a review launched by the Utility Regulator and the Department in 2023.

Also recently published is an implementation plan for the installation of smart meters, as outlined in the Energy Strategy Action Plan 2023, while Snowden says that his Department is working through responses to a call for evidence around the development of biomethane production in Northern Ireland, which closed in August 2024.

Described by Snowden as a “fundamental necessity for achieving the 80 per cent by 2030 renewable electricity consumption target”, the Permanent Secretary says that following the publication of the high-level design, the Department is now developing the detail of the long-awaited Renewable Electricity Support Scheme, the first auction for which is scheduled for early 2026.

Regulation

“To reach self-sufficiency in affordable renewables, we clearly cannot rely on our old energy solutions,” explains Snowden, outlining the need for system-wide reform if the decarbonisation policies essential to the Energy Strategy and Climate Change Act are to be delivered.

To ensure that government, stakeholders, net zero energy companies, and investors can play their part in the energy transition requires “a robust regulatory environment with fit for purpose modern legislation, enabling the reform”, Snowden states.

To this end, he points to the recently closed public consultation on the Utility Regulator (Support for Decarbonisation Preparation) Bill which, subject to ministerial and Executive agreement, he expects to be introduced to the Assembly in the coming months.

Highlighting the Minister’s intentions to progress legislation in a number of areas including offshore renewable energy decommissioning and a ban on onshore petroleum licensing, Snowden says that 2025 will be characterised by urgent work towards a new Energy Bill “to enable the pathway to decarbonisation, ultimately ending our reliance on important fossil fuels”.

Affordability

While highlighting the need for urgency, Snowden is cognisant that the cost of delivering emission reductions must not fall disproportionately on vulnerable consumers.

Stressing the need for a just transition, he says: “This is a once in many generations opportunity to remove price volatility from energy costs and structure charges to ensure that we can work towards the eradication of fuel poverty and also ensure that our businesses are competitive.”

Pointing to the provision by the Department of £2.3 million of additional capital into the £8 million Northern Ireland Sustainable Energy Programme, aimed at supporting lower-income and vulnerable households, he adds that the Minister has prioritised the establishment of an all-of-government approach to the development and delivery of a plan to produce community benefit through a community energy pathfinder.

“As we accelerate towards net zero, protecting low-income and vulnerable consumers is key,” he says, adding: “The only way this can be achieved is through collaboration with communities, businesses, local government, statutory partners, and all of those who have an interest in creating an inclusive and equitable path towards a sustainable future.”

Future

While acknowledging that Northern Ireland currently sits “many miles” behind Great Britain and the Republic of Ireland in the energy transition, Snowden is adamant that the gap can be closed.

“The Department is clear about the focus and that we are heading in the right direction,” he says optimistically, adding: “Decarbonising the Northern Ireland economy is at the heart of our work within the Department, and the Minister and I are happy to be challenged on the urgency with which we are delivering that.

“Sixty months is not a long time and there is a huge amount that we have to get done. We all have an important part to play. We must work together and we must work with a sense of urgency,” he concludes.