To ask the Minister for the Economy for an update on the progress of developing a Renewable Electricity Support Scheme.

Mr C Murphy (The Minister for the Economy)

The Department is developing a renewable electricity support scheme (RESS) to incentivise investment, ensure a fair price for electricity that is produced locally and encourage diversification to support security of supply. Following a recent consultation, officials have been working with consultants to define the optimal scheme structure. High-level design for the scheme will be published this month as part of the Department's response to the consultation. The next phase will involve modelling and a financial impact assessment alongside the establishment of a legislative pathway, state aid approval and institutional roles and responsibilities that are necessary for delivery. Stakeholder engagement will be essential as we move forward to deliver a final scheme design, maximising the community benefit opportunities and ensuring prosperity for all.

Mr C Murphy

Options for microgeneration support, including domestic renewable generation, such as solar panels, will continue to be evaluated as part of our net zero ambitions. The Windsor framework enables the extension to the North of the VAT relief for energy-saving materials that was previously available only in Britain. That means that people here will also be able to apply zero rates of VAT to the installation of energy-saving materials, such as heat pumps and solar panels. Homeowners may wish to seek independent advice on solar panels, heat pumps and other energy efficiency matters from organisations such as the NI Energy Advice service. Those technologies have the potential to provide an attractive payback to homeowners without grant support.

Mr McGuigan

Will the Minister outline how his Department's proposed scheme differs from other renewable electricity schemes across these islands?

Mr C Murphy

The proposed scheme will have similarities to RESS in the South and the contracts for difference scheme in Britain. Similar auction-based schemes have also been successful across other European countries and are a well-established option for incentivising renewables. Previous research that was commissioned by the Department identified that type of scheme as being one that would provide the optimal form of support for the North, and the recent consultation confirmed it as the preferred option of the power sector stakeholders. From that, a bespoke local scheme is being developed. Any scheme that we introduce will take account of the lessons that have been learned from other schemes on these islands and will address the specific needs of our local market.

Mr O'Toole

A previous iteration of the protocol, now the Windsor framework, omitted guarantees of origin from the North being sold into the South and more widely onto the electricity market in Europe. Will the Minister explore with his officials getting that added to the protocol so that we can benefit from our access to the single European market?

Mr C Murphy

As I said in my previous answer, some of those issues have been addressed by the Windsor framework. If, as we move through the design of the scheme, there are outstanding issues, we are more than happy to take those up with the relevant authorities in London and Brussels.

Mr Allister

I want to ask about another renewable scheme, namely the non-domestic renewable heat incentive (RHI) scheme. When can one expect the publication of the consultation report? Is there any hope of a realistic tariff for the users that is comparable to what exists elsewhere, or will we continue the folly of sending back money that has been unspent in that scheme?

Mr C Murphy

I believe that the RHI scheme should have been concluded some time ago in the previous mandate. It is my intention to bring the matter to as speedy a conclusion as I can in as fair a way as possible. That will in turn allow us to access other available funding that has not yet been taken up and to look at other renewable schemes.