Vision 2050: Options for a New Strategic Energy Framework

CONFERENCE REPORT | 11 SEPTEMBER 2019

Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 1 FOREWORD CONTENTS

2 FOREWORD

4 INTRODUCTION

5 SESSION 1. FUTURE OPTIONS: DEVELOPING THE ENERGY VISION FOR 2050 5 Keynote address – Richard Rodgers, Head of Energy at the Department for the Economy

7 Protecting and empowering: Putting consumers at the heart of the Eleanor McEvoy, Energy Policy Lead energy transition – Jenny Pyper, Chief Executive of the Utility Regulator at FSB Northern Ireland 8 Driving innovation and delivering change: the role of business as a partner of government in the transition to a low-carbon future – Declan Billington, Chair of the CBI Northern Ireland Energy Forum Concern about climate Some business owners will see multiple Northern Ireland’s energy now comes 9 Implementing policy: effective regulation & support – Stephen Cross, threats: the threat of climate change from renewable sources. Despite the Director and Head of Energy at law firm Cleaver Fulton Rankin change has rocketed up itself, followed by the threat of action absence of devolved government, the political agenda in to address it using additional levies Northern Ireland has the potential to 10 SESSION 1. QUESTION AND ANSWER SESSION or burdens to change behaviour. But be a strong player in this field. Working recent years and, for voters just as the advent of fossil fuels – alongside a functioning Executive, we 13 SESSION 2. WHOLE ENERGY SYSTEM TRANSITION: WHAT IS THE GOAL? under 24, it is second only coal, then oil and gas – ushered in a could become a world leader. previous industrial revolution, with an 13 Decarbonising power: considering clean low-cost power generation to Brexit in terms of the The goal – and our ambition ¬ should associated economic and employment options for the future – Jo Aston, Managing Director of the System be much bigger than simply reducing issues that they value most. boom so, too, could the adoption and Operator for Northern Ireland (SONI) Northern Ireland’s consumption of growth of new clean energy systems. In that context, further fossil fuel. It should be to embrace 15 Decarbonising heat: implications for the wider energy system – Embraced properly by policymakers political action towards and develop low-carbon innovation, Dr Andrew Cripps, Regional Director at engineering firm AECOM and business, this change could be from renewable power generation climate protection seems the dawn of a new industrial revolution 17 Decarbonising transport: vehicle electrification and connectivity – through to electric vehicles and smart that holds out the prospect of great Charlie Simpson, Partner at Head of Mobility Group 2030, Global Strategy inevitable as politicians grid services, so that we can become prosperity for Northern Ireland while Group at KPMG in the UK players on the world stage. court the next generation helping to stave off catastrophic 19 The energy trilemma: the role of gas in transitioning to a low carbon to bolster their electoral change in the climate. The engagement of business, future – Michael McKinstry, Group Chief Executive at Phoenix Natural Gas politicians and wider civic society support. The event, held The way we use energy and live our is vital if we are to maximise our SESSION 2. lives is changing, whether that be 20 QUESTION AND ANSWER SESSION on 11 September at Titanic potential. The event and this report how we travel, the food we eat, or , and this associated are a welcome contribution to that the way we heat our homes. The important dialogue. 21 PARALLEL SESSION 1. EYE ON ENERGY CONSUMPTION: USE LESS, PAY LESS report are therefore timely move to carbon-neutral solutions and we wholeheartedly presents a challenge, of course, but it 23 PARALLEL SESSION 1. QUESTION AND ANSWER SESSION also presents a massive opportunity. support the efforts made Government policy has a huge role 25 PARALLEL SESSION 2. EYE ON ENERGY PRODUCTION: DECARBONISING to explore and shape to play, as we saw in the successful OUR partnership between previous Stormont new ideas around the 29 PARALLEL SESSION 2. QUESTION AND ANSWER SESSION Executives, businesses and domestic decarbonisation of energy. consumers. The renewables target was adopted, incentives were devised, and 31 POLITICAL PANEL DISCUSSION: PRIORITIES FOR A NEW STRATEGIC industry and consumers responded ENERGY FRAMEWORK FACILITATED BY FSB NORTHERN IRELAND with investment, so that 44% of 32 POLITICAL PANEL DISCUSSION: QUESTION AND ANSWER SESSION

34 FINAL WORD: REFLECTIONS ON THE DAY’S DISCUSSIONS

2 Vision 2050: Options for a new Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 3 INTRODUCTION SESSION 1. FUTURE OPTIONS: DEVELOPING THE ENERGY VISION FOR 2050

Jamie Delargy, Broadcaster and energy commentator

Will Chambre, Director at Chambré and Conference chair Jamie Delargy opened The civil service, the regulator, industry and the legal Editor at Policy Eye Northern Ireland profession were represented in the opening session by: proceedings with a reminder that the • Richard Rodgers, Head of Energy at the Department for Northern Ireland Strategic Energy the Economy Framework 2010-2020 is now almost 10 • Jenny Pyper, Chief Executive at the Utility Regulator Our relationship with energy There are 23,000 generators in We assembled a broad range of Northern Ireland today, compared high-level speakers to present and years old and that, in the absence of a • Declan Billington, Chair at CBI Northern Ireland Energy is changing fast as we move with just a handful at the start of the debate the various obstacles and functioning devolved government, there Forum and decade. How many will there be by opportunities that lie ahead, including to a technology-rich, low- is a pressing need for the Department • Stephen Cross, Head of Energy at law firm Cleaver 2050 and what new pressures will the development of a new Strategic Fulton Rankin. carbon world. Most visibly, the power system face 30 years from Energy Framework. They included for the Economy to develop a post-2020 the traditional model of now? The task ahead of us all is to find senior figures from the civil service, framework. centralised generation is the best answers to these and other politicians and those that regulate the questions, and to plot a path through energy industry, as well as network and being overturned by the the coming energy transition that system operators and experts in the proliferation of renewable minimises disruption and maximises fields of power, heat and transport – KEYNOTE ADDRESS energy sources, while opportunities for the economy and all of whom make a valuable citizens, while meeting the UK national contribution to solving the Before setting out the department’s Great progress, but the RHI scandal passive consumers are target of net zero greenhouse gas decarbonisation challenge. plan of action, Mr Rodgers described looms large being empowered by a host emissions by 2050. some of the features of the wider Northern Ireland has made great energy and climate change landscape of smart technologies. The strides in decarbonising the power and reminded the audience of electrification of transport market in the last decade, said Mr the bearing they will have on any Rodgers. In the 12 months to the and the roll out of power replacement policy for Northern end of June 2019, 44% of electricity Ireland. These include: storage systems will change Richard Rodgers, Head of Energy at supplied was from renewable sources the way we live and work, the Department for the Economy • The United Nations 2015 Paris – 3,462 GWh out of 7,788 GWh – Agreement to keep the global beating the government’s target of but they will also present a Richard Rodgers is the senior civil temperature rise this century 40% by 2020, according to data from servant with responsibility for energy whole new set of challenges below 2 degrees Celsius above the Northern Ireland Statistics and in Northern Ireland. As such, he 1 pre-industrial levels Research Agency. to policymakers and is tasked with preparing the new regulators. strategic energy policy framework • The EU’s Clean Energy Package, for the region. Given that existing under which EU Member States policy is now largely irrelevant, there are required to produce a National 2 is considerable interest in a timetable Energy and Climate Plan (NECP) for its replacement. • UK domestic legislation passed in late June 2019 requiring the UK to bring all greenhouse gas emissions to ‘net zero’ by 2050 compared with 1990 levels.3

1As of September 2019, the UK was an EU Member State and therefore part of the joint EU/Member State Nationally Determined Contribution (NDC) for the period of 2021-2030. This commits the EU to at least 40% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. 2The UK’s draft National Energy and Climate Plan. See https://assets.publishing.service.gov.uk/government /uploads/ system/uploads/attachment_data/file/774235/national_energy_and_climate_plan.pdf 3https://www.gov.uk/government/news/uk-becomes-first-major-economy-to-pass-net-zero-emissions-law 4 Vision 2050: Options for a new Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 5 PROTECTING AND EMPOWERING: PUTTING CONSUMERS AT THE HEART OF THE ENERGY TRANSITION

having been director of energy policy FIGURE 1: Flexible regulation Average percentage of electricity consumption generated from renewables in Northern Ireland at the Department for Enterprise, “We can’t lose sight of the Trade and Investment (now known as consumer as we plot a way through the Department for the Economy) for a very challenging and complex seven years. environment,” she said. As Chief Executive of the Utility Mr Rodgers contrasted this success with the failure of The process: how we plan to make good policy Ms Pyper believes that if the regulator Regulator, Ms Pyper is focused on renewable heat policy to illustrate that “there is massive is to protect consumers then it must Mr Rodgers intends to put engagement at the heart of the protecting the interests of domestic scope for getting this wrong”. Not only did a serious flaw in Jenny Pyper, Chief Executive of the consider the energy transition from policymaking process. “A solution generated by the people and business consumers, both in the the now notorious non-domestic Utility Regulator their point of view. Cost is the top for the people,” is how he described it to the audience. short and long-term. “The energy (RHI) help to bring down the Northern Ireland assembly priority, she said, followed by social Jenny Pyper is head of the Utility transition will place the consumer at in January 2017, the policy failed achieve its target of 10% and economic benefits as well as He envisages that the new strategy will be developed by Regulator, a non-ministerial the centre of the action and will start decarbonisation and technology, renewable heat by 2020. The Department for the Economy in three stages: government department responsible to blur the edges of what the energy for regulating Northern Ireland’s stressing the importance of The journey towards ‘net zero’ carbon 1) a call for evidence in autumn 2019 (after the Brexit industry is,” she said. electricity, gas, water and sewerage engagement with consumers. deadline of October 31st) Opportunities and bumps along On 27 June 2019, the UK became the first major economy industries and promoting the long- Ms Pyper acknowledged that the the way in the world to pass laws requiring it to bring all greenhouse 2) options for a new strategy, scheduled for spring 2020, term interests of consumers. Ms regulator will have to become gas emissions to net zero by 2050. This replaced a target to followed by Pyper is also co-chair of the Single Ms Pyper described how things more flexible. “The core principles reduce emissions by at least 80% from 1990 levels by the Electricity Market Committee are going to get more complex for of UK economic regulation stress middle of the century. 3) a draft energy strategy for ministerial approval by the (SEMC), which regulates the all-island consumers. They will be able to transparency, predictability and end of 2020. wholesale electricity market, worth engage in house-level energy storage, consistency. Maybe we need to live “We must avoid failure as we have seen the consequences over €2 billion. real-time usage data, time-based with a bit more looseness around the of failure,” Mr Rodgers said. “It hasn’t cost that much to get It is vital that there is strong cross-departmental co-operation, tariffs, self-generation and electric consistency and predictability pieces, to 44% renewable energy, but to achieve net zero will take he said. A wide range of departments and bodies will need “To quote the doyenne of energy to play a part, including the Department of Agriculture, commentators, Dieter Helm, the vehicles, among other things, she said. but not the transparency,” she said. massive changes in the way we eat, travel and live.” They will also have more freedom to Environment and Rural Affairs and the Department for energy transition is nothing short of a Importance of stakeholder dialogue There will be a need for flexibility. “It will have to be a living, Infrastructure, which has responsibility for transport policy. revolution,” began Jenny Pyper. “There choose and control where their energy breathing strategy as we will be using technologies in 2050 Local government and Invest NI will also be important. is no doubt the energy system of the comes from, when and how they use it “As regulators we have been trying that don’t yet exist,” he said. future will not work or look anything and what price they pay. to encourage debate around the The importance of stakeholder discussion energy transition for some years,” like it does today. We really are in the “There are huge opportunities for Indeed, he calculated there will be plenty of opportunities she said. “I can’t emphasise enough In addition to power generation, a Northern Ireland foothills of far-reaching change.” prosumers and huge opportunities for to adjust the strategy. If the 30-year timeframe is broken how important coordination conversation about energy must incorporate representatives utility services, but all of this comes into six five-year periods, each with a mid-term review, there And with any radical change come and collaboration between the with a health warning, because as would be 12 ‘checkpoints’ after initial direction is set. from the heat and transport industries, which account for huge challenges, she said. These stakeholders is to achieve the with all far-reaching change, there are 45% and 36% of energy use in the region, and cover issues include planning, creating synergies transition.” “The next phase of the energy transition will require holistic such as energy efficiency, fuel poverty, energy prices and and building collaboration, as well as going to be bumps along the way,” she planning and joined-up thinking,” he said. The system needs security of supply, said Mr Rodgers. innovating, developing and harnessing said. “Not all the ideas in the energy The regulator is looking at the next to be considered as a whole. Traditional silos of power, heat appropriate technologies. The transition space will work for us here tranche of network price controls. While and transport need to be broken down and the grid will It also needs to include consumers’ representatives such as situation is further complicated by the in Northern Ireland and not every this will start thinking about the energy need to get smarter, as will the way we use and store power, the CBI and Age Concern, the full range of energy industry absence of certainty and clarity from consumer will be proactive.” transition, Ms Pyper emphasised that players as well as government in all its forms, from elected the critical piece will be the Department he explained. both the UK and the Northern Ireland The scale of consumer disengagement representatives through to the civil service and the regulator. for the Economy’s energy framework. governments. was highlighted as a significant challenge. “I am delighted that the Department “Sixty percent of energy consumers are “The scale and urgency of the is now actively engaged in developing disengaged,” she told the audience. challenge facing policymakers today this new strategy.” is unprecedented,” she said, before “Almost half don’t understand the reminding the audience that she once information they are given from stood in Richard Rodgers’ shoes, suppliers and a third never read any correspondence from their suppliers.”

6 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 7 DRIVING INNOVATION AND DELIVERING CHANGE: THE ROLE OF BUSINESS IMPLEMENTING POLICY: EFFECTIVE REGULATION & SUPPORT AS A PARTNER OF GOVERNMENT IN THE TRANSITION TO A LOW-CARBON FUTURE Carbon emissions fell by 9% in “The first year of ISEM has seen some Mr Billington summarised the Among its many suggestions, the Northern Ireland between 2008 and volatility and we are still a long way CBI’s four key energy policy CBI recommends greater uptake of 2016, chiefly due to a reduction in from achieving the certainty in energy recommendations as: natural gas as a step towards the coal-fired power generation and an prices that investors need over the decarbonisation of heating, using excess increase in gas and wind generation. longer term,” said Mr Cross. “The new 1) Create policy certainty and wind power to make hydrogen for However, this was much smaller than energy strategy policy must therefore stability transport and wider use of heat pumps. the 27% decline seen elsewhere in the support effective interconnection to The energy framework for Northern UK, Mr Cross said. create the stability that is needed for On agriculture, the strategy needs to look Stephen Cross, Director and Head Ireland should align with UK and the ISEM to work effectively.” Declan Billington MBE, Chair of the at using carbon sinks more effectively of Energy at law firm Cleaver Fulton 2) Unique challenges Irish strategies and with the all-island CBI Northern Ireland Energy Forum and reducing methane emissions per Rankin Incentives were highlighted as another ISEM. It must deliver long-term policy “Northern Ireland is the only part litre of milk or kg of meat produced. priority. “Any new energy policy must Declan Billington is CEO of certainty to encourage investment. Stephen is recognised as one of of the UK not to have any form of And on transport, it must look at introduce a set of new renewable Thompsons, a major animal feed firm. Northern Ireland’s leading lawyers in renewables support,” said Mr Cross. The strategy also needs to align decarbonising vehicles of all sizes. energy incentives,” he said. When He is former chair of CBI Northern the financial and energy sectors and The Renewables Obligation subsidy with carbon reduction targets and designing these, it is important to Ireland and the Northern Ireland Grain 4) Collaborate with industry has extensive experience advising scheme closed in 2016 and while the to encourage collaboration across look at what is happening in Ireland to Trade Association. He also represents on many of the most significant rest of the UK moved to a system departments and with industry and Consensus needs to be built among reduce the potential for divergence in Northern Ireland on the Board of infrastructure projects. of feed-in tariffs, the executive in the regulator. The CBI recommends all stakeholders, he reiterated. The terms of future generation between Agricultural Industries Confederation, Northern Ireland decided not to follow creating a cross-departmental energy Manufacturing and Energy Advisory 1) Policy context the two countries, he added. and plays an active role in a number of suit because the cost to the consumer strategy board. Group is a model worth exploring, Government Brexit Advisory Bodies. Northern Ireland may have met its 40% was deemed to be disproportionate to New policy also needs to look at both for development of strategy and the benefits, he explained. alternative measures to encourage 2) Maximise value to consumers renewable electricity target for 2020, Echoing the two previous speakers, to underpin 10-year action plans, he but as Stephen Cross reminded the renewable heat, he said. For instance, Northern Ireland is also characterised Declan Billington began by calling for The strategy needs to balance suggested. audience, we are now bound by the instead of long-term payment schemes “a close and constructive dialogue” renewable electricity targets with costs by higher-than-average energy prices The audience heard how the CBI amended such as the ill-fated RHI, he suggested between stakeholders. There is a clear to the consumer. The CBI recommends (especially for business customers) and Northern Ireland has tried to kick-start to achieve ‘net zero’ greenhouse gas that loans and grants could be made need to “kick-start” the discussion investment in supporting infrastructure the lack of an assembly and devolved discussion twice: once with Success emissions by 2050. available to help businesses and in the absence of an executive and to encourage new renewable government. “Despite the efforts of the Through Smart Choices in 2016, and consumers become more energy despite the nervousness arising from technologies, while improving “New policies and determined action government departments and industry, again with A Balanced Transition in efficient. the RHI scandal, he said. efficiency of existing renewable assets. are going to be needed to meet the we still need an executive to come in 2019. “Collaboration must start now In addition, the issue of comparatively considerable challenges that this will and implement policy,” he said. Additional policy opportunities include The CBI Northern Ireland has not sat – Richard, let’s partner up!” he said, high energy costs for larger energy bring,” he said. increased usage of ‘private wire on the side-lines, he said. Its latest addressing Mr Rodgers. 3) New policy opportunities systems’ (localised electricity grids users needs to be addressed. “As energy is a devolved matter, contribution to the discussion is A In October 2018, the Integrated Single linked to a privately-owned generation Richard and his colleagues across other Balanced Transition, which contains a 3) Take a whole system approach Electricity Market (ISEM) was created plant) and development of the biogas departments will have to address many series of policy recommendations that with the aim of integrating the Irish sector to help the gas industry Several executive departments will be issues that are separate from the rest were welcomed by the DfE permanent electricity market with European decarbonise. needed to deliver the future energy of the UK, in particular connections secretary earlier this year. This drew electricity markets. The move was also strategy, said Mr Billington. with the Irish and European energy To conclude, Mr Cross praised the on the body’s 2016 policy paper designed to drive down and stabilise markets through the Single Electricity regulator’s willingness to adopt a Success Through Smart Choices and power prices. on its Northern Ireland Energy Forum, Market,” he continued. degree of flexibility. “That will be a which includes operators, suppliers, major boost when we try to make the consumers and generators. adjustments to design of new policy,” he said.

8 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 9 SESSION 1. QUESTION AND ANSWER SESSION

“We need to get “Europe’s energy and climate QUESTION & ANSWER SESSION Jenny Pyper: Jamie Delargy, conference chair. a clear and agreed a picture of Q change policy allows us to have the reality of the energy costs. “There may be some merit in the best of both worlds – to have Q Andy Frew, technical innovation Q David Lindsay, director of Q Pat Austin, director of National The Utility Regulator’s market trying to align the incentives consistency at the high level and manager at the Northern Ireland environment at Ards & North Energy Action Northern Ireland: monitoring and transparency North and South, after all, to tailor for separate jurisdictions. Housing Executive. Down Borough Council. reports give factual benchmark whether we stay or leave the EU The advantage is that we can look “Will the Department for the information about energy costs. there is probably still going to at it on an all-island basis, but “There are half a million oil-fired “In light of the calls we’ve heard Economy set a statutory target It concerns me that we continue be a single market for electricity. then if we need something to be properties in this country. We for a fully integrated, collaborative for energy efficiency in Northern to hear the narrative that energy Is there an argument for further different North and South we can must get a larger percentage approach to policy, how can we Ireland?” prices in NI are higher than in alignment of the two systems?” adapt and tailor it, thus avoiding of households using renewable ensure there is a gear-change in Richard Rodgers: “There is an Ireland, the rest of the UK and the debate about whether to align electricity for hot water and terms of how our buildings are A Stephen Cross: “You could say opportunity to really do something Europe. That is not factually A every aspect of energy policy. heat. How we can move in that regulated with regard to heat?” it is an obvious step to look at innovative and revolutionary correct. One of the major direction?” the incentives that have been “I think the Clean Energy Package “It is a question about tackling fuel poverty. I look challenges we face is identifying A Jenny Pyper: put in place in the South and will be adopted and that it will set “Unlike Brazil about who has the knowledge and forward to proper engagement the real data, the truth.” A Richard Rodgers: that it would be a simple idea to a lot of the policy framework that where there is demand for cooling the levers. Local government, the about what those statutory targets align our incentives so there is will help all of us in terms of setting in summer and heating in winter regulator and the department have should be to ensure energy Q David Little, chair of Forum for uniformity across the market. But the direction of travel.” and you get utilisation of the a lot of those levers. I also think efficiency is targeted properly and Better Housing Market NI. the disadvantage might be that generating assets across the markets will drive change as they to ensure fuel poverty becomes a “Is there any discussion in we do have different policies, year, in Northern Ireland peak have done in electric vehicles and thing of the past.” government about stopping the governments and regulations. It demand for electricity and heat mobile phones. proliferation of single dwellings “There is a Northern would be a lot of work to design is in the winter months. Blanket Jenny Pyper: in the countryside, which is “The key is to ensure that we get Ireland Sustainable Energy something similar to what has electrification of heat cannot unsustainable?” high level dialogue. We need to Programme (NISEP) scheme in been put in place in the South and therefore be the answer. have a debate about a target to place and it is in the process of A Richard Rodgers: “This will not it would be a long time coming as “It can be part of the mix, get rid of oil boilers, as we saw being reviewed – the review is be easy because we all want the well.” however. For example, there is a in Great Britain in relation to coal giving us good information and right to live where we want to live. Jenny Pyper: “One of the major project underway to look generation. There must be a will inform the targets. It is not as Economic incentive is the greatest advantages of being in the EU has at the potential for electrification dialogue to get consensus.” if we are sitting with a blank sheet driver that we know. Think of the been the consistency of energy of heat in the Belfast Health of paper and we have not got any impact of the carbon tax and taxes “There is a real policy and one of the great things and Social Care Trust – cooling Richard Rodgers: pieces of the jigsaw.” on diesel and petrol. When things commitment among permanent about the Single Electricity Market demand in summer is very become too expensive, we change secretaries to be properly joined is that it is European-compliant. significant in a hospital. Q Jamie Delargy, conference chair: our behaviour. up. As part of this effort we have I have no reason to think that “People feel that decisions are “When you switch from an oil set up a government stakeholder “We want to set up structures that the Clean Energy Package, made behind closed doors. To boiler to a natural gas boiler you group. Local authorities will be allow this to be part of the agenda. which is Europe’s next tranche what extent can you promise reduce the carbon intensity of represented – it is important We will not get answers quickly, of challenging legislation, and that your policy papers will be the fuel and you also provide that their new powers and but we will get them eventually by directives to help move the energy published so people can see significant energy efficiency responsibilities are brought into having a joined-up discussion. It is transition forward, will not be where the CBI is going?” improvements. There is a 50% the mix.” part of the debate but not top of adopted and applied both North reduction in carbon emissions by Declan Billington: “What we the agenda.” and South. David Lindsay: “As an authority A switching from oil to gas. need to do is grow the economy we have tried to incentivise and that will share the cost of developers to up their game our networks – greater usage will in terms of energy efficiency in reduce the cost of the network per buildings. But that is not really person. The CBI’s strategy is win- going to cut it. We need a statutory win for all.” regime that controls and governs how our buildings are put up.”

10 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 11 SESSION 2. WHOLE ENERGY SYSTEM TRANSITION: WHAT IS THE GOAL?

The electricity transmission system, the heat and transport Decarbonising the power system In this session we took a closer look sectors and the local gas industry were represented in the will require technologies such as at the main considerations in planning second session by: for the energy transition. The speakers • Jo Aston, Managing Director at at SONI (System Operator carbon capture & storage and addressed how the grid infrastructure for Northern Ireland) and all-island electricity market will cope • Andrew Cripps, Regional Director at multinational grid services that allow 100% with the changing energy landscape, the infrastructure firm AECOM options for decarbonising heat, what • Charlie Simpson, Partner and Head of Mobility at Global penetration of renewables. It will Strategy Group, KPMG UK and changing transport technologies mean for • Michael McKinstry, Group Chief Executive Officer at also require integration of the energy and emissions and the future of Phoenix Natural Gas. electricity, heat and transport gas networks. sectors and using cutting-edge DECARBONISING POWER: CONSIDERING CLEAN ‘power-to-X’ technologies that LOW-COST POWER GENERATION OPTIONS FOR THE FUTURE convert electricity into hydrogen What does the energy transition mean Scenario consultation launched for Northern Ireland?. asked Jo Aston, On September 11, 2019, SONI who joined SONI from the Utility or heat. launched a consultation inviting views Regulator in May this year. In answer to on credible pathways for Northern her own question, she said it will mean managing director Ireland’s clean energy transition, with Jo Aston, decarbonisation, decentralisation and of of SONI (System Operator a specific focus on what this means for digitalisation. for Northern Ireland) the electricity system over the next Jo Aston, Managing Director of SONI Decarbonising the power system thirty years. (System Operator for Northern Ireland) will require technologies such as The consultation document, carbon capture & storage and grid Tomorrow’s Energy Scenarios Northern As head of SONI, Jo Aston is services that allow 100% penetration Ireland 2019 Consultation, sets out responsible for the smooth running of renewables. It will also require three potential scenarios to 2030 and of Northern Ireland’s electricity integration of the electricity, heat and beyond categorised as ‘least effort’, transmission system, including the transport sectors and using cutting- ‘modest progress’ and ‘addressing interconnectors, as well as the all- edge ‘power-to-X’ technologies that climate change’, said Ms Aston. island wholesale electricity market, convert electricity into hydrogen the Single Electricity Market or SEM. or heat. The latter will decouple The scenarios were developed in electricity generation from demand, conjunction with key stakeholders. thus facilitating the integration of high shares of variable renewable energy.

12 Vision 2050: Options for a new Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 13 DECARBONISING HEAT: IMPLICATIONS FOR THE WIDER ENERGY SYSTEM

fossil oil and gas.” Carbon capture Dr Cripps outlined five options that will and storage might need to be used help to decarbonise heat in the UK. FIGURE 2: SONI’s wind energy scenario planning for Northern Ireland for a period but as it is not a proven technology, he is not convinced we 1) Direct electric should be relying on it. The ‘passive house’ approach to building homes reduces heat demand. In summary, he said that decarbonising As a result, housing developers Scenario planning Challenges of new infrastructure heat will require lots of electricity, a argue that it is possible to heat such Dr Andrew Cripps, Regional Director at role for hydrogen, biomass and biogas Modelling is based on numerous The energy transition will also present houses using ‘direct electric’. This is an multinational infrastructure firm AECOM and more district heating. It is not so assumptions, explained Ms Aston. some real societal challenges. A lot of expensive option but not outrageously much a technical challenge, unlike For instance, electricity demand in new transmission infrastructure will be Dr Cripps heads up AECOM’s so, said Dr Cripps. decarbonising aviation or cement Northern Ireland is forecast to rise required if we are going to reach our sustainability team based in St Albans. manufacturing, rather it is more an “We must fight against this. They are by more than 20% by 2040 to 10-11.5 70% renewable electricity target and He is also technical lead for the Heat infrastructure challenge. doing it because it is cheaper, not TWh, while in Ireland it will grow by this will not always be welcomed by Networks Investment Project, which more than 50% to 43-50 TWh. Given communities, she said. because it is the right thing to do. If is seeking to deliver more low-carbon Options for decarbonising heat that circumstances change, SONI has we all switched to ‘direct electric’ next The need for a North-South heat networks across England and recognised the need to revisit these There has been some progress on week there would need to be about interconnector is more pronounced Wales. scenarios every two years. efficiency of heat production but five times the electricity-generating today than it was when first recognised “To get to net zero carbon we are not enough, he said. “We need to capacity that we currently have. This is “It is important that scenario modelling back in 2006. This is because going to have to take radical action,” redouble our efforts to find ways to simply not possible,” he said. is done on an all-island basis,” she “significant constraints on an all-island he began. “Obviously, we are going incentivise people to take more steps.” said. This reflects the need to plan for basis” are resulting in curtailment of to have to phase out the use of all the single electricity market and to wind power. The situation is only going take account of interconnector flows, to get worse as more renewable power among other things. is added, Ms Aston concluded. SONI launched its strategy on 8 October 2019.

FIGURE 3: Average annual heat and electricity generating capacity required

14 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 15 2) Heat pumps 4) Biomass Which option to take? DECARBONISING TRANSPORT: VEHICLE ELECTRIFICATION AND CONNECTIVITY Heat pumps consume power and so Dr Cripps does not think biomass is the There is a lot of uncertainty about will have an impact on the grid, but entire solution, but that it could form cost, he said. “My view is that a • 50% of public transport journeys Other trends include an increase in the the effect is reduced if they have a part of it. He raised concerns about air mixed solution will emerge as the are delivered by smart, integrated number of passenger miles travelled, high ‘coefficient of performance’ rating pollution and the issue of competing best outcome. I think we will see heat transport apps, and a fall in the cost per kilometre and and are combined with heat storage with land used for food production. pumps and solar thermal and biomass more efficient use of cars. There will • It is four times cheaper to use a systems, he explained. in rural areas. I think you’ll have some also be massive consolidation in the mobility services than own a 5) District heating cities with heat networks, and some car market. “There are about 23 major The challenge with heat pumps is private vehicle. Dr Cripps believes district heating with hydrogen and biogas.” global car companies today. By the late the relatively high capital cost. “If we needs to be part of the mix. As a “This looks ambitious, but we are 2020s, there will be five or six.” phase out gas the likelihood is that the Impacts of decarbonisation Charlie Simpson, Head of Mobility means of heat distribution from already on this journey. It is being overall cost of heat is going to rise. It Group 2030, Global Strategy Group, The electric and autonomous vehicle a centralised generator, it allows Decisions will need to be made if any driven by mayors in response to is naive to imagine that we are going KPMG UK revolution flexibility in terms of heat source. In of the solutions outlined above are to air pollution and associated health to come up with solutions that are Denmark for instance, they started become reality, he said. Mr Simpson works with clients across impacts,” he said. Norway is leading the way on electric cheaper,” he cautioned. with oil, switched to gas and are now the automotive, broader transport, vehicles (EVs). “In the year-to-date, “If we go in for electric in a big way, we Trends that are transforming society 3) Replacement gases adding heat pumps, he explained. finance, energy, technology and 75% of total car sales in Norway are going to have to double the grid. We public sectors to build a smarter, KPMG has identified four trends – are either fully electric or plug-in. Dr Cripps described how hydrogen More use could be made of heat need to decide about carbon capture greener, cleaner, more connected and mobility, electrification, connectivity However, the Tesla 3 was the third is attracting a lot of interest and that generated by energy-from-waste (EfW) and storage, and about the extent of our more efficient transport ecosystem. and autonomy – that, when layered best-selling car in the UK in August,” Leeds, Manchester and Liverpool are projects and from industrial sources gas networks and potential generation together, will become transformational he said. KPMG forecast that EVs could talking about rapidly increasing the such as data centres, he said. “In of alternative gases. Do we want to build Vision of city mobility 2030 on a system level. reach 10-27% of total sales in Europe amount of hydrogen in their gas grids. my view it should be illegal to build heat networks and where? And, just a Mr Simpson began by setting out an by 2025. “The next few years will be “It is mainly a question of cost and a thermal power station or an EfW minor detail, how are we going to pay “Modelling undertaken by KPMG example of a vision of city mobility interesting as mid-to-low priced EVs timing,” he said. plant without a district heating system for it all?” suggests that we could see a 40% drop in 2030 that mayors of many major will come to the market at scale.” attached,” he said. in the cost per kilometre of moving Another important area is biogas. cities, including Berlin, Paris, Madrid, people and goods by 2030. This The autonomous vehicle market is also “There are many questions that we will Heat networks investment project Shanghai, London and many US cities, would transform the business models developing. “It isn’t science fiction; it need to answer, such as whether to are working towards. Highlights include: Aecom is involved in the delivery of the of pretty much all the sectors we are is happening now.” Most autonomous use it directly where it is generated or £300 million Heat networks Investment • An 80% reduction in air pollution talking about,” he said. vehicles or AVs coming to market in to feed it into the grid, and how much Project in England and Wales. The aim in major UK cities compared with the next few years will have a driver- more can be generated,” he said. We are seeing several fundamental of the project is to provide funding to 2019 levels assist functionality, rather than be changes in the way society thinks New technologies coming into view boost the historically low rate of return fully autonomous. The driver here are • Last-mile deliveries are made by about mobility, he said. “Automotive include using renewables to generate from investment in heat networks. freight logistics applications, where drone, bots and drop boxes, cutting industry executives believe that up gases such as methane and hydrogen, Over time, it is hoped that experience globally the demand for miles travelled cost of delivery by 50% to 50% of consumers will not want to he added. will drive down costs and that heat is increasing due to e-commerce. own a vehicle as new mobility services networks will emerge as a sustainable • Several city mayors announce ban on will meet their needs. Uber is the sector that does not require subsidies, petrol and diesel cars by 2050 shorthand example of this.” he said.

16 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 17 Uberization, or Mobility as a Service (MaaS) THE ENERGY TRILEMMA: THE ROLE OF GAS IN TRANSITIONING TO A LOW CARBON FUTURE Vehicle ownerships is expected to shift away from personal to fleet ownership. We He described how this might be Biomethane and hydrogen expect to see growth of heavily utilised fleet achieved: alternatives vehicles – up to 25% of new vehicle sales by Injection of biogas or synthetic There are more than 80 anaerobic 2030 – which will result in an overall decline 1) natural gas (bio SNG) into the digestion plants in Northern Ireland in new car sales. network. This will not require a generating biogas that is being used We will see integration of services in change to consumer appliances to generate electricity. This is highly automotive, finance, energy and technology, inefficient, says Mr McKinstry. TABLE 1: UK new vehicle sales in 2017 and 2030 forecast 2) Blending of hydrogen (20% by he explained. “One of the key battles in Michael McKinstry, Group Chief “A regime needs to be developed to volume) with natural gas. No change future business model concepts is ‘who Executive at Phoenix Natural Gas encourage gas injection as this is the to consumer appliances required is going to integrate these services onto most efficient solution instead of being Mr McKinstry heads up the largest a single platform and aggregate services Production and injection of 100% injected into the gas grid”. gas distribution network in Northern 3) behind it on behalf of consumers’?” hydrogen into the network. Will Ireland. Extending to more than 3,800 The regulator has engaged require a change of consumer Impact of EVs on power demand kilometres, it covers the Greater consultants to provide a regulatory appliances. Belfast area. implementation plan to facilitate The impact of EVs on overall power biogas injection. demand should be manageable. Indeed, Role of gas networks in transport it represents a small fraction of the forecast Approximately 25% of greenhouse Hydrogen is widely seen as a There are three separate distribution demand in 2030. However, regional pinch gas emissions in the UK come from long-term enabler for a low carbon areas for natural gas: Greater Belfast, points are likely to emerge. transport, and around 25% of this is economy, but significant economic and the Ten Towns and the West. Greater produced by HGVs and buses, which technical challenges remain. It is the To conclude, Mr Simpson echoed earlier Belfast is served by Phoenix Natural only account for 1.5% of all UK traffic. least disruptive long-term low carbon speakers when he said: “If we are going Gas, Ten Towns by and Gas-powered vehicles produce 10- option as it does not require significant to get to this vision of a cleaner, smarter, the West by SGN Natural Gas. 30% less CO2 than diesel vehicles, change in energy users’ systems and more connected, more efficient transport Phoenix has the largest network with more than 30% less NOx and a 99% behaviours, explained Mr McKinstry. infrastructure there will need to be 200,000 properties, Firmus Energy reduction in particulates. They are also collaboration between government, energy, “It is important for existing gas users in is connected to 30,000 properties, much quieter. the car companies, technology that we have NI and those converting to natural gas while SNG Natural Gas, which was only not been very good at.” “If electricity is seen as a practical to understand that the infrastructure granted a license in 2015, has just 30 solution for cars, gas could be the they are investing in today is likely to km of pipeline so far. lower carbon alternative for larger be the same infrastructure that will be FIGURE 4: UK forecast power demand 2016 versus 2030 Substantial expansion is underway. vehicles. Compressed natural gas is transporting a low-carbon alternative By December 2022, at the end of already extensively used across Europe in the long term,” he said. the current price control period, the and the infrastructure network is being Several important initiatives and regulator forecasts that a further developed. demonstration projects such as HyNet 130,000 properties will have been “The gas network could form the NW and H21 are underway in the UK. connected, bringing the total to backbone of the filling station 319,000, or 58% of all properties. infrastructure in NI, providing a clean, That will leave 231,000 unconnected. quiet and cheap alternative to diesel. “Natural gas is the least polluting There will also be an important role fossil fuel, however in the longer term for hydrogen as a future transport fuel there is acceptance that it needs to be as it produces no harmful emissions, decarbonised over the next 30 years,” emitting only water vapour,” said said Mr McKinstry. Mr McKinstry.

18 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 19 SESSION 2. QUESTION AND ANSWER SESSION PARALLEL SESSION 1. EYE ON ENERGY CONSUMPTION: USE LESS, PAY LESS

Grainia Long, Commissioner for Resilience at Belfast City Council

QUESTION & ANSWER SESSION Chair of the session was Grainia On the panel were: Long, Belfast’s first Commissioner for • Pat Austin, Director of “It is a big “At a regional Northern Ireland Andy Frew, technical innovation Michael McKinstry: Charlie Simpson: Q decision for customers to retrofit level, there will be pinch points. Resilience. Her role during the two-year manager at the Northern Ireland • Karl Purcell, Programme Manager of the Behavioural homes. We must make retrofitting This is one of the issues that is Housing Executive. grant-funded appointment is to address Economics Unit at the Sustainable Energy Authority of projects more effective at heating being worked through the system. Ireland, and “There is often extra capacity homes so customers can see it is Everyone fills up their car at a stresses such as fragile aspects of the on the grid that could be used worth their while. petrol station, but we are looking city’s economy, economic exclusion, • Professor Tom Woolley, Visiting Professor for direct electric heating. For at a different refuelling model at Anglia Ruskin University. “Consumer behaviour is a huge segregation, health inequalities and example, properties using oil – a balance of home charging, factor. They need to be made generally have a hot water cylinder transient charging and destination climate change. more aware of their energy usage and an immersion heater. How charging. Work needs to be done and its environmental impact, and might this be used as a transition at the local level regarding supply the industry must find ways to mechanism to encourage the use and demand.” of electric heat?” encourage consumers to change PANELLIST: PAT AUSTIN, DIRECTOR OF NATIONAL ENERGY ACTION NORTHERN IRELAND their consumption habits.” Jo Aston: “It is crucial we work “This is a in partnership with those at the A Dr Andrew Cripps: National Energy Action (NEA) helps fight energy efficiency infrastructure is a problem with a lot of new homes Q Brian Rankin, energy manager at distribution level and how this fuel poverty. There are two frameworks priority and the government needs in England. Many have combi- Choice Housing Ireland: trickles down to local level. Another for tackling fuel poverty, namely: to intervene, she said. boilers that have no storage at “Technologically, we can find question is, ‘do we want to influence all. We need to find incentives. solutions. But consumer attitudes location?’ Should wind farms pop up • The Department for Communities’ • Means testing is needed to help It is important is to ensure that also need to be addressed. everywhere, if so, how do we get it (DfC) out-of-date A New Fuel programmes target those most in emissions are as low as possible Customers consider what is the onto the network etc.” Poverty Strategy for Northern Ireland need. Ms Austin called for a re- and to take advantage of the cheaper fuel source at the time Seamus Hegarty, head of issued in 2011, and evaluation of bill distribution. storage that is available.” and what is cheapest to maintain. Q Pat Austin, Director, National Energy development at Energia • The Northern Ireland Sustainable • Health. There were 1,500 ‘excess’ Action Northern Ireland Q Paddy Larkin, chief executive of “We must consider how we Renewables. Energy Programme, known as NISEP, winter deaths in 2017-18, the highest Mutual Energy. formulate energy policy and, “Following on from what Jo Pat Austin is the Director of National a grant scheme funded through number since the major flu epidemic indeed, acknowledge the need for “How do we expect that said about location, this issue Energy Action Northern Ireland, a levies on bills. of 1989. “This is the 21st century and inter-departmental government customers will make the retrofit needs to be addressed regarding post she has held for fourteen years. should not be happening under any policy. There also needs to be “We must work together to meet our change en masse to heat pumps, the future demand of electric During this time, she has been a circumstances,” said Ms Austin. separate strategies to address energy efficiency target. If it’s not which is disruptive, expensive and vehicles. Is that something that tireless campaigner on fuel poverty, fuel poverty.” measured, it’s not managed,” she said. • New fuel poverty strategy. “It is probably less effective at heating SONI is looking at in future raising awareness of the issue in both imperative that the fuel poverty their homes by 2050?” A Dr Andrew Cripps: “There should capacity auctions?” the political and social arena. Prior to Ms Austin highlighted some of the key be an integrated programme strategy must dovetail with the Dr Andrew Cripps: “This is a Jo Aston: “In relation to the joining NEA, Pat spent 10 years at Help issues facing Northern Ireland: A of retrofitting, whereby more A energy policy to make sure no really big challenge. We need system services, there is already the Aged, managing their SeniorLine energy efficient heat sources are • Fuel poverty. NEA is behind the consumer is left behind,” she insisted. to find ways to incentivise and provision for scales to be advice and advocacy services. installed in homes and the quality Fuel Poverty Coalition, a group of encourage people. But it may introduced to the tariffs to create of buildings is improved (so homes 150 organisations, aiming to combat require an external ‘push factor’, those locational signals. If we are stay warmer in the first place and this issue. Investment in domestic such as making some oil boilers going to go higher than 65% [of work better with heat pumps). illegal. This may sound a bit more power coming from renewable You want as little waste heat as draconian, but maybe that is what energy sources] I believe this will possible.” needs to happen to force change. be a key factor. What do we need and where do we need them on “Carbon tax is another option. Q Paddy Larkin, chief executive of the system? This brings us back to Overall, we need a mix of drivers Mutual Energy. incentivising energy stakeholders and a mix of incentives to make “At a local level, how will the to invest in the services that we will these changes happen.” electrification of transport work? need in the future.” For example, many households

have more than one car – how will they all charge at once etc?”

20 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 21 PARALLEL SESSION 1. QUESTION AND ANSWER SESSION

PANELLIST: KARL PURCELL, PROGRAMME MANAGER OF THE BEHAVIOURAL ECONOMICS QUESTION & ANSWER SESSION UNIT AT THE SUSTAINABLE ENERGY AUTHORITY OF IRELAND Q Meabh Cormacain, energy A Karl Purcell: The way we pay A Pat Austin: “Yes. Unlike with gas Department of Public Expenditure and Taking the example of home retrofits, advisor at the Strategic for petrol and diesel is different, there isn’t the same consumer Reform in Ireland applying behavioural he believes many will not choose to Investment Board. he said. “We physically see it protections for oil. There needs to economics to public policymaking. retrofit their home without an external going into the tank and the price be an appropriate response to this “Would wholesale energy price factor pushing them towards doing increasing on the meter. There is problem.” Mr Purcell questioned the over-reliance reduction be the best avenue to so, such as a government subsidy. In no accessible comparable data on the consumer’s role in the energy tackle fuel poverty?” Audience member: addition, he says people will be slow available for consumers regarding Q transition in the assumptions used for to utilise ‘time of use’ tariffs even when Pat Austin: “This might be an energy prices. People don’t know “15% of houses in Northern Ireland policymaking. “Only 14% of people in A they are actively encouraged to do so. option, but retrofitting homes is how much they are using. For are more than 100 years old. Is Karl Purcell, Programme Manager of Ireland change their energy provider costly and these costs will need to example, is 4,000kW a lot?” Home it worth the time and money to the Behavioural Economics Unit at the each year. And even then, it is always However, according to an EirGrid field be distributed evenly.” energy report programmes,where retrofit these homes?” Sustainable Energy Authority of Ireland the same people switching,” he said. study, consumers are willing to turn off feedback on your usage is sent in their high energy appliances at peak Q Grainia Long the post, and pay-as-you-go metres A Tom Woolley: “Northern Ireland Karl uses behavioural insights to Because consumers tend to participate must not be left behind in the times if they get a text to remind them “Do we talk about the energy may increase salience, he added. deliver programmes that are carefully in ‘status quo’ behaviour, we cannot rely energy transition or the ‘bio- to do so, or if they are given feedback transition enough?” on ‘active consumers’. Instead we need Pat Austin: “Most of the based revolution’. People tend to tailored to make it easy and attractive that compares their own usage to their policies and products that work along consumers that I see are under be more risk-averse in Northern for citizens and businesses to avail of neighbours’. A Karl Purcell: “No. Consumers the advantages of clean energy. Prior the lines of human behaviour, he said. do not notice changes in their stress and not in a position to shop Ireland. It is all about getting more to his current role, Karl worked in the energy bills in general,” he around for energy suppliers.” organisations on board, such as Invest NI, to drive the transition said. “There have been some Audience member: positive developments, including Q and thus provide more subsidies PANELLIST: PROFESSOR TOM WOOLLEY, VISITING PROFESSOR AT ANGLIA RUSKIN UNIVERSITY the Climate Change Citizens’ “The retrofitting programme for retrofitting programmes,” he Assembly. Consumers tend to be is running out of money. Is the said. in favour of carbon tax, but only money being well spent?” Construction, Low Impact Building, Professor Woolley urged Northern Grainia Long: “There is a skills on the condition that some of the Building Materials Health and Indoor Ireland not to miss out on the ‘bio- Karl Purcell: “Retrofitting shortage and a recession in the revenue is ringfenced and used for A Air Quality. He has a new book based revolution’. Planes, cars, programmes in Ireland are not new-build industry. This needs to people most in need. Acceptability coming out in 2019, titled A guide to corrugated roofs and more are now running out of money. There are be acknowledged.” depends on whether consumers Insulation Materials. being made from bio-based materials, a number of grant programmes know exactly how the money is Brian Rankin, energy manager at while petrochemicals have proven available to support homeowners Q Professor Woolley advocates the going to be spent.” Choice Housing to be dangerous. For example, the upgrading the energy efficiency use of bio-based materials to tackle Grenfell disaster was due to the Tom Woolley: “The cost of of their home. Another important “Is carbon more important than climate change. They represent a huge Professor Tom Woolley, Visiting unrestricted use of flammable plastic retrofitting may have been thing to remember is, “how many cost? Electricity prices are going business opportunity, he said. “One Professor at Anglia Ruskin University foam. Bio-based fuels can be non- exaggerated. Retrofitting is mainly people would have conducted up while gas is coming down – this such biomaterial is hemp – indeed, a retrofit without the subsidy?” Tom Woolley B.Arch, PhD is an flammable and non-toxic, he said. done by the middle class,” he is the opposite direction to policy.” Belfast was once a major hemp observed. “The use of bio-based Counter-factual impact evaluations architect and environmental “Carbon is a hard processing hub. In July 2019, the House of Commons materials should lower the cost.” are helpful for assessing this.” A Karl Purcell: researcher at Rachel Bevan Environmental Audit Committee thing to relate to. It is not tangible “However, there needs to be a market Architects. He is known for his work published ‘Toxic Chemicals in Everyday Q Meabh Cormacain Q Michael Scott, managing or visible. Other incentives will be on sustainable construction and for bio-based materials. They need director of Firmus Energy more important, such as giving Life’ setting out the growing problem “Who does the energy sector hempcrete. He is a visiting Professor the bio-economy industry to take off. examples of benefits like keeping a of chemical pollution. It identifies a see as ‘consumers’ now and “The oil industry cannot be There needs to be less reliance on steady temperature in your home,” at Anglia Ruskin University. Books range of measures the government in the future? Are we framing regulated but there should plastics and petrochemicals.” he said. include the Green Building Handbook, should act upon together with key ‘consumers’ in the right way? be certain obligations from Natural Building, Hemp and Lime recommendations. Why, for instance, do we notice companies. Is oil the elephant in petrol prices going up, but not our the room?” energy bills?”

22 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 23 PARALLEL SESSION 2. EYE ON ENERGY PRODUCTION: DECARBONISING OUR ENERGY SUPPLY

John Young, Head of Policy at SSE Ireland

smart meters is unfounded. Grainia Long Grainia Long On the panel were: Q Health authorities around the Q The session was chaired by John Young, “Is carbon tax effective?” world, including the World “What are your hopes for the Head of Policy at SSE Ireland. The FTSE- • David Smith, Chief Executive at Energy Networks Health Organization (WHO), have future of energy policy?” Association “On a macro-scale, A Karl Purcell: assessed the scientific evidence listed company has invested more than half yes, it is effective,” he said, citing “There needs to be an • Dara Lynott, Chief Executive at the Electricity and there are no established A Pat Austin research from British Columbia. official energy efficiency target in a billion pounds in energy infrastructure Association of Ireland health effects from smart meters place.” in Northern Ireland since 2008. • Chris Johnston, Principal Scientist & Project Leader, Alan Bryce, non-executive which use similar technology to Q Agri-Environmental Technologies Unit at Agri-Food & director, NIE Networks that used in your mobile phone.” Karl Purcell “I hope behaviour change will be at the forefront of Biosciences Institute, and “Is smart-metering money well Pat Austin “I have heard mixed every policy, not just energy.” Director of the Centre for spent?” reviews from customers on smart • Professor Neil Hewitt, Sustainable Technologies at Ulster University. meters. They work for some Tom Woolley “I hope everyone “No. Consumers A Tom Woolley people and not for others,” joins Extinction Rebellion! Big think of them as a ‘spy in the she said. companies should act first, not house’. They are difficult to use, poor consumers.” PANELLIST: DAVID SMITH, CHIEF EXECUTIVE OF THE ENERGY NETWORKS ASSOCIATION and people are worried about Q Paul Frew, economy electromagnetic radiation etc,” spokesperson for the DUP he said. The Energy Networks Association (ENA) In June this year, DNOs in Great Britain “What role does education have represents transmission and distribution signed up to a new voluntary flexibility Karl Purcell “I disagree. In to play in the energy transition?” network operators for gas and electricity commitment that will shape the way the California, smart meters work “Awareness and in the UK and Ireland. network infrastructure will be run. We really well because the industry A Karl Purcell education do not necessarily lead have 947MW currently being tendered is vertically integrated and useful Mr Smith described how ENA is behind to behaviour change. Perhaps for flexibility services. feedback data is provided to the Open Networks project that brings something like an energy-saving consumers. They leverage data competition might incite change. together stakeholders from across the In the gas industry, ENA is looking at from smart meters to incite However, people should not David Smith, Chief Executive at industry and the wider community sectors that have big decarbonisation change. What matters is what you underestimate the ‘pester power’ Energy Networks Association (ENA) to help develop a smarter and more challenges such as heat, agriculture and do with the data. It is all about flexible energy system. transport. “In Northern Ireland methane of children. If children keep David joined ENA in July 2003 as making information available to production can take a lead but first it telling their parents to turn off Director of Policy and was then As part of this initiative, ENA helps to put customers,” he said. must overcome problems of access high-energy appliances at peak appointed Chief Executive in October together demand-side response deals, times, this could lead to behaviour to the gas grid,” he said. The ENA is “It is also important to point 2007. Previously he was Director of whereby businesses strike agreements change,” he said. taking an active lead in the Hydrogen out that concerns about Corporate Affairs at the British Retail with distribution network operators electromagnetic radiation from Transformation Group, which has just Consortium. He is Vice President of (DNOs) to use electricity at times of day been established. GEODE, the European association when they least need it. This reduces the for the electricity and gas distribution need to build new infrastructure which “The energy networks are going to play networks. In the UK he chairs the reduces cost, he said. a pivotal role in the journey to net zero. Energy Emergency Executive It is vital that we take that whole system Next, Mr Smith talked about battery Communications Group and sits on the approach and look at gas, electricity, storage. “DNOs are managing a rapidly Government Industry Contact Group on waste, transport and water to deliver the changing grid, where electricity is now Distributed Energy. best outcomes,” he said. flowing in many different directions. Battery storage is a tool to help us do that,” he said.

24 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 25 PANELLIST: DARA LYNOTT, CHIEF EXECUTIVE OF THE ELECTRICITY ASSOCIATION OF IRELAND PANELLIST: CHRIS JOHNSTON, PRINCIPAL SCIENTIST, AGRI-ENVIRONMENTAL TECHNOLOGIES UNIT AT AGRI-FOOD & BIOSCIENCES INSTITUTE The Electricity Association of Ireland This highlights two things: the absolute represents more than 90% of the importance of the North-South The Agri-Food & Biosciences Institute AD plants are another source of biomass electricity generated on the island of Interconnector to reduce curtailment (AFBI) is a non-departmental public heat. There are perhaps 60 AD plants Ireland. “Our objective is a cost-effective and the need to ramp up the demand. body sponsored by the Department in Northern Ireland, but the majority transition to a decarbonised electricity “If 90% of wind curtailment happens of Agriculture, Environment and Rural are not using their waste heat. “This system. We are technology neutral and between midnight and 6am, there needs Affairs (DAERA). One of its functions is to heat should be used, but it is largely a so are interested in a holistic view of the to be a way to stimulate demand during research and develop agri-environment question of getting it to the right place,” electricity system,” Mr Lynott said. those periods,” he said. technologies, including biomass he said. Dara Lynott, Chief Executive at combustion, anaerobic digestion (AD), Electricity Association of Ireland (EAI) The electricity system is at the heart of Mr Lynott highlighted the paradox in Principal Scientist The Centre for Advanced Sustainable Chris Johnston, combined heat and power (CHP) and decarbonisation. He highlighted that the system; wind penetration is set to and Project Leader at the Agri- Energy (CASE) is also working in this Dara represents the electricity industry biomass production. 75% of carbon reductions to date in increase to meet renewable objectives Environmental Technologies Unit, Agri- area. Mr Johnston described how one and gas retail sector operating within the UK have come from the electricity and yet without interconnection and the Single Electricity Market on the Food and Biosciences Institute (AFBI) Part of Chris Johnston’s work at CASE project showed that exploiting sector, and cited McKinsey research that without any change in demand, there will AFBI is focused on the potential for underused biomass resources is a viable Island of Ireland. Prior to his current role Chris heads up a project team that says a 1.5% increase in electrification be further curtailment. “Public money is agriculture and other land-based business model for SMEs. he was a Director of the Environmental carries out R&D on production of and a 1% decrease in energy use going to be used to generate electricity sectors to contribute low-carbon heat. Protection Agency from 2004 and in bioenergy, the associated recycling “The NFU [National Farmers’ Union] year-on-year to 2050 will be needed if that is not going to be available,” he “District heating opens up enormous that period had responsibility for EPA of wastes to biomass crops, nutrient said that to reach the 2040 goal to try decarbonisation is to be achieved. said. opportunities in the agri and land-based licensing, Greenhouse Gas and Waste management, environmental to neutralise carbon from agriculture, sectors. This includes plant waste, as Inventories, Carbon Emission Trading, McKinsey also highlighted the need for The second issue is that the power protection, biomass processing we will need forestry, more hedges and well as slurry from animal production,” Circular Economy and the Office of electricity efficiency and zero-carbon procurement system needs to deliver and combustion systems and the energy crops. We have tried this in the he said. Environmental Enforcement. technologies such as hydro, nuclear more demand-side services. In the resulting emissions. He has over 12 past – the production incentive was and biomass, while 6% of electricity recent T -4 capacity auction, which years’ experience in the sector in both However, there are challenges. “District there, but the incentive for use was not,” produced in 2050 will still be generated procured 7.6GW of de-rated capacity a private SME and a public sector heating networks have not materialised he said. by gas and will therefore need carbon for 2022/23, only a very small amount capacity. as expected in recent years. There are AFBI is also trying to demonstrate capture technologies. “The challenge went to demand side services, such as perhaps three in Northern Ireland, and that biomass resources can deliver for Northern Ireland is that it has none batteries, he said. while others have been planned, they of the crutches available to Europe,” he environmental protection. “For instance, “If we are to get to where we need to have not materialised,” he said. said. we are involved in European projects be on decarbonisation then innovation Technologies that can produce heat trying to protect water quality on farms Mr Lynott highlighted two major issues: and creativity in terms of demand-side include large biomass combustion by using tree species, which in turn wind curtailment, and a lack of incentive services needs to increase rapidly. There plants. “They are quite efficient and can become bioresources that can be used for demand-side services. is going to have to be a stimulus for use a range of materials, which means in decentralised energy systems,” he people to change their behaviour,” he Looking first at wind curtailment (when they can be decentralised and use local said. said. turbines are temporarily shut down). In materials. However, this is not something 2017, 4% of wind energy on the island Mr Lynott also underscored the urgency we are seeing much of,” he said. of Ireland was ‘dispatched down’ due to of long-term policy clarity for investors. grid constraints, which was double the “Waiting until the end of 2020 for a 2016 level. According to the transmission Northern Ireland energy strategy is too system operator there will be higher late. The National Energy and Climate levels of curtailment in the future if Plans will be finalised in Ireland and the there is no change in demand and UK by the end of this year. Bringing that interconnection policy, he said. forward six months would be significant in terms of alignment.”

26 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 27 PARALLEL SESSION 2. QUESTION AND ANSWER SESSION

PANELLIST: PROFESSOR NEIL HEWITT, DIRECTOR OF THE CENTRE FOR SUSTAINABLE QUESTION & ANSWER SESSION TECHNOLOGIES AT ULSTER UNIVERSITY “There will never be a global Andy Frew, technical innovation Audience member Q Q catch-all solution, but storage can Over the last 30 years we have The research he is doing at Jordanstown manager at the Northern Ireland “You mentioned you are testing an be used to avoid more expensive seen enormous improvement in the is looking into these and other Housing Executive. electric vehicle alongside the heat generation. System services and performance of heat pumps. They have questions. He told the audience how his “If we don’t increase demand to pumps. Could you expand frequency modulation will have a gone from ‘co-efficient of performance’ department is testing heat pumps, PV match wind generation and we get on that?” huge impact on the efficiency of (COP) ratings of about 2 to over 7, systems, thermal stores and batteries more curtailment, will this damage the energy system.” explained Professor Hewitt. COP in houses that are occupied as family the social acceptance of this A Professor Neil Hewitt. “The describes the ratio between energy homes, and that an electric vehicle has source of renewable energy?” project is looking at the clash Chris Johnston. “Bioenergy is usage and the amount of useful cooling recently been added to the mix. between demand to electrify the natural way of storing energy. Director of the Professor Neil Hewitt, or heating. A Dara Lynott “Much of the space heating and electrification It is stable and can be released Centre for Sustainable Technologies, In addition, as 50% of our homes will still electricity being generated of transport at the domestic through whatever technology you Ulster University He described a few of the challenges be here in the year 2050, we need to between midnight and 6am cannot level. Household charging is not want to employ. Three kilograms that heat pumps face. First, there is no have an affordable retrofit programme in be used. A way around this is wholly acceptable because a lot Neil was appointed Professor of of wood is the same as about one dedicated heat pump policy, as in other place, he warned. to look at where demand-side of people don’t have driveways litre of oil and there is waste wood Energy and Director of the Centre European countries. On a technical services can use this power. I think and some households may have everywhere.” for Sustainable Technologies in “Heat pumps work perfectly well, but level, COP levels are deemed not to be that electric vehicles, for instance, several cars. We will need storage 2008. He is a Chartered Physicist and if you bring in thousands of them what high enough and electricity demand could use up lot of the current to offset this peak demand and we Q Audience member. Chartered Engineer and is a member impact will that have on the electricity increases if the temperature drops capacity, as cars can be charged will need PV. But if you have a car “How might existing resources of the Institute of Physics, Institute of network?” he asked. “Heat pumps outside – heat pumps don’t work as well during the night. Also, power- in a quasi-charged state you could such as oil tanks and hot water Refrigeration and the . are one pathway, but there are other when the air gets colder. to-X is a possibility, but it is quite use a bit of that power at peak cylinders be better used store He is an acknowledged expert in pathways. We have run them on gas and expensive to make hydrogen from times and defer charging to the power?” the field of heat pumps, both in their Professor Hewitt also discussed the they work perfectly well. Could this be renewable sources. night.” development and in their end-use, challenges of integrating heat pumps another use for biogas and hydrogen?” A Professor Neil Hewitt. “An oil especially with energy storage in into a low-carbon house – he asked “However, these types of Q Dr Andrew Cripps, regional tank is a space that could be “We need to take a big system the emerging sector of demand side how they might work alongside electric innovations need to be part of the director, AECOM. utilised, but the downside is that approach,” he concluded. “Heat pumps capacity auctions of the future. management. vehicles, whether they could they be “Where in the network should it is outside. There are research are part of it, EVs are part of it and you At the T-4 auction only 10% powered using PV and if they might be storage facilities be?” projects using salts that show and I will be part of it.” was for new capacity and only coupled with thermal storage solutions. virtually no heat loss. As regards a small fraction of that 10% was A Professor Neil Hewitt. “In hot water cylinders, in theory a for demand side services such Northern Ireland, where we have 200-litre tank would give you some as batteries. Innovation needs to a long thin network, ergo grid storage, but we now have an issue ramp up to match the problem support is important at numerous that people are decommissioning of wind being generated at night points. We looked at large-scale hot water cylinders to free up when the demand is not there.” energy storage in the form of space in their homes.” compressed air storage, but Audience member. Q that idea has died. Large-scale John Young. “SSE, Eirgrid and “What are the running costs of arbitrage may not have a role at Glen Dimplex undertook a Horizon heat pumps?” the system level but it is relevant at 2020-funded project called distributed level for grid support RealValue that tested whether “Heat A Professor Neil Hewitt. along with aggregated services.” using smart domestic electric pumps beat oil comfortably but radiators and boilers to store are matched by gas.” Dara Lynott. “Eirgrid talks about a heat brings cost-reductions to centralised system vs a community consumers and whether it could action system. The latter includes help increase the use of energy everything from an EV plugged in generated from variable renewable at your house to microgeneration. sources.”

28 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 29 POLITICAL PANEL DISCUSSION: PRIORITIES FOR A NEW STRATEGIC ENERGY FRAMEWORK Facilitated by FSB Northern Ireland

Eleanor McEvoy, Energy Policy Lead at FSB Northern Ireland and CEO at Next-Gen Power

regulations are demanding that On the panel were: Dr Inna Vorushylo, Ulster Audience member. Q Q smart tariffs be put in place. That Eleanor McEvoy chaired the session. University • Clare Bailey MLA (Belfast South), Green Party NI “In terms of farm AD, what is your will happen right throughout She is CEO of Next-Gen Power and chair “Have there been any studies to preference – feed-in tariffs versus Europe and will be promulgated of the energy group at the Federation • Caoimhe Archibald MLA (East Derry), Sinn Féin estimate the amount of agricultural NI ROCs? What do you think the with in the next 12 months. To • Daniel McCrossan MLA (West Tyrone), Social Democratic & waste in Northern Ireland?” industry’s preference is and do say that smart metering has failed of Small Businesses Northern Ireland. Labour Party you think there be one scheme for even before the legislation has “To put a figure Previously, she was CEO of Budget Energy. A Chris Johnston. the entire island? What’s your view come in is a bit premature. • Dr Steve Aiken MLA (South Antrim), Ulster Unionist Party on quantities is tricky. As a centre of the time costs into the grid for • Paul Frew MLA (North Antrim), Democratic Unionist Party. for agricultural livestock we have farm AD - is that too significant a “Smart meters are not smart or copious quantities of slurry and barrier to promote the industry?” dumb, they just provide a lot more sewage sludge. Some of this data – it is what we do with the material makes its way through A Chris Johnston. “One regulatory data that matters. Data must be anaerobic digestion (AD). There instrument across the entire island gathered on an hourly or daily is an argument that it all could would make great sense in many basis to influence behaviour. At be sent to AD plants, but we also respects.” the moment it is only collected PRIORITIES FOR A NEW STRATEGIC ENERGY FRAMEWORK need the nutrients it contains. every two months. The first “Design of the new AD is not a particularly efficient Dara Lynott. step is getting meters digitised. renewable energy support scheme Steve Aiken explained that he had Ms Archibald highlighted some Paul Frew acknowledged that most process. Tariffs can then be used to has just begun in Ireland. As Jenny been a nuclear submarine commander policy proposals, including divesting politicians, if not all, are not experts move customer behaviour from “There is also green waste from Pyper said earlier, we need to be in the Royal Navy and that in 1986 he from fossil fuel companies and legal in energy. Therefore, the interaction expensive times to cheap times. hedgerows and other waste mindful of regulatory alignment. had been operating for a period near obligations on energy producers to between policy makers and energy materials. I have worked on a One big issue is divergence in the “All this is ahead of us. There Greenland under ice that was thousands produce a set amount of renewable experts is vital. Mr Frew highlighted project that started a company price of carbon between the UK, is a significant smart metering of years old. He returned to the area in energy. Alongside this, there must a new ‘trilemma’ of energy policy/ and built it up based simply Northern Ireland and the Republic. programme about to start. There 2015 to find the ice had gone. We are be a mix of renewables that must be political direction, governance and on using these materials. The will be a consultation in the North experiencing a “climate emergency” and sustainable, secure and affordable. market reforms. “There are huge ambitions with potential of our island to produce on smart metering. It is the only we must act now – by 2050 it will be too regard to linking AD to the gas said that the skills and argued that even more biomass in conjunction game in town in terms of shifting late, he said. The Ulster Farmers Union Clare Bailey Eleanor McEvoy networks. AD is also being looked resources and innovation needed entrepreneurs are going to be crucial with agriculture for a sustainable behaviour. wants farming to be carbon neutral by at as a source of hydrogen to to change the energy sector for the in leading changes in the energy green future is exponential.” 2040, but he urged MLAs to achieve increase the purity of biogas. “We all have to change. How better are present. However, she sector. She also highlighted the such goals by 2035. Q Audience member. There are many uses for AD and we integrate all the systems and questioned whether we can mitigate potential of solar power to provide when they are fully expanded sources of energy represented “Has there been much analysis of Daniel McCrossan highlighted the the worst impacts of climate change most of the electricity needed in upon, the true price will come to here today is the only way we will cost-saving, satisfaction levels and issue of energy poverty, saying that without changing our economic housing at an affordable rate but drew the fore, but I think we are some succeed in achieving a net-zero challenges of commercial-scale some of his constituents in West system? The changes needed are attention to the lack of necessary way off that yet.” carbon economy.” heat pumps?” Tyrone are sometimes forced to decide beyond individual or market-level skills in the labour force. Due to the Q Audience member. between “heat or eat?” He then changes, they require systemic, global manageable size of Northern Ireland, it A Professor Neil Hewitt. “There highlighted the need for a functioning changes, she said. will be possible to make the necessary has been a lot of research “How do you think consumer assembly and cooperation among changes if all stakeholders are on into industrial heat pumps in behaviour can be changed, given Ms Bailey questioned calls by Mr MLAs. board, she added. conjunction with BEIS, and yes, that smart meters appear to have Aiken and Mr McCrossan for the there are some great examples failed?” Caoimhe Archibald agreed that there Stormont assembly to be recalled, as such as Nestle’s chocolate factory. is a climate emergency and an urgent she questioned whether any of these “I don’t accept Most are space heating heat A Dara Lynott. your premise that smart metering need to cut carbon emissions. But the changes were being called for by the pumps at industrial units. In terms hasn’t worked. We have an transition to a zero-carbon economy last executive. of the Northern Ireland domestic entire legislative agenda and must be fair and just, she said. market we don’t have the skill Europe has set a comprehensive sets to operate consistently high- policy framework. The Electricity performing heat pumps.” Directive and electricity

30 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 31 POLITICAL PANEL DISCUSSION: QUESTION AND ANSWER SESSION

“People must QUESTION & ANSWER SESSION Paddy Larkin, chief executive of Caoimhe Archibald. Q be incentivised to change their Mutual Energy. behaviour, but there needs to be is appropriate as the climate James Carson, energy manager, Steve Aiken: “Has any thought been given to schemes for those unable to afford Q emergency is a global issue. Q Northern Health and Social Care the costs of decarbonisation and a zero-carbon lifestyle, whether by Democracy is short-term, but “An audience member pointed Trust. who is going to pay?” retrofitting homes or switching to the climate crisis is long-term. out that we do not need a 100kVA electric vehicles.” “We need the new Strategic Therefore, the politicians who line but only a 50kVA line, which A Eleanor McEvoy. “Funding should Energy Framework to put forward implement policies now may would significantly reduce the be made available to people, or Clare Bailey. “Many constituents a clear, coherent strategy. Will not ultimately be those held costs. Does anyone have any payment of energy bills should be have raised the issue of climate consideration be given to the responsible.” views on this?” spread over a longer period.” change with me. However, people funding needs of supporting may not be able to afford to make Paul Frew. “In reality, the burden infrastructure, checks to monitor “When changes are being A Alan Campbell, head of the changes necessary. What is falls on the individual through progress and accountability for considered within the energy grid development and needed is wider system change. taxes or energy bills. We must find the success in the absence of an sector and amongst policymakers, interconnectors at SONI. “The We cannot keep producing and a way to incentivise people to save assembly?” they must ask themselves two proposal is for a 1,500MVA keep incentivising people to energy and money. We may need questions: how much will this cost? connection as opposed to consume more and more, while to educate people as to what is A Steve Aiken. “We need legislation And how much will it cost if we 1,500kVA. Modelling has been also tackling the energy and energy-intensive and what is not, declaring a climate emergency for don’t do this?” done by SONI at regular intervals climate emergency.” Northern Ireland. I do not think the on the current connector, which and how we can change our lives Department for the Economy is ‘fit Q Conference chair Jamie Delargy. operates at 1,500MVA, and so the in the home. for purpose’ as will be shown by capacity of the new infrastructure “Could Caoimhe Archibald “Northern Ireland industry is the RHI enquiry report. I question will be similar to what is in place. tell us whether she has paying far too much for energy whether there is the expertise reservations about the “The Irish government because the market is not in our government and utility North-South interconnector commissioned a report last functioning correctly, regulation is regulator to resolve the problems going over ground, and what year that claimed the cost of not working, and policies are not we face. I want to see the Northern Sinn Fein’s position is on the underground would be an extra effective.” Ireland assembly restored, but interconnector?” £450 million, or about three times if we revert to direct rule, it is Eleanor McEvoy. “There are many the cost of over ground.” likely that our energy sector will A Caoimhe Archibald. “The North- layers of costs on an electricity South interconnector is necessary fall under the remit of wider UK Clare Bailey. “It has been known bill, which effectively works as energy strategy and regulations.” infrastructure. Sinn Fein’s position is for years that the North-South a tax and sits at around 60%. that it should be underground as the interconnector is needed. Renewable technology is available James Carson. “I agree that public is strongly in support of this.” Although there are questions over that enables people to reduce the RHI enquiry highlights the initial investment, the cost of their energy costs and gain access the mismanagement by the Q Session chair Eleanor McEvoy. not investing in the interconnector to energy without using fossil Department for the Economy. It “What is the cost of an is greater. The initial investment fuels. The issue is finding a way raises the question as to whether underground interconnector will be worth it in the long-term.” to finance the installation of this we have the institutional capacity versus over-ground?” technology in people’s homes and to implement the changes needed the labour skills to carry it out.” and reinforces the need for A Jamie Delargy. “Putting the scrutiny of the Strategic Energy interconnector underground Framework and policies arising would cost many times more than from it.” over-ground. The project will not be viable if Sinn Féin continues Paul Frew. “Most of the targets to oppose its installation over- set for Northern Ireland will ground.” reflect global targets, which

32 Vision 2050: Options for a New Northern Ireland Strategic Energy Framework Vision 2050: Options for a New Northern Ireland Strategic Energy Framework 33 FINAL WORD: REFLECTIONS ON THE DAY’S DISCUSSIONS

Paul Stapleton, Managing Director at NIE Neworks

“The third positive is that we’ve shown “In relation to the north-south, “On heat, I think there’s less decades. Areas such as hydrogen have Northern Ireland Electricity we can deliver. The achievement of interconnector, we fully support the consensus. It is clear we need to the potential to make a significant Networks is the owner of 44% renewable electricity is a great need for it and analysis in relation to move away from oil. 67% of homes contribution eventually, but probably the electricity transmission example of that. When there’s policy the need for the overhead option. It is in Northern Ireland are using oil to not for another 15 years. Technologies clarity, the energy sector in Northern the only feasible and most economical heat their homes. There are different and solutions such as battery storage and distribution networks Ireland can deliver.” way to do it. We just need to get on views on how to do that. I would and district heating might also form in Northern Ireland. with it now and make that decision and suggest that for homes which are on part of the longer-term answer.” Paul Stapleton joined Next, he drew out several themes move on. the existing gas network, it probably that emerged from the day’s makes sense to convert them to gas in Mr Stapleton acknowledged that NIE “The third main thing I took from the as managing director in discussions. the short term. Networks will play a critical role in discussion was around the customer the transition. “The first one is collaboration. There 2018 from ESB where he being at the heart of this journey. “For new homes, and for homes that is no one technology that’s going “As a regulated, licensed business was ESB Group Treasurer There were lots of comments about are not on the existing gas grid, heat to solve all problems. There is no providing a common service to how we need to engage, incentivise, pumps are probably the leading before being appointed one organisation or government everybody, we have to be technology maybe direct customers with policy option. They’ve worked very well in department that’s going to solve all neutral. We would like to see a General Manager of measures. Particularly, we need to other markets, particularly in GB and these issues. So, there needs to be diverse range of technology solutions Electric Ireland. be mindful and look after vulnerable the Republic of Ireland. They work cross-sector, cross-community and emerging, so that we are not customers.” particularly well for new builds, when Mr Stapleton began by looking at cross-department collaboration across dependent on any one solution. the right building standards are in how far Northern Ireland has come the traditional siloes of electricity, gas, In light of these themes, Mr place. There are more challenges “The transition will place new demands in a relatively short time. oil, power, heat and transport. There Stapleton looked at what policy for retrofitting to existing homes on the network – how we plan the needs to be a more holistic approach. developers might take from today’s “What we’re discussing today is the but there is no doubt they can work network, how we develop it and how discussion. biggest challenge facing us, bigger “The second thing we discussed was effectively, along with investment, in we operate it. As an example, the than Brexit. It’ll be with us much longer around cost, and particularly who “We need to set a new target that will improving the insulation and energy achievement of the 44% renewable than Brexit and it’ll be a huge focus for pays. The positive aspect is that it is drive renewable electricity far beyond efficiency of the building. electricity involved an investment from our society and our economy over the accepted we need to do this and we’re the 44%. What that number should be us in the network of £365 million over “The most obvious area where we next 30 years. up for it as an industry and as a society. needs to be the subject of detailed the last decade or so. Most of that can make quick wins is with new We now critically need to find the analysis. We can then use that clean was funded directly by the renewables “We’re not starting from a bad place. development. It makes no sense to be lowest-cost route to doing that, so that electricity to de-carbonise heat and industry, but some of it was socialised We have great certainty on where planning, designing or building today we minimise the impact on customers. transport in the appropriate areas – not across all our customers. That is we need to go. We have a very clear, in a way that is going to have to be entirely, but in the appropriate areas. probably a sensible model for future unambiguous goal to achieve net zero “For us, as the custodian of electricity revisited before 2050. So, our building investment. carbon by 2050. This is a long way off, networks, we need to look at how we “In relation to transport, there’s a fair regulations, our planning guidelines, but we will need those few decades to charge for networks. Who should pay degree of consensus. Electric vehicles how we plan the existing network, we “We will need a lot more investment get there. for infrastructure in the future, whether are the way to go for lighter vehicles. need to be doing that with a zero- in the network as we progress through carbon objective in mind. “The second positive is that we people are drawing from the network There’s a mix of potential solutions for this transition, but we can increasingly or maybe exporting on to the network? heavier vehicles, including hydrogen. deploy new smart technologies have consensus on that goal. That’s “The final area is around support for Should it be a fixed cost, as a service? to minimise that investment and really changed, even over the last the exploration and development of maximise the utilisation of existing six or twelve months. There are no the many new technologies that are infrastructure.” dissenters. In fact, even the politicians going to play a role over the next three were saying there is a climate emergency.

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