Issues 2

Progress of the Energy Strategy

For the period of October 2024 to September 2025, 44.2 per cent of local total metered electricity consumption was generated from local metered renewable sources, states the Mid-Term Review of the Energy Strategy: The Path to Net Zero Energy, published in December 2025.

A peak of 51.6 per cent was observed in the 12-month period November 2021 to November 2022. One of three core goals set in the Energy Strategy is delivery of 80 per cent renewable electricity consumption by 2030.

Demonstrating actions taken to progress this goal, the mid-term review states that the Offshore Renewable Energy Action Plan, published in February 2025, provides a blueprint to deliver “at least” 1GW of offshore capacity from 2030.

In 2024, SONI procured two synchronous condensers for delivery at Maydown and Coleraine in 2027. The review states that this will “displace gas plant and provide the conditions for increased amounts of existing renewable generation to be deployed”.
The second core goal of the Energy Strategy is delivery of energy savings of 25 per cent from buildings and industry by 2030. In 2021, the total final energy consumption for heat and power was 32,190 GWh. Based on this, the savings target of 25 per cent set in the strategy was estimated at 8,050 GWh.

However, the final energy consumption figure was subsequently revised to 27,680 GWh, changing the savings target to 6,920 GWh. The review outlines that 330 GWh, 4.8 per cent of the target, has been achieved so far. It also states that the amount of savings delivered may increase as more data becomes available.

The third core goal of the Energy Strategy is to double the size of the low carbon and renewable energy economy to a turnover of more than £2 billion by 2040.

In 2023, the low carbon and renewable energy economy turnover was estimated to be £1.41 billion, the review states. The review asserts that the green economy currently provides around 105,000 jobs in the region and is projected to provide up to 58,000 additional roles over the next decade.

The Green Skills Action Plan, published in May 2025, aims to support a transition to a low-carbon economy. It aims to provide people with the requisite skills and knowledge to support a sustainable, low-carbon economy.

Tracing challenges to delivery, the review asserts that current energy legislation and regulation centres on electricity and natural gas, with much of heat and transport remaining outside legislative scope. DfE says it is prioritising the delivery of new legislation and regulatory frameworks required for the energy transition.

NIAO review

The NIAO review, published in October 2025, states: “Published information reflects that progress in relation to achieving the energy savings target is considerably lagging, with 90 GWh of energy savings delivered against a target of 8,000 GWh.

“In addition, the renewable energy target is some 35 per cent short of the 80 per cent target to be achieved by 2030. The size of the low carbon and renewable energy economy was reported as £1.58 billion turnover compared to a target of £2 billion.”

The review finds “significant flaws” in the annual Energy Strategy Action Plans (ESAPs). ESAPs contain actions aiming to deliver on the Energy Strategy’s strategic priorities. The NIAO review states that “until 2025, the actions listed in the ESAPs were not outcome focused nor were they aligned to the three key targets”.

Furthermore, the NIAO asserts that there has been “limited progress” on planned actions in ESAPs, reporting on performance is lacking, and that the Energy Strategy Oversight Group (ESOG) did not consider advice from the Climate Change Committee (CCC).

In its review, the NIAO outlines five recommendations for DfE, one of which is the publication of the mid-term review. Another is that, as part of the annual planning process, DfE assesses the extent to which proposed actions will contribute to the three core targets.

The NIAO recommends that, before publication of the annual ESAP, a feasibility assessment of proposed actions be undertaken, including the approach to public consultation.

It also recommends that DfE commission a review of the effectiveness of governance and performance reporting arrangements. The mid-term review states that DfE “intends to strengthen governance, planning, and oversight of the Energy Strategy”.

Additionally, the NIAO recommends that the ESOG examine all energy-related advice from the CCC and that ESOG’s views on implementation be given “appropriate consideration”.

It also advises that accepted CCC advice be reflected in the annual ESAP. The mid-term review states that the ESOG “will continue to ensure that there is alignment with statutory targets”.

Furthermore, the mid-term review states that an energy policy position statement will be published in 2026, “setting out a clear direction for delivery through to 2030”. It states that ESAPs “will remain central” in monitoring progress of the Energy Strategy, and delivering on the three core targets.

In her ministerial foreword for the mid-term review, Economy Minister Caoimhe Archibald MLA says: “This mid-term review provides a transparent account of our progress, the barriers we must overcome, and the actions we are taking to strengthen governance and delivery.

“Above all, it reaffirms our commitment to a just transition; one that puts people at the heart of change and ensures everyone can benefit.”

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