Department for the Economy Board minutes 2025 - 26 November 2025

The Energy Team gave a comprehensive presentation on DfE’s Energy Strategy and led discussion.

• The strategy covers 2021-2030 and a mid-term review is ongoing.

  Goals

• Self-sufficiency in affordable, renewable energy.
• Ending importing of fossil fuels & breaking the link with volatile world energy prices; helping tackle fuel poverty and business competitiveness.
• Required solutions contribute to significant growth in the local economy, better regional balance, good jobs, higher productivity and higher exports.
• ½ of all inflation is related to energy costs. A global shift will impact our economy. We need a decarbonised energy system.
• DfE have responsibilities under the Climate Change Act (NI) 2022 and some requirements are challenging to lead on. Workstreams are embedded throughout DfE. There are 13 assessments within the legislation through which policies and proposals that form part of a Climate Action Plan must be tested.
• The whole strategy is underpinned by advice from the Climate Change Committee (CCC) and DAERA lead interaction with them.
• Progress is measured against statistics produced by the CCC going back to 1990, many of which are estimates, and there is an 18-month time lag for some of them. This creates problems for presenting progress as the statistics are reassessed and adjusted annually.
• The Energy Strategy is concerned with energy consumption as a result of transport, heat and power.
• Energy related Greenhouse gas (GHG) emissions are down 42% in NI from the 1990 base year when all energy came from fossil fuels. There has been a transition in electricity production from coal to gas and in home heating from oil and coal to gas. In addition, we now have renewable electricity generation.
• There has been a downward trend in GHGs in all sectors led by DfE.
• Investing to save is key and it is important that Government leads by example. We want to develop policies to unlock private investment.

• Governance of the strategy involves a group that has oversight and another that concerns annual Action Plans. DfE Minister publishes the Action Plans which includes how each Department fits in.

  Main Targets

1.Energy Savings – to deliver energy savings of 25% from buildings and industry by 2030.

2.Renewables – to meet at least 80% of electricity consumption from a diverse mix of renewable sources by 2030.

3.Green Economy – to double the size of our low carbon and renewable energy economy to a turnover of more than £2 billion by 2030.

• Use of % figures are best for targets as statistics are reassessed annually.
• A Central Government Energy Management Strategy was adopted by the NICS Board in 2019. Recommendations included to mandate annual reporting of energy consumption and relating to an energy invest to save fund which has been delivered across 166 projects by more than 20 organisations with savings approaching £10m per year.
• Households replacing a gas boiler with a heat pump would result in halving energy use. However, high upfront costs means grant support is needed.
• ½ of all household energy expenditure in NI is for transport. EVs are much more efficient than petrol or diesel powered vehicles.
• Challenges to the renewable electricity target include the capacity of the grid and that imports are cheaper than the SEM. Affordability and security of supply are essential. Currently gas sets the price for electricity and we need to get to a place where renewables set the price. We need market structures which give the right signals. What can we take out of the market and do in a different way – this needs testing. DfE is designing a Renewable Electricity Price Guarantee which is about unlocking private investment in the future.
• Low carbon and renewable economy turnover in NI 2015-23 shows a significant increase. There has also been a large rise in employment in the sector from 2021-23. NI is now the 2^nd highest region in UK re the proportion of job adverts that are green.

• There are currently 48 vacancies out of 183 posts in Energy Group. External experience and general skills are needed.

  NIAO Report

• There was a discussion regarding the recent NIAO Report and it was confirmed that actions to address the findings were already underway.
• It was noted that the Expert Panel had no ongoing role, but that the Group overseeing the delivery of the Strategy included senior officials from relevant departments.

• The evidential demands of the audit process was acknowledged, as was 

      the importance of records maintenance.