Consultation on the closure of NIRO to small scale wind
Last week DETI published its consultation on proposals to close NIRO to small scale wind. The consultation paper follows on from the large scale wind consultation paper on 4 March 2016.
The paper provides three options:-
Option 1 – Close on 30 June 2016
Option 2 – Close on 30 September 2016
Option 3 – Close on 31 March 2017
Under options one and two, those who meet the grace period eligibility criteria outlined on the 30th September 2015 (have obtained planning approval, secured a grid connection and have land rights/lease agreement at the 30th Sept 2015) would still have to 31st March 2017 to commission and accredit under the NIRO.
Option one has the greatest chance of preserving socialisation of NIRO costs.
It would appear that DETI are keen to pursue option one and close the NIRO on 30th June 2016. On 18 January DECC introduced enabling powers to allow them to restrict GB suppliers from meeting their renewable obligations by presenting NIROCs from projects that do not meet the eligibility criteria.
Options two and three carry significant risk of the DECC legislating to prevent GB suppliers from redeeming NIROCs from non-eligible projects and could have harmful effects on the value of NIROCs.
The consultation closes for responses at 5pm on May 9 (the relevant documents can be viewed at www.detini.gov.uk/consultations).