Future support schemes to incentivise renewable electricity generation in NI must be suitable for small-scale projects, the Ulster Farmers’ Union (UFU) has said.

In response to a public consultation on the issue, the UFU raised concerns that current proposals are mainly aimed at industrial-scale projects that will not be suitable for rolling out at a farm level.

“We fear that there is a lack of potential for the NI agricultural industry ranging from micro to small renewable electricity production,” the UFU response reads.

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The union argues that micro and small-scale projects can reduce electricity demand on the national grid, deliver lower costs for consumers and help support the “local green economy”.

The Department for the Economy has proposed that a Contracts For Difference (CFD) style scheme will become the main way of encouraging more renewable electricity generation in NI.

CFD schemes are auction-based and allow funds to move both ways between renewable generators and electricity suppliers, depending on auction prices at the time.

“The UFU does not believe it will work for micro to small-scale renewable electricity production. If a mix of micro to large-scale is required, then CFD cannot be the only mechanism,” the union responded.

However, micro and small-scale renewable projects are unlikely to be high priority for the Department for the Economy as it aims to meet a legally binding target for 80% of electricity in NI to come from renewables by 2030.

In the consultation, the Department gives the example of existing small-scale solar installations which have “only very marginally contributed” to meeting renewable generation targets.

“Another important consideration is whether incentivisation for the mass deployment of small-scale/microgeneration assets is necessary and if such deployment would be capable of making substantial contributions to the 80% renewable electricity target,” the document reads.