Review of tariffs under the Renewable Heat Incentive in Northern Ireland

Cornwall Insight undertook work for the Northern Ireland Department for Economy (DfE) to assess the tariffs associated with the Northern Ireland Non-Domestic Renewable Heat Incentive (NIRHI) Scheme. From a regulatory standpoint, traditionally heat has seen fewer interventions and less support than the other aspects of decarbonisation. Here, the main policy instrument has been the Renewable Heat Incentive (RHI), which has seen comparatively limited uptake compared to similar schemes such as the Feed-in Tariff (FiT).

In undertaking this project, Cornwall Insight’s objective was to assess prevailing tariff levels and their components and make recommendations on the appropriateness of new tariff levels based on that data. In addition, an assessment of the appropriateness of kerosene as the counterfactual fuel for the NIRHI was completed, as was a comparison and review of the NIRHI against corresponding renewable heat schemes in place in Great Britain (GB) and the Republic of Ireland.

The report was well received by the DfE and was used to help inform policy in regards to the RHI scheme in Northern Ireland.