NI farmers to benefit from fairer grid connection costs

Northern Ireland farmers could see lower upfront costs for power upgrades and renewable energy connections under new grid charging reforms.

The new connection charging arrangements were introduced by Economy Minister Dr Caoimhe Archibald MLA, following prolonged calls from the farming industry for change.

The reforms are designed to make electricity grid connections fairer and more affordable for rural communities by spreading grid reinforcement costs across all consumers.

Until now, farmers in rural areas could be left facing large bills where the local electricity network needed reinforcement before a new or larger connection could go ahead.

The Ulster Farmers’ Union said the changes could particularly help farmers seeking three-phase power, stronger electricity supplies or small-scale renewable energy connections.

UFU deputy president Glenn Cuddy said the union had been lobbying the Department for the Economy on the issue for some time.

“A fairer distribution of electricity grid connection costs is something the UFU have been lobbying the Department for Economy on for quite some time,” he said.

He said the reforms could “help strengthen the rural economy”, support further farm investment and “partially remove existing financial disadvantages” faced by farmers and rural businesses.

The union said this should make grid connections for both import and export more accessible, although the reforms will be subject to a high-cost cap.

The cap has been set at £1,000 per kVA for demand or import connections and £200 per kW for generation or export connections.

Mr Cuddy said the cap, particularly for export, must be monitored closely in the early stages of the policy.

“It is important that the high-cost cap, particularly for export, is monitored in these early stages of the new arrangements,” he said.

“We want this to have a real impact for farmers who wish to export and cannot due to the cost of a grid connection.”

However, the UFU warned the export cap could still prevent some otherwise viable farm-scale renewable energy projects from going ahead if it proves too restrictive.

The union said it would continue to monitor the charging reforms, including the impact of the high-cost cap, the application process and how the policy is implemented.

Mr Cuddy said the UFU wanted to ensure the changes “genuinely enhances business opportunities for farmers in rural areas” and supports wider rural growth.

The UFU said it would monitor the rollout closely to ensure the reforms deliver lower connection costs, support farm investment and help unlock more rural renewable energy projects.