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The Planning Act 2008 introduces a new regime for authorising
sixteen types of nationally significant infrastructure project
(NSIP). This entry focuses on one of these – electricity
generation. The new regime is quite different from the existing one
and will become compulsory for all new and expanded power stations
and renewable generation over a certain size from 1 March 2010.
There is an incentive for additional electricity generation in
the next decade for two reasons. First, the UK faces a shortfall of
energy supply compared with expected demand as old power stations
are brought out of service. New nuclear power stations, to a lesser
extent gas-fired power stations, and if 'clean coal'
technology can be developed in time, coal-fired power stations, are
to deal with this issue.
Secondly, the country is under an EU obligation to produce 15% of its energy
from renewable sources by 2020. At 2008 this figure stood at a
measly 2.25%. Note that the target is for energy as a whole, not
just electricity (which is what almost all renewable energy sources
produce), so a consequently higher proportion of electricity must
be produced from renewable sources if the overall target is to be
met. The Department for Energy and Climate Change (DECC) is aiming
for 30% in its recently published renewable energy strategy. An explosion in
onshore and offshore windfarms, and if the technology can be
developed in time, tidal projects, are the principal ways in which
this issue will be dealt with.
So-called 'generating stations' are the type of NSIP
that will include the greatest variety of individual projects
– indeed, this single category will have no fewer than
three of the twelve National Policy Statements (NPSs), which will
set out government policy on needed infrastructure, devoted to
it.
A generating station can be anything that generates electricity
and will fall within the new regime if it is capable of generating
more than 50 megawatts (or if it is offshore, more than 100
megawatts). This is the same threshold as the regime that the
Planning Act replaces (section 36 of the Electricity Act 1989) for
onshore projects, but a much higher threshold for offshore projects
(which is currently only one megawatt). An expansion of an existing
station is over the threshold if the expanded station will be over
50 (or 100) megawatts (which may cause problems – see
earlier
blog entry). Note that it is its capability that
matters - not what it is planned to produce - so, for example
windfarms will be measured against their capacity even if they
produce considerably less electricity most of the time.
The generating station category therefore includes nuclear power
stations, gas-fired power stations, coal-fired power stations,
windfarms, hydroelectric schemes, waste incinerators, tidal energy
projects, wave energy schemes and solar arrays. Applications made
after 1 March 2010 will be measured against the text of the
corresponding NPS, and will only be allowed if they are in
accordance with it. The reverse is not true, however –
that if they are in accordance with the NPS they will necessarily
be approved – because the Planning Act allows an
application in accordance with an NPS to be refused in certain
cases. The primary possible reason for refusal is if the adverse
impact of the proposal would outweigh the benefits it would bring.
This will be up to the new Infrastructure Planning Commission (IPC)
to decide.
National policy on nuclear energy will be contained in a
Nuclear Power NPS, on coal and gas-fired power
stations in a Fossil Fuels NPS, and on energy from
waste, wind, wave, tidal, hydroelectric and solar schemes in a
Renewable Energy NPS. These are all due to be
issued for consultation in the autumn of this year.
This blog will of course let you know as soon as that
happens.
To a much greater extent than rail or harbour promoters, the
promoters of energy projects will have to adopt a new mindset when
it comes to preparing and making applications. This is because the
new regime is loosely based on the existing regimes for transport
and port projects and is quite different from the Electricity Act
regime. A lot more work must be done – and recorded as
having been done – before an application can be
submitted; the order granting consent can (and should) include a
lot more; and the consideration of the application and objections
is different.
Electricity generation projects will possibly be the prime test
of the new system given the mounting pressure for more capacity.
Please get in touch if you want to know more.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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