Revised Draft Energy NPS – Implications for Onshore Renewable Energy Generation (England)

"Focus on local impacts in Draft EN-3 may still lead to delays in determining DCO applications for onshore technologies"

In this third bulletin in our Energy NPS series, we look at the key changes from the first revised draft NPS and how these impact renewable electricity generation, but with a focus on technologies onshore – solar, hydro and biomass / waste.  

The headlines are that:

• The updated draft EN-1 re-emphasises that the majority of new generating capacity needs to be low carbon; and there is a recognised “urgent” need for implementation of new electricity generating capacity to meet energy objectives and statutory targets for the sixth carbon budget.  
• More low-cost renewables are considered to help reduce household electricity bills and ensure Britain is less affected by fluctuations in volatile global gas prices as seen when the economy reopened after COVID-19 and linked to the Russian invasion of Ukraine.
• Useful clarification around factors such as flexibility, influencing site selection and design are included, as reported in our last bulletin.
• Developers will welcome that there is no change proposed to agricultural land classifications, which would have amounted to an effective ban on new solar farms in England.
• Co-location is actively encouraged amongst solar, onshore wind generation, storage or electrolysers associated with the production of low carbon hydrogen.  This will be welcomed by those at the forefront of designing, testing and developing innovative technology of the future intended to modernise our energy system and store renewable energy for later use.
• However, whilst co-location is encouraged for technologies such as wind, the NPS does not cover onshore wind – and there is no removal of the de facto ban on onshore wind turbines in England.  Onshore wind continues to make a significant contribution to clean energy generation and is an attractive investment due to cost efficiency.   However, developers will be disappointed that it continues to be omitted by the Government and this may detract from new or re-powering projects coming forward. 
• Further, unlike the guidance for offshore wind, there is no presumption in favour of grant of planning permission for onshore technologies, which could undermine decision making.

As a reminder, the draft Overarching National Policy Statement for Energy (EN-1), together with draft NPS for Renewable Energy Infrastructure (EN-3) are critical national policy documents for decision making in relation to onshore projects including nationally significant infrastructure projects (NSIPs):

(1) Any relevant DCO applications relating to energy NSIPs must be determined in accordance with the designated NPS (subject to certain caveats).  This includes Draft EN-3, the NPS for onshore renewable energy generation, applying to the following electricity generating NSIPs:

• solar photovoltaic (PV), pumped hydro storage, and energy from biomass and/or waste including mixed waste containing non-renewable fractions >50 MW in England and >350MW in Wales
• renewable generation proposals of the types listed above whose capacity is below the relevant threshold, directed into the NSIP regime under section 35 of the Planning Act 2008

(2) Variations to existing consents under section 36C of the Electricity Act 1989 for which they may be a relevant consideration.

(3) They may also be a material consideration in the determination of applications for renewable generation proposals of the types listed above whose capacity is below the relevant threshold and made under the Town and Country Planning Act 1990.

(4) They may also be a relevant consideration in decisions undertaken in Scotland and Wales.

Many developers will consider that the NPS needs to be stronger to enable more onshore projects to be promoted and consented – there is no presumption in favour of grant unless the harm outweighs the benefits like there is for offshore wind.  Developers may look for more direction to be given in relation to the weight to be applied to key impacts otherwise uncertainty, delay and inconsistency in decision making will likely prevail.  The absence of clear targets for onshore wind and guidance is unhelpful for developers and will simply continue to provide an easy win for local opposition to challenge the need for this type of renewable technology. In the context of the UK Government’s climate change and net zero policies, we consider that this potentially leaves the draft NPS susceptible to judicial review.