Government should work with regulators, devolved administrations, local authorities, industry and key stakeholders to streamline the planning and environmental permitting processes to ensure new power generation can come online as soon as possible. |
244. Current ambitions to reach a fully decarbonised power sector by 2035 are at risk due to the time required for developers to go through securing planning permissions, environmental permitting and getting grid access. Businesses highlighted that, taking offshore wind as an example, "it currently takes around 3-5 years to move through the consenting phase which covers the work needed to secure consent and manage the development process through to financial close. This is due to a combination of under-resourcing within planning authorities and environmental regulators, unclear guidance to those bodies, and a lack of streamlining within the process".211 If we want to increase our renewable energy production to fully decarbonise the power sector by 2035, we need to shorten some of these timelines.
245. Whilst respondents noted that due process needs to be followed to ensure impacts of projects on communities and environment were fully considered, many saw significant opportunities to streamline and shorten current processes. Examples included, allowing for early engagement with the regulators and competent authorities to identify key issues to focus on, and allowing for anticipatory investments in regards to grids.
246. The Review heard the need to build capacity and support for regulators and local authorities to expediate processes. At the roundtables, stakeholders stated that it can currently take over 40 weeks for regulators to take a first look at an environmental permit. Stakeholders also highlighted the need to allow for more innovative approaches within existing frameworks and clearer guidance for local authorities. With applications increasing, the question of regulatory capacity becomes even more urgent. For example, over twice as many planning applications were submitted in 2021, compared to 2020 and nearly 1,000 applications in 2022.212 This is also explored in Pillar 4.
247. Different types of projects also need to comply with different processes, adding to complexity. Net Zero Review analysis found that over the past five years it took the average planning application over six months to be processed, with large applications (with capacity at 50 MW or above) taking over 1.5 years on average.213 For the six offshore wind applications that have been processed since 2020, it took 2.5 years on average for a decision to be reached. Solar PV and biomass applications are generally processed quickly, with the average application taking less than four months in the three years since 2020.
248. While siting of renewable projects can be a sensitive area, technology-specific restrictions add unnecessary burden to the process. The Review therefore recommends removing such restrictions where applicable and instead providing clear guidance on siting and potential measures to minimise impacts to support case-by-case decisions.
249. Another key challenge for developers stems from the timelines for gaining grid access. These can add major costs and delays to projects. Stakeholders therefore suggested more co-ordinated grid planning and roadmaps. Improving the grid infrastructure's ability to react to the needs of the industry will also ensure investment in UK renewables. Stakeholders highlighted that for developers, grid connection costs are a significant source of uncertainty:
"Indicated wait times for grid connections can be more six years, in some cases up to 10 years, creating a totally untenable position for renewable developers and financiers." - Energy UK214
250. Respondents also pointed out that the current system design does not sufficiently account for local production and local and regional solutions.