Concerns about energy security and the need to decarbonise the UK’s energy system have been background noise for many, no doubt set against articles in the national press about the latest threat from renewables deployment to the value of the surrounding properties. However, the war in Ukraine and the surge in energy demand post-Covid has far more effectively illustrated the problem and its real-world consequences than any government statement, or the warnings from those in the sector.
The latest consultation drafts of proposed revisions to the National Policy Statements for energy, which set government policy for determining applications for nationally significant energy infrastructure, are therefore very timely. The current energy NPS suite was designated in 2011 and in many respects now lags behind technological advances and government objectives. NPS EN-1 is the overarching energy policy, supplemented by EN-2 (natural gas electricity generation), EN-3 (renewable energy), EN-4 (gas supply infrastructure), and EN-5 (electricity network infrastructure).
The backdrop to many of the changes to the NPS are the legal commitments made by the government to achieve a net zero emissions target by 2050, in addition to reducing greenhouse gas emissions by at least 68% from 1990 levels by 2030 and 78% by 2035. This means decarbonising virtually all sectors, but in particular requires major changes to our energy system. The latest revisions to the energy NPS suite follow a raft of new strategies designed to achieve these targets, including the Net Zero Strategy, the Growth Plan 2022 and the British Energy Security Strategy.
Direction of travel
In a nutshell, the strategy supported by the energy NPSs is to accelerate the deployment of renewables, nuclear, hydrogen and carbon capture utilisation and storage development. Nuclear power is addressed rather fleetingly with a reference to new nuclear deployment in the 2050s and a new nuclear NPS after 2025. Commitments are made to put in place new business models to incentivise deployment of carbon capture utilisation and storage, as well as the production of low-carbon hydrogen, providing an alternative for sectors that have no viable alternatives to decarbonise. The BESS sets out the ambition to achieve 10GW of low-carbon hydrogen production capacity by 2030. The hope being that hydrogen may replicate the current role of natural gas in the electricity system, or at the very least be blended with natural gas. The recognition of the benefits of hydrogen development and the attention it receives in NPS EN-1 will undoubtedly help this emerging technology.
CO2 storage projects are also key to the net zero transition, with the NPSs highlighting the opportunity for the UK to become a global leader in CO2 storage services. The North Sea offers a massive capacity, which it is proposed may even allow for storage services for other countries eager to meet emissions targets.
The scale and urgency of the required change is reflected in a number of ways. The need for such infrastructure is stated to be urgent, with substantial weight being afforded to this when considering applications for development consent.
A range of technologies are required to deliver on the government’s objectives but there are clear priorities. Offshore wind has been designated a critical national priority. The urgent need and benefits from this development will, with a few exceptions like human health and defence, outweigh other residual impacts. It is also assumed such development will meet various exceptions tests, such as those relating to impacts on SSSI, greenbelt, national designated landscapes, flood risk and heritage assets.
Recognised impediments to deployment are grappled with, such as the complexity arising from cumulative effects on protected species and designated European sites. In many cases, projects are unable to avoid significant effects and thus derogation cases are required. Draft NPS EN-3 addresses these issues, making it clear these tests for derogation can be satisfied for offshore wind projects as well as making reference to proposals to incorporate statutory strategic compensation in the Energy Bill.
NPS EN-3 requires a more coordinated approach to offshore transmission and connection, where a number of wind farms are spatially close. Multipurpose interconnectors would also allow power flows from windfarms to two or more countries. This provides the grid valuable flexibility and market-to-market trading avoiding the artificial limiting of generation when domestic demand is met.
In terms of onshore renewables, solar power is identified as the cheapest form of renewable electricity generation. The BESS has already identified the government’s ambition to see a five-fold increase in solar deployment by 2035 (up to 70GW). While there is a stated preference to site solar farms on brownfield land and avoid higher value agricultural land, the draft NPS seems realistic about the prospects of large-scale deployment, noting the availability of network capacity and distance from connection may have a significant effect on feasibility. Clearly a balance will have to be struck if ambitions are to be met.
Additional considerations
But it isn’t a free ride for the renewables industry. Although not currently a requirement on applicants, concepts such as biodiversity net gain, introduced by the Environment Act 2021, are incorporated in the energy NPSs and will come into play once the government prepares its net gain statement. Ultimately, the secretary of state will not be able to grant consent for projects if the objectives in the statement have not been met. The Act also allows for this to be applied offshore.
Good design is a common theme throughout the suite of energy NPSs, with a requirement to evidence this in applications. Offshore wind, for example, will be subject to comprehensive Offshore Wind Environmental Standards, which will be designed to enhance the marine environment.
Finally, it would be unfair not to mention the investment required to modernise the country’s energy transmission system in order to connect this new generation to users. NPSs EN-4 and EN-5 rightly recognise that this infrastructure is as critical as the generation itself.
Paul Maile is head of planning and Peter Nesbit is a partner at Eversheds Sutherland
