Kwarteng unveils onshore wind rules relaxation

Kwasi Kwarteng has unveiled a relaxation of the planning regime for onshore wind farms as part of the Treasury’s wider growth plan announced on Friday morning (23 September).

In his fiscal statement in the House of Commons setting out the plan, the recently appointed chancellor of the exchequer said the government will also be implementing a new £1 billion energy efficiency obligation on suppliers over the next three years.

A centrepiece of the plan is a new Planning and Infrastructure Bill to accelerate delivery of priority infrastructure projects.

According to the document, the legislation will bring onshore wind planning policy “in line” with other infrastructure to allow it to be deployed “more easily” in England.

Current planning rules make it harder to secure consents for onshore wind farms than other types of development.

The new bill will also seek to liberalise the planning system for major infrastructure projects and streamline consultation and approval requirements.

This will include steps to cut environmental assessments and consultation requirements, reform nature conservation regulation and make it easier to change development consent orders once they have been submitted.

The government said these measures would address barriers to delivery by reducing “unnecessary burdens” in the planning process.

Ongoing work to develop a cross-government action plan to reform the planning system for nationally significant infrastructure will be prioritised as well as the delivery of National Policy Statements for energy, water resources and national networks.

The plan also itemises more than 100 major infrastructure projects, including nuclear, offshore wind and hydrogen schemes, that will be fast tracked.

In his statement, Kwarteng revealed that the total cost of the government’s energy costs support package for households and businesses will be £60 billion over the next six months.

The plan also said the government will bring forward legislation to implement new energy efficiency obligations on energy suppliers.

Worth £1 billion over the next three years and starting from April 2023, this support will be targeted at the most vulnerable but will also be available for the least efficient homes in lower council tax bands.

And it said the government will “imminently” open applications for up to £2.1 billion over the next two years to support local authorities, housing associations, schools and hospitals to invest in energy efficiency and renewable heating.

Reaction

Dhara Vyas, director of advocacy, Energy UK

“Energy UK welcomes the chancellor’s statement and growth plan announced today, confirming the economic support that will help households and businesses manage their energy bills this winter. However, in order to prevent future price shocks, the country must reduce its reliance on gas.

“Improving the UK’s energy efficiency will keep bills down permanently, whilst also strengthening the UK’s security of supply, so it’s right that the government is building on successful schemes that will enable homes, local authorities, housing associations, schools and hospitals access energy efficiency and renewable heating.

“Prioritising the delivery of National Policy Statements and streamlining the planning process should help accelerate the roll out of critical clean energy infrastructure. We look forward to working with the new government and our members to move beyond this crisis, towards a fairer future.”

Dan McGrail, chief executive, Renewable UK

“Removing the block on onshore wind in England means we can generate significantly more cheap electricity for hard-pressed billpayers in areas where projects have local support. Once projects have planning permission they can be up and running within a year, so this technology offers us a great opportunity to tackle the cost of energy crisis.

“Speeding up the planning process for offshore wind is vital too, as it will allow us to unlock an enormous amount of new capacity much faster and help us to meet the Government’s target of quadrupling our offshore wind capacity by 2030. It will also help us to meet the Prime Minister’s vision of the UK becoming a net energy exporter by 2040. At the moment it can take up to ten years to get a project over all the hurdles. We can’t afford these glacial timescales any longer, especially as offshore wind has now reached a point where it’s even cheaper to build than onshore wind.

“It’s also vital that we speed up grid connections, as some offshore wind farms are being given connection dates which are 10 years into the future. Alongside the changes announced today, we’re urging Ofgem and National Grid to accelerate grid reform, as one of the most important steps towards decarbonising our power system in the years ahead.”

Simon Virley, vice chair and head of energy and natural resources, KPMG

“The chancellor announced today that the energy support package is expected to cost around £60bn over the next 6 months, but there is a very wide margin of error around this. The eventual cost will depend on what happens with global gas prices, how cold this winter is, and wider economic activity, meaning the government is effectively writing a blank cheque, significantly increasing government borrowing, at a time when long term interest rates on UK gilts are rising sharply.

“It is clear a more targeted approach is going to be needed beyond this winter that focuses help and financial support on those that need it most: poorer households, and energy intensive firms and small businesses. Moreover, the cheapest way to permanently reduce bills and improve energy security is a step change in energy efficiency and the small amount of extra funding announced today, though welcome, will not be enough to deliver this.

“The commitment to bring consenting for onshore wind in line with other infrastructure is welcome, as onshore wind is one of the cheapest forms of low carbon energy and can be deployed quickly, supporting jobs, investment and growth around the country.”

Jess Ralston, senior analyst, Energy and Climate Intelligence Unit

“If prices stay high, the government’s gas subsidy bill would be several times the investment needed to get all 28 million homes in Britain properly insulated. Boosting the ECO scheme could well end up being cost neutral on Treasury with insulation cutting gas demand and so the overall price tag of the bailout.

“The ban on onshore wind – which around 8 in 10 people support – has been a major anomaly in British energy policy given it’s both cheap and popular with the public. So a decision to lift the ban suggests the new government has listened to the experts and understands building more British renewables reduces our reliance on costly gas and so brings down bills.”

Greg Jackson, chief executive and founder, Octopus Energy

“This is a huge step which will unleash the power of British onshore wind energy, reducing bills for all. Octopus Energy will act fast to bring wind farms and lower bills to areas where communities want them.

“Onshore wind is cheap and incredibly popular with Brits – more than 13,000 people have asked us for a wind farm in their area. But unnecessary red tape has meant it has taken on average seven years to build and connect a new onshore wind farm. In reality, they can be built in months.

“By putting onshore wind on the same playing field as other technologies, we can turbocharge our transition to net zero, increase the UK’s energy security, and wean ourselves off expensive gas for good.”

Nigel Pocklington, chief executive, Good Energy

“It is unclear why the government has chosen not to award any fanfare to lifting the ban on popular, cheap and green onshore wind, especially when lifting the ban on unpopular, expensive and environmentally unsound fracking has been much heralded. But communication choices aside, it is the right decision to bring consenting in line with other infrastructure and should be celebrated.

“Too many years have been wasted by the effective block on the provision of this clean and green energy source which would have reduced our reliance on expensive and polluting fossil fuels. We hope this new announcement will lead to a rapid roll-out of more wind farms in the UK, bringing energy bills down whilst driving our transition to net zero.”