The widespread deployment of renewables is creating the need for more electricity storage, and the planning system must keep pace with technological advancements in this sector to avoid inhibiting the growth potential of this important asset class.
Currently, storage projects are subject to the same planning regimes as generation projects. Projects with a capacity up to 50MW must be consented via the ordinary planning permission route, whereas larger schemes are considered to be nationally significant infrastructure and are consented via a development consent order (DCO).
Since the DCO regime was introduced, developers have had to consider whether to design a sub-50MW proposal that will benefit from a quicker and cheaper route through the planning systems or a larger and potentially more valuable scheme that has to navigate a more expensive and time-consuming consenting process.
Earlier this year, the government consulted on the threshold for electricity storage projects, and it proposes retaining the 50MW threshold.
Clearly there are difficulties with setting thresholds that apply to a wide range of generation assets, but planning applications should be determined at the appropriate level depending on the proposed project’s size, environmental impacts and national significance.
The key question for the government, therefore, should be whether the planning system is continuing to ensure that the route to securing consent is proportionate to the anticipated effects of the project.
Technological advancements mean that it is becoming increasingly feasible to store large quantities of energy in small-scale facilities, so retaining a 50MW threshold for standalone projects may be unsuitable. It is worth noting that the government’s analysis, which underpins its current position on retaining the 50MW threshold, did not factor in the possibility that the existing system may incentivise developers to submit separate rather than joint planning applications to avoid triggering the DCO threshold. This would result in developers designing projects sub-optimally to avoid triggering the threshold. If there is clear evidence of this there may have to be a rethink.
The planning system will have to adapt as technology advances and we place greater reliance on storage to facilitate and support renewable energy. Whatever the outcome of the consultation, expect this debate to continue.