Will NSIP changes boost renewables?

The Savills Blog

Will NSIP changes boost renewables?

The new Government wants to increase the threshold for projects to qualify as Nationally Significant Infrastructure Projects (NSIPs).

Currently, projects in England that would generate more than 50 megawatts (MW) would be considered an NSIP and require development consent from the relevant Secretary of State to go ahead. Current consultations propose to reintroduce English onshore wind to the NSIP regime at a threshold of 100 MW and to increase the solar project threshold to 150 MW. The question is, will it make any difference, and if so to what type of project?

Solar

Developers are electing to ‘go big’, or go away from the NSIP process altogether. A recent report by RenewableUK, CPRE and the Aldersgate Group noted that the NSIP process is not seen as cost effective for projects that only just cross the 50MW threshold for designation as an NSIP. It therefore appears that the decision to increase the threshold to 150 MW could unlock a new class of solar project between 50MW and 150MW.

The NSIP regime provides greater certainty around timelines and likelihood of consent than the conventional local planning regime. Would the Government enjoy more success by applying its red-tape-busting objectives to the NSIP process itself, rather than turning projects over to the local political system? Only time will tell.


Wind


In Figure one, Scottish projects were excluded; they made up a minority of applications for solar projects and the changes proposed by the Labour Government will not reach into Scotland as planning regulation is devolved. Yet when it comes to wind, Scotland is leading the way in planning applications: For every 10 planning applications made between 2010 and 2024 (successful or awaiting a decision), around seven were Scottish.

All else being equal, a comparison of approaches on each side of the border would now take place to determine the impact of NSIP regulation. But all else is not equal. England has been subject to an effective ban on onshore wind since 2015 due to two footnotes in the National Planning Policy Framework and the removal of 50MW+ wind from the NSIP regime in 2015. These have been the chief obstacles to onshore wind and, while they now being addressed by the new Government, the impact of NSIP restrictions has been obscured. Decisions on undertaking wind projects are also governed by wind resource; the linear, more predictable risk profile that comes with increasing the size of solar projects is not found with wind projects.

No miracle cure

Increasing NSIP thresholds makes for one less obstacle to renewable energy deployment, with solar farms in England being where transformation is most likely. While the planning process is less resistant to onshore wind, with changes to the NPPF and this change to NSIP regulations, site selection in England will remain challenging as there is less suitable land available for development. Behind-the-meter (BTM) wind installations, collocating wind turbines with existing solar arrays and batteries, expanding existing solar and wind installations above 50MW, and reconditioning machines with bigger turbines are more likely to be seen in English settings, with some interest in vertical axis turbines in more urban locations.

These initial changes will not precipitate a surge in additional capacity. In any sector, long term clarity and certainty are essential to encourage growth and investment. If the new Government is to meet the 2030 zero carbon electricity target, it must set about the far greater challenge of developing a coherent energy strategy with longevity to provide that certainty.

 

Further information

Contact Joe Lloyd or Nick Green

New opportunities for onshore wind in England

 

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