- The Ministry for Housing, Communities, and Local Government will announce changes to the NSIP thresholds, currently set at 50MW, that affect project designations.
- Gareth Phillips from Pinsent Masons LLP highlights the 50-200MW range as a costly “planning dead zone” for solar projects.
- The Labour government aims to reduce bureaucratic delays with its Great British Energy company and considers uniform thresholds for all energy technologies.
The United Kingdom Ministry for Housing, Communities, and Local Government will release the results of its consultation on nationally significant infrastructure projects (NSIPs). This consultation focuses on adjusting the threshold for projects considered nationally significant.
Currently, the threshold sits at 50MW. Developers have proposed many projects below this limit, at 49MW, to avoid NSIP designation. Industry groups remain divided on whether to change the threshold, and evidence does not strongly support a change.
Gareth Phillips, head of client relationships for the global energy sector at Pinsent Masons LLP, said the 50-200MW range has become a “planning dead zone” for solar projects. Developers found the cost of seeking consent through the NSIP process too high, which affected project viability.
A RenewableUK, CPRE, and Aldersgate Group report criticised the NSIP process as ineffective for projects barely exceeding the 50MW threshold. Phillips noted that the rise in solar NSIPs in the 100-200MW range over recent years shows that DCO costs are becoming more manageable.
The NSIP regime offers more certainty on approval timelines than the Town and Country Planning Act regime. This latter system often has inconsistencies, with conflicts between local planning authorities and the planning inspectorate.
Raising the NSIP threshold might slow project deployment due to local-level political hurdles. While the Secretary of State’s power to “call in” planning decisions might help in some cases, it does not provide a comprehensive solution.
Phillips argued against varying thresholds for different technologies. He said, “The power generation and its contribution to national needs should determine NSIP status, not the type of technology.” He questioned why 100MW of onshore wind would be considered nationally significant but the same amount from solar would not.
The Labour government has promised to reduce bureaucratic red tape through its state-owned Great British Energy company. The NSIP consultation also considers different thresholds for various technologies.
Phillips believes a uniform threshold for all generating technologies makes more sense. He stressed that a project’s significance should depend on its power generation and contribution to national needs rather than the specific technology used.
The release of the consultation results will likely impact the future of large-scale renewable energy projects. Developers and industry groups will closely monitor any threshold changes and how these might affect project viability and deployment.