Utility Week

UTILITY WEEK | 5TH - 11TH JULY 2019 | 21 Operations & Assets a major milestone for the UK's nuclear new-build industry, which – as a low-carbon electricity source – is key to meeting our ambitious target of net zero emissions by 2050. "The project will not only power nearly six million homes, it will add an enormous boost to the local and national economy, delivering over 25,000 new jobs and securing long- term, well-paid employment – a key step in delivering clean growth as part of our modern industrial strategy." Good progress and efficiency improvements mean the second Hinkley Point C reactor will hit its own J-zero moment in June 2020. If you have an asset or project you would like to see featured in this slot, email: paulnewton@fav-house.com. Market view Is planning fit for energy storage? The planning system must adapt to aid the growth of energy storage projects, says Alistair Paul. T he widespread deployment of renewables is creat- ing the need for more electricity storage, and the planning system must keep pace with technologi- cal 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 infrastruc- ture 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 pro- posal 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 proportion- ate to the anticipated effects of the project. Technological advancements mean that it is becom- ing 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 technol- ogy 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. Alistair Paul is an associate in Herbert Smith Freehills' Real Estate practice

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