Network planning needs ‘step change’, BEIS acknowledges

MPs have welcomed the government’s recognition that the network infrastructure planning process requires a “step change” but expressed disappointment at the lack of a timeline for how to achieve this.

The Department for Business, Energy and Industrial Strategy (BEIS) published its response on Wednesday (25 January) to the House of Commons Welsh Affairs Committee’s report on grid capacity in Wales.

BEIS acknowledged the committee’s recommendation that a “step change” is needed in the planning and consenting process to help achieve the 2050 net zero emissions target.

It added that the Electricity Networks Strategic Framework sets out reduced timescales through streamlining the planning consent process.

Furthermore, BEIS said the Department for Levelling Up, Housing and Communities is leading a programme to reform national infrastructure planning, which will identify what the government, its arm-length and other statutory bodies can do collectively to improve the process for planning such projects.

However, the committee said it is “disappointed” that the UK government has not responded to its recommendation to set out a timeline for how to achieve its goal to reduce processing times by 50% within a year.

BEIS said in its response it recognises the “challenges” that grid constraints are causing in Wales and agreed with the report’s key recommendation to address the so-called “chicken and egg” issue, under which developers wait for others to commit to the upfront but expensive grid connection and reinforcement costs.

Welsh Affairs Committee chair, Stephen Crabb MP, commented: “The UK Government’s acknowledgement of the constraints of the current electricity grid, and its pledge to work to further accelerate grid capacity, is welcome. If this is not addressed, and as highlighted in our report, failure to get the grid up to standard for net zero poses a threat to economic growth for communities across Wales.

“It is promising news that the UK government has a plan in place to address the ‘chicken and egg’ dilemma where developers wait for others to foot the costs of connection before they commit to building energy infrastructure.

“Our committee also welcomes the recognition that the current system in which rural communities are seeing increased bills as a result of having to share grid reinforcement costs is not equitable, and we are encouraged to hear that the UK government will be introducing measures to ensure rural communities are no longer unduly burdened.

“While this is a largely positive response to our committee’s work, we are disappointed that an assessment of current grid capacity in Wales does not seem to be forthcoming. It will be difficult to realise the exciting opportunities for renewable projects in Wales if they are unable to be plugged into a fully-functioning grid.”