NIC to review National Policy Statements for Treasury

Jeremy Hunt has invited the government’s infrastructure advisors to review the National Policy Statements (NPSs) as ministers have revealed a five-month delay in the planning decision for a new 2.6GW offshore wind farm.

The chancellor the exchequer and local government minister Lee Rowley have asked the National Infrastructure Commission (NIC) to review whether the current process of reviewing NPSs every five years is effective and how the strategic statements could provide investors and developers with greater confidence.

The NIC will draw on the experience of departments currently carrying out reviews of the NPSs. The energy NPS is currently being reviewed for the first time since it was adopted a decade ago.

The NIC review will also consider whether the current format of the NPSs, which provide the policy framework for planning major infrastructure projects, remains “suitable and effective” for determining Development Consent Order (DCO) applications in a “timely” manner.

The NIC has been asked to set out recommended priorities for government on infrastructure planning both in the shorter term, over the next 18 months, and the next five years.

The review has been announced against the backdrop of a slowdown in the infrastructure planning process over recent years. The timespan for granting DCOs increased by 65% between 2012 and 2021 with some offshore wind projects taking up to four years to get through the process, according to the NIC.

The announcement about the NPS review came as it emerged that the deadline for determining Orsted’s plans for a new 2.6GW offshore wind farm has been pushed back by five months.

Ministers were due to take a final decision on whether to grant planning permission for the Hornsea 4 offshore wind farm, which is due to be located 69km off the East Yorkshire coast in the North Sea, by 22 February 22.

However on Wednesday, junior energy minister Lord Callanan announced that the deadline for the decision has been pushed back to 12 July.

The statement says secretary of state for energy security and net zero Grant Shapps, who received the planning inspector’s report into whether to grant a DCO for the scheme in November, wants more information about the impact of the development on local birdlife.

Responding to the announcement of the delay, RenewableUK’s executive director of policy Ana Musat said it was “particularly disappointing as it will now take longer to meet our renewables targets”.

She added: “This landmark offshore wind project has the potential to supply an enormous 2.6GW of clean electricity to the grid, displacing expensive gas, reducing bills and boosting our energy security. At a time when countries like the US and the EU are doubling down on attracting clean energy investment through financial incentives and a stable policy framework, the UK cannot afford to create unnecessary hurdles for investors and developers.

“This decision clearly shows that government needs to reform our cumbersome planning system urgently to ensure that renewable energy projects are not subject to needless delays. Due to unclear guidance to planning authorities, no offshore wind project wind since 2017 has been recommended for approval by the Planning Inspectorate. All 6GW of these projects were delayed until the secretary of state reviewed them to confirm approval. To meet our 50GW offshore wind target, the UK will need to install 4.5GW of offshore wind a year in the latter half of this decade. A reformed planning system is essential to ensure we can stay ahead in the global race to build vital new clean energy infrastructure”.

Sam Richards, founder and campaign director for pro-growth campaign group Britain Remade, said: “We may have a new secretary of state for energy security and net zero, but yet more delays to vital clean energy projects shows how our broken planning system will stop us from becoming energy security and hitting our net zero targets.

“While countries cross the globe are racing to install more and more clean energy, in England we’re delaying offshore wind projects and have banned new onshore wind altogether. If the government is serious about energy security, it needs to drop the ban on new onshore wind in England and speed up the process for all sources of clean power.”