Powerbook

A Playbook
for Energy Security
by 2030

What's at Stake

The consequences of Britain’s energy insecurity are impossible to miss. Russia’s invasion of Ukraine has led to surging energy bills, massive public spending, and the sharpest fall in living standards since records began. In other words, we have allowed ourselves to get into a position where events completely out of our control can create economic chaos and push households to the brink. The Powerbook’s objective is simple: make sure this never happens again by making Britain fundamentally robust to external energy shocks.

The current state of affairs was not inevitable, but a result of political choices. Britain split the atom and built the world’s first commercial nuclear power station, but it has been 27 years since we last built a nuclear power station. We possess the best conditions in Europe for wind power, but new onshore wind farms are effectively banned in England and it can take 13 years to build a new offshore wind farm in Britain due to a malfunctioning planning system.

To make Britain energy secure, we will need to more than triple the amount of energy generated from offshore wind, connect two new nuclear power stations to the grid, and build more grid infrastructure in the next seven years than was built in the last 32. It will mean accelerating the development of technologies such as hydrogen, batteries, and small modular reactors.

The challenge is massive – it will require genuine political will, major investments in new technologies, and innovation from industry – but so is the reward.

The Impact of Energy Security

1

Reduction to Household Bills

2

Independence from Gas Volatility

3

Net Importer to Net Exporter

From 2020 to 2022, international gas prices surged by 400%. This led to a 235% rise in household electricity bills. In other words, every £1 rise in international gas prices led to a 58p rise in the electricity bills paid by British families.

In this energy secure future, Britain’s exposure to international gas prices would fall dramatically. In fact, gas would generate only 5% of electricity in the UK. If international gas prices were to spike by 400% again, electricity bills would only rise by 20% not 235%. Assuming that electricity bills fell to 2019 levels, this would mean another historic rise in gas prices would only lead to a £10 per month increase in electricity bills for the average household. In effect, a shift to clean would generate a £1,400 annual bill saving.

Delivering on the policies within the Powerbook would mean that the UK was no longer reliant on imports for electricity. Currently, Britain imports 22% of its electricity. Under the Powerbook’s plan, Britain would export 11% of its electricity. In short, Britain would go from being a net importer to being a net exporter.

50GW

Offshore Wind by 2030

20GW

Onshore Wind by 2030

20GW

Solar by 2030

A Playbook for Energy Security

The price of solar, onshore wind, and offshore wind have fallen by 62%, 55%, and 75% in under a decade. The main obstacles to generating more energy from wind and solar now are a broken planning system and archaic regulation for grid connections.

It is not inevitable that it should take 12 years to build a new wind farm, 4 years to build a new solar farm, or 8 years to build a new transmission line to take energy to where it is most needed.

The Powerbook’s 25 actions for energy security would streamline infrastructure planning, improve investment incentives, and accelerate grid connections. This would cut timelines for deploying new solar, wind, and nuclear power stations dramatically. We estimate that the reforms would unlock 70GW of additional renewable generation, move grid buildout timelines forward by three years, and allow two Small Modular Reactors to be built by the end of the decade.

Wind & Solar

To become energy secure by 2030, Britain will need to unlock 70GW of additional renewable generation in less than seven years. The time it takes to build a new offshore wind farm will need to be cut to five and a half years, to five years for onshore wind, and to just over one year for solar. This is possible, but it will require substantial reforms to the planning process.

70GW

Additional Renewable Energy by 2030

Offshore wind faces massive planning barriers

To win permission to build a new offshore wind farm, developers often submit over a thousand documents including a 10,000 plus page environmental impact assessment.

Onshore wind is banned in England

Onshore wind, the cheapest form of energy on many measures, is effectively banned in England. Projects can only go ahead in England if they are on land identified as suitable for onshore wind and proceed with unanimous consent.

Solar projects are staying small

Navigating the slow and bureaucratic planning process for major infrastructure projects is such a challenge that many solar developers are choosing to limit their projects to 49.9MW.

Nuclear

Nuclear provides a reliable base-load of power that can underpin and complement a majority renewable grid. Yet, the UK is set to close 5 of its 6 existing nuclear power stations by 2030 and only one, Hinkley Point C, is currently under construction. Britain could build at least two Small Modular Reactors by 2030 if sites are identified and planning barriers are removed.

2

SMRs built by 2030

Excessive planning bureaucracy is delaying nuclear

To obtain planning permission, Sizewell C’s developers produced a 44,000 page environmental impact assessment and responded to over 2,000 written questions.

SMRs need bespoke regulation

Small Modular Reactors (SMRs) are a new form of nuclear power station that can be constructed off-site, then shipped and assembled. Any economies of scale from this process will be lost if SMRs are required to navigate the same planning process as full-scale nuclear power stations.

Former coal and industrial sites could host SMRs

As SMRs are a small fraction of the size of a full-scale nuclear plant, they can potentially be sited at a wider range of locations. Many former coal or industrial sites could be repurposed into SMRs.

Transmission & Storage

Adding 70GW of renewable energy is necessary to make Britain energy secure, but it will be insufficient if we fail to build the infrastructure necessary to transmit that power into people’s homes. In the next seven years, the National Grid will need to build five times as much infrastructure as it did in the last 30 years but this is not achievable under current planning timeframes. There is also a need to unlock an additional 25GW of flexible generation through long-duration energy storage by 2035.

25GW

Long-duration energy storage by 2035

Grid delays are blocking renewables

Long waits to obtain grid connections are holding back the deployment of renewables. For example, battery storage projects and renewable developers have been quoted ten year plus waits.

Wind farms are paid to switch off due to grid constraints

When grid infrastructure is unable to transmit energy from where it is generated to where it is needed wind farms are paid to stop generating. Curtailment payments to wind farms reached £507m in 2021 and resulted in an extra two million tonnes of CO2 being emitted.

Long duration energy storage needed to support renewables

Flexible forms of generation are necessary to keep the lights on when intermittent renewables are not producing energy. To accommodate 110GW of renewable generation, Britain will need to deploy long-duration energy storage technology at scale.

25 Actions for Energy Security

Update the 2008 Planning Act and fix the Development Consent Order process

1

Publish new National Policy Statements for Renewables, Nuclear, and Energy Networks as soon as possible to provide certainty to reduce planning delays and regulatory uncertainty.

2

Create a true one-stop shop for major energy infrastructure projects by amending the 2008 Planning Act so developers no longer have to seek consents from multiple agencies for environmental and other regulatory permits. This requirement should be replaced with a statutory duty for the relevant Secretary of State to have due regard to public comments from relevant agencies.

3

Create a Clean Energy Task Force to speed up the deployment of new energy projects modelled on the existing National Case Team in the Department for Transport which discharges ‘requirements’ (the equivalent of planning conditions) for road projects. This would ensure local planning authorities are not required to replicate functions carried out by central government.

4

Address staffing constraints at DESNZ, Natural England, and the Environment Agency that risk creating bottlenecks within the planning process.

5

Prevent delays at the decision stage by creating a statutory requirement on the Secretary of State to consider if additional questions to the developer are necessary two months into the three month decision timeframe.

6

Extend the planned reduction in statutory timescales from 18 months to 12 months for offshore wind projects to all clean energy projects including solar, nuclear next to existing nuclear sites, and transmission lines. Additionally, there should be a presumption in statutory guidance that the pre-examination process should be limited to a maximum of 4 months.

7

The Secretary of State should be responsible for making a final decision on whether to accept projects for examination. The last three years has seen the same number of refusals and withdrawals at the first hurdle as in the first 10 years of the NSIP regime.

8

Automatically approve project amendments that have positive environmental impacts. Under the status quo, developers are forced to apply for additional planning permission to make changes with ‘materially new or materially different environmental effects’ even if the impact is positive.

Reform public consultation

9

Reduce the risk of judicial review for new energy infrastructure projects by amending statutory planning guidance to explicitly consider proportionality, the use of public funds and the impact of delay on critically needed infrastructure when determining whether a consultation is adequate. Guidance should also allow the ‘examination’ phase to be taken into account, as well as applying a ‘presumptive’ pre-examination so that deficiencies can be corrected in that period, rather than being rejected.

10

Legislate to create a ‘Consultation Unit’ which can legally certify that a project’s consultation is adequate, which would radically reduce consultation-based legal challenges, and ensure developers are not incentivised to ‘over-consult’ when there are additional opportunities for interested parties at the examination stage.

Modernise environmental impact assessments

11

Invest in the creation of better environmental databanks, carry out preliminary environmental studies ahead of offshore lease auctions, and mandate that developers share the results of their environmental studies in full.

12

Create a new environmental mapping tool to identify areas most appropriate for new renewable projects (i.e. those with low environmental significance). Designate these areas as Clean Power Zones and adopt Spain’s policy of eliminating the default requirement for environmental impact assessments for all onshore wind (75MW and under) and solar projects (150MWs and under) in these zones.

13

Streamline and enhance environmental protections by replacing Environmental Impact Assessments and Habitats Regulation Assessments with Environmental Outcome Reports and adopting a strategic approach to compensation modelled on the proposed Offshore Wind Environmental Improvement Package.

14

Create a standardised methodology for carbon assessments within National Policy Statements to provide certainty for infrastructure developers and prevent a common source of legal challenges

Create new permitted development rights and allow onshore wind projects to go ahead

15

Create a new ‘Right to Repower’ in the National Planning Policy Framework granting automatic planning permission to all upgrades to existing renewable sites provided there’s no significant additional visual impact.

16

Eliminate England’s effective ban on new onshore wind developments by removing the requirement for unanimous consent and replacing it with a Community Safeguard, which allows projects to proceed unless a majority of local residents actively oppose it. New onshore wind developments should be enabled to offer local residents bill discounts.

17

Unlock a ‘Rooftop Revolution’ by creating a Permitted Development Right to install solar panels on all non-listed commercial rooftops outside of Areas of Outstanding Natural Beauty or Conservation Areas.

Rapidly publish a new siting strategy for nuclear energy and update National Policy Statements to make them suitable for SMRs

18

Set up Great British Nuclear (GBN) immediately in a limited form, in order to publish a new siting strategy for new nuclear projects. Delays to GBN due to wider questions around project financing should not be allowed to become a barrier to developers scoping out potential sites and engaging local communities.

19

The National Policy Statement for Nuclear should make clear that SMR and AMRs would be acceptable on any existing nuclear site or site previously deemed suitable for nuclear. Additionally, the NPS should endorse that many disused coal power stations or industrial sites could be repurposed into SMRs and so should benefit from the same policy support.

20

The National Policy Statement for Nuclear should also emphasise the need for standardisation in SMR design to make sure current policy tests around alternatives and good design do not slow the rapid and programmatic build-out of fleets.

Accelerate grid build-out rates and speed up connections

21

The FSO should be granted the power to direct Ofgem to approve investment in improving transmission network capacity in line with its understanding of the future system. Texas’ Competitive Renewable Energy Zones, where transmission investments are targeted at areas where regulatory constraints on renewable deployment are lowest, should be considered as a model.

22

Reform grid connections to limit delays by moving from the first-come first-served model to a more market-based system.

Set a target for 25GW of long-duration energy storage by 2035

23

Set an Energy Systems Operator backed target for 25GWs of long duration energy storage by 2035.

24

Publish a new National Policy Statement for non-battery long duration energy storage technologies to enable the delivery of the 2035 target. As a range of long duration energy storage technologies are subject to geographical constraints the National Policy Statement should designate a range of sites such as salt caverns as appropriate.

25

Reform the energy market for long duration energy storage technologies to de-risk investments in nascent technologies through longer balancing contracts, a level playing field with gas peakers, and contracts that reward the wider benefits of storage beyond spot prices such as meeting thermal constraints.

1

Publish new National Policy Statements for Renewables, Nuclear, and Energy Networks as soon as possible to provide certainty to reduce planning delays and regulatory uncertainty.

2

Create a true one-stop shop for major energy infrastructure projects by amending the 2008 Planning Act so developers no longer have to seek consents from multiple agencies for environmental and other regulatory permits. This requirement should be replaced with a statutory duty for the relevant Secretary of State to have due regard to public comments from relevant agencies.

3

Create a Clean Energy Task Force to speed up the deployment of new energy projects modelled on the existing National Case Team in the Department for Transport which discharges ‘requirements’ (the equivalent of planning conditions) for road projects. This would ensure local planning authorities are not required to replicate functions carried out by central government.

4

Address staffing constraints at DESNZ, Natural England, and the Environment Agency that risk creating bottlenecks within the planning process.

5

Prevent delays at the decision stage by creating a statutory requirement on the Secretary of State to consider if additional questions to the developer are necessary two months into the three month decision timeframe.

6

Extend the planned reduction in statutory timescales from 18 months to 12 months for offshore wind projects to all clean energy projects including solar, nuclear next to existing nuclear sites, and transmission lines. Additionally, there should be a presumption in statutory guidance that the pre-examination process should be limited to a maximum of 4 months.

7

The Secretary of State should be responsible for making a final decision on whether to accept projects for examination. The last three years has seen the same number of refusals and withdrawals at the first hurdle as in the first 10 years of the NSIP regime.

8

Automatically approve project amendments that have positive environmental impacts. Under the status quo, developers are forced to apply for additional planning permission to make changes with ‘materially new or materially different environmental effects’ even if the impact is positive.

9

Reduce the risk of judicial review for new energy infrastructure projects by amending statutory planning guidance to explicitly consider proportionality, the use of public funds and the impact of delay on critically needed infrastructure when determining whether a consultation is adequate. Guidance should also allow the ‘examination’ phase to be taken into account, as well as applying a ‘presumptive’ pre-examination so that deficiencies can be corrected in that period, rather than being rejected.

10

Legislate to create a ‘Consultation Unit’ which can legally certify that a project’s consultation is adequate, which would radically reduce consultation-based legal challenges, and ensure developers are not incentivised to ‘over-consult’ when there are additional opportunities for interested parties at the examination stage.

11

Invest in the creation of better environmental databanks, carry out preliminary environmental studies ahead of offshore lease auctions, and mandate that developers share the results of their environmental studies in full.

12

Create a new environmental mapping tool to identify areas most appropriate for new renewable projects (i.e. those with low environmental significance). Designate these areas as Clean Power Zones and adopt Spain’s policy of eliminating the default requirement for environmental impact assessments for all onshore wind (75MW and under) and solar projects (150MWs and under) in these zones.

13

Streamline and enhance environmental protections by replacing Environmental Impact Assessments and Habitats Regulation Assessments with Environmental Outcome Reports and adopting a strategic approach to compensation modelled on the proposed Offshore Wind Environmental Improvement Package.

14

Create a standardised methodology for carbon assessments within National Policy Statements to provide certainty for infrastructure developers and prevent a common source of legal challenges

15

Create a new ‘Right to Repower’ in the National Planning Policy Framework granting automatic planning permission to all upgrades to existing renewable sites provided there’s no significant additional visual impact.

16

Eliminate England’s effective ban on new onshore wind developments by removing the requirement for unanimous consent and replacing it with a Community Safeguard, which allows projects to proceed unless a majority of local residents actively oppose it. New onshore wind developments should be enabled to offer local residents bill discounts.

17

Unlock a ‘Rooftop Revolution’ by creating a Permitted Development Right to install solar panels on all non-listed commercial rooftops outside of Areas of Outstanding Natural Beauty or Conservation Areas.

18

Set up Great British Nuclear (GBN) immediately in a limited form, in order to publish a new siting strategy for new nuclear projects. Delays to GBN due to wider questions around project financing should not be allowed to become a barrier to developers scoping out potential sites and engaging local communities.

19

The National Policy Statement for Nuclear should make clear that SMR and AMRs would be acceptable on any existing nuclear site or site previously deemed suitable for nuclear. Additionally, the NPS should endorse that many disused coal power stations or industrial sites could be repurposed into SMRs and so should benefit from the same policy support.

20

The National Policy Statement for Nuclear should also emphasise the need for standardisation in SMR design to make sure current policy tests around alternatives and good design do not slow the rapid and programmatic build-out of fleets.

21

The FSO should be granted the power to direct Ofgem to approve investment in improving transmission network capacity in line with its understanding of the future system. Texas’ Competitive Renewable Energy Zones, where transmission investments are targeted at areas where regulatory constraints on renewable deployment are lowest, should be considered as a model.

22

Reform grid connections to limit delays by moving from the first-come first-served model to a more market-based system.

23

Set an Energy Systems Operator backed target for 25GWs of long duration energy storage by 2035.

24

Publish a new National Policy Statement for non-battery long duration energy storage technologies to enable the delivery of the 2035 target. As a range of long duration energy storage technologies are subject to geographical constraints the National Policy Statement should designate a range of sites such as salt caverns as appropriate.

25

Reform the energy market for long duration energy storage technologies to de-risk investments in nascent technologies through longer balancing contracts, a level playing field with gas peakers, and contracts that reward the wider benefits of storage beyond spot prices such as meeting thermal constraints.