Select committee: Business, Innovation, Science and Trade Committee

Energy National Policy Statements

Closed Opened 3 Nov 2021 Closed 27 Apr 2023 14 recommendations 6 conclusions
Inquiry scope (the committee's words)
The Business, Energy and Industrial Strategy Committee is to carry out an inquiry into the revised energy National Policy Statements (NPS). The current suite of energy National Policy Statements were designated by the Department of Energy and Climate Change in 2011. The revised energy NPS were tabled by the Government on 20 September 2021 (HCWS295). They set out the Government’s policy for the delivery of energy infrastructure and provide the legal framework for planning decisions in key energy policy areas: fossil fuels (EN-2); renewables (EN-3); gas supply and gas and oil pipelines (EN-4); electricity networks (EN-5); and nuclear (EN-6). They each sit below an overarching energy NPS (EN-1) which sets out the need for new energy infrastructure. The Government announced a review of the current suite of energy National Policy Statements (NPS) in the Energy White Paper: Powering our net zero future in December 2020. The Government launched a public consultation on the draft revised energy National Policy Statements, supporting habitats and sustainability reports and associated appendices on 6 September 2021. This is a separate process to the Select Committee’s inquiry. Inquiry background The Government’s Energy White Paper set a long-term strategic vision for the energy system, consistent with net zero emissions by 2050. The White Paper establishes a goal of moving away from fossil fuels to clean energy and the Government reviewed all the National Policy Statements for energy infrastructure and determined that EN-1 to EN-5 documents should be amended to reflect the policies set out in the White Paper and support the investment required to build the infrastructure needed for transition to net zero. A review of EN-6 concluded that it will not be amended and therefore it does not form part of the Government’s consultation or this inquiry. The NPS has effect for the decisions by the Secretary of State on applications for energy developments that are nationally significant under the Planning Act 2008. For such applications this NPS, combined with any technology specific energy NPS where relevant, provides the primary policy for decisions by the Secretary of State. Under the Planning Act 2008 the Secretary of State must also have regard to any local impact report submitted by a relevant local authority, any relevant matters prescribed in regulations, the Marine Policy Statement (MPS) and any applicable Marine Plan, and any other matters which the Secretary of State thinks are both important and relevant to the planning decision. The NPS must receive Parliamentary approval before new major energy infrastructure can be delivered. The Secretary of State will decide all applications for nationally significant infrastructure projects in England and Wales, adjacent territorial waters and the offshore Renewable Energy Zone (REZ) (except any part in relation to which Scottish Ministers have functions). In Northern Ireland, planning consent for all nationally significant infrastructure projects is devolved to the Northern Ireland Executive.

Where it stands

The inquiry is closed, opened 3 November 2021.

The committee has published 1 report, most recently Ninth Report - Revised (Draft) National Policy Statement for Energy on 25 February 2022.

The government's response

Published 27 April 2023. The deadline was 25 April 2022.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government says it has accepted some of the Committee's 13 recommendations, partially accepted others and not accepted others, and is re-consulting on revised draft energy National Policy Statements following the British Energy Security Strategy.

  • On hydrogen, the government "accepts the Committee's recommendation" to update draft EN-1 and EN-2 for the Hydrogen Strategy, saying EN-1 has been updated and amendments to EN-2 "are not needed". It also accepts the recommendation on fossil fuel resilience, adding a new paragraph 1.1.4 to draft EN-4.
  • It does not accept the recommendation on undergrounding, saying that recommending it in draft EN-5 on resilience grounds "would be unnecessary" and "could slow the delivery of critical infrastructure".
  • On a single National Policy Statement across sectors, the government "has no plans" to create one, though DLUHC "will however consider the merits and possibility of consolidating NPSs over the longer term".
  • On onshore wind, the government agrees it is "an important part of the energy mix" but says local councils will remain responsible for applications. It commits to consult on changes to the National Planning Policy Framework.

Read the government's response ↗ Report an error

Recommendations and conclusions 20 shown

Conclusion 1

Conclusion · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Concluded (the committee's words)
We welcome the fact that EN-1 has been revised to reflect the Government’s commitment to deliver net zero by 2050, and to move away from reliance on fossil fuels. Meeting our net zero target will require a significant scale and pace of change in delivering new energy infrastructure. We therefore welcome the Government’s timely review of the National Policy Statement for Energy and its recognition that significant changes to the planning framework for Nationally Significant Infrastructure Projects (NSIPs) is required.

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Recommendation 2

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
As currently drafted, revised (draft) EN-1 does not provide the “step change” needed to deliver the required scale of new NSIPs at a sufficiently rapid pace to deliver the Government’s net zero aims. This is largely due to ambiguity in the drafting about the relative weight of ‘climate change’ relative to local impacts to be taken into account in making planning decisions. We recommend that revised (draft) EN-1 be further amended to make the Government’s commitment to net zero more explicit and to provide a clear and unambiguous direction to the Secretary of State to prioritise the importance of climate change in decision-making.

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Recommendation 3

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that revised (draft) EN-1 provides clearer direction in favour of the presumption of the delivery of new energy infrastructure required to deliver net zero. We recommend that revised (draft) EN-1 explicitly sets out that the NPS takes precedent over any other conflicting local or statutory bodies’ planning policies. We further recommend that the Government work closely with those local and statutory authorities, to make sure that their planning principles are more broadly in line with the UK Government’s commitment to deliver net zero.

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Conclusion 4

Conclusion · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Concluded (the committee's words)
We recognise that the inclusion of specific targets for the delivery of renewable energy infrastructure within the NPS would provide a clear indication of the Government’s intention to deliver net zero—and give practical application to this principle within the planning process. We acknowledge the Minister’s response that the Government’s targets for specific technologies are set out elsewhere, and that the purpose of updating the NPS was to bring the planning framework in line with those targets.

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Conclusion 5

Conclusion · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Concluded (the committee's words)
If the Government’s targets set for renewables are not to be included within the NPS planning regime, the link between those targets and planning principles must be made explicit in respect of each technology or generation capacity, so that they are clearly understood by planning authorities and industry to facilitate the delivery of renewable energy infrastructure projects

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Recommendation 6

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
The purpose of reviewing the current NPS was to update it to bring it in line with the Government’s Energy White Paper. However, since then, the Government has published a number of key policy documents which are relevant for the effective delivery of nationally significant infrastructure to deliver net zero. We recommend that before the final version of the revised NPS for Energy is laid before Parliament it is further updated to bring it in line with current policy, especially, for example, on 22 Revised (Draft) National Policy Statement for Energy the Government’s plans for hydrogen and Carbon Capture and Storage. It would be a missed opportunity if the revised (draft) NPS was not fully up to date and in line with current Government policy on energy.

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Recommendation 7

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We acknowledge the Government’s view that the NPS should not be overly prescriptive to avoid discouraging the development of new technologies. We recognise that the NPS should also facilitate the development of new technologies in this fast-moving sector. We therefore recommend the clear alignment of the NPS with specific technology roadmaps. The Government should develop technology roadmaps with industry where they don’t yet exist. Explicit and clear cross-references would help to provide clarity both in terms of policy and planning required to encourage innovation and promote the scaling-up of new technologies.

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Recommendation 8

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We note that the current review of the NPS for Energy is the first to have taken place in 10 years. In order to properly take into account the rapid pace of technological change in the energy sector and the need for significant progress towards meeting our net zero target, the NPS must be reviewed more frequently We recommend that the Energy NPS is reviewed every five years.

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Recommendation 9

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that the Department for Business, Energy and Industrial Strategy work with the Department for Levelling Up, Housing and Communities to consider the potential merits of implementing a single National Policy Statement across sectors with sub-sector statements linked to different technology developments. Consideration of this change should be assessed in the light of flexibility and the ability to review parts of the NPS more frequently. The Secretary of State for Business, Energy and Industrial Strategy should write to this Committee no later than February 2023 with the conclusions of this review.

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Recommendation 10

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
As noted above, we recommend that the revised (draft) NPS, both EN-1 and EN-2, be updated to take into account the Hydrogen Strategy.

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Recommendation 11

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recognise the importance of onshore wind as a significant source of clean energy and as a key part of the energy mix required to achieve net zero. The current NPS was reviewed in order to bring the planning framework in line with the policy context set out in the Government’s Energy White Paper. In this context, we recommend that the Government consider the inclusion of onshore wind within the NSIP planning regime.

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Recommendation 12

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that revised (draft) EN-4 includes explicit and precise wording on hydrogen, Carbon Capture and Storage and other technologies that will more clearly demonstrate how the move away from fossil fuels will be achieved. This must specifically include reference to the infrastructure required, for example for the transmission of CO2, and not just the specific types of technology used at source, such as Carbon Capture.

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Conclusion 13

Conclusion · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Concluded (the committee's words)
We also recommend that the NPS include language on maintaining the resilience of fossil fuel infrastructure that will remain in use up to 2035, in line with existing Government policy.

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Recommendation 14

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that EN-5 is updated to reflect the outcome of the Offshore Transmission Network Review (OTNR). We understand the revised Energy NPS is expected to be laid before Parliament before the OTNR is due to be completed. The Department should consider how the potential outcome of the OTNR should be reflected in revised EN-5, but without causing significant delay to the publication of the revised NPS.

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Conclusion 15

Conclusion · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Concluded (the committee's words)
We welcome the clarity in the NPS on undergrounding which will speed up the process for planning electricity connections through designated areas.

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Recommendation 16

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that Ministers consider whether reference to undergrounding should be extended to include application in areas where network resilience, for example to extreme weather events, is considered more likely in the future. We ask that Ministers write to this committee no later than July 2022 with its conclusions.

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Conclusion 17

Conclusion · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Concluded (the committee's words)
We welcome the review of the NPS for energy which updates the planning framework for Nationally Significant Infrastructure Projects in line with the Government’s policy commitments as set out in the Energy White Paper. In doing so, it should help provide the energy infrastructure required to deliver the Government’s net zero target. In order to achieve this, we have made a number of recommendations for further amendments to the revised (draft) NPS in this report, before the revised NPS is laid before Parliament.

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Recommendation 18

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
Overall, we recommend that the revised (draft) NPS needs to place greater emphasis on the impact of climate change and the speed at which new infrastructure will need to be built to meet the Government’s net zero target. It must clearly articulate how the decision-making process will weigh the urgent need for developments which contribute to climate change mitigation, against other relevant considerations. It must unambiguously express that the prime consideration for planning consent for NSIPs for renewable energy is the overall contribution to mitigating climate change and reducing emissions.

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Recommendation 19

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
The revised NPS for energy should be a clear and unambiguous statement of the key principles underpinning the planning framework, thereby allowing a clear statement of intent while also allowing sufficient flexibility to take into account new and emerging technologies. We recommend that the NPS for energy should, however, be closely linked to policy proposals and technology specific roadmaps, which set specific targets for specific sectors - thereby incentivising the development of those new and emerging technologies required to achieve net zero by 2050.

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Recommendation 20

Recommendation · Ninth Report - Revised (Draft) National Policy Statement for Energy · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that Government reviews the NPS for energy at least once every five years and that Ministers ensure the resilience of our energy infrastructure is included in these reviews going forward.

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Reports

1 report

Oral evidence sessions

2 sessions

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Date Session and witnesses Source
18 Jan 2022
Oral evidence session
Gareth Phillips · National Infrastructure Planning Association, Jan Bessell · National Infrastructure Planning Association, Jeremy Allen · Department for Business, Energy and Industrial Strategy, Julian Boswall · National Infrastructure Planning Association, Rt Hon Christopher Pincher MP · Department for Levelling Up, Housing and Communities, Rt Hon Greg Hands · Department for Business, Energy and Industrial Strategy
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7 Dec 2021
Oral evidence session
Aled Rowlands · National Grid, Chris Richards · Institution of Civil Engineers, Danielle Lane · Offshore Wind Industry Council, Dr. Nick Hughes · University College London Institute for Sustainable Resources, Emma Pinchbeck · Energy UK, James Richardson · National Infrastructure Commission, Paul McGimpsey · Energy Networks Association, Tania Davey · The Wildlife Trusts
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Who gave evidence

14 witnesses

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WitnessOrganisationSessions
Aled Rowlands · Head of Corporate Affairs - Electricity Transmission National Grid 1
Chris Richards · Director of Policy Institution of Civil Engineers 1
Danielle Lane · Chair Offshore Wind Industry Council 1
Dr. Nick Hughes · Senior Research Fellow University College London Institute for Sustainable Resources 1
Emma Pinchbeck · Chief Executive Energy UK 1
Gareth Phillips · Lead of the Working Group on the NPS National Infrastructure Planning Association 1
James Richardson · Chief Economist National Infrastructure Commission 1
Jan Bessell · Board Chair National Infrastructure Planning Association 1
Jeremy Allen · Head of Cost of Energy Review Team Department for Business, Energy and Industrial Strategy 1
Julian Boswall · Board Member National Infrastructure Planning Association 1
Paul McGimpsey · Director of Regulation Energy Networks Association 1
Rt Hon Christopher Pincher MP · Minister for Housing Department for Levelling Up, Housing and Communities 1
Rt Hon Greg Hands · Minister of State for Energy, Clean Growth and Climate Change Department for Business, Energy and Industrial Strategy 1
Tania Davey · Marine Planning Manager The Wildlife Trusts 1