Ambitious aims for energy reform require bold funding

The six draft National Policy Statements (NPSs) are designed to speed up the planning process for major energy projects to help enforce this investment. However, the new drafts do not prioritise low-carbon generation and renewables over conventional capacity.

New Government rules on energy policy could lead to a second 'dash for gas', delaying critical investment in renewables and other low carbon technologies and making the UK's climate change targets impossible to achieve. Also, development of too much gas capacity could crowd out opportunities for renewables to form a substantial component of the UK's energy mix.

The Committee is also sceptical of the Government’s ability to deliver its aims on nuclear power. Ministers told the Committee that the NPSs should enable the development of 16 GW of new nuclear plant by 2025; two new nuclear plants each year.

It raises concerns about the level of investment uncertainty created by giving Ministers the ultimate power to decide on planning decisions.

Recommendations include:

• The Localism Bill to set out explicit criteria to assist the Secretary of State in decision-making
• A call for more clarity in coordinating developments
• Political certainty for investors having to make decisions with long-term planning horizons.

National Policy Statements are intended as a blueprint for decision-making on individual applications for development consent for energy infrastructure.

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