Power Generation, Transmission and Distribution 2025

UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP

2.5 Surveillance to Detect Anti-Competitive Behaviour . 2.5 Surveillance to Detect Anti- Competitive Behaviour The CMA shares concurrent powers with Ofgem to enforce prohibitions on anti-competitive agreements and make market investigation ref- erences within the gas and electricity industries.

infrastructure project (NSIP) under the Planning Act 2008 and therefore require a development consent order (DCO). Generation projects with a capacity of less than 50 MW are considered under the Town and Country Planning Act 1990. It was recently reported in Scotland that Glen Earrach Energy had submitted its application for a 2 GW pumped storage hydro project near Loch Ness, under Section 36 of the Electricity Act 1989. Onshore Wind Farms The 2015 National Planning Policy Framework (NPPF) only permitted construction of wind tur- bines on land specifically designated by local councils in their development plans and with the full support of local communities. Renew- able energy groups and many other stakehold- ers considered this to be a de facto ban on onshore wind. In September 2023, the govern- ment updated the NPPF to provide that local authorities should approve planning applications for an onshore wind farm if impacts identified by the local community are “appropriately” – rather than “fully” or “satisfactorily” – addressed. How- ever, this amendment made little difference in practice. On 8 July 2024, the new Labour government lifted the de facto ban on onshore wind devel- opment by removing additional restrictive tests and placing the assessment and approval of new onshore wind projects on an equal footing with all other proposed infrastructure. Irrespective of their size, onshore wind farms are considered under the Town and County Planning Act 1990. Facilities between 1 MW and 100 MW require consent from the Marine Management Organisation. Facilities over 100 MW are consid- ered NSIPs and are subject to the DCO regime.

3. Generation Facilities 3.1 Constructing and Operating Generation Facilities

The construction and operation of generation facilities is principally governed by the Electric- ity Act 1989. Specific authorisations required will depend on the size, nature and location of the generation facilities. Section 6 of the Electricity Act 1989 (as amend- ed by Section 186 of the Energy Act 2023) lays down the procedures in respect of the grant, extension or restriction of electricity licences. Unless one of two exemptions applies, an elec- tricity generator must issue an application to Ofgem for a generation licence under Section 6 (1)(a) of the Electricity Act 1989. Once a licence is granted, licensees are required to comply with applicable industry codes. For further details, please refer to 3.3 Approvals to Construct and Operate Generation Facilities . Onshore Generation Facilities For the construction of onshore generation facili- ties over 50 MW in England and Wales, consent from the Secretary of State for Energy Security and Net Zero is required under Section 36 of the Electricity Act 1989. Such generation projects are often classified as a nationally significant

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