Spotlight: Energy Independence Bill, mandatory BNG and the new National Scheme of Delegation

The Energy Independence Bill leads Spotlight this week. Introduced on 4^th November, it would make community benefit agreements legally binding for new onshore wind and ground-mounted solar projects over 5MW and gives communities the right to a stake of up to 20% in renewable schemes. For developers, community benefit and shared ownership now need to be built into project planning. Separately, energy minister Michael Shanks confirmed a pause before AR9 while the Contracts for Difference scheme is reviewed, a signal investors – and Luminate – will be watching closely.  

In infrastructure, mandatory biodiversity net gain now applies to every NSIP application made from 2^nd November.  Data centres remain in focus: National Grid has agreed to buy land at Teesworks' Dorman Point for what is expected to be Britain's largest substation, initially adding 1.44GW for a planned neighbouring data centre. Tees Valley mayor Ben Houchen estimates that the wider site has potential capacity of up to 3.2GW. It follows last week’s draft National Policy Statement and Data Centre Covenant, which offer a presumption of consent for the largest schemes in return for substantial local benefit.  

In development, the new National Scheme of Delegation took effect on 31^st October, moving routine applications to officers and capping committees at 13 members. Government has also widened its PlanAssist AI trial to 15 councils, aiming to halve householder application times and free up officers to deal with trickier applications.

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Spotlight on next week:

• Andrew George’s Homes and Planning Bill, a Liberal Democrat Private Members’ Bill, has its second reading on Friday 13 November. It is not expected to become law.

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This week’s headlines:

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ENERGY

TOP STORY: ✒️ Energy Independence Bill overview | Fact sheet from the Department for Energy Security and Net Zero

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The Energy Independence Bill, introduced to Parliament on 4^th November, is a broad package aimed at cutting bills, boosting clean power and making communities share in the benefits. For developers, the major point of relevance is that operators of new onshore wind and ground-mounted solar projects would have to pay into community benefit funds, and communities will be able to buy larger shares in more projects. The Bill also backs the Warm Homes Plan, speeds up grid and clean power infrastructure, ends new oil, gas and coal licensing and bans fracking.

Luminate will be tracking the bill as it passes through parliament.

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We’ve also been reading:

✒️ Sea Link development consent decision announced | Planning Inspectorate Sea Link project page

✒️Energy reforms to cut bills and put power back in people's hands | Press release from Department for Energy Security and Net Zero, The Rt Hon Andy Burnham MP and The Rt Hon Miatta Fahnbulleh MP

✒️ Planning for fusion | Report from the Energy Security and Net Zero Committee into nuclear fusion

🗣️ Chancellor putting billions of offshore wind investment at risk, warns Aberdeen Chamber | Press Release from Aberdeen & Grampian Chamber of Commerce

📰 Shanks plans for AR9 ‘pause’ | Energy Voice

📰 Renewable groups will have to invest in UK communities where they build projects | Financial Times (paywall)  

📰 UK policy shift could derail floating wind ambitions, Scottish chamber warns | Recharge  

📰 The Great British Grid is only half the answer: Britain also needs flexible demand | pbc today

📰 BW ESS puts Europe’s largest BESS into commercial operation in the UK | Energy-Storage.News  

📰 French firm eyes a fresh chunk of UK nuclear | POLITICO  

📰 UK's October power balancing tab tops £561 million as gas prices and grid bottlenecks bite | Briefs Finance  

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INFRASTRUCTURE

TOP STORY: ✒️ Biodiversity net gain: nationally significant infrastructure projects | Guidance from Department for Environment, Food & Rural Affairs

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From 2^nd November, biodiversity net gain is mandatory for NSIPs in England: any DCP application made on or after that date must deliver 10% net gain. Defra’s biodiversity gain statements now carry the same weight as national policy statement. Applications submitted before 2^nd November, and later changes to those DCOs, are exempt. For developers, BNG now needs to form an important part of site selection, land strategy and scheme design from the outset.  

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We’ve also been reading:

✒️ Communities to get a stronger say over billions of pounds of water investment | Press release from Department for Environment, Food & Rural Affairs, The Rt Hon Dame Angela Eagle DBE MP and The Rt Hon Andy Burnham MP

📰 National Grid to site biggest substation in UK near planned Teesside datacentre | The Guardian

📰 Drax unveils £20bn plans for new data centre – powered by burning wood | City AM

📰 Infrastructure key to Britain’s industrial development success | pbc today

📰 Consistency without uniformity: Unlocking water infrastructure investment | Water Magazine

📰 Prospect report warns UK infrastructure resilience demands long-term political commitment | Digital Infrastructure

📰 AI data centres could undermine UK's emissions goals | BBC News  

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DEVELOPMENT

TOP STORY: ✒️ Faster planning decisions as new rules and AI tackle delays | Press release from Ministry of Housing, Communities and Local Government and The Rt Hon Angela Rayner MP

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From 31^st October, straightforward planning applications, such as home extensions, loft conversions, minor commercial schemes and housing schemes of up to nine homes are decided by planning officers and can no longer go to committee. Ward councillors also lose the ability to call applications in.  

The government is also rolling out PlanAssist, an AI tool designed to streamline the planning process, to 15 councils. In early trials the AI tool cut time on key tasks by 58% and aims to halve routine householder processing times from eight weeks to four. It aims to reach every English council by the end of 2027, though councils won’t be required to use it. The government also says it has recruited 420 planners, surpassing its manifesto target of 300.

Faster decisions won’t fix demand. Ibstock’s sales slump and Savills’ forecast of no recovery until 2028 show the wider market is still stalled.

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We’ve also been reading:

✒️ Local Government Reorganisation moves forward in five counties | Press release from Ministry of Housing, Communities and Local Government and Jim McMahon OBE MP

✒️ National Housing Bank invests up to £70 million in Fiera Real Estate and Packaged Living | Press release from National Housing Bank and Homes England

📰 Sales slump at UK’s largest brickmaker as housebuilding downturn deepens | The Guardian

📰 OBR estimates return to council housebuilding boom would require up to £4bn extra each year on top of SAHP cash | Inside Housing  

🗣️ UK housing market recovery expected to be delayed until 2028 | Savills

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