Planning and Infrastructure Bill

Baroness Bloomfield of Hinton Waldrist Excerpts

Committee stage
Monday 1st September 2025 Lords Chamber

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I will speak briefly to this group of amendments, which relate to the connections reform provisions within the Bill. These are largely technical and drafting amendments, but they are none the less important to ensure clarity and alignment across the legislation. I agree with many of the issues raised by my noble friends Lady Neville-Rolfe and Lady Coffey, particularly anything that slows down the grid connections process or adds more cost to the consumer.

Let me start by welcoming Amendment 72, in the name of the noble Baroness, Lady Taylor of Stevenage, which, as she stated in her admirably brief opening, makes a simple drafting correction. It removes the definition of “qualifying distribution agreement” from Clause 16, as it is already defined in Clause 13(8). This is a helpful tidying up amendment that improves the consistency of the Bill’s language, and I am grateful to the noble Baroness for bringing it forward.

Amendments 73 to 76, tabled by my noble friend Lord Lansley, would also serve to improve the clarity and coherence of the Bill, particularly in relation to NESO and its responsibilities. Amendment 73 would ensure that NESO is required to have regard to the strategy and policy statement under Section 165 of the Energy Act 2023, rather than the designated strategic plan. This helps to bring the language of the Bill in line with existing legislation and policy frameworks.

Amendment 74 makes a similar adjustment to Clause 17, ensuring that NESO must have regard to the strategic priorities set out in the strategy and policy statement under the 2023 Act. Amendment 75 then defines “strategic priorities” as those contained in the most recent strategy and policy statement issued under that Act—again reinforcing consistency and legal precision. Amendment 76 replaces references in Clause 17 to “designated strategic plans” with “strategic priorities”, to align terminology with Section 165 of the Energy Act 2023. My noble friend Lord Lansley has put forward a strong case for these changes to the Bill, and they appear to be sensible and constructive amendments.

Finally, Amendment 79, in the name of the noble Earl, Lord Russell, raises an important issue by highlighting the delays and high costs associated with connecting to the national grid. This amendment addresses a key barrier to energy development and considers the use of local grids as a way of improving efficiency.

This has been a good, thoughtful and short debate. I look forward to hearing the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is reassuring to hear such a degree of consensus across the House that we all want to deliver the same thing from this—speeding up the connections process. I have expressed my frustration many times before in this House that it can take longer to get a grid connection than it did to build the whole of the A1(M). That is a just a nonsense and we have to move on from it.

I thank all noble Lords who have spoken in this brief debate, particularly the noble Lord, Lord Lansley, and the noble Earl, Lord Russell, for their amendments, and the noble Baronesses, Lady Neville-Rolfe and Lady Coffey, for their comments.

I am afraid I have to oppose the amendments from the noble Lord, Lord Lansley. I understand how well intentioned they are and I greatly respect his experience in these areas, but they would have significant unintended consequences for the Government’s ability to respond swiftly and effectively to the evolving needs of our energy system.

At the heart of the amendments is a proposal to require that the strategy and policy statement, also known as SPS, designated under Part 5 of the Energy Act 2013 is used for the purpose of prioritising connections to the electricity network. I recognise the helpful attempt by the noble Lord to ensure consistency and clarity with regard to the obligations of Ofgem and the National Energy System Operator, NESO. I also fully recognise the importance of parliamentary scrutiny and do not for a moment suggest that we should seek to avoid that. But we must also be honest about the practical implications of this approach.

The SPS is subject to a rigorous process that is entirely appropriate for a high-level, overarching statement of policy. But it is not designed to accommodate the pace or specificity required to support the complex and fast-moving reforms we are undertaking to unblock and accelerate electricity network connections. We are entering a period of rapid transformation. The grid must decarbonise. New technologies are emerging. Electricity demand is shifting and increasing and the connections process must evolve to keep up.

In that context, the Government must be able to designate timely targeted guidance, potentially in the form of multiple documents, tailored to different parts of the sector, such as generation or demand connections, or technology-specific plans and strategies. Indeed, the Government have already signalled their intention to designate the Clean Power 2030 Action Plan and the Industrial Strategy—both existing documents published recently—when the necessary powers are available. These are concrete, strategic documents that will help the industry to plan and invest with confidence, hopefully meeting some of the concerns of the noble Baroness, Lady Neville-Rolfe. But these amendments would prevent that. They would limit us to a single document—the SPS—and, in doing so, tie our hands at precisely the moment we need the most flexibility, creating potential delays and preventing the granular and specific strategic direction required for the grid connection process.

There is a further and more fundamental issue. Distribution network operators—DNOs—have no legal obligation to have regard to the SPS. These companies are critical to the delivery of connections reform and are responsible for connecting a significant volume of new generation and storage that will connect directly to the distribution network. They are privately owned and operated and the SPS was never intended to bind them. To attempt to do so now would be not only inappropriate but unworkable.

If we are serious about reforming the connections process—as I believe we are; we have heard that this afternoon—we must ensure that our strategic plans can apply to the full range of actors involved. That means having the ability to designate plans that are fit for purpose, timely and applicable to the right parties. The strategy and policy statement is a high-level strategic document intended to provide Ofgem and NESO with clear direction over the Government’s strategic priorities and desired outcomes for the duration of our term to inform decision-making. In contrast, as I have said, designated plans for the purpose of connections reform may include more granular, tactical guidance. These documents are designed to complement, not conflict with, the SPS.

In response to the noble Lord, Lord Lansley, I would also say that plans are in place and being implemented for the connections to the transmission and distribution system. In November 2023, as the noble Lord mentioned, the Connections Action Plan was published, setting out expectations for the scale and pace of reform. This formed the basis for the National Energy System Operator’s connection reform proposals, which Ofgem have just approved. The broad ambition, on which legislative measures have been based, will see faster electricity network connection dates offered, at both transmission and distribution.

The noble Lord asked me a very specific question around the Gate 2 process. The implementation of current connection reforms is under way, as I said. We are working closely with NESO and Ofgem, and we are anticipating the Gate 2 decisions in the coming weeks; “coming weeks” is one of those expressions that I have got used to as I have been a Minister.

The Bill as drafted is intended to ensure that we have the tools to deliver the energy transition effectively. The measure as drafted strikes the right balance. We believe that it provides a clear mechanism for designating strategic plans while preserving the flexibility —which we know we will need—to respond to a rapidly changing sector. I therefore kindly ask the noble Lord not to press his amendments.

I turn now to Amendment 79, tabled by the noble Earl, Lord Russell. He said that he believes this is the biggest change since the Industrial Revolution in terms of power accessibility. I do not disagree with that statement. Let me begin by stating that we are in full agreement that the current delays arising from the first come, first served approach to grid connections are absolutely no longer tenable; I hope I have made that very clear. For this reason, in December 2024, the Government published the Clean Power 2030 Action Plan. This document outlines our plan to work collaboratively with the National Energy System Operator—NESO—and Ofgem to deliver a fundamental overhaul of the connections process.

The objective is to accelerate connection timelines for the most critical projects and to unlock billions of pounds of investment for renewable energy generation. Through the implementation of these reforms, it is estimated that up to £5 billion in unnecessary network reinforcements could be avoided. In turn, this should lead to long-term savings for consumers through lower electricity bills.

The reforms in question have been developed by NESO in close consultation with both industry stakeholders and Ofgem, following all requisite formal procedures, including public consultation. Ofgem has since approved these proposals and implementation is now well under way, as I have already mentioned.

This Bill is intended to support the reforms. Notably, the Bill will confer powers on the Secretary of State to designate strategic plans. These plans must be taken into account by both NESO and distribution network operators when exercising their functions in relation to grid connections.

It is anticipated that the Secretary of State will initially designate the Clean Power 2030 Action Plan and the Industrial Strategy, followed in due course by the proposed strategic spatial energy plan. These strategic documents are designed to reflect the needs of the nation’s energy system, including measures to address the inefficiencies of the current grid queue by prioritising projects of greatest national importance. Introducing a new statutory requirement for a further plan would risk delaying this progress and might introduce unwelcome uncertainty for industry participants.

On the matter of local energy grids, we do not consider that there is any regulatory impediment. The necessary infrastructure, including local networks that integrate both generation and demand, is already permissible. Such networks may be developed and operated by distribution network operators or independent network providers, or under private wire arrangements via statutory licence exemptions.

We are also firmly committed to supporting local and community energy initiatives. These play a vital role in the UK’s broader energy landscape and we are determined to ensure that communities continue to benefit directly from the transition to clean energy. We will be discussing more about that later this afternoon.

To that end, Great British Energy will work in partnership with mayoral combined authorities, community energy organisations and the devolved Administrations. This collaboration will include the provision of funding and strategic support, from planning advice to technical guidance, for local community energy stakeholders. I trust this explanation provides sufficient reassurance to noble Lords.

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[Lord Cromwell (CB)]

I just underline that the missing ingredient in this debate is actual numbers on the costs. There is a lot of theoretical toing and froing this afternoon but what we really need in this discussion is a hard number cost for, say, 100 metres of buried cable as opposed to, say, the cost of a pylon. I asked a Written Question about a pylon some months ago and got a wonderfully “Yes Minister” Answer: “Of course, all pylons are different and some pylons are more equal than others, but it is all very difficult so I can’t give you an answer”.

I hope that we can do a bit better than that. It would be great to know the cost of, say, 100 metres or 500 metres—whatever is the right metric—of buried cable and pylon with the equivalent cable. Until that answer is before us—I suspect that it will be a lot more expensive—we are not going to lay this debate to rest. I think that everybody, on all sides of this Committee, would like to see the cables buried. The question is at what cost and whether that cost is worth it. Until we have that number, we are just talking theory.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, Amendment 78 from the noble Earl, Lord Russell, and Amendment 79A from my noble friend Lord Swire deal with the critical issue of grid capacity and connectivity, which sits at the heart of the Government’s ambitions to decarbonise the UK’s energy system and deliver the infrastructure necessary to meet their ideological clean power 2030 target.

Amendment 78 would place a duty on the Secretary of State to consult on and implement measures to give electricity distribution operators new powers. The distribution and transmission of electricity is intrinsic to the production and utilisation of clean energy. Without access to the grid, energy infrastructure remains little more than an expensive stranded asset.

The case for action is clear. As we know, the great grid upgrade is a vital part of our pathway to net zero, yet, at present, new energy developments such as wind farms and solar parks are experiencing unacceptable delays when it comes to grid connection. Some projects face waiting times of up to 10 years—delays that threaten both investor confidence and the credibility of our decarbonisation goals. That is why the previous Conservative Government took decisive steps in commissioning the Windsor review, which examined the obstacles to timely grid connectivity. We are of course proud to say that all 43 recommendations of the Windsor review were accepted by the Government—a clear signal of our commitment to reforming the system and bringing forward vital improvements.

Yet we must recognise the scale of the challenge. Even with those reforms under way, projects without current grid connectivity may not come online until the mid-2030s. That is simply not compatible with the Government’s aim of a decarbonised grid by 2030. It is essential that the development of the national grid moves in lockstep with the pace of renewable energy production and infrastructure delivery.

Therefore, Amendments 78 and 79A raise serious and timely issues. We must ensure that our grid strategy is not only fit for today but future-proofed for the decades to come. The principles of transparency—clear delivery timelines and strategy—and strategic planning for capacity must be at the core of that effort. That said, I note that Amendment 78 would require the Secretary of State to consult on and implement measures to establish these new powers. There is perhaps a case to make for Parliament to have a say before the Secretary of State takes steps to implement powers that have come up as part of the consultation. I would be interested to hear whether the noble Earl, Lord Russell, might be open to strengthening parliamentary oversight here.

Amendment 79A from my noble friend Lord Swire is a good and thoughtful probing amendment. I recognise his continual efforts in drawing this issue to this House’s attention. It seeks to explore how the planning system might better encourage the use of buried cabling as an alternative to overhead powerlines. This is an important point, particularly for rural communities where overhead transmission infrastructure can have a significant visual, environmental and social impact. Although undergrounding is not without cost or technical complexity, the long-term benefits in certain locations can outweigh those challenges. My noble friend is right to raise this. I hope that the Government will consider whether there are planning reforms that could help to support a more strategic and locally sensitive approach to powerline deployment.

The Minister may not be aware of the very active groups in Wales resisting the march of pylons through the Teifi and Tywi valleys. These groups are uniting the opposition parties against the Senedd Labour Government. The one I know particularly well is the Llandeilo Community Group Against Pylons.

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When I read Amendment 82B in the name of the noble Lords, Lord Offord of Garvel and Lord Roborough, I was not against it but questioned why they particularly wanted to bring it forward. The noble Lord has clarified that it is basically seeking to monitor and get a sense of what is happening with the introduction of this long-duration energy storage. Recently, we had the House of Lords report on this, and it is an important part of our energy transition and the stability of our network. To be clear, this was not in any way the cause of the fire in the Iberian peninsula. The noble Lord, Lord Roborough, says that there should be a five-year reporting mechanism. I ask him whether that needs to be shortened. I am not against his amendment, but, considering we are to have clean power for 2030, to be effective we would really need a yearly reporting mechanism. With that, I welcome both amendments.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, Amendment 82B from my noble friends Lord Offord of Garvel and Lord Roborough would require the Secretary of State to report on the impact of this Bill on the UK’s long-duration electricity storage capacity. It is both reasonable and necessary. The new clause in Clause 25 makes reference to a scheme designed to encourage the development and use of long-duration electricity storage installations, but, as with any major intervention in our energy system, it is essential that we couple ambition with accountability. That is precisely what this amendment seeks to ensure.

The case for energy storage is seemingly clear. All sides of this Committee recognise the need to address the intermittency of renewable sources, particularly wind. Storage is seen as part of that solution, but we must be realistic about the scale of the challenge. We are often told that battery storage will save us; that it will plug the gap when the wind does not blow. But let us look at the numbers. The UK’s average daily electricity demand is 780 gigawatt hours. Our current battery storage capacity is roughly 12 gigawatt hours, which would keep the lights on for approximately 30 minutes. Globally, total battery storage is around 369 gigawatt hours—enough to power the UK for barely a day. This is not to dismiss the importance of innovation nor the promise of new technologies but to say we must deal in facts. We must measure progress and we must understand whether the scheme we are legislating for is delivering results. The requirement to report to Parliament on the impact of this Bill in this crucial area is not bureaucracy; it is oversight and it is responsible governance.

I now turn briefly to Amendment 82A, tabled by my noble friend Lord Fuller, which addresses the important and growing issue of fire safety in relation to long-duration electricity storage systems. However, I should say not all long-duration energy storage systems—and I think I can probably justify squeezing in another Welsh reference here to First Hydro’s schemes at Dinorwig and Ffestiniog power stations and the proposed Dorothea pump storage scheme, none of which will cause safety or fire issues.

As we move towards decarbonising our energy grid and increasing our reliance on renewable sources, long-duration energy storage is set to play an increasingly central role in stabilising supply and ensuring resilience. These technologies, whether battery-based, thermal or otherwise, are argued to be essential to the UK’s clean energy future. But with innovation comes responsibility, and we must be alert to the safety implications that accompany some of these new forms of infrastructure.

Amendment 82A rightly recognises that some forms of long-duration energy storage, particularly those involving large-scale batteries or other flammable components, pose inherent risks, especially in the event of fire. These are not theoretical concerns. We have seen incidents, both here and internationally, where energy-storage sites have suffered fires that require significant emergency service intervention and in some cases posed serious threats to nearby communities. This amendment seeks to introduce a sensible precaution that proposals for such technologies should be developed in consultation with the local fire and rescue authority. This would help ensure that any fire risks are assessed and mitigated early in the planning process and that emergency services are properly informed and prepared should an incident occur. As we roll out more of these systems in urban and rural settings alike, that reassurance will be crucial not just for planning authorities and operators but for the public.

This is a pragmatic and proportionate amendment. It reflects legitimate public concern and supports our wider objectives without compromising safety. I look forward to hearing the Minister’s response and, I hope, his assurance that public safety and fire risk will remain at the forefront of policy and operational planning as we deliver the energy infrastructure of the future.

[Lord Khan of Burnley (Lab)]

My Lords, Amendment 82A, tabled by the noble Lord, Lord Fuller, seeks to require long-duration electricity storage—LDES—operators to consult local fire authorities to assess the project’s fire risk before installation. I want to assure the noble Lord that this Government take fire safety extremely seriously, but we do not feel this amendment is necessary or proportionate, and it risks unintended consequences. I personally want to say to the noble Lord that, since fire has come from the Home Office into MHCLG, I have the ministerial responsibility for fire, and the noble Lord is welcome at any time to drop me a line to discuss anything related to this point or any concerns around fire safety.

The Health and Safety Executive regulates battery-energy storage system—BESS—sites within a robust framework that mandates battery designers, installers, and operators to uphold high safety standards. Our planning practice guidance encourages developers of BESS sites to engage with local fire and rescue services prior to the submission of their planning application and to consider the National Fire Chiefs Council’s guidance, so that matters relating to fire safety can be considered at the outset. However, we are going to go further than this. The Government are considering additional measures to enhance the regulation of the environmental and safety risks of BESS. Defra recently published a consultation on proposed reforms to environmental permitting for industry, including the principle of including BESS in scope of the environmental permitting regulations. This would give further safeguards for both people and the environment.

This amendment would add burdens to local fire and rescue services. Further changes to the long-duration electricity storage cap and floor scheme would add complexity to the system, which would lead to increased cost and time for the applicant. I hope that the noble Lord, Lord Fuller, is satisfied with my response, and I kindly request he withdraws his amendment.

Amendment 82B, tabled by the noble Lords, Lord Offord of Garvel and Lord Roborough, requires the Secretary of State to report to Parliament on the impact of the Planning and Infrastructure Act on the UK’s long-duration electricity storage capacity within five years of it being passed. I want to assure the noble Lords that this Government are committed to monitoring the development of the UK’s long-duration electricity storage capacity, as well as our wider clean power 2030 ambitions. Ofgem is proceeding at pace with the delivery of the first window of the cap and floor regime, and expects to announce final decisions on successful projects, in both the 2030 and 2033 delivery tracks, in the second quarter of next year. Ofgem will remain closely involved in monitoring delivery of those projects, and information on their features and progress will of course be made public at the appropriate stage, as they would be for any other major generation projects.

The Government publish statistics on the UK’s electricity storage capacity annually in the Digest of UK Energy Statistics—DUKES. This currently includes pumped storage hydro and grid-scale batteries. Other types of LDES will be added to the publication when they become operational. The Government also have a statutory duty to report on their carbon budget progress under the Climate Change Act 2008. For instance, the Act requires the Climate Change Committee to provide an annual report to Parliament on the UK Government’s progress in reducing greenhouse gas emissions, and we would expect future reports to include all relevant and significant developments in this regard, including those on delivery of the LDES cap and floor. The Government have a statutory duty to lay their response to the Climate Change Committee’s progress report before Parliament.

Given these existing monitoring and reporting commitments, this amendment to create additional reporting requirements is not necessary. I trust that the noble Lords, Lord Offord and Lord Roborough, are satisfied with our responses and I therefore kindly ask them not to press their amendments.