UK Decides to Optimize Deployment Process for Large PV Projects, Raising Capacity Threshold to 100MW [SMM Analysis]

The UK government has confirmed plans to adjust the planning threshold for large PV projects in the UK, delegating more decision-making power to local planning authorities.

Under current regulations, projects in the UK with a capacity exceeding 50MW must go through the Nationally Significant Infrastructure Projects (NSIP) process, a more complex and costly planning procedure compared to seeking approval at the local level. The government had previously proposed raising the PV capacity threshold to 150MW but has announced plans to double the threshold to 100MW following public consultation.

The new policy will simplify the approval process for some PV projects, but how PV projects will navigate the UK's Local Planning Authorities (LPA) remains an unresolved issue, as the approval process for large PV projects close to 50MW has already been very challenging. Moreover, most large PV projects exceed the 100MW capacity. However, while this change in the approval process policy serves as a transitional measure, it is expected to inject new vitality into the UK PV market and pave the way for further simplification of procedures in the future.

This month, the UK government also committed in the "Clean Energy 2030 Action Plan" to increasing PV capacity in the UK's power generation mix by approximately 30GW by 2030. Reforms to the grid connection process will continue, and with regulatory approval, system operators will gain greater flexibility in managing project queues. This may lead NESO to manage queue order based on supply surplus and shortages. Regulations will be established to avoid impacts on projects already under development, such as those with planning permission or supported through mechanisms like CfD or the capacity market. The government plans to introduce legislation to support the grid connection of large projects, including measures to expedite the approval of critical infrastructure such as power grid upgrades.

As of October 2024, the UK's cumulative installed PV capacity exceeded 17GW. With the new policy changes, reforms aimed at accelerating the deployment of larger-scale PV power stations in England are underway.