The Planning and Infrastructure Bill, introduced in March 2025, is expected to accelerate the deployment of renewable energy in the UK by addressing inefficiencies in the planning system. The bill aims to streamline the approval process for renewable energy projects, including wind and solar, which is vital for achieving the UK Government’s 2030 clean power mission and supporting the decarbonisation of real estate and the broader economy.
Nationally Significant Infrastructure Projects (NSIPs):
- The threshold for wind and solar projects to be considered as NSIPs will increase from 50MW to 100MW. This change is expected to simplify the approval process, enabling local authorities to make more decisions without the need for central government review, potentially speeding up approval times.
Strengthening Climate Change Considerations:
- The bill proposes changes to the National Planning Policy Framework (NPPF), giving more weight to the benefits of low-carbon energy generation in planning decisions. This could increase the likelihood of planning permissions being granted for renewable energy projects.
Grid Connection and "Zombie Projects":
- The backlog of "zombie projects" clogging up the grid connection process, many of which are unlikely to move forward, could be reduced. By fast-tracking viable renewable energy projects and bypassing stalled ones, the system could become more efficient.
Potential Outcomes:
- Faster Approval and Implementation: These changes are designed to shorten the time it takes for renewable energy projects to receive planning permission, addressing the significant delays in the current system.
- Increased Renewable Energy Generation: With quicker approvals and streamlined processes, larger-scale renewable projects may become more feasible, supporting the UK’s decarbonisation goals and helping real estate occupiers and investors meet their net zero targets.
- Lower Operational Emissions: As renewable energy capacity expands, real estate sectors will benefit from a cleaner, more sustainable energy grid, leading to reduced operational emissions and potentially lower energy costs.
In summary, the reforms proposed in the Planning and Infrastructure Bill could not only accelerate the UK’s journey towards a net zero energy grid by 2030 but also benefit real estate investors by improving the sustainability of their properties. The real estate sector, in particular, will gain from faster approvals for renewable energy projects, reducing operational emissions and contributing to long-term growth.
