Onshore Electricity Generation: Consultation on increasing the threshold for applications under The Electricity Act – Partial Business And Regulatory Impact Assessment (BRIA)

Section 1: Background, aims and options

Background to policy issue

In Scotland, applications for onshore electricity generation projects are considered through two different routes. Scottish Ministers are responsible for deciding applications to build, operate or modify onshore electricity generating stations with capacities exceeding 50 megawatts (MW) under powers contained in the Electricity Act 1989. Applications concerning onshore electricity generating stations with capacities of 50MW or less are largely decided by planning authorities under the Town and Country Planning (Scotland) Act 1997, as amended.

Tackling the climate emergency has led to a significant increase in proposals for new electricity generating stations, and more powerful electricity generation technologies have resulted in greater numbers of applications for projects exceeding the 50MW threshold and requiring consent from Scottish Ministers. Statistics from our Energy Consents Unit (ECU) show that the volume of applications made to Scottish Ministers has more than quadrupled over the last 20 years, with 15 applications made between 2001/03 and 70 applications made between 2021/23.

Information from the renewable energy planning database (REPD) shows that, in Q1 2025, almost half of all Scotland’s applications for renewable energy developments were submitted to Scottish Ministers for determination. This trend towards decision-making by Scottish Ministers has led to some local authorities, communities and campaign groups to call for more local decision-making and increased local accountability.

Fulfilling a commitment to the Scottish Parliament’s Citizen Participation and Public Petitions Committee in response to Petition PE1864, the February 2024 Investing in Planning consultation invited views on whether the 50MW threshold should be altered, whether different thresholds should apply for different technologies, and on the likely resourcing implications of increasing the threshold. Our consultation analysis shows mixed views. Planning authorities, communities, and third sector groups were generally in favour of change, whilst industry, including property and the land management sector, represented the majority of those not in favour.

Purpose / aim of action and desired effect

Increasing the 50MW threshold would result in more applications for electricity generation projects being decided at a local level by planning authorities under the terms of the Town and Country Planning (Scotland) Act 1997, instead of being decided at a national level by Scottish Ministers under the terms of the Electricity Act 1989.

This action would allow for greater alignment with the approach set out in the Verity House Agreement that decision-making should be ‘local by default, national by agreement’ and would support the intention that public responsibilities should generally be exercised, in preference, by those authorities which are closest to the citizen.

This action could potentially help address resourcing challenges experienced by local authority planning departments. Under current arrangements, planning authorities are assigned a voluntary contribution, amounting to 50% of the fee paid to Scottish Ministers for applications made under the Electricity Act 1989, so that they can undertake work to consider the application as a statutory consultee. Increasing the 50MW threshold would mean that planning authorities would be able to attract the full fee for considering more applications in their role as a determining authority. Planning authorities have highlighted that limited additional resource is required to determine such applications when compared to the significant work they already undertake as statutory consultees under the Electricity Act.

This action would allow for more applications to be determined according to the processes set out under the Town and Country Planning (Scotland) Act 1997, as amended, for which the statutory development plan has ‘primacy.^[2]’

Options (considered so far/ still open)

The following options are currently under consideration:

• Option A: No change
• Option B: Increasing the 50MW threshold to 100MW for some or all technologies
• Option C: Increasing the 50MW threshold to 150MW for some or all technologies

Scottish Ministers can make changes to the type, characteristics and capacity of electricity generating stations which require consent under S36 of the Electricity Act by an order which must be laid before the Scottish Parliament. Options B and C involve amending the 50MW threshold to 100 and 150MW respectively for some or all types of electricity generation projects.

Sectors/ Groups affected

• Renewable Energy Sector

Research by the Fraser of Allander Institute indicates that Scotland’s renewable energy industry and its supply chain supported more than 47,000 jobs and supported £15.5 billion of output in 2022. The technologies that individually supported the most FTE employment are offshore wind (19,580), onshore wind (16,865), renewable heat (4,095) and hydropower (3,560).

• The Scottish Government’s Energy Consents Unit (ECU)

The Scottish Government’s Energy Consents Unit (ECU) administers applications for Electricity Act consents on behalf of Scottish Ministers.

• The Scottish Government’s Planning and Environmental Appeals Division (DPEA)

The Scottish Government’s Planning and Environmental Appeals Division (DPEA) processes and determines appeals submitted to them under the terms of the Town and Country Planning (Scotland) Act 1997, as amended. DPEA also process, conduct and report on Public Local Inquiries (PLIs) held under the terms of the Electricity Act 1989.

• Local Authority Planning Departments

Local authority planning departments process and determine applications submitted to them under the terms of the Town and Country Planning (Scotland) Act 1997, as amended. They also provide advice to the Scottish Government’s Energy Consents Unit (ECU) on the determination of Electricity Act 1989 applications in their role as a statutory consultee.

• Communities / Third Sector

Individuals, communities and a range of third sector organisations engage in processes being carried out under both planning and energy legislation.