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

Section 3: Costs, impacts and benefits

Quantified costs to businesses

Impact on Business

Increasing the 50MW threshold is likely to vary the fee payable by businesses for submitting applications for energy developments. Electricity Act applications are subject to fees set out under The Electricity (Applications for Consent and Variation of Consent) (Fees) (Scotland) Amendment Regulations 2022 (December 2022), whereas planning applications are currently subject to fees set out under the Town and Country Planning (Fees for Applications) (Scotland) Amendment Regulations 2025 (9 June 2025). Planning application fees are subject to an annual inflationary increase.

These fee structures are not directly comparable, and raising the 50MW threshold would impact on businesses differently depending on the technology proposed, its overall footprint, and the requirement or otherwise for Environmental Impact Assessment (EIA). The below table compares the maximum planning application fee for certain project types with the equivalent Electricity Act application fee and gives a broad indication of the application costs to business. This analysis shows that applications for solar and hydropower projects are likely to become significantly cheaper for developers, however applications for onshore wind, which currently are the most common type of application over 50MW, as well as other technologies with a capacity up to 100MW may become more expensive depending on their overall land-take. Our engagement with industry suggests that the cost of applying for planning permission is considered in most cases to be a small part of the overall cost of development, however.

In the event of non-determination or refusal by planning authorities, developers have the right to make an appeal to the DPEA.

In cases where a developer wishes to appeal against the refusal of a planning application, they must pay a fee to DPEA. These fees amount to approximately 40% of the original application fee and are set out in The Town and Country Planning (Fees for Appeals) (Scotland) Regulations 2025. In cases where a developer wishes to appeal on the basis that their planning application has not been decided within statutory timeframes (non-determination), they are not required to pay a fee to DPEA.

Impact on Public Sector

Increasing the 50MW threshold is likely to impact on resourcing across the public sector with more applications for energy developments being determined at a local level by planning authorities.

Statistics from the Renewable Energy Planning Database (REPD) indicate that, during Q2 2025, 103 out of 131 applications for electricity generating stations considered by the ECU had a capacity of between 50MW and 150MW. This change would therefore reduce the number of applications made to the ECU and result in a loss of fee income to the Scottish Government.

Under current arrangements, local authority planning departments 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 allow planning authorities to attract the full planning fee for considering more applications in their role as a determining authority. For onshore wind, this could draw in over double the revenue that local authorities typically receive when considering Electricity Act applications. While this change would give rise to additional work for local authority planning departments, it is not anticipated that this would result in a significant extra strain on resourcing. This is because 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.

Should this change give rise to non-determination of more applications or additional application refusals by local authority planning departments, there is a potential that this change could impact on DPEA through increased appeals. In cases where applications are appealed on the grounds of a refusal, DPEA would be able to draw in a fee amounting to approximately 40% of the original planning application fee.

Where appeals are made to DPEA, the level of resource required to determine an appeal made under the terms of the Town and Country Planning (Scotland) Act 1997, as amended, is considered to be appreciably less than the resource required to undertake a Public Local Inquiry (PLI) under the terms of the Electricity Act 1989 – for which they do not draw a fee.

Other impacts

By attracting additional application fees into local authority planning departments, this change could help address on-going resourcing challenges and deliver benefits to other sectors, such as housing, that also rely on the planning system. The current arrangements whereby the ECU allocate 50% of the fee for Electricity Act applications are voluntary in nature, and planning authorities have noted that the statutory nature of the planning application fee gives greater certainty that a fee will be paid.

There is potential for adverse impacts on businesses should this change lead to reduced confidence within the development sector from the shift to more local decision making for electricity generating stations with a capacity less than 150MW. From our engagement with industry, we know that developers value the strategic oversight and sense of priority afforded to projects which are subject to centralised decision-making within the Scottish Government. National Planning Framework 4 nevertheless gives clear priority to Strategic Renewable Electricity Generation and Transmission Infrastructure which is classed as a significant development of national importance (National Development 3). National development status establishes the need for such infrastructure and ensures the principle of development does not need to be assessed again at the consenting stage. This helps provide more certainty for developers and communities.

Short term adverse impacts may also arise where there is disruption to established planning procedures for electricity generating stations. This would need to be mitigated by carefully handled transitional arrangements.

Scottish firms’ international competitiveness

Under plans announced in their Clean Power 2030 Action Plan, the UK Government have signalled their intention to reintroduce on-shore wind into their Nationally Significant Infrastructure Projects (NSIP) consenting regime with a threshold of 100MW and to alter the threshold for solar to 100MW. For BESS applications, The Electricity Storage Facilities (Exemption) (England and Wales) Order 2020 says that all applications for BESS should be decided by planning authorities at a local level, regardless of electricity generation capacity.

Benefits to business

Increasing the 50MW threshold is likely to streamline the planning process for electricity generating stations. By attracting additional fees into local authority planning departments, this change could also address on-going resourcing challenges and bring benefits to all sectors that rely on the planning system.

Small business impacts

Electricity generating stations with a capacity between 50MW and 150MW are generally proposed by larger business interests and it is likely that small businesses will be unaffected by this change. Some smaller BESS, solar and hydropower developers may benefit from cheaper application fees, however the cost of submitting an application for planning permission is considered in most cases to be a small part of the overall cost of development.

Investment

There may be some limited adverse effect on investor sentiment should this change lead to any perceived de-prioritisation of projects for electricity generating stations with a capacity less than 150MW. From our engagement with industry, we know that developers value the strategic oversight and sense of priority afforded to projects which are subject to centralised decision-making within the Scottish Government. National Planning Framework 4 nevertheless gives clear priority to Strategic Renewable Electricity Generation and Transmission Infrastructure which is classed as a significant development of national importance (National Development 3).

Workforce and Fair Work

Increasing the 50MW threshold is likely to impact on the operation of the ECU and DPEA. The change could significantly reduce the number of applications made to the ECU and result in a loss of fee income. The change could place extra strain on the DPEA if more appeals are submitted under the Planning Acts, although that could be offset by a reduction of applications under the Electricity Act to require a public local inquiry. It is not anticipated that this change will appreciably alter the workforce composition or fair work practices in the Scottish Government.

Increasing the 50MW threshold would allow planning authorities to attract the full fee for considering more applications in their role as a determining authority, and could draw in additional financial resources depending on the nature of applications in their area. Local authorities are responsible for managing their own workforce planning, resourcing and recruitment.

Climate change / Circular Economy

Increasing the 50MW threshold will support the delivery of Scotland’s transition to Net Zero by ensuring that the planning processes for electricity generating stations are appropriate to the scale, complexity and strategic importance of the projects proposed.

Competition Assessment

It is not envisaged that these proposals will impact on competition between companies.

Having reviewed the five competition filter questions provided within the Competition & Markets Authority (CMA) guidelines for policy makers on competition assessment we are satisfied that the proposals contained within the consultation will not impact on competition within the marketplace:

• Will the measure directly or indirectly limit the number or range of suppliers?
• Will the measure limit the ability of suppliers to compete?
• Will the measure limit suppliers’ incentives to compete?
• Will the measure affect consumers’ ability to engage with the market and make choices that align with their preferences?
• Will the measure affect suppliers’ ability and/or incentive to introduce new technologies, products or business models?

Consumer Duty

Our proposal to increase the 50MW threshold is intended to support customers of our planning and consenting systems by ensuring that the planning processes for electricity generating stations are appropriate to the scale, complexity and strategic importance of the projects proposed.

Similarly, this change is predicted to support customers of local authority planning departments. By allowing planning authorities to attract the full fee for determining more applications, with limited additional work required to be undertaken, this change is likely to support overall planning authority resourcing and performance.

Post-operational considerations

Consents granted under the Electricity Act 1989 are for both the construction and operation of the generating station above 50MW. This means that any change of ownership or operation can only be done via the approval of, and by way of assignation by, the Scottish Ministers.

Planning permission under the Town and Country Planning (Scotland) 1997 Act is attached to the land, not the individual or company who originally applied for it, and therefore no assignation process is applied.