Why do the majority of renewable projects 'fail at planning stage'?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

Cornwall Insight has just released the findings of a study - Renewables Pipeline Tracker - that claims the majority of renewable energy projects fail at the planning stage. But why is this?

According to the study, approximately two thirds or 63% of applications for renewable projects in the UK between the years of 2018 and 2023 failed to get through the planning stage and were either abandoned, refused, withdrawn, or had expired; with only 20% of projects remaining in development.

Interestingly, Cornwall Insight’s study goes on to speculate that one of the reasons for such failings likely comes from an increasing number of speculative applications being submitted, as developers submit multiple applications for the same sites.

However, there are a lot more potential reasons why so many renewable energy projects are unable to move successfully through the planning stage.

One, for example, could be a lack of feasibility.

The importance of feasibility studies

Feasibility studies are an essential element of the pre-construction phase of any construction project - analysing a number of key statistics and factors relating to a potential project in order to assess its feasibility or ‘viability’.

Factors or considerations taken into account during the feasibility study often include but are not limited to:

• Financial modelling

• Technology and innovation

• Environmental impact

• Legalities

• Location and proximity to other infrastructure

• Regulatory requirements

‘Nationally Significant Infrastructure Projects’ (NSIPs)

When seeking planning permission for renewable energy projects, it’s also important to understand the difference in seeking consent between projects with a generating capacity of under 50MW and projects with a generating capacity of over 50MW.

Smaller scale projects generating under 50MW require permission from the Local Planning Authority (LPA), whereas developments over 50MW are considered ‘Nationally Significant iInfrastructure Projects’ (NSIPs) and require development consent from the Secretary of State.

Assessment for NSIPs takes into account a number of considerations and factors, including ‘good design’, where proposals for renewable energy projects with  ‘good design’ should “demonstrate good design in respect of landscape and visual amenity, and in the design of the project to mitigate impacts such as noise and effects on ecology.”

Alongside this, assessments for NSIPs also cover biomass and waste combustion, where one of the key considerations is the fuel (or feedstock) used, where the official guide states:

“The social, environmental and economic case for widespread deployment of biomass-fuelled plants depends on the sustainability of fuel used in it. The RO, administered by the Office of Gas and Electricity Markets (Ofgem) is the main support mechanism for renewable electricity in the UK.”

Lack of interest or support from the public

Another reason why renewable energy projects may fail so early on in the process could very well be due to a lack of support from the local community, stemming from a lack of interest or confidence in certain types of renewable projects such as anaerobic digestion plants of Energy from Waste plants, where such developments are considered to be ‘smelly’ or ‘unsightly’.

And, although these commonly found judgements tend to come from a place of misinformation, public opinion often drives policies, initiatives & schemes, and adoption.

An understanding of process design and technology

Alongside this, understanding process, process design and the importance of technology and innovation is key to the completion of a successful renewable energy construction project; if the technology proposed for use within a project isn’t feasible, the project in question may ultimately fail.

Technology plays a vital role in efficiency, financial viability and sustainability and so, proposing the right technology will drive, at least in part, a successful project.

In short, there are a number of factors that can impact a renewable energy project successfully moving through the planning permission stage and into the construction phase, many of which can be alleviated and the risk of failure minimised with proper planning and support in the form of a feasibility study, alongside a good understanding of process design and the technology used, as well as understanding exactly where and who to apply to, and what assessors are looking for within an application.