Planning and Infrastructure Bill (Second sitting)

Debate between Amanda Martin and Gideon Amos

Committee stage
Thursday 24th April 2025 Public Bill Committees

[Gideon Amos]

Q I, too, am grateful for the Ministers’ time today. In the interests of brevity, I want to ask a question of the Energy Minister. There are provisions in the Bill on overhead lines at generating stations. Are the Government looking at further reforms that would make the delivery of the electricity network simpler and more straightforward, by widening permitted development for the electricity distribution network and transmission network, given that we all want to reach net zero and the challenges that industry faces?

Michael Shanks: That is a really important question. Probably the single most important part of us being able to achieve our clean power mission will be the necessary grid upgrades, many of which should have been decades before. We now need to build out the grid, so we are looking at a range of options. I think that connections reform is important for making sure that we are only building the grid that we absolutely need to build. The bill discounts and the community benefits that go with that are all around trying to improve acceptability, but we will look at a range of other issues as well, including around permitted development rights.

What we are really clear on is that we have a clear indication of the projects necessary to hit clean power by 2030. We know where those need to be built and what the barriers are to doing that, and we want to move forward with those as quickly as possible. I think that the community acceptability point is key because, unlike some of the other parts of our electricity system, pylons and substations are probably the ones that communities have the biggest challenge with, particularly because they are going through multiple communities in the course of a line. We have evidenced that the bill-discount scheme will improve that acceptability to help build those much faster. Of course, that is the only way that we will achieve clean power—by getting the power to where it is needed most.

[Amanda Martin]

Q First, it is welcome that we have a Government who are working on a Bill across Departments, so it is not only on planning but also on the environment. We have heard from a panel today on the move from the “first come, first served” approach to “first ready, first connected” for connections to the grid. We know, and have heard from other panellists, that, in recent years, the delivery of new homes across the country has been delayed by grid capacity. We also know that this particularly affects small and medium-sized developers. How will the Bill support our SME developers—and, in turn, growth—in our communities?

Michael Shanks: It is a really good question. To Mr Amos’s question, I said that network was probably the single most important thing, but connections reform is probably the single most important lever in clearing out what is now 756 GW in a queue to connect, which is frankly an absurd amount. This is therefore really a fundamental shift to move from “first applied, first in the queue” to what is strategically important: is a project actually ready to be connected? As has been discussed, we have so many of these zombie projects that take up a space in the queue for years on end.

We have also been clear about prioritising what is strategically important to our energy mix, particularly on some of the questions around storage, to make sure we actually have the right capacity. Connecting is really important, so we want to bring that queue down as quickly as possible. That frees up the connections process for new generation to join far faster, but the other important side of it is that, for the projects in the queue on the demand side, it frees up capacity for those to connect much more quickly as well.

The estimates at the moment are probably conservative, based on how quickly the growth of AI, datacentres and things are taking hold, but the estimate is that, by 2050, the demand for electricity in this country will have doubled. This step—clearing out the queue now—is therefore really important, but so is putting in place a process that makes sure that the queue does not fill back up after we have done this particular clear-out. The Bill therefore details the process that will be taken, but also the role that the Government will have in setting strategic priorities for queue management for future connections.

The first stage of that will be the clean power action plan, but it will allow us in the future to look at some other aspects of the economy to ensure that we are prioritising the projects that get through. We have resisted the approach of prioritising demand projects, because obviously how you prioritise those becomes much more subjective, but if we clear out a lot of the 756 GW now, we can connect projects and get the economy growing as a result.