Out-Law News 2 min. read

Planning powers over more energy generating schemes devolved to Welsh Assembly


Changes to the power-sharing agreement between the National Assembly in Wales and UK government at Westminster may speed up the delivery of some new energy projects, an expert has said.

The 2017 Wales Act, which has now received Royal Assent, gives the National Assembly the power to grant or refuse planning permission for energy projects of up to 350MW generating capacity, rather than up to 50MW generating capacity as is the case at present. However, recent changes to Welsh planning laws mean that the new process will not be as simple as it otherwise could be, according to infrastructure and energy law expert Gareth Phillips of Pinsent Masons, the law firm behind Out-Law.com.

"The Welsh government brought in a rule last year that stated that all proponents of 'developments of national significance' have to provide a full and detailed planning application before consent - but no developer will realistically do this," he said. "So even though there is clarity from the bill, unless the Welsh government amends the legislation to provide a full and detailed planning application for DNS projects it's unlikely to have much of an impact."

That said, Phillips said that the legislation would simplify the development planning regime for energy projects. Currently, developers must apply to the UK government for a Development Consent Order under the 2008 Planning Act 2008 for an energy project over 50MW, but any local planning for associated development such as marine licenses for pipelines must be obtained from the Welsh authorities, he said.

"This has slowed up the Swansea Bay tidal lagoon project, for example," he said.

Although the act has now become law, the majority of the changes are still to be brought into force.

Alun Cairns, the UK government's Welsh secretary, said that the Act "delivers what I've always intended - a clearer, stronger and fairer devolution settlement for Wales based on a reserved powers model".

"The provisions in this Act will make a real difference to the lives of everyone living in Wales," he said. "The powers being devolved to the National Assembly and Welsh Ministers have a real purpose and will enable them to decide the speed limits on Welsh roads; whether fracking should take place in Wales and how new gaming machines should be licensed."

"With more powers, comes more responsibility. The new Welsh rates of income tax will make the Welsh government more accountable to the people of Wales for the money they spend, and doubling capital borrowing to £1bn will help the Welsh government to invest in infrastructure," he said.

Until now, devolution in Wales has operated on a 'powers conferred' model, unlike the reserved powers model applicable to devolution in Scotland and Northern Ireland. Once the new Wales Act is fully in force, the National Assembly will be able to legislate on anything not explicitly reserved to the UK parliament.

The act also devolves control of elections to both the National Assembly and Welsh local government to the National Assembly, and contains powers enabling the National Assembly to vary income tax in Wales without first holding a referendum.

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