National Policy Statement For Fossil Fuel Electricity .

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National Policy Statement forFossil Fuel Electricity GeneratingInfrastructure (EN-2)Planning for new energy infrastructureJuly 2011

Department ofEnergy and Climate ChangeNational Policy Statement forFossil Fuel Electricity GeneratingInfrastructure (EN-2)Presented to Parliament pursuant to section 5(9)of the Planning Act 2008July 2011London: The Stationery Office 8.50

Crown copyright 2011You may re-use this information (excluding logos) free of charge in anyformat or medium, under the terms of the Open Government Licence.To view this licence, visit ent-licence/ or e-mail: [email protected] we have identified any third party copyright information you willneed to obtain permission from the copyright holders concerned.Any enquiries regarding this publication should be sent to us [email protected] publication is available for download at www.official-documents.gov.uk.This document is also available from our website at www.decc.gov.uk.ISBN: 9780108510786Printed in the UK for The Stationery Office Limitedon behalf of the Controller of Her Majesty’s Stationery OfficeID: 244116707/11Printed on paper containing 75% recycled fibre content minimum.

ContentsPart 1Part 2Introduction 11.1Background 11.2Role of this NPS in the planning system 11.3Relationship with EN-1 21.4Future planning reform 31.5Geographical coverage 31.6Period of validity and review 31.7Appraisal of Sustainability and Habitats RegulationsAppraisal 41.8Infrastructure covered by this NPS 5Assessment and technology-specific information 62.1Introduction 62.2Factors influencing site selection by developers 62.3Government policy criteria for fossil fuelgenerating stations 82.4Impacts of fossil fuel generating stations 122.5Air quality and emissions 132.6Landscape and visual 152.7Noise and vibration 172.8Release of dust by coal-fired generating stations 182.9Residue management for coal-fired generating stations 202.10 Water quality and resources Glossary 2223i

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)Part 1Introduction1.1Background1.1.1Fossil fuel generating stations play a vital role in providing reliable electricitysupplies and a secure and diverse energy mix as the UK makes thetransition to a low carbon economy. As part of the transition towards asecure decarbonised electricity system, the move to clean coal through thedevelopment and deployment of carbon capture and storage technologiesoffers the opportunity to reduce fossil fuel generating stations’ carbonemissions by around 90%. It is Government policy that all new coal-firedgenerating stations should be required to capture and store the carbonemissions from a substantial proportion of their capacity.1.1.2The Government will continue public sector investment in four carboncapture and storage (CCS) demonstration projects. It is expected thatany new conventional coal-fired generating stations consented under thepolicy framework described in EN-1 Section 4.7 will retrofit CCS to their fullcapacity during the lifetime of the plant. Other generating stations to whichthis NPS applies are required to be “carbon capture ready” as set out inEN-1 Section 4.7. Operators of fossil fuel generating stations will be requiredto comply with Emissions Performance Standards as appropriate.1.2Role of this NPS in the planning system1.2.1This National Policy Statement (NPS), taken together with the OverarchingNational Policy Statement for Energy (EN-1), provides the primary basis fordecisions by the Infrastructure Planning Commission (IPC) on applications itreceives for nationally significant fossil fuel electricity generating stations asdefined at Section 1.8. The way in which NPSs guide IPC decision making,and the matters which the IPC is required by the Planning Act 2008 to takeinto account in considering applications, are set out in Sections 1.1 and 4.1of EN-1.1.2.2Applicants should ensure that their applications, and any accompanyingsupporting documents and information, are consistent with the instructionsand guidance given to applicants in this NPS, EN-1 and any other NPSs thatare relevant to the application in question.1.2.3This NPS may be helpful to local planning authorities (LPAs) in preparingtheir local impact reports. In England and Wales this NPS is likely to be amaterial consideration in decision making on applications that fall under theTown and Country Planning Act 1990 (as amended). Whether, and to whatextent, this NPS is a material consideration will be judged on a case bycase basis.1

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)1.2.4Further information on the relationship between NPSs and the Town andCountry Planning system, as well as information on the role of NPSs, isset out in paragraphs 13 to 19 of the Annex to the letter to Chief PlanningOfficers issued by the Department for Communities and Local Government(CLG) on 9 November 20091.1.2.5Paragraphs 1.2.2 and 4.1.6 of EN-1 provide details of how this NPS may berelevant to the decisions of the Marine Management Organisation (MMO)and how the Marine Policy Statement (MPS) and any applicable Marine Planmay be relevant to the IPC in its decision making.1.3Relationship with EN-11.3.1This NPS is part of a suite of energy infrastructure NPSs. It should be read inconjunction with EN-1 which covers: 1.3.2the high level objectives, policy and regulatory framework for newnationally significant infrastructure projects that are covered by the suiteof energy NPSs and any associated development (referred to as energyNSIPs);the need and urgency for new energy infrastructure to be consented andbuilt with the objective of contributing to a secure, diverse and affordableenergy supply and supporting the Government’s policies on sustainabledevelopment, in particular by mitigating and adapting to climate change;the need for specific technologies, including the infrastructure covered bythis NPS;key principles to be followed in the examination and determination ofapplications;the role of the Appraisal of Sustainability and its outcome in relation to thesuite of energy infrastructure NPSs;policy on good design, climate change adaptation and other mattersrelevant to more than one technology-specific NPS; andthe assessment and handling of generic impacts that are not specific toparticular technologies.This NPS does not seek to repeat the material set out in EN-1, which appliesto all applications covered by this NPS unless stated otherwise. The reasonsfor policy that is specific to the energy infrastructure covered by this NPS aregiven, but where EN-1 sets out the reasons for general policy these are notrepeated.1 dbuilding/pdf/1376507.pdf2

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)1.4Future planning reform1.4.1Aside from cases where the Secretary of State intervenes, or where theapplication is not covered by a designated NPS, the Planning Act 2008, as itis in force at the date of designation of this NPS, provides for all applicationsfor development consent to be both examined and determined by theIPC. However, the enactment and entry into force of the provisions of theLocalism Bill (introduced into Parliament in December 2010) relating to thePlanning Act would abolish the IPC. The function of examining applicationswould be taken on by a new Major Infrastructure Planning Unit (“MIPU”)within the Planning Inspectorate and the function of determining applicationson major energy infrastructure projects by the Secretary of State (who wouldreceive a report and recommendation on each such application from MIPU).In the case of energy projects, this function would be carried out by theSecretary of State for Energy and Climate Change.1.4.2If the Localism Bill is enacted and these changes take effect, referencesin this NPS to the IPC should be read as follows from the date when thechanges take effect. Any statement about the IPC in its capacity as anexamining body should be taken to refer to MIPU. Any statement about theIPC in its capacity as a decision-maker determining applications should betaken to mean the Secretary of State for Energy and Climate Change in hiscapacity as decision-maker. MIPU would have regard to such statements inframing its reports and recommendations to the Secretary of State.1.5Geographical coverage1.5.1This NPS is made under the Planning Act 2008, which applies in Englandand Wales to applications for fossil fuel generating stations with over 50 MWgenerating capacity.1.5.2In Scotland, the IPC will not examine applications for nationally significantgenerating stations. However, energy policy is generally a matter reservedto UK Ministers and this NPS may therefore be a relevant consideration inplanning decisions in Scotland.1.5.3In Northern Ireland, policy and planning consents for all energy infrastructureprojects are devolved to the Northern Ireland Executive, so the IPC will notexamine applications for energy infrastructure in Northern Ireland.1.6Period of validity and review1.6.1This NPS will remain in force in its entirety unless withdrawn or suspendedin whole or in part by the Secretary of State. It will be subject to review bythe Secretary of State in order to ensure that it remains appropriate for IPCdecision making. Information in respect of the review process is set out inparagraphs 10 to 12 of the Annex to CLG’s letter of 9 November 2009 (seeparagraph 1.2.4 above).3

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)1.7Appraisal of Sustainability and Habitats RegulationsAppraisal1.7.1All of the energy NPSs have been subject to an Appraisal of Sustainability(AoS)2 incorporating the requirements of the regulations that implementthe Strategic Environmental Assessment Directive3. General information onthe AoSs can be found in paragraph 1.7.1 of EN-1. Habitats RegulationsAssessment was also done for all the energy NPSs. Paragraph 1.7.13 ofEN-1sets out the conclusions of the HRA.1.7.2Key points from the AoS for EN-2 are: 1.7.3Fossil fuel generating infrastructure development has similar effects toother types of energy infrastructure, resulting from impacts associatedwith large facilities at single sites; therefore, for the majority of the AoSobjectives, the strategic effects of EN-2 are considered to be neutral ornegative, but uncertain.Through supporting the transition to a low carbon economy, EN-2 isconsidered likely to have positive effects on the Economy and Skills, andHealth and Well-being as secondary benefits and positive effects in themedium/long term on climate change. However these positive effects areuncertain because of the need to demonstrate viability of CCS.Effects on Ecology, Resources and Raw Materials, Flood Risk andCoastal Change, Water Quality, and Landscape, Townscape and Visualare considered to be generally negative. Again the assessment wasuncertain because the effects on the sensitivity of the environment andthe location and design of specific infrastructure.There are also likely to be some negative effects on Air Quality andWell-being, given the link between air quality and public health.Neutral effects were identified for Noise, and Traffic and Transport, whichare considered to be localised and therefore neutral at national level.Neutral effects were also identified for Archaeology and Cultural Heritage,and Soils and Geology, as they are likely to be site related, but with someuncertainty. Effects on equality were assessed as neutral, balancedbetween potential positive economic impacts and potentially negativelocalised impacts.As required by the SEA Directive, Part 2 of AoS 2 also includes anassessment of reasonable alternatives to the policies set out in EN-2 at astrategic level. The two alternatives assessed were:(a) a stricter approach to Carbon Capture and Storage (CCS) (e.g. no newcoal without CCS, or no new fossil fuel plants without a substantialamount of CCS from the outset); and(b) a stricter approach to Carbon Capture Readiness (CCR) (i.e. moredemanding criteria set for demonstrating that retrofit CCS will beeconomically feasible.2 As required by Section 5(3) of the Planning Act 20083 Directive 2001/42/EC of 27 June 2001 on the assessment of the effects of certain plansand programmes on the environment4

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)1.7.4Assessment showed that alternative (a) could potentially have increasedpositive effects on climate change and the economy, although there areuncertainties associated with these positive effects. Over the remainingsustainable development themes, alternative (a) could produce either greaterpositive or negative effects. Where CCS viability is not demonstrated on a widerand deeper basis there are likely to be smaller negative effects compared withEN-2, and where it is demonstrated on a wider and deeper basis there are likelyto be greater negative effects. While encouraging wider or deeper deployment ofCCS in the short term may appear attractive, there is a risk that trying to do thissimply through the planning regime, without taking account of other interventionswhich may be necessary to encourage a stronger commitment to CCS on thepart of developers, will be counterproductive. Continuing with the policy set outin EN-2 is therefore preferred.1.7.5Assessment showed that alternative (b) could have minor negative effectson security of energy supply and the economy as fewer fossil fuel plants arelikely to be built, but that there could be minor positive effects on the climatechange objective. While alternative (b) may result in a reduced number ofapplications for fossil fuel generating plant, it is likely to result in clusteringin more preferential locations and regions. This means that effects on theremaining sustainable development topics are likely to be less negative on anational scale, and clustering may be more efficient from an economic pointof view, but it would increase cumulative effects in these preferential regions.While tighter CCS criteria could mean that the risk of a high carbon lock-in isreduced, such criteria would need to be based on a more precise estimateof carbon prices, which is not currently available. Therefore, while this maychange in the future, there is currently no compelling case for changing thepolicies on CCR in EN-2.1.8Infrastructure covered by this NPS1.8.1This NPS covers the following types of nationally significant electricitygenerating infrastructure over 50 MW electricity generating capacity: coal-fired; gas-fired; integrated coal gasification combined cycle; and oil-fired.1.8.2In addition biomass co-firing can be used in fossil fuel generating stations.Biomass-only generating stations are covered in the Renewable EnergyInfrastructure NPS (EN-3).1.8.3Fossil fuel generating stations can be configured to produce Combined Heatand Power (CHP) and be CCR and/or have CCS technology applied. Detailsof the Government’s policy in these areas are set out in EN-1 with furtherinformation in this NPS.5

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)Part 2 Assessment 1.1Part 4 of EN-1 sets out the general principles that should be applied in theassessment of development consent applications across the range of energytechnologies. Part 5 sets out policy on the assessment of impacts whichare common across a range of these technologies (“generic impacts”). ThisNPS is concerned with impacts and other matters which are specificallyassociated with fossil fuel generating stations or where, although the impactis generic and covered in EN-1, there are further specific considerationsarising from this technology.2.1.2The policies set out in this NPS are additional to those on generic impactsset out in EN-1 and do not replace them. The IPC should consider this NPSand EN-1 together. In particular, EN-1 sets out the Government’s conclusionthat there is a significant need for new major energy infrastructure (seesummary and conclusion in Part 3 of EN-1). EN-1 Section 3.6 includesassessments of the need for new nationally significant fossil fuel generationinfrastructure. In the light of this, the IPC should act on the basis that theneed for the infrastructure covered by this NPS has been demonstrated.2.2Factors influencing site selection by developers2.2.1Factors influencing site selection by applicants for fossil fuel NSIPs areset out below. These are not a statement of Government policy, but areincluded to provide the IPC and others with background information on thecriteria that applicants consider when choosing a site. The specific criteriaconsidered by applicants, and the weight they give to them, will vary fromproject to project. The choices which energy companies make in selectingsites reflect their assessment of the risk that the IPC, following the generalpoints set out in Section 4.1 of EN-1, will not grant consent in any givencase. But it is for energy companies to decide what applications to bringforward and the Government does not seek to direct applicants to particularsites for fossil fuel generating stations.Land Use2.2.2Fossil fuel generating stations have large land footprints and will thereforeonly be possible where the applicant is able to acquire a suitably-sized site.The site will also need to be big enough to conform to Government policy onCCR and CCS, set out in Section 4.7 of EN-1 and in Section 2.3 below.2.2.3Depending on the processes adopted, CCR, CCS and mitigation measuresfor emissions by fossil fuel generating stations may require storage and use ofhazardous chemicals regulated under the Control of Major Accident Hazards6

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)(COMAH) Regulations 1999, which may have an impact on potential land-usein the vicinity. This in turn may affect the applicant’s choice of site.2.2.4Development of a CHP generating station may also have an effect on thesize of site required and land-use. Details of land-use impacts are set out inSection 5.10 of EN-1.Transport Infrastructure2.2.5New fossil fuel generating stations need to be accessible for the deliveryand removal of construction materials, fuel, waste and equipment, and foremployees.2.2.6Government policy encourages multi-modal transport and materials (fueland residues) may be transported by water or rail routes where possible.(See Section 5.13 of EN-1 on transport impacts). Applicants should locatenew fossil fuel generating stations in the vicinity of existing transport routeswherever possible. Although there may in some instances be environmentaladvantages to rail or water transport, whether or not such methods are viableis likely to be determined by the economics of the scheme. Road transportmay be required to connect the site to the rail network, waterway or port. Anyapplication should therefore incorporate suitable access leading off from themain highway network. If the existing access is inadequate and the applicanthas proposed new infrastructure, the IPC should satisfy itself that the impactsof the new infrastructure are acceptable as set out in Section 5.13 of EN-1.Water Resources2.2.7Some fossil fuel generating stations have very high water demands, forexample coal-fired and combined cycle gas turbine (CCGT) generatingstations. Other technologies, for example open cycle gas turbines, have littlewater demand.2.2.8In coal-fired and CCGT generating stations, purified water is needed toproduce the steam to drive the generating turbines and additional largevolumes of water are needed to condense this steam back to water forreuse. A supply of water will also be needed for CCS processes. Theamount of water abstraction required and whether discharge is necessarywill depend on the applicant’s choice of technology, particularly the coolingsystem, in the proposed design. The volumes required and availability willdepend on a number of factors including:2.2.9 the extent of the water resource; the likely flow rate within the body of water; water supply company management plans; the visual impact of the chosen system; and the power consumption of the cooling system.High water demands will mean that developers’ preferred sites are likely tobe coastal, beside estuaries or alongside large rivers. If sufficient quantitiesof water from natural sources are not available at a site then some use ofmains supplies may be necessary, although it should be noted that a water7

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)company has no duty to supply water. If a sufficient supply of water is notavailable, an alternative means of cooling such as air-cooled condenserswould be required. The regulation of water abstraction and discharge isdescribed in Section 5.15 of EN-1. The applicant should have investigatedthe availability of such a supply at an early stage. Any proposals foralternative sites proposed during the application process should demonstratethat an adequate supply of water would be available.Grid Connection2.2.10Fossil fuel generating stations connect into a transmission network. Thetechnical feasibility of export of electricity from a generating station isdependent on the capacity of the grid network to accept the likely electricityoutput together with the voltage and distance of the connection.2.2.11Applicants will usually have assured themselves that a viable connectionexists before submitting the development proposal to the IPC and, wherethey have not done so, they take that commercial risk. Even if the preciseroute of a connection has not been identified, in accordance with Section4.9 in EN-1 any application to the IPC must include information on how thegenerating station is to be connected and whether there are any particularenvironmental issues likely to arise from that connection. Further advice onthe relationship with grid applications is in EN-1 and EN-5.2.3Government policy criteria for fossil fuel generatingstations2.3.1The following criteria must be met before consent for a new fossil fuelgenerating station can be given.Combined Heat and Power2.3.2The Government’s strategy for CHP is described in Section 4.6 of EN-1,which sets out the requirements on applicants either to include CHP orpresent evidence in the application that the possibilities for CHP have beenfully explored.2.3.3Given the importance which Government attaches to CHP, for the reasonsset out in EN-1, if an application does not demonstrate that CHP has beenconsidered the IPC should seek further information from the applicant.The IPC should not give development consent unless it is satisfied that theapplicant has provided appropriate evidence that CHP is included or thatthe opportunities for CHP have been fully explored. For non-CHP stations,where there is reason to believe that opportunities to supply heat throughCHP may arise in the future the IPC may also require that developers ensurethat their stations are ‘CHP ready’ and are configured in order to allow heatsupply at a later date, as described in paragraph 4.6.8 of EN-1 and theguidance on CHP issued by BIS in 20064.4 Guidance on background information to accompany notifications under Section 14(1) of theEnergy Act 1976 and applications under Section 36 of the Electricity Act 1989.8

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)Carbon Capture Readiness2.3.4The Government’s policy and criteria for CCR for new combustiongenerating stations with a generating capacity at or over 300 MW are setout in Section 4.7 of EN-1. If an application does not demonstrate that CCRhas been assessed according to this policy, the IPC should seek furtherinformation from the applicant. The IPC should not give developmentconsent unless it is satisfied that the proposed development meets all thecriteria for CCR set out in EN-1 and is, therefore, CCR.2.3.5The IPC should impose requirements on any consent, requiring operators to: retain control over sufficient additional space (whether on or near the site)for the carbon capture equipment;retain their ability to build carbon capture equipment on this space(whether on or near the site) in the future; andsubmit update reports on the technical aspects of its CCR status to theSecretary of State for Energy and Climate Change. These reports shouldbe required within three months of the date on which a consented stationfirst begins to supply electricity to the grid and every two years thereafteruntil the plant moves to retrofit CCS.Carbon Capture and Storage for coal-fired generating stations2.3.6As set out in EN-1, new coal-fired generating stations in England or Walesare required to be constructed with a full CCS chain fitted on at least 300 MWnet of their proposed generating capacity. Coal-fired generating stationsof less than 300 MW capacity are required to show that the proposedgenerating station will be able to capture, transport and store CO2 fromtheir whole capacity. Operators of fossil fuel generating stations will also berequired to comply with any Emission Performance Standards (EPS) thatmight be applicable, but this is not part of the consents process.2.3.7The applicant should therefore provide evidence to show: 2.3.8technically feasible plans for a CO2 capture unit that meets the minimumsize requirements;an Environmental Impact Assessment (EIA) that addresses impactsarising from the capture plant; anddocumentation to ensure compliance with all other existing policyincluding that any of the plant’s capacity which is not to be fitted with CCSat the outset is carbon capture ready.An application must contain sufficient information on the proposed plans forCCS to enable the IPC to determine whether the proposal meets the requiredcriteria as set out in the draft DECC guidelines5 on CCS for developers. TheIPC should also have regard to advice from the Environment Agency (EA) as5 Draft Supplementary Guidance for Section 36 Electricity Act Consent Applications for CoalPower Stations.9

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)to the technical feasibility of the proposed CCS. The IPC may also seek furtherindependent advice, but is not required to do so.2.3.9If the IPC cannot be satisfied that the proposal meets the criteria relating toCCS set out in EN-1 and this NPS, consent should be refused.2.3.10The IPC should include in any development consent for a coal-firedgenerating station conditions that before construction can commence theapplicant should provide: evidence that all necessary consents, licences and permits are in placefor construction of the CCS chain, including consents for any onshore andoffshore pipelines used to transport CO2;evidence that a CO2 storage licence for the intended storage site is inplace; andevidence that an Environmental Permit (EP) from the EA whichincorporates conditions around the operation of the CCS chain is in place.2.3.11To avoid the possibility that, once built, a project became unsuitable for CCS,no construction, other than preliminary works, should be allowed to start untilthe IPC is satisfied that the above conditions have been fully met.2.3.12Additionally, CCR requirements will continue to apply to the remainingcapacity of the coal-fired generating station until such time as CCSequipment is retrofitted onto the remainder of the capacity of the plant.Climate change adaptation2.3.13Part 2 of EN-1 covers the Government’s energy and climate change strategy,including policies for mitigating climate change. Section 4.8 of EN-1 setsout generic considerations that applicants and the IPC should take intoaccount to help ensure that fossil fuel generating infrastructure is resilient toclimate change. As fossil fuel generating stations are likely to be proposedfor coastal or estuarine sites and climate change is likely, for example,to increase risks from flooding or rising sea levels, applicants should inparticular set out how the proposal would be resilient to: 2.3.14coastal changes and increased risk from storm surge;effects of higher temperatures, including higher temperatures of coolingwater; andincreased risk of drought leading to a lack of available cooling water.Section 4.8 of EN-1 advises that the resilience of the project to climatechange should be assessed in the ES accompanying an application. Forexample, climate change impacts on cooling water as a result of highertemperatures should be covered in the impact assessment section on waterquality and resources.10

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)Consideration of “good design” for energy infrastructure2.3.15Section 10(3)(b) of the Planning Act 2008 requires the Secretary of Stateto have regard, in designating an NPS, to the desirability of good design.Section 4.5 of EN-1 sets out the principles for good design that should beapplied to all energy infrastructure.2.3.16Applicants should demonstrate good design particularly in respect oflandscape and visual amenity as set out in Section 2.6.3 below, and inthe design of the project to mitigate impacts such as noise and vibration,transport impacts and air emissions.11

National Policy Statement for Fossil Fuel Electricity Generating Infrastructure (EN-2)2.4Impacts of fossil fuel generating stationsIntroduction2.4.12.4.2Part 5 of EN-1 contains policy for the IPC when assessing potential impactsof energy infrastructure projects (identified as “generic impacts”). It alsocontains information to assist the interpretation of the impact sections of allof the energy NPSs (see Section 5.1). When considering impacts for fossilfuel generating stations, all of t

2.3 Government policy criteria for fossil fuel generating stations 8 2.4 Impacts of fossil fuel generating stations 12 2.5 Air quality and emissions 13 2.6 Landscape and visual 15 2.7 Noise and vibration 17 2.8 Release of dust by coal-fired generating