Connecting energy planning with spatial planning

An effective planning system is vital to making clean power projects happen, and without a secure supply of clean, affordable energy, development and growth will stall.

However, aligning strategic energy planning and spatial planning is complex. Local authorities are often caught in the middle, trying to make sense of new policies and balance local and national priorities.

A new era of strategic energy planning

In anticipation of increased demand expected over the coming decades, the UK is moving towards a more planned energy system.

The Strategic Spatial Energy Plan (SSEP) being developed by the National Energy System Operator (NESO) promises an era of better coordinated, more holistic energy planning. Due in 2026, it will set out where energy infrastructure is needed in different zones of the UK, influencing which projects are brought forward within each local authority area.

The mechanisms the government will use to shape developer choices are still being developed, but are likely to include embedding the SSEP in formal planning policy and in market pricing signals, such as contracts for difference and transmission network charges.

Following this, in 2028, NESO will also develop Regional Energy System Plans (RESP) for 11 areas of the UK (Scotland, Wales and nine regions in England), setting out the investment needed in the distribution networks for electricity, gas and alternative energy vectors like hydrogen. Local authorities can influence these plans, but concerns were raised in the policy group about the resource and governance structures needed to engage effectively in this process, especially in the context of local government reorganisation. Attendees commented that understanding how the SSEP and RESPs will make a difference in practice to local investment is crucial to justifying their involvement in the process and gaining political support.

Keeping pace with national changes

In parallel, changes to England’s planning system also present opportunities and challenges for energy projects.

Those involved in the policy group largely welcomed the changes to National Planning Policy Framework but noted there are still uncertainties and scope for greater ambition. For example, updates in 2024 saw the lifting of the de facto ban on onshore wind and introduced a new grey belt policy, while changes currently being consulted on include greater weight in decision-making being given to renewable and local carbon energy.

There are mixed views on the value of designating areas for renewables. They can provide clarity but outdated plans can lead to unintended consequences where renewable projects outside of these areas are not supported, even though they have significant potential and would deliver wider benefits.

Other changes affecting planning policy across England include updates to the National Policy Statements on energy for nationally significant projects and changes in the Planning and Infrastructure Act aimed at streamlining infrastructure delivery.

Potentially more significant for local authorities is the new Land Use Framework, just published by Defra, which sets out principles for managing land use change. As with strategic energy plans, local authorities are waiting for greater clarity about how this will affect energy projects and planning decisions in practice.

Changes on the horizon for regional planning

A major shake-up for local spatial planning is now coming through the introduction of Spatial Development Strategies. Due to be published by 2029, these will sit above Local Plans and identify broad locations for growth and development – and crucially, the supporting infrastructure needed, such as electricity networks – over 20 years. These strategies could be another opportunity to more closely align strategic energy planning with spatial planning, yet guidance is currently limited and many areas have not yet started to develop them.

Seizing opportunities in local policies

Our final discussion in the policy centred on the opportunities to strengthen local planning polices, drawing on our research for the Net Zero Living Programme. From Plans to Power assessed over 300 Local Plans, highlighting the inconsistencies, outdated evidence and gaps, but also identified examples of positive, clear wording to support renewables. In A double-win, we discussed how clean energy can be integrated with nature restoration, building on Biodiversity Net Gain requirements. Regen will also soon be publishing DESNZ-funded guidance for planners on assessing renewables and low carbon applications, available through the Net Zero Go hub.

Those at the policy group shared how they were also considering geothermal energy, urban green factor and community energy in protected landscapes while updating their local polices, and spoke about the importance of ensuring consistency in how national policies are interpreted locally.

Maximising the benefits of clean power

While it can seem difficult sometimes to keep pace with the number of policy changes across the strategic planning and spatial planning landscapes, and their potentially far-reaching implications, the policy group discussion was a chance to reflect on why it matters.

More holistic decision making and alignment is key to delivering clean power and maximising the benefits, such as economic growth, nature recovery and energy resilience, both nationally and locally.

For local authorities and their partners, key actions to consider include:

• ensuring local priorities inform the RESP and proactively considering what evidence and governance structures will be needed to do this
• taking the opportunities presented by local government reorganisation to update and strengthen local plans, drawing on best practice
• as work begins on strategic development plans, encourage early cross-team collaboration to help ensure consistency with strategic energy plans
• keeping abreast of how strategic energy plans will formally affect planning decisions and commercial viability for developers as greater detail emerges