The Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024

Regulation 5

SCHEDULE New Schedule 25C to the Environmental Permitting (England and Wales) Regulations 2016

After Schedule 25B to the Environmental Permitting (England and Wales) Regulations 2016(1) insert—

Regulation 35(1)

“SCHEDULE 25C Decarbonisation Readiness Requirements for Generators in England

PART 1 Application of Schedule and interpretation

Application of Schedule

1.— (1) This Schedule applies in relation to—

(a) England, and

(b) the sea adjacent to England out so far as the seaward boundary of the territorial sea.

(2) In this Schedule “the sea adjacent to England” has the meaning given for the purposes of regulation 1(3)(a).

Meaning of “in-scope generator”

2.— (1) In this Schedule “in-scope generator” means a generator other than an excepted generator.

(2) A “generator” is—

(a) a specified installation,

(b) a medium combustion plant which is used for the purpose of generating electricity, or

(c) a specified generator.

(3) A generator is an “excepted generator” if it falls within one or more of the following paragraphs—

(a) it operates with a defined nuclear safety role under a nuclear site licence (within the meaning of section 1 of the Nuclear Installations Act 1965(2)) issued by the Office for Nuclear Regulation;

(b) it is a back-up generator;

(c) it is installed on an offshore platform (within the meaning of paragraph 2(2) of Part 1 of Schedule 25A) situated on, above or below the sea adjacent to England;

(d) it is installed on a gas storage or unloading platform (within the meaning of regulation 2 of the Offshore Combustion Installations (Pollution Prevention and Control) Regulations 2013(3)) situated in the sea adjacent to England;

(e) it has anchor plant capability, as defined in the Grid Code, issue 6, revision 27 published on 1st October 2024 by the National Energy System Operator(4);

(f) it uses gas generated from landfill waste as its sole source of fuel;

(g) it is a mobile generator other than one referred to in paragraphs 2(1)(a) or 2(1)(b) in Schedule 25B;

(4) For the purposes of this paragraph—

(a) a generator is a “back-up generator” if it is operated for the sole purpose of maintaining power supply to a site during an on-site emergency (and use for test purposes for no more than 50 hours in any single calendar year is to be regarded as falling within that purpose);

(b) “specified installation” means an installation carrying on any of the following activities for the purposes of generating electricity—

(i) an activity described in Part A(1) of Section 1.1 of Chapter 1 of Part 2 of Schedule 1, or

(ii) an activity described in Part A(1) of Section 5.1 of Chapter 5 of Part 2 of Schedule 1.

The decarbonisation readiness report and related assessments

3.— (1) This paragraph applies for the purposes of this Schedule.

(2) A “decarbonisation readiness report” is a report which includes—

(a) a CCR technical assessment, a CCR economic feasibility certification and a CCR storage feasibility certification, or

(b) an HCR technical assessment, an HCR economic feasibility certification and an HCR fuel feasibility certification.

(3) A “CCR technical assessment” is an assessment as to whether the CCR conditions are met in relation to a relevant generator (see paragraph 4).

(4) A “CCR economic feasibility certification” is a statement that the operator has reasonable grounds to believe that it will be economically feasible for a relevant generator to—

(a) be connected to a qualifying complete CCS system during the lifetime of the relevant generator, and

(b) operate whilst connected to that system.

(5) A “CCR storage feasibility certification” is a statement that the operator has reasonable grounds to believe that it will be technically feasible, during the lifetime of a relevant generator, for the relevant amount of EG CO₂ captured to be transported (including by way of non-pipeline transport methods) to a named storage site for disposal by way of permanent storage.

(6) An “HCR technical assessment” is an assessment as to whether the HCR conditions are met in relation to a relevant generator (see paragraph 5).

(7) An “HCR fuel feasibility certification” is a statement that the operator has reasonable grounds to believe that it will be possible, during the lifetime of a relevant generator, to ensure access to a sufficient supply of hydrogen for the relevant generator to enable it to use hydrogen as the primary source of fuel.

(8) An “HCR economic feasibility certification” is a statement that the operator has reasonable grounds to be believe that it will be economically feasible for a relevant generator to—

(a) be converted to the use of hydrogen as the primary source of fuel during the lifetime of the relevant generator, and

(b) use primarily that fuel.

(9) For the purposes of this paragraph “named storage site” means a geological disposal site approved under Chapter 3 of Part 1 of the Energy Act 2008 and other legislation which transposed Directive 2009/31/EC on the geological storage of carbon dioxide in relation to England and Wales, which is identified in a decarbonisation report as the site to which EG CO₂ is to be transported.

The CCR conditions

4.   For the purposes of this Schedule, a relevant generator meets the CCR conditions if—

(a) it is technically feasible to retrofit the generator with the plant and facilities necessary to capture the relevant amount of EG CO₂, and

(b) sufficient space is set aside for the plant and facilities necessary to capture and compress the relevant amount of EG CO₂.

The HCR conditions

5.   For the purposes of this Schedule, a relevant generator meets the HCR conditions if—

(a) it is technically feasible to retrofit the generator with the plant and facilities necessary for the use by that generator of hydrogen as its primary fuel; and

(b) there is sufficient space for the technology or techniques proposed by the operator for the provision of hydrogen to the relevant generator.

Interpretation: general

6.— (1) In this Schedule—

“EG CO₂”, in relation to a generator, means the carbon dioxide produced by, or in connection with, the generation of electricity by the generator;

“qualifying complete CCS system” means a system of plant and facilities for—

(a)

capturing some or all of the carbon dioxide (or any substance consisting primarily of carbon dioxide) that is produced by, or in connection with, the generation of electricity by a generating station;

(b)

transporting the carbon dioxide (or substance captured); and

(c)

disposing of it by way of permanent storage;

“the relevant amount of EG CO₂”, in relation to a generator, means—

(a)

90% of EG CO₂ produced by the generator each year, or

(b)

where the use of best available techniques (within the meaning given in Article 3(10) of the Industrial Emissions Directive) would result in a greater rate of capture of EG CO₂ produced by the generator each year, that amount of EG CO₂;

“relevant generator” means—

(a)

an in-scope generator, or

(b)

an in-scope generator as refurbished (whether or not substantially refurbished);

“standard relevant generator” means a relevant generator that is a standard facility.

(2) For the purposes of this Schedule, a generator is “substantially refurbished” if the cost of refurbishing a combustion plant exceeds 50% of the investment cost for a comparable new combustion plant.

PART 2 Applications for the grant or variation of an environmental permit

Application of Part 2 of this Schedule

7.— (1) This Part of this Schedule does not apply to any existing application.

(2) In this paragraph “existing application” means an application made before the day on which the Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024 come into force—

(a) for the grant of an environmental permit under regulation 13, or

(b) for the variation of an environmental permit under regulation 20(1).

Applications for the grant or variation of an environmental permit

8.— (1) An application for the grant of an environmental permit under regulation 13(1) for an in-scope generator must include a decarbonisation readiness report.

(2) A variation application must include a decarbonisation readiness report where the application relates to—

(a) the substantial refurbishment of an in-scope generator, or

(b) the addition of an in-scope generator.

(3) A variation application (other than one mentioned in sub-paragraph (2)) may include a decarbonisation readiness report.

(4) In this paragraph “variation application” means an application for a variation of an environmental permit under regulation 20(1).

(5) Paragraph 8(1) does not apply in respect of—

(a) an existing medium combustion plant within the meaning of paragraph 2(1) of Schedule 25A with a rated thermal input of less than or equal to 5 megawatts, or

(b) a Tranche A generator within the meaning of paragraph 3(3) of Schedule 25B with a rated thermal input equal to or less than 5 megawatts.

Determination of applications

9.— (1) Where, as required or permitted by paragraph 8, a decarbonisation readiness report is submitted with an application for the grant or variation of an environmental permit, the regulator may only grant that application if it determines that the CCR conditions or, as the case may be, the HCR conditions are met.

(2) In the case of an application in respect of a standard relevant generator, the regulator may, without further enquiry, accept a statement made in the application or any accompanying decarbonisation readiness report that the CCR conditions or, as the case may be, the HCR conditions are met, as conclusive proof of the truth of the satisfaction of those conditions.

(3) The regulator’s determination under sub-paragraph (1) must have regard to the CCR technical assessment or the HCR technical assessment included in the relevant decarbonisation readiness report.

(4) An environmental permit granted pursuant to an application of the kind referred to in sub-paragraph (1)—

(a) must include a condition requiring the holder of the permit to carry out a review of their decarbonisation readiness report at intervals not exceeding 2 years;

(b) may include a condition requiring the permit holder to report to the regulator the findings of the review;

(c) may include a condition that the CCR conditions or, as the case may be, the HCR conditions must be met.

(5) By way of an exception from paragraph (1), in the case of a relevant generator, the regulator may grant an application to vary an environmental permit, where that permit was granted on or before the day on which the Environmental Permitting (Electricity Generating Stations) (Amendment) Regulations 2024 come into force and the regulator is satisfied that, having regard to representations made, meeting the CCR conditions or, as the case may be, the HCR conditions would not be reasonably practicable due to the location or technical characteristics of the relevant generator.”.

(1)

Schedule 25B was inserted by S.I. 2018/110.

(2)

1965 c. 57. Section 1 was substituted by section 156(1) of, and paragraph 17 of Schedule 12 to, the Energy Act 2013 (c. 32), and amended by S.I. 2022/500 and S.I. 2023/149.

(3)

S.I. 2013/971 as amended by S.I. 2016/912, 2018/798 and 2018/1325.

(4)

The Grid Code is available at https://www.neso.energy/industry-information/codes/grid-code-gc/grid-code-documents. Hard copies are available from the National Energy System Operator.