134 United Kingdom
legal and regulatory regime as distributed renewable energy facilities .
Until 2019 , generators using microgrids were able to benefit from the FiT scheme , now replaced by the SEG scheme ( see question 3.5 for more detail ).
4.6 Are there health , safety and environment laws / regulations which should be considered in relation to specific types of renewable energy or which may limit the deployment of specific types of renewable energy ?
The development of renewable energy projects requires infrastructure , and all construction projects in the UK must comply with the Construction ( Design and Management ) Regulations 2015 , which form the key health and safety framework for the construction industry . More generally , the UK also has extensive health and safety regulations to ensure employers are responsible for the health and safety of their employees and those impacted by their business .
Whilst environmental laws generally encourage renewables development ( see question 1.1 ), the planning consent process ( see question 4.1 ) requires the consideration of environmental and social matters , and most utility-scale projects will also require an environmental impact assessment to assess the environmental risks of the project . Applications for large-scale projects will not be permitted if in an Area of Outstanding Natural Beauty or in a National Park , and wind projects are subject to further scrutiny in respect of protecting wildlife and ( for offshore projects ) marine conservation .
52 Storage
5.1 What is the legal and regulatory framework which applies to energy storage and specifically the storage of renewable energy ?
Electricity storage ( including the storage of renewable energy ) is currently treated as a type of electricity generation . Accordingly , the applicable legal and regulatory framework that applies to electricity storage is currently the same as that applicable to electricity generation . However , the Electricity Act does not currently include a specific definition of electricity storage ( although see below for further details in the Energy Security Bill ).
The provisions relating to generation licences ( and exemptions ), planning permission and construction described at question 4.1 also apply to electricity storage projects .
All electricity storage projects will also need a completed lease on satisfactory terms in relation to the land in which it is located and , in respect of battery storage projects , must comply with various UK , European and international standards on battery matters .
The Energy Security Bill contains measures to establish a licensing framework and regulatory system carbon dioxide transport and storage infrastructure , and which seek to remove obstacles for developers of battery-based and pumped hydro energy storage projects , including by clarifying storage as a distinct subset of generators under the Electricity Act .
5.2 Are there any financial or regulatory incentives available to promote the storage of renewable energy ?
Energy storage systems benefit from the FiT scheme ( provided applications have been submitted prior to 31 March 2019 ) and the RHI scheme as described at question 3.11 as well as , for storage co-located with a renewable asset , SEG payments .
Additionally , in March 2021 , BEIS launched the Longer Duration Energy Storage Demonstration competition for up to £ 68 million to be awarded to technologies that can demonstrate the capability of first-of-a-kind energy storage facilities with a longer duration .
62 Foreign Investment and International Obligations
6.1 Are there any special requirements or limitations on foreign investors investing in renewable energy projects ?
There are no particular restrictions on foreign investment of UK renewable energy projects .
However , Ofgem , currently together with the European Commission ( subject to any Brexit-related developments ), is required to undertake an assessment as to whether foreign ownership or control of a renewable power project poses a risk to security of supply .
Additionally , in January 2022 , the National Security and Investment Act 2021 came fully into force , strengthening the government ’ s powers to scrutinise transactions and projects on national security grounds , particularly in key areas ( including certain parts of the energy sector , and specifically organisations owning large-scale power generation of greater than 1GW ). Following voluntary notification or “ call-in ” by the government , a full national security assessment may be made , which may result in the transaction or project being blocked or permitted , subject to certain conditions .
6.2 Are there any currency exchange restrictions or restrictions on the transfer of funds derived from investment in renewable energy projects ?
No exchange control restrictions affect inward or outward investment ( direct or portfolio ), the repatriation of income or capital , the holding of currency accounts , or the settlement of currency-trading transactions .
6.3 Are there any employment limitations or requirements which may impact on foreign investment in renewable energy projects ?
No sectors of the economy are restricted to UK nationals or require majority equity holdings or other specified holdings by UK nationals . In practice , foreign companies can obtain work permits for foreign employees by demonstrating that their skill level or experience cannot be found among UK nationals .
6.4 Are there any limitations or requirements related to equipment and materials which may impact on foreign investment in renewable energy projects ?
In respect of imports from outside the UK , there may be an obligation to comply with import licensing requirements and customs tariffs .
Aside from general restrictions applicable to materials that are harmful to health and safety and the environment , there are no other legal restrictions that apply to equipment or materials required to construct or operate renewable energy projects .
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Renewable Energy 2023