The Confederation of British Industries urged the coalition government to ensure that a new planning system being put in place will not delay a slew of energy generation projects further and cause more uncertainty among investors.
The country’s top lobbying group are worried that handing the power to approve projects from the Infrastructure Planning Commission back to ministers could hold up energy projects.
The group identified 37 power plants, which include onshore and offshore wind farms, biomass and wave and tidal plants, inherited from the previous government that are still awaiting approval. Some of these projects have been waiting for a decision for as long as three years.
The 37 proposed projects could combine for 17.5 gigawatts of power source, representing around one-fifth of Britain’s current electricity generation capacity.
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The previous administration set up the independent commission to decide on infrastructure projects, but the commission has been criticized for the unelected nature of its members and lack of consultation.
The British government said they decided to scrap the commission in favor of a major infrastructure unit under the Department for Communities and Local Government to lay down a new system that will be rapid, predictable and accountable.
Under the new system, ministers will make decisions on new infrastructure projects, instead of unelected commissioners to secure democratic legitimacy, said Greg Clark, minister of state at the department.
However, the business group is concerned whether ministers would be able to deliver timely decisions under the revised planning system.
Neil Bentley, the lobbying group’s director of business environment, said that it wants to see the government clear the backlog of applications in the next six months to renew investor confidence.
“We already have a logjam of delayed planning applications for major energy projects inherited from the previous government, and there is still uncertainty about how the new major infrastructure unit will work in practice,” he explained.
“The government must get a grip on planning. We need to build new low-carbon energy sources, including wind, biomass, gas, nuclear and clean coal plants. These are essential for securing our energy supplies and meeting emissions targets,” Mr. Bentley stressed.
The group reiterated in a report that as much as £150 billion ($234.85 billion) worth of private sector investments in low-carbon infrastructure have been shelved due to confusion over energy policies.
They said the government must deliver key reforms or risk undermining emissions targets and energy security.
These reforms include streamlining the national planning system; advancing the development of carbon capture and storage technology; and providing more details on electricity market reform, its renewable energy policy and the implications of the emission performance standard.
