Costs, Fees and Budgeting

Battery storage grid connection and planning programme

7 min readBy PlanScope Editorial Team

A planning permission lasts three years and section 73 cannot extend it. Where the connection date sits further out, the implementation period has to be negotiated when permission is granted.

On a battery storage scheme the grid connection sets the programme and the planning application follows it. A connection offer fixes the point of connection, the works required, the charges and an energisation date, and that date is frequently years beyond the point at which planning permission would be granted. Everything else in the development programme has to be arranged around it.

Which produces the problem this article is about. A planning permission carries a three year time limit for implementation under section 91 of the Town and Country Planning Act 1990, and section 73 cannot be used to extend it. Get permission too early relative to the connection date and the permission lapses before the project can be built.

Why the connection offer governs the project

Battery storage in England is determined by the local planning authority whatever its capacity, because the capacity threshold that would have sent large storage schemes into the nationally significant infrastructure regime was removed for electricity storage other than pumped hydro. That makes the planning route relatively predictable.

The connection route is not. Capacity on the distribution and transmission networks is finite, allocated in a queue, and a scheme without a connection is a scheme without a product. Developers therefore apply for a connection before, or at the same time as, acquiring land rights, and the connection offer is the document that determines whether the site is worth pursuing.

A connection offer sets out the point of connection, the network works needed, the charges, the securities the connecting party must provide, the liabilities on termination, and the date by which the network operator will energise. Read the date and the termination liabilities first.

Application and connection offer costs

Costs fall into categories rather than to a single figure, and the figures themselves come from the network operator's published charging statement and the current charging methodology rather than from any general guide.

Cost category What it covers Where the figure comes from
Connection application fee Assessment and design of the offer Operator's published statement of charges
Point of connection works The physical connection assets Quoted in the offer
Reinforcement contribution Wider network works, where chargeable Current charging methodology
Securities and liabilities Protection for the operator against abortive works Set out in the offer and connection agreement
Land rights and easements Wayleaves or easements for cables and the substation site Negotiated with landowners
Grid studies and metering Protection studies, compliance work, metering installation Quoted separately

Charging arrangements have been reformed so that much wider network reinforcement is socialised rather than charged directly to the connecting customer, which changed the economics of connections significantly. The detail moves, so take the position from the current charging statement rather than from a previous project's offer.

The item that causes most surprise is the securities. Accepting an offer commonly requires a letter of credit or cash deposit against the operator's costs, and that capital sits unproductive for the whole period before energisation.

Queue position and its effect on programme

The queue is the hard constraint. Projects hold a position, and that position came with an indicative energisation date that may sit far in the future. Reform of the connections process has been directed at clearing speculative projects and giving firmer dates to schemes that can demonstrate readiness, with land rights and planning status among the criteria used.

What that means in practice is a loop: a firmer connection date needs evidence of planning progress, and a sensible planning programme needs a connection date. The way out is to run both and accept the cost of the planning work before the date is certain.

Verify the current connections process and its readiness criteria directly with the network operator, because this is the fastest-moving part of the whole exercise and anything written about it dates quickly.

Site selection driven by connection capacity

Site selection for storage runs backwards compared with most development. You start from the network, not from the land.

Network operators publish capacity heat maps and registers showing where headroom exists, and those maps are the first filter. The second is distance to the point of connection, because cable route length and the land rights needed to achieve it are a direct cost. The third is whether the connection can be made at the voltage the scheme needs.

Only then do the planning constraints apply: flood zone, landscape designation, Green Belt, heritage setting, ecology, highway access for abnormal loads and proximity to residential receptors. A site that scores perfectly on planning and sits 8 kilometres from a constrained substation is not a site.

Planning evidence base for a storage scheme

The evidence base is smaller than for a housing scheme and has three items that carry most of the weight.

Noise is the first. Inverters, transformers and the cooling system produce tonal sound that runs whenever the asset is charging or discharging, including at night. A Noise Impact Assessment to BS 4142:2014+A1:2019 with character corrections for tonality is the document that decides the layout, because the answer is usually to move plant away from receptors and add acoustic screening. Budgeting a noise survey and its monitoring period covers how the survey design drives the fee.

Fire safety is the second. Fire and rescue services expect a battery safety management plan addressing thermal runaway, water supply for firefighting, access for appliances, separation between containers, gas venting and off-site consequence modelling. Engage the fire and rescue service before submission rather than responding to its consultation reply.

Landscape and visual effect is the third, because a storage site is a field of containers with security fencing and lighting, and screening takes years to establish.

Screening under the environmental impact assessment regime also needs considering early. Industrial installations for the production of electricity are listed in Schedule 2 of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017, with an area threshold, so a request for a screening opinion is a sensible first step. Where an Environmental Impact Assessment is required, the Environmental Statement must be prepared by competent experts under those Regulations, and a draft is a starting point for that team rather than a substitute for it.

Decommissioning obligations and bonds

Authorities now routinely condition a decommissioning plan requiring removal of the containers, foundations, cabling and fencing, and restoration of the land, within a set period after the asset ceases operation. Permissions are sometimes granted for a defined operational period, with the restoration obligation triggered at its end.

Some authorities also seek a financial guarantee, through a bond or a section 106 obligation, against the risk that the operating company has no assets when the time comes. Practice varies and the local approach governs, so raise it at pre-application and budget for the cost of the instrument rather than discovering it in the draft agreement.

Sequencing the connection and the planning application

  1. Apply for the connection early and read the offer for the energisation date and the termination liabilities before anything else
  2. Secure land rights, including the cable route and the substation plot, since readiness evidence depends on them
  3. Commission the noise survey and the fire engagement in parallel, because both change the layout
  4. Request an environmental impact assessment screening opinion
  5. Time the planning application so that permission is granted within reach of the energisation date, allowing for the three year implementation period
  6. Where the connection date is beyond that period, negotiate a longer implementation period as a condition at the point permission is granted, since section 73 cannot extend it later
  7. Use a planning performance agreement where the authority offers one, to fix the determination timetable against the connection date

Point six is the one that saves projects. An authority can grant permission subject to a condition allowing a longer period for implementation where there is a good reason, and a documented connection date is a good reason. Ask for it in the application, with the offer attached. Planning performance agreements and what you are paying for covers point seven.

PlanScope can draft the planning, noise and environmental narrative documents for a storage scheme from a postcode and a set of answers, flagging where survey and operator data are needed rather than inventing figures. Pricing is one free report, £50 per report, or £150 per month for unlimited reports on the Professional tier, as set out on pricing. Reports should be reviewed before submission and PlanScope does not guarantee planning approval. For specialist technical reports, qualified professional input may be required. This is general guidance, not legal advice, and connection charging and queue arrangements change, so check the current position with the network operator.

Frequently asked questions

Is battery storage a nationally significant infrastructure project?

In England, no. The capacity threshold that would have sent large storage schemes into the nationally significant infrastructure regime was removed for electricity storage other than pumped hydro, so schemes are determined by the local planning authority whatever their capacity. That makes the planning route more predictable than the connection route.

What does a grid connection offer actually cost?

Costs fall into categories rather than a single figure: the application fee, the point of connection works, any chargeable reinforcement, securities and termination liabilities, land rights for the cable route and substation, and grid studies and metering. The figures come from the operator's published charging statement and the offer itself.

Can a planning permission be extended to match a connection date?

Not afterwards. Section 73 cannot be used to extend the time limit for implementation. The route is to ask for a longer implementation period as a condition when permission is granted, supported by the connection offer showing the energisation date, rather than applying to vary the standard three year condition later.

What noise evidence does a battery storage scheme need?

An assessment to BS 4142:2014+A1:2019 with character corrections for tonality, because inverters, transformers and cooling produce tonal sound whenever the asset is charging or discharging, including at night. The outcome usually drives the layout, moving plant away from receptors and adding acoustic screening, so commission it before fixing the site plan.

Will the council require a decommissioning bond?

Practice varies. Most authorities condition a decommissioning and restoration plan, and some seek a financial guarantee through a bond or a section 106 obligation against the risk that the operating company has no assets at the end of life. Raise it at pre-application and budget for the cost of the instrument.

Sources and further reading

battery storagegrid connectionprogrammecostsnoisedecommissioning

This article is general guidance about the planning system in England and, where stated, the rest of the UK. It is not legal or professional advice. Check your local planning authority’s validation requirements and take professional advice for your specific site.

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