These systems play a pivotal role in stabilising the grid, integrating renewable energy sources, and ensuring a reliable power supply. However, the evolving landscape of environmental permitting regulations presents both challenges and opportunities for the deployment of BESS. Understanding these changes in the UK is crucial for stakeholders in the energy sector to adapt and thrive in this new regulatory environment.
Understanding the new regulations
Proposed changes in environmental permitting regulations are primarily driven by the need to address environmental concerns associated with the production, installation, and operation of battery storage systems. These regulations aim to minimise the ecological footprint of BESS projects, ensuring that they align with broader environmental sustainability goals. As governments and regulatory bodies worldwide intensify their focus on combating climate change and preserving natural resources, the energy sector is under increasing pressure to adopt practices that are not only efficient but also environmentally responsible.
Key proposals of the new regulations include site selection and impact assessment. Developers could be required to conduct comprehensive environmental impact assessments (EIAs) to evaluate the potential effects of BESS projects on local ecosystems. This includes assessing the impact on wildlife, water resources, and land use. The goal is to ensure that BESS installations do not disrupt local habitats or contribute to the degradation of natural resources. This requirement necessitates a more thorough understanding of the local environment and may involve collaboration with environmental scientists and ecologists to accurately assess potential impacts.
Additionally, waste management and recycling have become a focal point. With the increase in battery production, there is a growing emphasis on the responsible disposal and recycling of batteries. Regulations now mandate detailed waste management plans to ensure that end-of-life batteries are recycled or disposed of in an environmentally friendly manner. This shift not only addresses the environmental concerns associated with battery disposal but also encourages the development of a circular economy within the battery industry, where materials are reused and recycled, reducing the need for new raw materials.
Emissions and pollution control standards have also been introduced to limit emissions and pollution during the manufacturing and operational phases of BESS. This includes controlling the release of hazardous substances and ensuring that manufacturing processes adhere to strict environmental standards. Companies are now required to implement advanced pollution control technologies and adopt cleaner production methods to minimise their environmental impact. This aspect of the regulations is particularly significant as it pushes manufacturers to innovate and develop more sustainable production techniques.
Furthermore, community engagement and transparency are now required, with developers needing to engage with local communities and stakeholders throughout the project lifecycle. This includes providing transparent information about potential environmental impacts and incorporating community feedback into project planning. By fostering open communication and collaboration with local communities, developers can build trust and ensure that projects are aligned with the interests and concerns of those who are directly affected by them.
Implications for battery energy storage solutions
The introduction of these regulations presents several implications for the BESS industry. Compliance with new regulations may lead to increased project costs and extended timelines due to the need for additional assessments, permits, and community consultations. Developers must factor these considerations into their project planning and budgeting. The increased complexity of the permitting process may require additional resources and expertise, potentially impacting the financial viability of some projects.
On the positive side, the regulatory focus on environmental sustainability is likely to spur innovation in battery technology. Companies may invest in developing more efficient, eco-friendly batteries and manufacturing processes to meet regulatory requirements. This drive for innovation could lead to breakthroughs in battery technology, resulting in products that are not only more sustainable but also more cost-effective and efficient. As a result, companies that successfully adapt to these changes may gain a competitive advantage in the market.
While the regulations pose challenges, they also create opportunities for companies that can demonstrate strong environmental stewardship. Businesses that prioritise sustainability may gain a competitive edge and access to new markets that value environmentally responsible solutions. As consumers and businesses increasingly prioritise sustainability in their purchasing decisions, companies that align with these values are likely to see increased demand for their products and services.
Navigating the complex regulatory landscape may require collaboration between developers, regulators, and environmental experts. Partnerships can facilitate knowledge sharing and help streamline the permitting process. By working together, stakeholders can develop best practices and innovative solutions that meet regulatory requirements while advancing the goals of the energy transition.
What's changing?
Battery Energy Storage Systems (BESS) currently do not require an environmental permit under the Environmental Permitting Regulations 2016 (as amended) (EPR) for operation. However, after the introduction of the Lithium-Ion Battery Storage (Fire Safety and Environmental Permits) Bill to parliament in September 2022, concerns have been raised. Subsequent government responses and documents suggest that BESS will soon be reviewed within the permitting framework. The UK Battery Strategy, released in November 2023, indicates that the government plans to consult on including BESS in the Environmental Permitting Regulations "at the earliest opportunity."
Although specifics are still being determined, there are strong indications that BESS will soon fall under the EPR regime. This change could require operators to obtain environmental permits for BESS sites, ensuring compliance with environmental management and pollution control standards.
Why the change?
The swift growth of BESS projects, driven by the need to integrate renewable energy and enhance grid stability, has underscored environmental concerns that need addressing. According to a House of Commons research briefing from April 2024, key concerns regarding BESS site operations include:
- Fire risk: Fires at BESS sites can be challenging to extinguish due to the fuel within the batteries that sustains the fire. Batteries can also produce hydrogen and oxygen during combustion, which can further fuel the fire. Draft guidance from the National Fire Chiefs Council (NFCC) for Fire and Rescue Services (FRSs) and planners (July 2024) highlights fire risks at BESS sites, detection and monitoring, and suppression system recommendations. This guidance is expected to be published in 2025.
- Explosion risk: Gas accumulation during a fire at a BESS can lead to explosion risks.
- Air quality: Fires can release toxic gases into the local environment.
- Groundwater contamination: Chemical leaks and groundwater contamination can occur from onsite chemical storage or the release of firewater containing chemicals into the surrounding environment.
- Noise: Operational noise impacts on the surrounding environment may also be a concern.
Conclusion
The new environmental permitting regulations represent a significant shift in the way battery energy storage solutions are developed and deployed. While they introduce challenges, they also offer an opportunity for the industry to innovate and lead in the transition to a sustainable energy future. By embracing these changes and prioritising environmental responsibility, the BESS industry can continue to play a vital role in the global energy landscape. As the world moves towards a more sustainable future, the ability to adapt to and thrive under these new regulations will be a key determinant of success for companies in the battery energy storage sector.
Support from Gallagher
Once the permits have been implemented, businesses will need to monitor BESS safety checks. Our specialist team can carry out an audit of your risk assessments to help protect your business and your people.
To find out more about how Gallagher can help your organisation prepare for the recent changes in environmental permitting regulations, or if you would like to talk to us about your insurance requirements, please get in touch with our team on 0116 204 3060.
