Preparing for change: How new environmental permitting regulations may impact battery energy storage solutions

The energy landscape is rapidly evolving, and with this transformation comes significant regulatory changes. One area under scrutiny is battery energy storage solutions (BESS), a crucial component of the renewable energy infrastructure needed to stabilise grids and facilitate the transition to low-carbon energy sources.

What’s changing?

BESS are not currently required to obtain an environmental permit under the Environmental Permitting Regulations 2016 (as amended) (EPR) to operate. However, concerns were raised after a Lithium-Ion Battery Storage (Fire Safety and Environmental Permits) Bill was presented to parliament in September 2022.[1] Following this, there have been several mentions in government responses and issued documents which indicate that BESS in the permitting regime is due to be reviewed soon. Most recently, the UK Battery Strategy (published November 2023) stated that the government had committed to consulting on including BESS in the Environmental Permitting Regulations “at the earliest opportunity”.[2]

While the specifics are yet to be finalised, there are strong indications that BESS will soon be included under the EPR regime. This change could mean that operators will be required to obtain environmental permits for BESS sites, ensuring these installations meet certain environmental management and pollution control standards.

Why the change?

The rapid deployment of BESS projects, driven by the need to integrate renewable energy and improve grid stability, has highlighted environmental concerns that must be addressed. The main concerns (highlighted in a House of Commons research briefing published April 2024)[3] around the operation of BESS sites are:

• Risk of fire – Fires at BESS sites can be hard to extinguish as the batteries contain fuel which sustains the fire. Batteries can also produce hydrogen and oxygen during the combustion which can further fuel the fire. Draft guidance produced by the National Fire Chiefs Council (NFCC)for the use of Fire and Rescue Services (FRSs) and planners (July 2024) highlights the risk of fire at BESS sites, detection and monitoring, and suppression system recommendations which should be in place.[4] This guidance is expected to be issued for publication in 2025.
• Explosion – The build-up of gases during a fire at a BESS can lead to the risk of explosions.
• Air quality – A fire can result in the release of toxic gases to the local environment.
• Groundwater contamination – There is a potential for chemical leaks and groundwater contamination from storage of chemicals onsite and / or release of firewater containing chemicals to the surrounding environment.
• Noise – Noise impacts to the surrounding environment from operations may also be a consideration.

Potential key areas of focus for EPR compliance

While nothing has been published yet, what operators of BESS facilities will need to consider to achieve compliance can be anticipated to include:

1. Risk assessment and management – Operators will likely need to demonstrate they have assessed and mitigated environmental and safety risks, including fire hazards, contaminated leaks, and noise pollution.
2. Site design and operation – The layout and operation of BESS facilities will need to be designed to minimise environmental impact. This could involve implementing separation distances, secondary containment measures, fire suppression systems, and monitoring protocols.
3. Waste management – The regulations may require detailed plans for the safe and environmentally responsible disposal or recycling of battery components.
4. Pollution control measures – Emission controls, such as managing potential releases of hazardous gases.

Implications for BESS operators

If BESS are introduced to the EPR, this may have several implications for developers and operators of BESS sites:

• Increased costs – Operators must prepare for potential costs associated with compliance including: CAPEX in the form of additional infrastructure such as fire water storage and providing fire water containment, and costs to obtain consents; OPEX in the form of monitoring, maintenance, compliance management, and subsistence fees for consents.
• Reduced density of units –To prevent the spread of fire. In the waste sector, the Environment Agency introduced minimum separation distances or need for fire walls. Introduction of separation distances for BESS sites could restrict the number of units that can fit on a site.
• Extended project timelines – The permitting service for England and Wales are both experiencing significant delays at the moment, meaning that obtaining an environmental permit is taking longer than usual. Standard rules permits can take up to six months to be issued, whereas new bespoke permits are taking 12 - 24 months to be determined, depending on the complexity of the application.

How can SLR help?

While the details of the proposed regulatory changes are still emerging, SLR is closely monitoring these developments and our team is ready to assist you in navigating this evolving regulatory landscape.

SLR can offer support from the initial design phases of your BESS project, through to modelling, planning, management plans, process safety, and the final asset management once the site is up and running. Ways in which our experts can help include:

• Design and civils – feasibility through to tender design; considering fire requirements, buildability, operability, and techno-economics.
• Techno-economic modelling – to assist in sizing the BESS correctly to the grid.
• Air quality – smoke plume modelling[5]
• Environmental and social impact assessments
• Battery safety management plans
• Planning
• Due diligence
• Noise – our noise team are one of the leading noise experts for BESS projects, from providing technical specifications for factory noise testing to the original equipment manufacturers (OEMs), to undertaking noise modelling and mitigation design.
• Owner’s engineer and technical support
• Process safety
• Environmental permitting
• Asset management

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References

1. https://bills.parliament.uk/bills/3336
2. https://assets.publishing.service.gov.uk/media/656ef4871104cf000dfa74f3/uk-battery-strategy.pdf
3. https://researchbriefings.files.parliament.uk/documents/CBP-7621/CBP-7621.pdf
4. https://nfcc.org.uk/consultation/draft-grid-scale-energy-storage-system-planning-guidance/
5. https://www.slrconsulting.com/eur/insights/advancing-safety-in-renewable-energy-the-critical-role-of-bess-fire-risk-assessments/