In order for the UK to achieve its Net Zero goals, it is important to improve the energy infrastructure of the country. The ongoing concerns around existing infrastructure, exacerbated by the ongoing conflict in the Middle East with its impact on both the supply of oil and gas and its consequential impact on global gas and oil prices, have further highlighted the need to change direction with how energy is managed. This has resulted in network operators having to give greater consideration to how they secure planning and ensure that projects are sufficient for the needs of the local area.
Battery Energy Storage Systems (BESS) are a critical piece of infrastructure. They ensure that the renewable energy generated can be stored efficiently and dispatched to the grid during times of high demand. However, there are a host of legal concerns that need to be managed effectively in order to get the projects approved and operational.
What are the main planning and regulatory risks for battery storage projects?
The UK’s devolved planning structure means England, Wales, Scotland and Northern Ireland each apply different rules, timeline and requirements. This can lead to inconsistent decision-making and slower processing of planning applications between different authorities. Unlike other forms of network projects, there is no dedicated planning class for BESS. This means that projects will generally fall under a unique classification, which can complicate approval processes if not sufficiently prepared for.
Since 2020, battery storage projects (except pumped hydro) above 50MW were taken out of the National Significant Infrastructure Process (NSIP) regime by the Infrastructure Planning (Electricity Storage Facilities) Order 2020 so that all battery energy projects go through the local planning process handled by planning authorities and are no longer considered by the Secretary of State which has significantly reduced administrative burden and cost for large-scale storage. Solar generation remains within the NSIP threshold so a co-located BESS/solar project may still be considered as an NSIP if the solar component crosses the NSIP capacity threshold meaning more stringent procedures that can add years of delay and significant cost.
It can be difficult to select the right kind of land to establish a project on, practical requirements being flat/stable ground to minimise civil-engineering costs and good transport access for construction and maintenance purposes. There may be issues regarding land use, visual impact especially where land is close to homes and/or community facilities and noise, while environmental concerns (land within environmental zones (e.g. near protected habitats or flood plains)) will face heightened scrutiny. BESS projects need to be established in a way that is harmonious with the local community, given the way in which such projects are designed to help the local community. There is scope for BESS projects to become subject to more stringent environmental protections if proposed regulatory changes come into effect.
What are the safety risks that need to be managed?
BESS projects may be viewed as dangerous if the safety of the batteries used is not demonstrably maintained to the correct standard. Lithium-ion batteries can be at risk of thermal runaway and the fires caused by these can further pollute the environment. Local fire services must be consulted for systems above 1MWh, adding time, complexity and potential design redesigns.
In order to effectively manage these concerns, you should conduct thorough and regular safety reviews of the BESS site. Network operators should document every stage of the inspection and maintain clear records that they adhered to current compliance standards. This means following the legislation outlined in the Health and Safety at Work Act, Electrical Safety Regulations, and Dangerous Substances (Notification and Marking of Sites) Regulations. Frequently replacing the batteries before they become a safety risk is imperative in ensuring that safety can be maintained. These should be managed on a regular schedule to prevent deterioration.
What are the legal and contractual risks?
Not adequately securing approvals spanning planning law, regulatory compliance, health and safety, environmental, property and grid-connection obligations for a project will cause delays that jeopardise the overall effectiveness of the project and may cause a project to miss its grid-connection date, risking loss of queue position or breach of contractual obligations. This is why having clear contractual terms that network operators can work towards is vital.
Where land is required, it is important that provisions are adequately made. This will ensure that you can remain compliant while still providing a necessary service for the local grid. Land close to substations or transmission infrastructure is highly desirable but is often more constrained and competitive, while grid constraints are common especially in high demand areas. However, it is also necessary to understand the impact of global challenges. Increased tariffs or material costs can disrupt supplier contracts, delay projects and even jeopardise investment if costs become unmanageable.
What are the key mitigation measures that network operators can implement?
Seeking professional legal support early in a transaction is an effective way of facilitating a co-ordinated response in complying with the various contractual obligations involved in any BESS project.
Key Contacts
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at April 2026.