Defra progresses with BESS permitting plan

3 June 2026

Gareth Simkins, Senior Communications Adviser

Two years ago, I wrote about the Government’s initial plans to regulate battery energy storage. These plans are still in development but have advanced somewhat since then, with the first consultation now on the horizon.

Last month, my colleague Harvie Agnew and I joined a meeting organised by Defra (which is developing the policy) and the Environment Agency (which will be responsible for its implementation in England, perhaps alongside local authorities), with many figures from the industry in attendance.

It focused on the plan to introduce environmental permitting for the sector. This is an overarching system that regulates industrial pollution, waste management, discharges to water, etc while minimising cost and bureaucratic burdens. As a former environmental policy journalist, I am very familiar with the regime, which is why I have joined Defra’s working group, alongside Harvie.

The focus is on managing the threat posed by fires – and specifically what happens to the water used to extinguish them. This can potentially flow into watercourses, leading to pollution incidents that could be liable for prosecution as unpermitted discharges.

Fires at grid-scale BESS installations are very rare and safety is always improving, not least through the widespread adoption of lithium ferrophosphate chemistry and the use of multiple approaches to prevention and suppression. SEUK is aware of only three incidents since 2020. We will be stressing this to Defra to ensure that any future regulation is proportionate to risk – one of the foundational principles of the permitting regime.

No final decisions have been taken yet, although the possibility of applying other regulatory regimes has been excluded from consideration. These could have included the planning system and the control of major accident hazards regime – which applies to the likes of oil storage and explosives manufacturing.

What is environmental permitting?

The Environmental Permitting (England and Wales) Regulations 2016 require operators of ‘regulated facilities’ to obtain a permit, which sets out certain conditions for lawful operation. These can include limits on the discharge of certain pollutants to air and water, obligations to make regular checks on monitoring equipment and to maintain appropriate records.

Breaching conditions is a criminal offence, which may incur a warning, a caution, a civil sanction or in the worst cases prosecution, leading to substantial fines or in extremes jail time. Permits can also be suspended and revoked, though such actions are extremely rare. Regulators prefer to help bring sites into compliance rather than simply shut them down.

For certain low-risk activities, only less-burdensome registration is required, rather than a full permit. In many cases, ‘standard rules’ permits apply, setting generic conditions for operations that apply across an entire industry, such as operating a waste transfer site or small sewage treatment plant.

The law applies only in England and Wales, though similar regimes are in place in Scotland and Northern Ireland. They may follow England’s lead on battery regulation, to be determined at a later date.

Less complex activities, such as dry cleaning and filling stations, are regulated by local authorities. More complex ones – chemical works, oil refineries, large gas-fired power stations, etc – are controlled by the Environment Agency and Natural Resources Wales. In either case, pre-announced and on-the-spot inspections can occur to ensure compliance with conditions.

Operators of facilities that require a permit must apply for one, for which there is a fee – which can range from hundreds of pounds to tens of thousands of pounds for major manufacturing sites. Costs also apply for changing a permit, transferring it to another party and for surrendering it. Annual subsistence fees must also be paid.

The Natural Resources Wales and the Environment Agency charge for optional advice, too.

So how will BESS be regulated?

For now, much remains unclear.

If BESS is deemed to be an ‘A1’ installation – like a steelworks or waste incinerator – then all forms of pollution would be under potential regulation, perhaps even noise. In this case, the Environment Agency would be the regulator – and costs could be substantial. But while Defra considers its options, it has assured us that economic considerations will be kept in mind.

We think making all BESS A1 facilities is most unlikely, although it is conceivable for the very largest ones, such as those able to supply hundreds of megawatts. More likely is that they will be regulated for risk of discharge to air and water alone – i.e. for fire risk – under a less burdensome strand of the regulations.

Though far from confirmed, standard rules permits are likely to be developed, with conditions applying to all facilities within certain bounds. This would be expected for the most typical situations, such as medium-scale single-story outdoor sites away from sensitive receptors such as drinking water aquifers and wildlife reserves. This will keep things light-touch and relatively cheap, in terms of the cost of applying for a permit and the annual charge for one.

Consultations on those sums will occur further down the line. Some insight into the potential scale of charges can be gleaned from the Environment Agency’s charging scheme, but it is difficult to make a direct comparison with any existing activity.

What is under consideration?

• Scope and capacity thresholds
• Chemistry exemptions – e.g. vanadium flow batteries
• When the regulations will apply
• How they will apply to existing sites
• Definitions of battery, grid-scale, etc.

Consultation

Timings remain uncertain. A consultation on permitting for BESS is planned for mid-2027, after initial decisions are taken following feedback from the working group. A further consultation on more detailed measures may follow in 2028. Consultation on standard rules and charges may open later that year, with the new regime perhaps going live in 2029.

We shall of course keep members updated when there is more to share.

If you have any questions, please contact me via gsimkins@solarenergy.uk.org, or Harvie on hagnew@solarenergyuk.org.