Scottish Government Consultation on Onshore Electricity Generation Thresholds

1st January 2026

In late 2025, the Scottish Government launched a consultation on a proposed change to how planning decisions for onshore electricity generation projects are made in Scotland.

At the heart of the consultation is a proposal to increase the threshold — currently set at 50 megawatts (MW) — that determines whether a project must be decided by Scottish Ministers under the Electricity Act 1989 or by local planning authorities under the Town and Country Planning (Scotland) Act 1997.

This shift seeks to rebalance decision-making authority and streamline how the energy planning system handles increasingly common generation projects.

Background and Policy Context

Under existing law, onshore electricity generation developments with capacities above 50 MW are subject to national determination: such applications are assessed centrally by Scottish Ministers, who grant consent under Section 36 of the Electricity Act. Projects 50 MW and below are handled by local planning authorities. This distinction was established decades ago when energy technologies and project scales differed significantly; today's larger turbine capacities and higher output means many contemporary projects exceed that threshold, often resulting in more national-level determinations.

The consultation stems from both increased application volumes — the number of Section 36 applications has more than quadrupled over the past 20 years — and calls for rebalancing decision-making closer to communities and local authorities that host new generation infrastructure.

The Consultation Proposal

The central question posed by the Scottish Government is whether the 50 MW threshold should be raised, and if so, to what level. Specifically, the consultation proposes two main options:

Raising the threshold to 100 MW

Raising it to 150 MW

These options could apply across all technologies or be tailored depending on the type of generating station. Any change would only apply to new applications submitted after the proposal is implemented — current and pending applications would not be affected.

The rationale is that an increased threshold would enable a greater number of projects to be decided locally by planning authorities, instead of being subject to central determination by Ministers, with the aim of aligning decision-making with principles of subsidiarity and local accountability outlined in the Verity House Agreement.

Arguments and Stakeholder Views

Responses to earlier, related engagement (notably the February 2024 Investing in Planning consultation) demonstrate that views are mixed:

Support for raising the threshold comes mainly from local authorities, community groups, and third sector organisations, which argue that devolving more decisions to local planning bodies increases accountability to local populations and can improve responsiveness to local context.

Opposition or caution has been voiced particularly by parts of the renewable energy industry, property, and land management sectors. These stakeholders emphasise the value of centralised decision-making under the Electricity Act, citing consistency, strategic oversight, and certainty for investors that come with a national process. Some argue that the established procedures under Section 36 are well understood and provide benefits that might be diminished with greater localisation of decisions.

The partial Business and Regulatory Impact Assessment (BRIA) for the proposal notes that while the reallocation of applications could affect fee structures and workload distribution between central and local authorities, the overall impact on business costs is relatively modest compared with total project costs. Moreover, full local determination could reduce duplication inherent in the current two-track system.

Considerations and Wider Policy Interactions

The consultation also acknowledges broader debates within UK planning and energy policy, including ongoing discussions with the UK Government about reforming the Electricity Act via the Planning and Infrastructure Bill, which aims to improve pre-application engagement, reduce inefficiencies, and clarify procedures for large-scale infrastructure decisions.

Critically, the consultation recognises that increasing the threshold would mean local planning systems would need capacity and expertise to handle a larger volume of major energy applications and potentially more complex cases. Some respondents have expressed concerns about whether the resourcing of planning authorities is sufficient for an expanded role, and the consultation encourages feedback on those practical implications.

Purpose of the Consultation and Next Steps

The consultation is designed to gather views on the threshold change by 27 March 2026, and responses will be considered alongside evidence and stakeholder engagement before any decision is made. The Scottish Government will analyse responses and publish a report setting out conclusions and recommendations. Depending on the outcome, any change would be formalised through an order laid before the Scottish Parliament under Section 36 of the Electricity Act.

This process reflects the government's objective to ensure that Scotland's electricity generation planning framework remains fit for purpose amid evolving technologies, climate targets, and calls for increased local involvement.

The Scottish Government's consultation on increasing the threshold for applications under the Electricity Act represents a considered effort to modernise the way onshore electricity generation projects are regulated and determined. By inviting views on raising the threshold from 50 MW to potentially 100 MW or 150 MW, the consultation engages with broader tensions between national strategic oversight and local decision-making authority. It also highlights ongoing challenges in balancing effective planning, community participation, and efficient delivery of the renewable energy infrastructure needed to meet Scotland's climate and energy goals.

Impacts of Increasing the Threshold for Onshore Electricity Generation Applications in Scotland

The Scottish Government's consultation on increasing the 50 MW threshold for onshore electricity generation applications under the Electricity Act 1989 has significant implications for the planning and delivery of energy infrastructure across Scotland. The proposal — to raise the capacity level at which projects must be decided by Scottish Ministers, potentially to 100 MW or 150 MW — would shift a large number of applications from national determination to local planning authorities, reshaping incentives, costs, and decision-making processes for key stakeholders across the energy sector.

Impact on Renewable Energy Developers and the Broader Industry

One of the most direct impacts of a raised threshold would be felt by energy developers, particularly in the renewable sector:

Application Costs: Raising the threshold would mean many projects — especially solar and hydropower schemes between 50 MW and 150 MW — would face planning fees rather than Electricity Act fees. According to the consultation’s impact assessment, for some technologies like solar and hydropower, planning application fees could be significantly lower for developers, reducing upfront costs.

Conversely, onshore wind projects in the 50-150 MW range may find planning fees potentially higher or broadly comparable, depending on project footprint and whether an Environmental Impact Assessment (EIA) is required.

Investor Confidence: Some developers value the strategic oversight and consistency provided by centralised decision-making under the Electricity Act. Industry feedback suggests that major developers may perceive a shift to local planning as reducing certainty and prioritisation, which could dampen investor confidence in certain projects, even if legislative priority for renewables remains in the National Planning Framework.

Transitional Uncertainty: Short-term impacts may arise as developers adapt to new procedures and resourcing arrangements within local authorities, requiring careful transitional planning to avoid procedural delays.

Local Planning Authorities and Public Sector Bodies

Shifting more determination powers to local planning authorities could have both benefits and challenges:

Resource Implications and Fees: Local authorities would benefit from receiving the full planning fee for applications that fall under their remit, potentially improving local planning department funding. Many local authorities already undertake significant statutory consultee work on Electricity Act applications, and while increased application volumes will require additional resource, authorities have suggested limited extra resource will be needed relative to their existing workload.

Increased Workload: Should the volume of applications requiring local determination increase significantly, planning departments may face increased workload and the need for enhanced staffing, skills, and expertise — especially for handling complex energy infrastructure proposals. Professional bodies such as RTPI Scotland have expressed that such capacity considerations should not be underestimated.

Appeals and Dispute Resolution: If local authorities refuse applications that would have previously gone to Ministers, there could be a rise in appeals to the Directorate for Planning and Environmental Appeals (DPEA) under planning law. This could shift some workload to appeal bodies, although appeals may require less resource than the public local inquiries typically used under the Electricity Act.

Community and Public Sector Perspectives

The consultation reflects varied views among communities, third sector groups, and public sector bodies:

Local Decision-Making: Many community groups and local government respondents support a higher threshold on the grounds of local autonomy and accountability, echoing principles such as those in the Verity House Agreement that decision-making should be local by default. This could lead to outcomes more closely aligned with community priorities and local development plans.

Consistency vs Localism: Critics point to the potential loss of strategic consistency offered by central decisions, particularly for projects that serve wider regional or national energy needs. Some stakeholders emphasise the established procedures and predictability under the Electricity Act, preferring that for larger energy projects.

Sector-Specific Impacts and Broader Energy Policy

The threshold change fits within broader planning and energy policy dynamics:

Renewable Sector Employment: Scotland’s renewable energy sector supported tens of thousands of jobs and substantial economic output pre-pandemic, underscoring the importance of creating a stable planning and consenting environment for such industries. Energy project developers will closely watch how procedural changes influence investment and project scheduling.

Alignment with UK Policy: Elsewhere in the UK, similar proposals have emerged — for example, reforms that would raise the threshold for onshore wind and solar in England to 100 MW under the Nationally Significant Infrastructure Projects regime, reflecting broader debate on where strategic decisions should sit.

Meeting Net Zero Goals: By adjusting the consenting regime to suit the scale and complexity of modern energy infrastructure, the Scottish Government aims to maintain momentum toward its net zero targets. Ensuring that planning processes are proportionate and effective remains critical to accelerating delivery of low-carbon energy projects.

Raising the threshold from 50 MW to a higher level, whether 100 MW or 150 MW, would have wide-ranging impacts across Scotland’s energy system and planning framework. While renewable developers may see cost advantages for some technologies, concerns remain about investor confidence and certainty under more localised decision-making. Local authorities could gain financially and see enhanced planning authority roles, but resource and capacity challenges must be addressed. For communities and public sector actors, increased local control may enhance democratic engagement and alignment with local development plans. The consultation’s outcomes will shape how Scotland balances strategic national interests with local empowerment in the context of crucial renewable energy development.

The Consultation can be seen HERE