21 Garlick Hill, London, EC4V 2AU T: 020 7489 0213 F: 020 7248 4743 E: info@dwdllp.com W: dwdllp.com Date: 11 August 2017 Our Ref: 2544E Department for Business, Energy & Industrial Strategy Level 3 Orchard 2 1 Victoria Street London SW1H 0ET Dear Mr Pridham Delivered by hand and sent via email: Robert.Pridham@beis.gov.uk THE ELECTRICITY ACT 1989 TOWN AND COUNTRY PLANNING ACT 1990 (AS AMENDED) ( THE 1990 ACT ) THE ELECTRICITY GENERATING STATIONS (VARIATION OF CONSENTS) (ENGLAND AND WALES) REGULATIONS 2013 ( THE 2013 REGULATIONS ) SPALDING ENERGY EXPANSION (SEE), WEST MARSH ROAD, SPALDING, LINCOLNSHIRE, PE11 2BB 2010 ORIGINAL CONSENT 1. By a decision letter and accompanying documents, Spalding Energy Expansion Limited (SEEL) was granted consent under Section 36 of the Electricity Act 1989 by the Secretary of State for Energy and Climate Change on 11 November 2010 (the Original Consent) to construct and operate a combined cycle gas turbine (CCGT) generating station at West Marsh Road, Spalding, Lincolnshire (the location is shown on the attached map). 2. Paragraph 2 of the Original Consent states: The Development shall be about 900 MW capacity and comprise: (a) (b) (c) (d) one or more gas turbines; one or more steam turbines; one or more heat recovery steam generators; one or more transformers;
(e) (f) (g) (h) air cooled condensers; a 400kV electrical sub-station; ancillary plant and equipment; and the necessary buildings (including administration offices) and civil engineering works. 3. When granting the Original Consent, the Secretary of State (in exercise of the powers conferred by Section 90(2) of the Town and Country Planning Act 1990) also directed that planning permission be deemed to be granted (the 2010 Deemed Planning Permission). 4. An Environmental Permit (EPR/AP3732KC) pursuant to the Environmental Permitting (England and Wales) Regulations 2010 was issued in December 2010. Planning permission was granted (Reference: H16-0135-10) for an underground gas pipeline and associated AGI required in connection with the CCGT generating station on 8 June 2010. This planning permission was renewed (Reference: H16-0293-15) on 11 June 2015. 2015 VARIED CONSENT 5. By a decision letter and accompanying documents, SEEL (being the person for the time being entitled to the benefit of a consent under Section 36 of the Electricity Act 1989 (DECC Ref: 01.08.10.04/391C), was granted a variation to the consent under Section 36C of the Electricity Act 1989 by the Secretary of State on 30 October 2015 (the Varied Consent). 6. Paragraph 2 of the Varied Consent states: The Development shall be up to 945MW capacity and comprise: (a) either: i) up to two CCGT unit(s) including for each CCGT unit a gas turbine, a heat recovery steam generator (HRSG), a steam turbine and associated equipment with a total rated electrical output of up to 945MW; or ii) one CCGT unit including a gas turbine, a heat recovery steam generator (HRSG), a steam turbine with a rated electrical output of up to 645MW with open cycle gas turbine (OCGT) unit(s) and associated equipment with a total rated electrical output of less than 300MW (b) (c) one or more transformers; air cooled condensers; 2
(d) (e) (f) a 400kV electrical sub-station; ancillary plant and equipment; the necessary buildings (including administration offices) and civil engineering works. 7. When granting the Varied Consent, the Secretary of State (in exercise of the powers conferred by section 90 (2ZA) (a) and (b) of the Town and Country Planning Act 1990) also directed that the conditions subject to which the planning permission was deemed to be granted be varied (the 2015 Deemed Planning Permission. The variations are shown in italic text in the 2015 Deemed Planning Permission. 8. In addition, the decision letter noted (at paragraphs 33 and 34) the Applicant s requirement for options to allow for construction using either (1) CCGT or (2) CCGT and OCGT and that including these options in relation to the gas turbine technology is an appropriate variation and that whichever mix of technologies is taken forward, the Secretary of State considered that the varied Development will not differ significantly from the generating station to which the original consent referred. 9. It is also a feature of the decision letter (at paragraph 34) that in granting the Varied Consent and the 2015 Deemed Planning Permission, the Secretary of State included a requirement in the Varied Consent to notify the Secretary of State and relevant planning authority which one of the gas turbine technology options had been selected prior to commencement of the Development and to provide details of the mix of gas turbine technology to be used. On 07.06.17 SEEL notified the Secretary of State and SHDC that the selected technology option was that set out in the Varied Consent at paragraph 2(a)(ii). The Secretary of State agreed that SEEL s confirmation of the above discharged relevant condition 4(2) of the Varied Consent and condition (53) of the 2015 Deemed Planning Permission. 2017 VARIATION APPLICATION 10. The 2017 variation application is accompanied by the Spalding Energy Expansion 2017 Further Information Document (FID) along with the March 2009 Environmental Statement (ES) and the April 2015 ES FID. These comprise the EIA Report for the Proposed Development, being the generating station which SEEL would be authorised to construct if the Varied Consent (and the 2015 Deemed Planning Permission is varied [in accordance with] the 2017 Variation Application. Used in combination, these documents provide the content of the EIA report as required by Regulation 17(1) and Schedule 4 of the Electricity Works (Environmental Impact Assessment) (England and Wales) Regulations 2017 ( the EIA regulations ) and comprise the results of a comprehensive and independent assessment of the likely significant effects of the Proposed Development on the environment (2017 FID, paragraph 1.4.3). 11. The 2017 Variation Application does not make a further request to vary the term of the Varied Consent (or the 2015 Deemed Planning Permission), but it is relevant that in granting Varied Consent (and the 2015 Deemed Planning Permission) the Secretary of State noted (paragraph 29) the Applicant s view that since approval of the Original Consent in 2010 the Development [had] not had a realistic opportunity to enter construction due to poor energy market 3
conditions for gas generation. The Secretary of State accepted (at paragraph 32) the Applicant s assessment that a five-year extension is required [ ] to give the Development a reasonable prospect of commencement within the Consent period. This experience was borne out when InterGen secured a 15 year contract in the 2016 Capacity Market Auction for OCGT unit(s) and associated equipment less than 300 MW, which is expected to commence construction in time to meet its commitment in 2020. 12. In accordance with Regulation 18 of the EIA Regulations a scoping opinion was sought from the Secretary of State in May 2017. On 11 July 2017 the Secretary of State issued an EIA Scoping Opinion in respect of the Proposed Development. The scoping opinion referred to additional responses from a number of consultees (Lincolnshire County Council (separate responses on behalf of (i) Highways Authority and Lead Local Flood Authority and (ii) Historic Environment), South Holland District Council, Natural England and the Environment Agency). In addition, the scoping opinion drew attention to the Department s relevant public guidance note ( Varying Consents under Section 36 of the Electricity Act 1989 for Generating Stations in England and Wales) and to specific comments / advice from Natural England on ecological and HRA matters; the Carbon Capture Readiness (CCR) Guidance; Combined Heat and Power (CHP) Guidance; and, Pollution Permitting and Control. 13. By this application SEEL requests that the Secretary of State exercises the power conferred on him by Section 36C of the Electricity Act 1989 to further vary the Varied Consent so as to permit it to construct and operate the generating station, maintaining its output of up to 945 MW while allowing for alternative technologies for the power generation units being CCGT and / or OCGT units and a Battery Energy Storage System (BESS). The Secretary of State is also requested to issue a direction under section 90 (2ZA) of the Town and Country Planning 1990 that the conditions in the deemed planning permission be varied or to issue a direction under section 90 (2) of the 1990 Act that planning permission be deemed to be granted. 14. The development proposed in the 2017 Variation Application is described in the Spalding Energy Expansion 2017 FID at Section 6 (Alternatives / The Proposed Development). This 2017 Variation Application proposes to amend paragraph 2(a)(ii) of the Varied Consent to allow for the installation of a BESS alongside the CCGT and OCGT unit(s). Accordingly, paragraph 2(a)(ii) would state: The Development shall be up to 945 MW capacity and comprise: (a) Either: (i) up to two Combined Cycle Gas Turbine (CCGT) units (including for each CCGT unit: a gas turbine; a heat recovery steam generator (HRSG); steam turbine plant; and, associated equipment) with a total rated electrical output of up to 945 MW; or 4
(ii) (1) One CCGT unit (including: a gas turbine; a heat recovery steam generator; steam turbine plant; and, associated equipment) with a rated electrical output of up to 645 MW; (2) a Battery Energy Storage System (BESS) (including: batteries; associated enclosures; control and protection systems; temperature control systems; and power conversion systems) having a total rated electrical output of up to 175 MW; and (3) Open Cycle Gas Turbine (OCGT) unit(s) (including for each OCGT unit: a gas turbine; and, associated equipment) having a total rated electrical output of less than 300 MW. The total combined electrical output of (1), (2) and (3) shall be up to 945 MW*; (b) (c) (d) (e) (f) one or more transformers; air cooled condensers; a 400kV electrical sub-station; ancillary plant and equipment; and, the necessary buildings (including administration offices) and civil engineering works. * For example, a built CCGT unit of 480 MW, a built BESS of 165 MW and a built OCGT unit(s) of less than 300 MW. 15. There will be no change to the total generating capacity; the proposed two scenarios are considered to provide greater flexibility. The Proposed Development is described in the 2017 Further Information Document (the 2017 FID). The location of the Proposed Development is shown on the map at Document (c). 16. The Proposed Development will be located wholly within the SEE site in the area of land edged red on Drawing No. 1620002349-009-01A Rev PO3). The SEE site is shown on the plan at Document (b). This replaces Figure 61033586-01, (Drawing Number 482302-15-01) as the Area Allocated to Switchyard is no longer required for that purpose but will be absorbed into the Area Allocated to Power Plant. There is no change proposed to the boundary of the SEE site which is described in the Original Consent Application as mainly previously used land, designated for employment in the South Holland Local Plan, within a wider industrial environment including the backdrop of the existing Spalding CCGT generating station, and having good access to road and rail and to gas and electricity infrastructure. 17. The applicant requests that the Secretary of State grants a further variation to the Varied Consent in order to enable, if the applicant considers it appropriate, a BESS to form part of the generating station. In addition, the applicant requests that the Secretary of State made a direction under Section 90 of the Town and Country Planning Act 1990 to vary the Conditions of the 2015 Deemed Planning Permission. A draft of the variations which the applicant proposes should be made to the Varied Consent and 2015 Deemed Planning Permission is attached as Document (h). Copies of the maps / plans which it is proposed the consent and direction under Section 90 refer, which are not referred to in the Original Consent (and 2010 5
Deemed Planning Permission) or Varied Consent (and 2015 Deemed Planning Permission) are attached at Document (b). 18. Account has been taken of the views expressed by persons who have been consulted about the 2017 Variation Application. Further information is set out in Table 5.1 of the 2017 FID. 19. The following Documents are enclosed in support of the application: a) Application Letter (this letter) (2 hard copies). b) Drawing Number 1620002349-009-01A (Rev P03). This replaces Figure 61033586-01 (Drawing Number 482302-15-01) attached to the Varied Consent and the 2015 Planning Permission as the Area Allocated to Switchyard is no longer required for that purpose but will be absorbed into the Area Allocated to Power Plant. c) Drawing Number 1620002349-009-01B (Rev P01) illustrating the location of the Proposed Development site. d) Original Consent and the 2010 Deemed Planning Permission (granted 11 November 2010) (2 hard copies), including Drawing Number 63114-PBP-120-1-3. e) Varied Consent and 2015 Deemed Planning Permission (granted 30 October 2015), including Figure 61033586-01 (Drawing Number 482302-15-01). f) Environmental Permit dated December 2010. g) Planning permission (Reference H16-0135-10) dated 8 June 2010 and planning permission renewal (Reference: H16-0293-15) dated 11 June 2015 for the underground gas pipeline and associated AGI. h) A draft of the changes that the applicant proposes should be made to the Varied Consent and 2015 Deemed Planning Permission (Track Change Document). i) Spalding Energy Expansion 2017 Further Information Document (August 2017). j) Spalding Energy Expansion Non-Technical Summary of the Further Information Document (August 2017). k) Schedule of Proposed Consultees 20. In addition, two CDs containing electronic versions of all previous application documents are enclosed. 21. In accordance with the July 2013 Guidance Note on varying consents granted under section 36 for generating stations in England and Wales, no fee is payable for an application to vary a section 36 consent. 6
22. Should the Secretary of State consider the variation application suitable for publication, in accordance with regulation 5 of the 2013 Regulations SEEL will comply with the publicity and advertising requirements. We will write on behalf of SEEL to the consultees listed in the attached Schedule of Proposed Consultees and place a notice of the application in the London Gazette and local press for two successive weeks. The application documents will also be published and available in electronic form at InterGen s website: http://www.intergen.com/development-opportunities-portfolio/spalding-energy-expansiondownloads Please will you kindly confirm receipt of this application. If you have any queries regarding the enclosed please contact [Hannah Thomas-Davies (htd@dwdllp.com), Tel: 020 7489 4830] or Keith Dalton (kd@dwdllp.com) or Switchboard 020 7489 0213. Yours sincerely Dalton Warner Davis LLP Enc. 7
TABLE 1.1: REQUIRED CONTENT OF AN APPLICATION UNDER SECTION 36C OF THE ELECTRICITY ACT 1989 / DESCRIPTION SEEL S COMPLIANCE Provision of Regulation 3 (1) A variation application must (a) be made in writing; (b) describe the location of the Proposed Development by reference to a map; (c) state why it is proposed that the relevant section 36 consent should be varied; what account has been taken of views expressed by persons who have been consulted by the applicant about the proposed variation; (d) include a draft of the variations which the applicant proposes should be made to the relevant section 36 consent; and copies of any maps or plans not referred to in the relevant section 36 consent but which the applicant proposes that the relevant section 36 consent should refer to after it is varied; and (e) if the application relates to an offshore generating station, identify which of the bodies referred to in paragraph (b) of the definition of relevant planning authority in regulation 2(1) are, in the applicant s opinion, likely to have an interest in the variation application. (2) A variation application must include particulars of (a) the relevant section 36 consent, and, if that consent was not granted to the applicant, how the applicant has the benefit of that consent; (b) where the appropriate authority is the Secretary of State, any section 90 direction given on granting the relevant section 36 consent; (c) any permit, licence, consent or other authorisation (other than the relevant section 36 consent) given in connection with the construction or operation of the Proposed Development (a relevant authorisation ), including any variation or replacement of a relevant authorisation; and (d) any application that has been made for a relevant authorisation or variation of a relevant authorisation. (3) Where the appropriate authority is the Secretary of State and the applicant requests the Secretary of State to make a section 90 direction on varying the relevant section 36 consent, the application must (a) identify the section 90 development in respect of which that request is made and describe its location by reference to a map; SEEL s Compliance SEEL is submitting the 2017 Variation Application. Two hard copies and two CDs containing the 2017 Variation Application have been submitted. The location of the Proposed Development is the area of land edged red on Drawing Number 1620002349-009-01A. This Figure accompanies the 2017 Variation Application. Section 2 (Rationale for Development) provides the rationale for the 2017 Variation Application. Section 5 (Consultations) provides a summary of the pre-application consultation and responses in relation to the 2017 Variation Application. Wherever relevant, this Section also provides a summary of the subsequent actions taken, and references to additional information. The draft of the proposed variations to the Varied Consent and the 2015 Deemed Planning Permission accompanies the 2017 Variation Application. The location of the Proposed Development is the area of land edged red on Drawing Number 1620002349-009-01A. This Figure accompanies the 2017 Variation Application. Not relevant to the 2017 Variation Application. A copy of the Varied Consent and the 2015 Deemed Planning Permission accompanies the 2017 Variation Application. SEEL was the applicant. A copy of the Varied Consent and the 2015 Deemed Planning Permission accompanies the 2017 Variation Application. SEEL was the applicant. This 2017 Variation Application is accompanied by: The planning permission (Reference: H16-0293-15) for the underground gas pipeline and associated AGI; and, The Environmental Permit (under the Environmental Permitting (England and Wales) Regulations 2010. Not relevant to the 2017 Variation Application. A copy of the Varied Consent and the 2015 Deemed Planning Permission accompanies the 2017 Variation Application. The location of the Proposed Development is the area of land edged red on Drawing Number 1620002349-009-01A. This Figure accompanies the 2017 Variation Application. 8
Provision of Regulation 3 SEEL s Compliance (b) state (i) (ii) (c) include why it is proposed that the direction should be made; and what account has been taken of views expressed by persons who have been consulted by the applicant about the proposed direction; and Section 2 (Rationale for Development) provides the rationale for the 2017 Variation Application. Section 5 (Consultations) provides a summary of the pre-application consultation and responses in relation to the 2017 Variation Application. Wherever relevant, this Section also provides a summary of the subsequent actions taken, and references to additional information. (i) a draft of the proposed direction; and The draft of the proposed variations to the Varied Consent and the 2015 Deemed Planning Permission accompanies the 2017 Variation Application. (ii) copies of any maps or plans to which it is proposed that the section 90 direction should refer which are not (aa) referred to in the relevant section 36 consent or any section 90 direction given on granting the relevant section 36 consent; or (bb) included in the application in accordance with paragraph (1)(d)(ii). The location of the Proposed Development is the area of land edged red on Drawing Number 1620002349-009-01A. This Figure accompanies the 2017 Variation Application. (4) Provision omitted (as provided by Schedule 5(6)(2) of the EIA Regulations). 9