The UK government has revised its planning guidance for offshore wind farms, removing the requirement for developers to provide financial compensation for wake effects—a shift that could reshape the dynamics of the sector. The updated National Policy Statement (NPS) now expects project backers to demonstrate efforts to mitigate potential yield losses on neighboring developments, but it stops short of mandating financial compensation.
According to the Department for Energy Security and Net Zero (DESNZ), the revised guidance emphasizes the need for developers to conduct wake assessments as part of the consenting process and to adopt a “good neighbor approach.” However, the government has explicitly excluded references to physical mitigation measures, citing impracticality without reducing the output of proposed wind farms. Additionally, the government rejected calls for fixed distances between wind farms, arguing that the understanding of wake effects is still evolving.
“The government maintains that wake effects are a commercial matter to be resolved between developers and the planning system is not expected to adjudicate on compensation arrangements,” DESNZ stated. This stance follows a consultation earlier this year and aligns with the Clean Power Action Plan, which aimed to prevent disputes over wake effects after a surge in disagreements involving approximately 10GW of offshore capacity in planning.
The new guidance could significantly impact the offshore wind sector by shifting the burden of mitigation efforts onto developers while removing the planning system’s role in adjudicating compensation. This move may encourage more collaborative approaches between developers to address wake effects, potentially fostering innovation in mitigation strategies. However, it also raises questions about the fairness of commercial resolutions, particularly for smaller developers who may lack the leverage to negotiate favorable terms with larger players.
As the sector continues to grow, the government’s decision to treat wake effects as a commercial matter could either streamline the planning process or exacerbate tensions between developers. The lack of fixed distances and the evolving understanding of wake effects suggest that the industry may need to rely more on technological advancements and voluntary agreements to manage these impacts effectively. The long-term implications of this policy shift will depend on how developers respond and whether they can strike a balance between competition and cooperation in the pursuit of renewable energy goals.