The Environmental Permitting (England and Wales) Regulations 2016

Regulation 35(1)

SCHEDULE 24 E+W Efficiency in heating and cooling energy: Energy Efficiency Directive

Interpretation E+W

1.—(1) In this Schedule—

“cogeneration” means the simultaneous generation in one process of thermal energy and electrical or mechanical energy;

“connection distance” means—

(a)

in the case of a hot water link, the thermal capacity in kilowatts of the source or demand, whichever is smaller, multiplied by 0.0038, or

(b)

in the case of a steam heat link, the thermal capacity in kilowatts of the source or demand, whichever is smaller, multiplied by 0.0012,

expressed in kilometres;

“cost-benefit analysis” means a cost-benefit analysis in accordance with Part 2 to Annex IX to the Energy Efficiency Directive;

“economically justified demand” means demand that does not exceed the needs for heating or cooling and which would otherwise be satisfied at market conditions by energy generation processes other than cogeneration;

“high-efficiency cogeneration” means cogeneration meeting the criteria laid down in Annex II to the Energy Efficiency Directive;

“installation” means—

(a)

a stationary technical unit where one or more activities listed in Part 2 of Schedule 1 are carried on, F1 ...

(b)

a small waste incineration plant[F2 ; or

(c)

a medium combustion plant];

“relevant installation” means an installation carrying on—

(a)

an activity described in Part A(1) of Section 1.1 of Part 2 of Schedule 1,

(b)

an activity described in Part A(1) of Section 5.1 of Part 2 of Schedule 1,

(c)

an activity described in paragraph (a) of Part B of Section 1.1 of Part 2 of Schedule 1, F3 ...

(d)

a small waste incineration plant operation[F4 ; or

(e)

a medium combustion plant operation];

“substantially refurbished” means, subject to sub-paragraph (2)(e), a refurbishment the cost of which exceeds 50% of the investment cost for a new comparable energy plant.

(2) For the purposes of this Schedule—

(a) the definition of “offshore platform” in paragraph 3 of Part A(1) of Section 1.1 of Part 2 of Schedule 1 also includes any structure where the principal purpose of the use of the structure is the establishment of the existence of petroleum or the appraisal of its characteristics, quality or quantity or the extent of any reservoir in which it occurs,

(b) the definition of “petroleum” in paragraph 4 of Part A(1) of Section 1.1 of Part 2 of Schedule 1 also includes coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation,

(c) a reference to an installation means an installation which has a net rated thermal input exceeding 20 megawatts,

(d) where two or more small waste incineration plants falling within Schedule 13 with an aggregate net thermal input exceeding 20 megawatts are operated on the same site by the same operator, those small waste incineration plants must be treated as a single installation with a rated thermal input exceeding 20 megawatts, and

(e) refurbishment does not include the fitting of equipment to carry out the activity described in Part A(1) of Section 6.10 of Part 2 of Schedule 1.

Textual Amendments

F1 Word in Sch. 24 para. 1(1) omitted (30.1.2018) by virtue of The Environmental Permitting (England and Wales) (Amendment) Regulations 2018 (S.I. 2018/110), regs. 1, 15(a)(i)

F2 Words in Sch. 24 para. 1(1) inserted (30.1.2018) by The Environmental Permitting (England and Wales) (Amendment) Regulations 2018 (S.I. 2018/110), regs. 1, 15(a)(ii)

F3 Word in Sch. 24 para. 1(1) omitted (30.1.2018) by virtue of The Environmental Permitting (England and Wales) (Amendment) Regulations 2018 (S.I. 2018/110), regs. 1, 15(b)(i)

F4 Words in Sch. 24 para. 1(1) inserted (30.1.2018) by The Environmental Permitting (England and Wales) (Amendment) Regulations 2018 (S.I. 2018/110), regs. 1, 15(b)(ii)

Electricity generating installations E+W

2.—(1) An application for the grant of an environmental permit under regulation 13(1) for a relevant installation which generates electricity must contain a cost-benefit analysis which assesses the cost and benefits of providing for the operation of the installation as a high-efficiency cogeneration installation.

(2) The regulator must exercise its relevant functions to ensure that an application for a variation of an environmental permit under regulation 20(1) is made before the energy plant of a relevant installation which generates electricity is substantially refurbished.

(3) The regulator must ensure that an application for a variation of an environmental permit required by sub-paragraph (2) contains (in addition to the information required by paragraph 2(1)(b) of Schedule 5) a cost-benefit analysis which assesses the cost and benefits of converting the relevant installation to high-efficiency cogeneration.

(4) The requirement for a cost-benefit analysis in sub-paragraph (1) or (3) does not apply to peak load and back-up electricity generating relevant installations for which the application for the grant or a variation of an environmental permit states that operation under 1,500 operating hours per year as a rolling average over a period of 5 years is planned.

(5) In the case of a relevant installation to which sub-paragraph (4) applies, the regulator must ensure that, if an environmental permit is granted or varied, it includes conditions ensuring that the operating hours for the installation remain within that constraint.

Installations generating waste heat E+W

3.—(1) An application for the grant of an environmental permit under regulation 13(1) for an installation generating waste heat at a useful temperature level, other than a relevant installation falling within paragraph 2(1), must contain a cost-benefit analysis.

(2) The regulator must exercise its relevant functions to ensure that an application for a variation of an environmental permit under regulation 20(1) is made before the energy plant of an installation generating waste heat at a useful temperature level, other than a relevant installation falling within paragraph 2(2), is substantially refurbished.

(3) The regulator must ensure that an application for a variation of an environmental permit under sub-paragraph (2) contains (in addition to the information required by paragraph 2(1)(b) of Schedule 5) a cost-benefit analysis.

(4) The cost-benefit analysis required by sub-paragraphs (1) and (3) must include an assessment of the cost and benefits of—

(a) utilising the waste heat to satisfy economically justified demand, including through cogeneration, and

(b) the connection of that installation to a district heating and cooling network.

Heating and cooling networks E+W

4.—(1) An application for the grant of an environmental permit under regulation 13(1) for a relevant installation which forms part of a new district heating and cooling network or existing district heating or cooling network, must contain a cost-benefit analysis.

(2) The regulator must exercise its relevant functions to ensure that an application for a variation of an environmental permit under regulation 20(1) is made before the energy plant of a relevant installation which forms part of a district heating and cooling network is substantially refurbished.

(3) An application for the variation of an environmental permit required by sub-paragraph (2) must contain (in addition to the information required by paragraph 2(1)(b) of Schedule 5) a cost-benefit analysis.

(4) The cost-benefit analysis required by sub-paragraphs (1) and (3) must include an assessment of the cost and benefits of utilising the waste heat from nearby installations.

Thresholds E+W

5.  Paragraphs 3 and 4 do not apply to an installation, except an installation which forms part of a district cooling network, with any of the following—

(a) available waste heat of 100 kilowatts or less;

(b) available waste heat—

(i) greater than 100 kilowatts as hot water or steam, where there is no hot water heat demand greater than 100 kilowatts within the search radius from the installation as set out in the table below, and located within the connection distance from the centre of the installation, or

(ii) greater than 500 kilowatts as steam where there is no steam-based heat demand greater than 500 kilowatts and no hot water heat demand greater than 100 kilowatts within the search radius from the centre of the source installation as set out in the table below, and located within the connection distance from the centre of the source installation;

(c) a heat demand of—

(i) 100 kilowatts or less for a hot water heat demand, or

(ii) 500 kilowatts or less for a steam-based heat demand;

(d) a hot water heat demand greater than 100 kilowatts, with no source of available waste heat greater than 100 kilowatts within the search radius from the centre of the demand installation as set out in the table below, and located within the connection distance from the centre of the demand installation;

(e) a steam-based heat demand greater than 500 kilowatts, with no source of steam-based waste heat greater than 500 kilowatts within the search radius from the centre of the installation as set out in the table below, and located within the connection distance from the centre of the demand installation.

Search radius

Installation type	Thermal capacity of heat source/demand	Search radius (kilometres), measured from the centre of the installation
Hot water demand	>100 kilowatts and <3.9 megawatts	0.0038 x H, where H = thermal capacity in kilowatts
	≥ 3.9 megawatts	15
Steam demand	>500 kilowatts and <12.5 megawatts	0.0012 x H, where H = thermal capacity in kilowatts
	≥ 12.5 megawatts	15
Waste heat source (hot water or steam)	>100 kilowatts and <3.9 megawatts	0.0038 x H, where H = thermal capacity in kilowatts
	≥ 3.9 megawatts	15

Determination of applications E+W

6.—(1) When considering an application for an environmental permit, or for a variation of an environmental permit, in accordance with this Schedule, the regulator must take into account—

(a) the outcome of the cost-benefit analysis carried out in accordance with this Schedule, and

(b) the outcome of any comprehensive assessment carried out in accordance with [F5 regulation 4(2)(a) of the Energy Efficiency (Encouragement, Assessment and Information) Regulations 2014].

(2) Subject to sub-paragraph (4), where a cost-benefit analysis carried out in accordance with paragraphs 2(1), 2(3) and 3(4) shows that benefits exceed costs, the regulator must ensure that any environmental permit that is granted or varied includes appropriate conditions that will ensure the operation of the installation in a manner shown by that analysis to be cost beneficial.

(3) Subject to sub-paragraph (4), where a cost-benefit analysis carried out in accordance with paragraph 4(4) shows that benefits exceed costs, the regulator must ensure that any environmental permit that is granted or varied contains appropriate conditions that will ensure the operation of the installation, in conjunction with the utilisation of the waste heat from nearby installations, in a manner shown by that analysis to be cost beneficial.

(4) Where the cost-benefit analysis carried out in accordance with paragraph 2(1), 2(3), 3(4) or 4(4) shows that benefits exceed costs, the requirement to impose appropriate conditions in accordance with sub-paragraphs (2) and (3) does not apply if, in individual cases, the regulator decides that there are imperative reasons of law, ownership or finance for them not to apply.

(5) The regulator must within 2 months of its decision under sub-paragraph (4) submit a reasoned notification of that decision to the appropriate authority.

(6) This Schedule does not apply to—

(a) installations that need to be located close to a geological storage site approved under [F6 Chapter 3 of Part 1 of the Energy Act 2008 and other EU-derived domestic legislation which transposed Directive 2009/31/EC on the geological storage of carbon dioxide in relation to England and Wales];

(b) any relevant installation within a nuclear site, within the meaning given in paragraph 1 of Part 2 of Schedule 23, and which is dedicated to the production of nuclear power;

(c) mobile plant.

(7) Nothing in this Schedule affects the application of the Industrial Emissions Directive to installations.

Textual Amendments

F5 Words in Sch. 24 para. 6(1)(b) substituted (31.12.2020) by The Environmental Permitting (England and Wales) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/39), regs. 1, 2(25)(a); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in Sch. 24 para. 6(6)(a) substituted (31.12.2020) by The Environmental Permitting (England and Wales) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/39), regs. 1, 2(25)(b); 2020 c. 1, Sch. 5 para. 1(1)

Aggregation of rated thermal input – existing installations E+W

7.—(1) This paragraph applies to a Part B installation that is a regulated facility solely as a result of the aggregation of the net rated thermal input of two or more appliances in accordance with paragraph 2 of Part B of Section 1.1 of Part 2 of Schedule 1.

(2) A Part B installation that was in operation immediately prior to 21st March 2015 is taken to be an exempt facility for the purposes of regulation 8(2).

(3) Sub-paragraph (2) ceases to apply to a Part B installation (so that it is no longer taken to be an exempt facility) if, after 21st March 2015, the energy plant of the Part B installation is substantially refurbished.

Existing applications for the grant or variation of an environmental permit E+W

8.—(1) This Schedule does not apply to an existing application.

(2) In sub-paragraph (1), “existing application” mean a duly made application received by the regulator prior to 21st March 2015—

(a) for the grant of an environmental permit pursuant to regulation 13, or

(b) for the variation of an environmental permit pursuant to regulation 20(1).