Empowering renewable energy: the benefits of the Development Consent Order (DCO) process

2/5/24
5 min
Renewable energy
Insight

A question we are often asked, as a developer, is why is the Development Consent Order (DCO) process needed and what benefits does it provide?

To answer this, we asked David Vernon who recently joined Downing to lead the planning process for our pipeline of projects with National Significance and who has over 20 years of experience of infrastructure projects.

The DCO process is a specific regime that applies to major infrastructure projects. This can apply to infrastructure projects in sectors ranging from transport, water, waste and of course, energy. For energy generation projects in England, this means projects that are capable of exporting 50MW or more to the grid.

The kinds of projects that undergo the DCO process are, by definition, essential for local and national growth and the nation’s broader economic and infrastructure development. The DCO process therefore places at its centre the importance of National Policy, balancing the national interest with local impact. This is critical for larger projects; at the local planning level it is becoming increasingly common for National Policy to be overshadowed by local concerns which, when multiplied across the many local planning authorities across the country, can present a real obstacle to achieving policy aims such as the transition to net zero. 

Some people think that the DCO process silences the voice of the local community, allowing pet projects to be approved by Central Government, remote from where the potential negative impacts of development are most likely felt. This couldn’t be further from the truth.  

The process requires widespread engagement with stakeholders such as technical bodies, government agencies, local authorities and local communities, which ensures a robust and consistent evaluation of the overall application and a better project that emerges from this process. This engagement takes place at the very outset of projects and continues through the whole process to when construction starts and an application cannot be accepted for examination if it cannot demonstrate meaningful consultation with local and technical stakeholders has taken place.

Another commonly held misconception is that the DCO process might somehow bypass the environmental assessments that are now standard for local planning processes. This again is not the case; DCO projects undergo a rigorous environmental assessment just like that undertaken at the local planning level. Indeed, in the majority of NSIP projects, the detail and duration of survey activity required, and the topics required to be covered, is more extensive than the environmental assessments that accompany local planning applications. A fully scoped formal Environmental Impact Assessment is required for DCO projects (which is not always the case for smaller projects). Combine these enhanced environmental measures with the extensive consultation with statutory bodies charged with preserving the environment, and the process ensures that not only are environmental impacts thoroughly evaluated, but appropriate mitigation schemes are also agreed and implemented.

So what does this look like from the developer’s perspective?

The DCO process provides clarity to developers and investors through clear timescales, predictability, and consistency of evaluation. Although the decision time period has lengthened in recent years due to increased project complexity, many of the delays traditionally experienced through local planning processes are mitigated in the DCO process through set timescales for decision-making once the application is submitted. 

Applications are evaluated by the Planning Inspectorate. They require widespread engagement with stakeholders including local communities, which ensures a robust and consistent evaluation of the overall application. This then allows stakeholders to have a collaborative influence over the evolution of the site design using an understanding of true local issues. 

Given the scale of the DCO projects, it is also possible to make a significant financial contribution to the local community by establishing and making ongoing contributions to a fund which supports local community projects, creating a long-lasting legacy. 

Solar projects can also provide a significant local Biodiversity Net Gain through things like planting hedgerows and wildflower meadows. This is particularly important as loss of Biodiversity poses an increasing risk to food & water supply and, through association, human health globally.

At Downing Renewable Developments (DRD), we are developing a pipeline of renewable energy projects that boast strong diversity across technologies, geographies, asset class and asset size in the UK and Northern Europe. Within our UK development team, we are progressing a portfolio of solar projects with a generating capacity greater than 50MW that require a DCO. If you would like to discuss any of the projects we are working on or the views within this article please get in touch

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A question we are often asked, as a developer, is why is the Development Consent Order (DCO) process needed and what benefits does it provide?

To answer this, we asked David Vernon who recently joined Downing to lead the planning process for our pipeline of projects with National Significance and who has over 20 years of experience of infrastructure projects.

The DCO process is a specific regime that applies to major infrastructure projects. This can apply to infrastructure projects in sectors ranging from transport, water, waste and of course, energy. For energy generation projects in England, this means projects that are capable of exporting 50MW or more to the grid.

The kinds of projects that undergo the DCO process are, by definition, essential for local and national growth and the nation’s broader economic and infrastructure development. The DCO process therefore places at its centre the importance of National Policy, balancing the national interest with local impact. This is critical for larger projects; at the local planning level it is becoming increasingly common for National Policy to be overshadowed by local concerns which, when multiplied across the many local planning authorities across the country, can present a real obstacle to achieving policy aims such as the transition to net zero. 

Some people think that the DCO process silences the voice of the local community, allowing pet projects to be approved by Central Government, remote from where the potential negative impacts of development are most likely felt. This couldn’t be further from the truth.  

The process requires widespread engagement with stakeholders such as technical bodies, government agencies, local authorities and local communities, which ensures a robust and consistent evaluation of the overall application and a better project that emerges from this process. This engagement takes place at the very outset of projects and continues through the whole process to when construction starts and an application cannot be accepted for examination if it cannot demonstrate meaningful consultation with local and technical stakeholders has taken place.

Another commonly held misconception is that the DCO process might somehow bypass the environmental assessments that are now standard for local planning processes. This again is not the case; DCO projects undergo a rigorous environmental assessment just like that undertaken at the local planning level. Indeed, in the majority of NSIP projects, the detail and duration of survey activity required, and the topics required to be covered, is more extensive than the environmental assessments that accompany local planning applications. A fully scoped formal Environmental Impact Assessment is required for DCO projects (which is not always the case for smaller projects). Combine these enhanced environmental measures with the extensive consultation with statutory bodies charged with preserving the environment, and the process ensures that not only are environmental impacts thoroughly evaluated, but appropriate mitigation schemes are also agreed and implemented.

So what does this look like from the developer’s perspective?

The DCO process provides clarity to developers and investors through clear timescales, predictability, and consistency of evaluation. Although the decision time period has lengthened in recent years due to increased project complexity, many of the delays traditionally experienced through local planning processes are mitigated in the DCO process through set timescales for decision-making once the application is submitted. 

Applications are evaluated by the Planning Inspectorate. They require widespread engagement with stakeholders including local communities, which ensures a robust and consistent evaluation of the overall application. This then allows stakeholders to have a collaborative influence over the evolution of the site design using an understanding of true local issues. 

Given the scale of the DCO projects, it is also possible to make a significant financial contribution to the local community by establishing and making ongoing contributions to a fund which supports local community projects, creating a long-lasting legacy. 

Solar projects can also provide a significant local Biodiversity Net Gain through things like planting hedgerows and wildflower meadows. This is particularly important as loss of Biodiversity poses an increasing risk to food & water supply and, through association, human health globally.

At Downing Renewable Developments (DRD), we are developing a pipeline of renewable energy projects that boast strong diversity across technologies, geographies, asset class and asset size in the UK and Northern Europe. Within our UK development team, we are progressing a portfolio of solar projects with a generating capacity greater than 50MW that require a DCO. If you would like to discuss any of the projects we are working on or the views within this article please get in touch

We are delighted to announce that Mark Gross, Partner and Head of Development Capital, has been named Equity Investor of the year at the HealthInvestor Power List 2024 Awards.

Following Mark’s achievement last year when he won the “Leading Investor” award at HealthInvestor’s Power50, this year’s win further highlights his continued success and expertise in investing across the healthcare sector. 

The judges praised Mark for finding success both in value and volume this year, delivering good returns and growth. They were impressed by how Mark has continued to strengthen a strong track record with further growth in the team and new funds securing further backing. We extend our thanks to Mark and the Downing Development Capital team for their continued dedication and support in expanding our healthcare investment activities with a focus on quality, performance and reputation. 

Congratulations Mark!

Development Capital  

Downing Development Capital is an award-winning investor focused on investment opportunities into asset-backed operating businesses with downside protection. Typical sectors they invest in include healthcare, specialist education, hospitality, leisure and IT infrastructure.

Learn more about our Development Capital team

A question we are often asked, as a developer, is why is the Development Consent Order (DCO) process needed and what benefits does it provide?

To answer this, we asked David Vernon who recently joined Downing to lead the planning process for our pipeline of projects with National Significance and who has over 20 years of experience of infrastructure projects.

The DCO process is a specific regime that applies to major infrastructure projects. This can apply to infrastructure projects in sectors ranging from transport, water, waste and of course, energy. For energy generation projects in England, this means projects that are capable of exporting 50MW or more to the grid.

The kinds of projects that undergo the DCO process are, by definition, essential for local and national growth and the nation’s broader economic and infrastructure development. The DCO process therefore places at its centre the importance of National Policy, balancing the national interest with local impact. This is critical for larger projects; at the local planning level it is becoming increasingly common for National Policy to be overshadowed by local concerns which, when multiplied across the many local planning authorities across the country, can present a real obstacle to achieving policy aims such as the transition to net zero. 

Some people think that the DCO process silences the voice of the local community, allowing pet projects to be approved by Central Government, remote from where the potential negative impacts of development are most likely felt. This couldn’t be further from the truth.  

The process requires widespread engagement with stakeholders such as technical bodies, government agencies, local authorities and local communities, which ensures a robust and consistent evaluation of the overall application and a better project that emerges from this process. This engagement takes place at the very outset of projects and continues through the whole process to when construction starts and an application cannot be accepted for examination if it cannot demonstrate meaningful consultation with local and technical stakeholders has taken place.

Another commonly held misconception is that the DCO process might somehow bypass the environmental assessments that are now standard for local planning processes. This again is not the case; DCO projects undergo a rigorous environmental assessment just like that undertaken at the local planning level. Indeed, in the majority of NSIP projects, the detail and duration of survey activity required, and the topics required to be covered, is more extensive than the environmental assessments that accompany local planning applications. A fully scoped formal Environmental Impact Assessment is required for DCO projects (which is not always the case for smaller projects). Combine these enhanced environmental measures with the extensive consultation with statutory bodies charged with preserving the environment, and the process ensures that not only are environmental impacts thoroughly evaluated, but appropriate mitigation schemes are also agreed and implemented.

So what does this look like from the developer’s perspective?

The DCO process provides clarity to developers and investors through clear timescales, predictability, and consistency of evaluation. Although the decision time period has lengthened in recent years due to increased project complexity, many of the delays traditionally experienced through local planning processes are mitigated in the DCO process through set timescales for decision-making once the application is submitted. 

Applications are evaluated by the Planning Inspectorate. They require widespread engagement with stakeholders including local communities, which ensures a robust and consistent evaluation of the overall application. This then allows stakeholders to have a collaborative influence over the evolution of the site design using an understanding of true local issues. 

Given the scale of the DCO projects, it is also possible to make a significant financial contribution to the local community by establishing and making ongoing contributions to a fund which supports local community projects, creating a long-lasting legacy. 

Solar projects can also provide a significant local Biodiversity Net Gain through things like planting hedgerows and wildflower meadows. This is particularly important as loss of Biodiversity poses an increasing risk to food & water supply and, through association, human health globally.

At Downing Renewable Developments (DRD), we are developing a pipeline of renewable energy projects that boast strong diversity across technologies, geographies, asset class and asset size in the UK and Northern Europe. Within our UK development team, we are progressing a portfolio of solar projects with a generating capacity greater than 50MW that require a DCO. If you would like to discuss any of the projects we are working on or the views within this article please get in touch

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Torsten Mack, Investment Director at Downing, said:

"We are proud to support this exceptional management team, whose strong track record positions them well to build a new business in dementia care. This needs-based sector is underpinned by a lack of quality supply and we are investing in Fortava Healthcare to set and deliver high standards, and to help make a difference."

Johann van Zyl, CEO at Fortava, added:

"I’m thrilled to be working with Jamie, as we share the same values. We plan to grow Fortava into a leading provider of dementia care over the next five to seven years. But growth isn’t our primary focus—our goal is to deliver outstanding care and foster a joyful, supportive environment for both residents and staff. We’re delighted to be partnering with Downing who also share our values and we look forward to this journey with them."

Jamie Stuart, CFO at Fortava, commented:

“For me, it's about being more than just another care home provider. While dementia care in the UK is generally of a good standard, we want to set ourselves apart with a fresh approach. That’s why, after over 25 years in banking, I chose to partner with Johann and Downing on this venture.”

A question we are often asked, as a developer, is why is the Development Consent Order (DCO) process needed and what benefits does it provide?

To answer this, we asked David Vernon who recently joined Downing to lead the planning process for our pipeline of projects with National Significance and who has over 20 years of experience of infrastructure projects.

The DCO process is a specific regime that applies to major infrastructure projects. This can apply to infrastructure projects in sectors ranging from transport, water, waste and of course, energy. For energy generation projects in England, this means projects that are capable of exporting 50MW or more to the grid.

The kinds of projects that undergo the DCO process are, by definition, essential for local and national growth and the nation’s broader economic and infrastructure development. The DCO process therefore places at its centre the importance of National Policy, balancing the national interest with local impact. This is critical for larger projects; at the local planning level it is becoming increasingly common for National Policy to be overshadowed by local concerns which, when multiplied across the many local planning authorities across the country, can present a real obstacle to achieving policy aims such as the transition to net zero. 

Some people think that the DCO process silences the voice of the local community, allowing pet projects to be approved by Central Government, remote from where the potential negative impacts of development are most likely felt. This couldn’t be further from the truth.  

The process requires widespread engagement with stakeholders such as technical bodies, government agencies, local authorities and local communities, which ensures a robust and consistent evaluation of the overall application and a better project that emerges from this process. This engagement takes place at the very outset of projects and continues through the whole process to when construction starts and an application cannot be accepted for examination if it cannot demonstrate meaningful consultation with local and technical stakeholders has taken place.

Another commonly held misconception is that the DCO process might somehow bypass the environmental assessments that are now standard for local planning processes. This again is not the case; DCO projects undergo a rigorous environmental assessment just like that undertaken at the local planning level. Indeed, in the majority of NSIP projects, the detail and duration of survey activity required, and the topics required to be covered, is more extensive than the environmental assessments that accompany local planning applications. A fully scoped formal Environmental Impact Assessment is required for DCO projects (which is not always the case for smaller projects). Combine these enhanced environmental measures with the extensive consultation with statutory bodies charged with preserving the environment, and the process ensures that not only are environmental impacts thoroughly evaluated, but appropriate mitigation schemes are also agreed and implemented.

So what does this look like from the developer’s perspective?

The DCO process provides clarity to developers and investors through clear timescales, predictability, and consistency of evaluation. Although the decision time period has lengthened in recent years due to increased project complexity, many of the delays traditionally experienced through local planning processes are mitigated in the DCO process through set timescales for decision-making once the application is submitted. 

Applications are evaluated by the Planning Inspectorate. They require widespread engagement with stakeholders including local communities, which ensures a robust and consistent evaluation of the overall application. This then allows stakeholders to have a collaborative influence over the evolution of the site design using an understanding of true local issues. 

Given the scale of the DCO projects, it is also possible to make a significant financial contribution to the local community by establishing and making ongoing contributions to a fund which supports local community projects, creating a long-lasting legacy. 

Solar projects can also provide a significant local Biodiversity Net Gain through things like planting hedgerows and wildflower meadows. This is particularly important as loss of Biodiversity poses an increasing risk to food & water supply and, through association, human health globally.

At Downing Renewable Developments (DRD), we are developing a pipeline of renewable energy projects that boast strong diversity across technologies, geographies, asset class and asset size in the UK and Northern Europe. Within our UK development team, we are progressing a portfolio of solar projects with a generating capacity greater than 50MW that require a DCO. If you would like to discuss any of the projects we are working on or the views within this article please get in touch

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Downing LLP does not provide advice or make personal recommendations and investors are strongly urged to seek independent advice before investing. Investments offered on this website carry a higher risk than many other types of investment and prospective investors should be aware that capital is at risk and the value of their investment may go down as well as up. Any investment should only be made on the basis of the relevant product literature and your attention is drawn to the risk, fees and taxation factors contained therein. Tax treatment depends on individual circumstances of each investor and may be subject to change in the future. Past performance is not a reliable indicator of future performance. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 545025). Registered in England No. OC341575. Registered Office: Downing, 10 Lower Thames Street, London, EC3R 6AF.

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