Defra’s consultation on industrial emissions permitting reform – the implications for BESS projects

At the end of August, we provided an overview of the consultation launched by the Environment Agency (“EA”) with support from the Department for Environment, Food and Rural Affairs (“Defra”) on industrial emissions permitting reform. Here we dive deeper into the changes and implications for battery energy storage systems (“BESS”). The consultation suggests a reshaping of how BESS projects are regulated in the UK which could have significant implications for developers, planners and operators. 

Fire Risk Management 

Lithium-ion batteries used in BESS offer efficient and reliable energy storage solutions. They incorporate safety and mitigation features designed to manage heat effectively. However, in rare cases, ‘thermal runaway’ can occur if heat generated by internal chemical reactions exceeds the system’s ability to dissipate it, which may increase the temperature and pressure which can lead to fires. Ongoing advancements in battery technology and safety protocols continue to minimise such risks.

In such cases, toxic emissions from the resulting fires could be released into the environment, potentially impacting on local air quality; therefore, monitoring and environmental safeguards are important to protect human health and the surrounding ecosystem. Existing regulation leaves current uncertainty about how fire hazards should be managed. Defra has proposed that BESS should be brought into the scope of the Environmental Permitting (England and Wales) Regulations 2016 (“EPR”).

Formal and proportionate regulation

Operators will need to obtain environmental permits for the installation and operation of BESS projects and adhere to all relevant conditions under the EPR. Non-compliance with an environmental permit can result in criminal sanctions. Requirements with EPR are intended to ensure that environmental impacts of BESS projects including land use, emissions and safety are properly assessed and managed and will enable the EA to assess and manage fire risks more systematically as part of the permitting process.

The consultation suggests a move towards flexible tiers of regulation, enabling a more proportionate approach to regulation considering the scale and risk profile of specific BESS projects. 

Coordination with fire services

Defra has suggested that a statutory consultation with fire and rescue services may be appropriate for BESS projects to enable proactive management of any fire risks posed, particularly with BESS projects identified as higher risk. 

Coherence across technologies

Defra intends to align permitting across the energy industry, specifically in emerging technology. BESS is one of many technologies that have been listed to fall under the EPR alongside hydrogen production and carbon capture. 

Simplification and clarity

This move reflects an intention by Defra to simplify and clarify the regulatory framework surrounding BESS projects, aiming to reduce ambiguity for developers and operators while identifying and mitigating risks posed by specific technologies. 

The consultation closes 21 October 2025.   

This article was written by Carys Cox.