New Legislation: Riverside Energy Parks Exemption from Electricity Generation Licence

Introduction

The UK government has introduced a new order granting Riverside Energy Park Limited an exemption from holding an electricity generation licence for its upcoming Riverside 2 energy-from-waste facility in Belvedere, London. This move, aimed at streamlining operations and reducing regulatory burdens, forms part of the government's broader strategy to ensure energy security and promote sustainable development.

Why the Exemption?

Under the Electricity Act 1989, generating electricity without a licence is generally prohibited. However, exceptions can be made. Riverside Energy Park Limited applied for such an exemption for its Riverside 2 facility. The facility's capacity is under 100 megawatts, which the government considers to have a minimal impact on the national grid. Therefore, it’s deemed appropriate for this facility to bypass the full regulatory spectrum usually imposed on larger plants.

Policy Context

In granting this exemption, the Secretary of State aims to protect the interests of electricity consumers and promote effective competition within the sector. The decision also aligns with the government’s commitment to reducing greenhouse gas emissions and ensuring a reliable power supply, all while maintaining transparency and accountability in regulatory activities.

Consultation and Impact

The proposal to exempt Riverside Energy Park was open for public consultation from July 9 to August 6, 2025, but received no responses. This lack of feedback suggests that the exemption is not contentious. The government has also confirmed that the exemption will not significantly impact businesses, charities, voluntary bodies, or the public sector, as it pertains solely to this specific facility.

Monitoring and Review

The Secretary of State retains the power to revoke the exemption if it becomes inappropriate to maintain it. This ensures ongoing oversight and adaptability to changing conditions or regulations.

Conclusion

This legislative move reflects the UK government's strategic approach to balancing regulatory requirements with the need to foster innovation and efficiency in energy production. By granting Riverside Energy Park Limited this exemption, the government is facilitating a more efficient energy market that supports both economic growth and environmental goals.