GUEST COLUMN:
Steve Ottewell
Director of Planning
Caulmert
Wales has made a clear statement of intent with the recently enacted Infrastructure (Wales) Act 2024.
The ambition behind the reform is hard to dispute as a simplified system allowing large infrastructure schemes – or Strategic Infrastructure Process (SIP) – to move through a single consenting process could reduce complexity, shorten timelines, and provide greater certainty for developers and investors.
But as with any major planning reform, the real test will not be the legislation itself. It will be how the system operates in practice.
Projects in sectors such as energy, transport, water and waste will fall within the regime where they meet defined thresholds. These include solar and wind developments over 50MW and major water infrastructure with a capacity of 10 million cubic metres.
In principle, this creates a ‘one-stop shop’ for larger-scale infrastructure consenting. It mirrors, to some extent, the Development Consent Order (DCO) model used in England for more than a decade. That system has delivered benefits, particularly through a structured examination process for nationally significant projects.
However, it has also faced challenges. One of the most notable judicial review cases involved the Norfolk Vanguard offshore wind farm. In 2021, the High Court quashed the project’s DCO after campaigners successfully argued that the Secretary of State had failed to properly assess the cumulative environmental impacts of associated onshore cable routes.
One notable feature of the Welsh regime is the discretion given to ministers to bring projects below the formal thresholds into the SIP process. In principle, this flexibility is sensible. Not all strategically important infrastructure fits neatly within numerical limits, and the ability to designate projects that support national priorities could help the system respond to emerging needs.
However, the criteria for exercising that discretion remains unclear. Developers may face uncertainty during the early stages of scheme planning about which route their project will follow.
Should they prepare for the SIP process, or assume a proposal will proceed through the local planning system? That choice has clear implications for cost, timescales and risk.
If the wrong route is assumed, the consequences could include additional preparation, procedural delays, or even legal challenge. Greater clarity on how and when ministerial discretion will be applied will therefore be essential if the regime is to provide the certainty investors expect.
There is also the practical issue of capacity. Under the new system, applications will be examined by Planning and Environment Decisions Wales (PEDW) on behalf of Welsh ministers. Inspectors will review evidence from all parties before making recommendations, with final decisions issued by ministers.
The Cabinet Secretary confirmed in December 2025 that PEDW received a £2 million funding boost for the 2025-26 financial year to increase capacity, recruit staff, and improve its casework portal.
Even so, infrastructure examinations are demanding processes. They require specialist expertise, detailed environmental assessment and, in some cases, the careful handling of compulsory acquisition powers.
If a significant number of projects enter the SIP pipeline – either because thresholds are broad or because discretionary designations are used frequently – the workload for examining bodies could increase substantially. In that situation, there is a risk that delays simply shift from one part of the planning system to another.
That does not mean the reforms are misguided. The act represents a significant step towards modernising how the country delivers major development, particularly projects supporting the transition to a lower-carbon economy and more resilient infrastructure networks.
What it does mean is that the early years of the regime will be critical. Developers and infrastructure promoters will need to think carefully from the outset about how their schemes fit within the new framework.
Understanding whether a proposal meets SIP thresholds, whether discretionary designation might apply, and how it aligns with Wales’ wider sustainability agenda will all play a role in determining the most effective planning route.
At the same time, developers can still rely on existing permitted development rights. The General Permitted Development Order (Wales) remains unchanged and, in many cases, can still apply to energy-generating schemes up to the SIP thresholds.
Advisers also have an important role in this evolving landscape. By helping clients interpret the legislation, assess risks, and align proposals with national policy priorities, they can help ensure schemes move through the system efficiently while meeting Welsh planning policy expectations.
Ultimately, the success of the new regime will be measured not by the promise of reform but by the confidence it creates in the market.
If the SIP process can deliver clarity, predictability, and robust decision-making, it has the potential to unlock significant infrastructure investment across Wales. If uncertainty remains around thresholds, discretion and capacity, the ambitions of the legislation may take longer to realise.
For now, the framework is in place. The detail will determine whether it delivers the streamlined, investor-friendly planning system Wales is aiming for.
