SIC 35.11 4,770 enterprises in the UK
Production of electricity
What this covers (11 activity descriptions)
- Electricity generating station
- Electricity generation
- Electricity generation by gas turbine
- Electricity power producing station
- Electricity production
- Electricity production from diesel and renewables generation facilities
- Electricity production from hydroelectric generation facilities
- Electricity production from thermal generation facilities
- Hydro electric power station
- Nuclear power station
- Wind farms
What you must comply with
Unique to production of electricity
Ofgem electricity generation licence
Required for generators above 50 MW declared net capacity. Most generators under 50 MW qualify for class exemption under the 2001 Order. Offshore generators above 1 MW in territorial waters require consent under s.36 Electricity Act 1989. Northern Ireland: separate licence from UREGNI. Operating without a required licence is a criminal offence under s.4 Electricity Act 1989.
Development Consent Order (DCO) for generating stations >50 MW
Onshore generating stations >50 MW in England and Wales are Nationally Significant Infrastructure Projects (NSIPs) requiring a Development Consent Order from the Planning Inspectorate (pins.gov.uk). In Scotland, consent for >50 MW is under s.36 Electricity Act 1989, granted by Scottish Ministers. In Wales, onshore wind 10–350 MW follows the DNS (Developments of National Significance) route. Projects under 50 MW require planning permission from the local planning authority.
Grid connection agreement with DNO or National Grid
All generators exporting electricity to the grid must hold a connection agreement. Connections up to approximately 100 MW apply to the local Distribution Network Operator (DNO); larger connections apply to National Grid Electricity System Operator (NGESO). Applications subject to connection offer, which specifies costs and timescales. Significant grid queue backlogs exist as of 2025–2026.
Renewables Obligation (RO) or Contract for Difference (CfD) accreditation
Renewable generators may accredit under the Renewables Obligation (legacy support, closed to new applicants from 31 March 2017 for most technologies but existing accreditations remain active) or bid in a Contracts for Difference (CfD) allocation round for a 15-year strike price. CfD administered by Low Carbon Contracts Company (LCCC). Accreditation managed by Ofgem. New renewable projects typically seek CfD through competitive auction rounds.
Renewable Energy Guarantees of Origin (REGO) registration
Renewable generators register via Ofgem's Renewables and CHP Register to receive REGO certificates (1 REGO = 1 MWh renewable electricity). Certificates used by suppliers for fuel mix disclosure and green tariff substantiation. Annual declaration deadline: 1 April.
Nuclear site licence from ONR
APPLIES TO NUCLEAR GENERATION ONLY. Any operator of a nuclear installation in the UK must hold a nuclear site licence from the Office for Nuclear Regulation (ONR). Licence includes 36 standard licence conditions (LC1–LC36). New nuclear projects also require Generic Design Assessment (GDA) by ONR (typically 4–5 years) before site-specific licensing begins. Operators must also hold nuclear third-party liability insurance to €1.2 billion under the Paris Convention.
Nuclear third-party liability insurance
APPLIES TO NUCLEAR GENERATION ONLY. Nuclear site licensees must demonstrate financial security for third-party nuclear liability. Options include commercial nuclear insurance or government indemnity for some historic sites. This is separate from standard employers' liability insurance.
Capacity Market agreement (Electricity Capacity Regulations 2014)
Generators above 2 MW (1 MW for demand-side response) may participate in the Capacity Market to receive payments for committing to be available when needed. Participation is optional but commercially significant. Administered by National Grid ESO (Electricity System Operator) under DESNZ oversight.
Applies to all electric power generation, transmission and distribution
Health and Safety at Work etc. Act 1974
General duties to employees and others. Particularly significant in the energy sector given major hazard risks. HSENI enforces in Northern Ireland.
Employers' Liability Insurance
Required for all employers. Sole traders with no employees exempt.
Environmental Permitting (England and Wales) Regulations 2016
Required for activities with emissions to air, water, or land. Equivalent regime in Scotland (SEPA under Pollution Prevention and Control (Scotland) Regulations 2012), Wales (NRW), and Northern Ireland (NIEA). Large combustion plant operators require specific IED permits.
UK Emissions Trading Scheme — surrender and reporting
Applies to installations above the ETS threshold (generally >20 MW thermal input). Operators must monitor emissions, submit verified annual report, and surrender allowances by 30 April each year. SEPA administers in Scotland; NRW in Wales. Northern Ireland participates separately.
Control of Major Accident Hazards (COMAH) Regulations 2015
Applies to energy sites holding dangerous substances (liquefied natural gas, hydrogen, flammable gases) above threshold quantities. Lower-tier sites must notify the competent authority and produce a major accident prevention policy; upper-tier sites must also produce a safety report and emergency plan.
Guidance for this activity
Get paid for renewable electricity you generate
How to register for the Smart Export Guarantee (SEG) to receive payment for renewable electricity you export to the grid. Covers solar PV, wind, and other small-scale renewables up to 5MW.
Read guideDevelop offshore wind projects and secure seabed leases
How to develop offshore wind projects in UK waters, from securing seabed rights through Crown Estate leasing rounds to obtaining Section 36 consent, safety zones, and grid connections. Covers England, Wales, Scotland, and Northern Ireland with differences in consenting regimes and landlords.
Read guideElectricity Supply Licence
Businesses supplying electricity to consumers in Great Britain require a Supply Licence from Ofgem.
Read guideEnvironmental Permit - Medium Combustion Plant
Medium combustion plant (MCP) with thermal input between 1MW and 50MW require an environmental permit from the Environment Agency.
Read guideEnvironmental Permit - Part A(1) Installation
Large combustion plant (50MW thermal input and above) and other major industrial installations require a Part A(1) environmental permit.
Read guideGrid Connection Agreement
All electricity generators connecting to the GB electricity network require a connection agreement with either NESO (National Energy System Operator) (transmission) or a Distribution Network Operator (DNO).
Read guideContracts for Difference (CfD)
The main government support mechanism for new low-carbon electricity generation. CfDs provide long-term price stability for renewable generators through competitive allocation rounds.
Read guideHydrogen Production Licensing and Compliance
Licensing, safety, and environmental requirements for hydrogen production facilities in the UK. Includes Low Carbon Hydrogen Standard certification, environmental permits, planning consent, COMAH compliance, and government funding through the Hydrogen Production Business Model.
Read guideDevelopment Consent Order (DCO)
Offshore wind farms exceeding 100MW and other Nationally Significant Infrastructure Projects (NSIPs) require a Development Consent Order from the Secretary of State.
Read guideCrown Estate Seabed Lease
All offshore wind developments in English and Welsh waters require a seabed lease from The Crown Estate.
Read guideMarine Licence
Activities in the marine environment (below Mean High Water Springs) require a Marine Licence from the Marine Management Organisation (MMO) in England.
Read guideOffshore Wind Development Consent Orders (DCO)
Offshore wind projects over 100MW in English territorial waters require a Development Consent Order from the Secretary of State. Understand the specific thresholds, fees, timelines and 7-stage process for offshore wind NSIPs.
Read guideCrown Estate Offshore Wind Seabed Leasing
Securing seabed rights is the critical first step for offshore wind projects in UK waters. The Crown Estate and Crown Estate Scotland manage competitive leasing rounds with option fees, operational rent, and up to 60-year lease terms.
Read guideGrid Connection for Energy Projects
How to connect electricity generation projects to the UK grid. Understand the difference between DNO and National Grid routes, the G99 connection standard, and the April 2025 Ofgem reforms that promise £5 billion in savings and faster connection timelines.
Read guideWorking in the civil nuclear industry
Regulatory compliance requirements for businesses operating in the civil nuclear industry including site licensing, security vetting, liability insurance, and decommissioning obligations under Office for Nuclear Regulation oversight.
Read guideReservoir registration and safety inspections
How to register large raised reservoirs, appoint panel engineers, comply with inspection requirements, and meet safety obligations under the Reservoirs Act 1975 and devolved legislation in Scotland and Northern Ireland.
Read guideCOMAH Compliance for Chemical Sites
Meet COMAH requirements for sites holding dangerous substances.
Read guideUnderstand deep land rights and petroleum licensing for onshore energy
How deep level land access rights work for petroleum and geothermal exploration. Covers the 300m depth threshold, PEDL licensing, hydraulic fracturing consent requirements, and the 11 statutory safeguards. Includes differences between England/Wales and Scotland.
Read guideGas supply and shipper licensing
How to obtain a gas supply, shipper, transporter, or interconnector licence from Ofgem. Covers licence types, exemptions, application process, fees, standard conditions, HSE safety case requirements, and penalties for non-compliance. Applies to Great Britain only.
Read guideGet an electricity generation licence
How to determine if you need an electricity generation licence from Ofgem (GB) or the Utility Regulator (NI). Covers licensing thresholds, exemptions, environmental permits, grid connections, and COMAH compliance for larger energy facilities.
Read guide