Plans to let ministers sign off major infrastructure projects could lead to delays in building energy schemes, the CBI has warned.

The business group said the coalition’s decision to replace the Infrastructure Planning Commission, which is independent,  is making investors nervous about committing to large-scale building projects.

The CBI said ministers will struggle to deliver planning decisions on time under the new system. It pointed to 37 outstanding applications for energy projects which are awaiting ministerial approval under Section 36 of the 1989 Electricity Act. Together, they would produce up to a fifth of the UK’s current electricity generation capacity.

They include gas- and coal fired power stations, on- and off-shore wind farms, biomass, wave and tidal projects.  Some of the projects have been awaiting a decision for three years.

The CBI is calling on the government to clear the delayed applications in six months, in a bid to give investors more confidence.

Neil Bentley, CBI director of business environment, said: “The government must get a grip on planning.

“We need to build new low-carbon energy sources, including wind, biomass, gas, nuclear and clean coal plants. These are essential for securing our energy supplies and meeting emissions targets.

“We already have a log-jam of delayed planning applications for major energy projects inherited from the previous government, and there is still uncertainty about how the new Major Infrastructure Unit will work in practice.”

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