Wind farms: What do landowners need to know?
Solicitor Stephen Unwin highlights some of the key issues which should be considered by landowners when planning a wind farm.
A wind farm can be an attractive use of land. Estimates are that there are currently 145 projects and 1,839 turbines in the UK but the EU-wide target of 20% renewable energy by 2020 means that numbers will grow fast.
How is it to be developed?
Landowners may develop their own wind farms or partner with a developer. If the latter, the developer may ask you to sign an option agreement giving him exclusivity with a right to move to lease if the project proceeds. The lease will cover not just the site where the turbines are to be erected but also cables, access, substations etc.
You will need professional advice before committing to the option agreement, on issues such as:
- terms of the option;
- intended lease, including;
- term;
- implications, e.g. continuing existing activities;
- payments to be made by the developer;
- rent once the wind farm is established;
- reinstatement of land on termination;
- effect on the landowner, including agricultural grants and subsidies or inheritance tax reliefs.
Are there issues on Site suitability?
The site must be suitable, taking into account commercial, technical and environmental issues. Technical and commercial factors include:
- proximity to nearest national grid connection (and cost of connecting to it);
- ground conditions suitable for construction and maintenance of turbines; and
- need to build access roads.
Environmental factors include proximity of houses, listed buildings, recreation areas, telecoms, MoD sites and airports. It also includes ecological concerns such as protected species.
Developers should consult with the planning authority and other statutory bodies with the right to comment – these may include the MoD and Civil Aviation Authority.
Which Site surveys and consultations will be needed?
A variety of site surveys may be required. A masted anemometer is often installed to assess wind speed. This is often the first sign of development and public consultation usually begins at this stage. Advice from the planning authority on whom to consult can be helpful, e.g. local community groups, councillors etc. Take advice, as public consultation needs planning and handling.
Are there Planning and Environmental assessment issues?
The local authority will give its views on the need for, and content of, the environmental assessment invariably required for planning. This is publicly available and describes the likely environmental effect, and plans to mitigate problems. This must be considered by a range of organisations, such as Natural England and the RSPB, and will be prepared by a specialist.
It covers key issues such as noise, ecological impact, public attitudes, health and safety, economic issues, aesthetic and visual impact, electromagnetic interference, eventual decommissioning and planning.
Planning applications are made, supported by the environmental assessment. If planning is given, it is likely to be subject to conditions e.g. noise control.
Is the National Grid relevant?
The developer may need to negotiate:
- connection to the national grid;
- consents from adjoining landowners to lay cables; and
- power purchase agreements with retail power suppliers.
Recommendation
Whether going it alone, or working with a developer, establishing a wind farm raises a number of issues, so specialist advice is required from the outset.
Stephen Unwin is a partner in the real estate department at Andrew Jackson.
Anglia Farmer [2008-07-01]