LAW
Planning
A wind farm can be an attractive use of land. Estimates are that there are currently 307 projects and 3412 turbines in the UK and, with the EU set to exceed its target of 20% of energy from renewable energy by 2020, numbers will continue to grow considerably.
In technical terms the physical construction of a wind farm is, relatively speaking, straightforward and much of the sophisticated elements of construction are manufactured off-site and simply erected and commissioned.
Wind farm projects themselves however are only achieved by compiling a complex set of documentation.
In simple terms a typical wind farm project involves the following:-
1 A development/operation agreement 2 Financing agreements and associated security documents
3 Construction and maintenance agreements
4 Connection, distribution and power sale agreements
5 Lease agreements 6 Access agreements and rights of way
Of this documentation only those in (5) and (6) directly involve the landowner.
SPVS
The project is likely to be developed by a special purpose vehicle (SPv), a company formed specially to undertake the development and to enter into all the documents listed above to bring the project to fruition.
In terms of funding the project is likely to be project financed i.e. the recovery of the construction cost is secured on the income from the project along without recourse to the other assets held by the principal project parties. As such the project is standalone.
INCOME AND ADDED VALUE
From the landowner’s point of view key advantages to these projects are the ability to recover productive income from what otherwise may be uneconomic land whist often being able to retain the ability to use the land for alternative uses.
Such projects can also give rise to added value through eco-tourism and may include the construction of visitors’ centres and similar facilities to cater for this.
The construction aspects of a typical wind farm project may involve securing and constructing sufficient rights of way/access both to construct the turbines and their infrastructure and also to maintain and monitor the development once completed.
and Constructing Windfarms
THE POSITIVES ENVIRONMENTAL CONSIDERATIONS
The construction is likely to be carried out by a principal contractor whose role includes the coordination of the various elements of the construction activity, for example cable laying, turbine foundations, turbine erection and connection. It will also include obligations to ensure that the project is constructed in accordance with any environmental requirements and environmental impact plan put in place and with regard to the environmental impact of the project in general.
Martin Collingwood Andrew Jackson Solicitors
www.andrewjackson.co.uk
http://www.windenergynetwork.co.uk/enhanced-entries/andrew-jackson/
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www.windenergynetwork.co.uk
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