ONSHORE PLANNING
A typical wind farm project may involve the following:
• Exclusivity agreement or investigatory lease option
STEPHEN UNWIN AND MARTIN COLLINGWOOD OF ANDREW JACKSON SOLICITORS HIGHLIGHT SOME OF THE KEY CONSTRUCTION AND PROJECT ISSUESWHICH SHOULD BE CONSIDERED BY LANDOWNERSWHEN PLANNING A WIND FARM.
A wind farm can be an attractive use of land. The UK now has 258 onshore wind farms and 13 offshore developments with a barrier of 5GW capacity being reached in 2010, but the EU-wide target of 20% renewable energy by 2020 means that numbers will grow fast. There is substantial additional capability already being built both on and offshore.
THE PROJECT
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 do however involve a complex set of documentation. You will need professional advice before committing to these.
• Agreement leading to lease financing agreements and associated security documents
• Construction and maintenance agreements
• Connection, distribution and power sale agreements
• Access agreements and rights of way.
The project may be developed by a special purpose vehicle, often known as an SPV, which is a company formed specially to undertake the development of the wind farm and to enter into 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 wind farm.
CONSTRUCTION ASPECTS
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 wind farm once completed.
The construction is likely to be carried out by a principal contractor whose role will include the co-ordination of the various elements of the construction activity, for example cable laying, turbine foundations, turbine erection and connection and also ensuring that the wind farm is constructed in accordance with any environmental and planning requirements and any environmental impact plan.
WHAT ARE THE ADVANTAGES?
From the point of view of a landowner, the key advantage of these projects is the ability to recover productive income from what otherwise may be uneconomic land whilst often being able to retain the ability to use the land around the turbines for alternative agricultural uses.
Such projects can also give rise to added value by way of eco-tourism and may include income from the construction of visitors' centres and catering facilities etc.
SUMMARY
Whether going it alone, or working with a developer, establishing a wind farm raises a number of construction and project issues, so specialist advice is required from the outset.
Stephen Unwin is a partner and Martin Collingwood is an associate in the real estate department of Andrew Jackson Solicitors.
Andrew Jackson Solicitors
www.andrewjackson.co.uk
Wind Energy NETWORK
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