FEATURE SPONSOR
SPOTLIGHT ON WALES
STRENGTHS AND CHALLENGES IN WIND
In a market where energy production from wind is increasing year-on-year, Eversheds have been privileged to advise on many high profile wind energy developments in Wales. A substantial number of the Eversheds clean energy team are based in their Cardiff office and are well-placed to speak about the strengths and challenges of the Welsh wind energy sector.
Members of their team have advised in some aspect on all the material wind energy developments in Wales progressed in the last 25 years.
CARNEDD WEN PROJECT
Recently, the company advised RWE on its Carnedd Wen project, the inquiry for which ended in May 2014. The application for the 150MW project was conjoined at inquiry with four other section 36 schemes and an overhead line proposal.
Lasting for one year, this was the biggest inquiry Wales has ever seen – the evidence was hugely complex. It highlighted the main issue facing wind developers in mid-Wales, which is the availability of grid connection, resulting in the need for often complex and expensive infrastructure solutions.
The understanding is that the report is about to be submitted to the Secretary of State DECC (as the decision maker for Section 36 Projects in Wales), so the outcome of the inquiry is awaited.
FURTHER SPECIFIC CHALLENGE In addition to planning challenges, a further specific challenge for the Welsh market is the designation of seven strategic search areas (SSAs). It is into the SSAs that large scale onshore wind development in Wales is to be concentrated.
Within these SSAs, not all land is technically, economically and/or environmentally suitable for wind development, further reducing the areas available for wind developments. Consequently, developers find themselves seeking to build in close proximity to other existing or proposed wind farms, which creates a number of issues for example the developer must consider the cumulative effect of wind farm development on the landscape, residential amenity, noise levels and cultural heritage etc.
Nevertheless, six schemes have come forward and a number of consents have been granted.
CONTRACTS FOR DIFFERENCE (CFD) The likely impact on project revenue of the new CfD regime, which will replace ROC subsidies, will inevitably have a big impact on the wind industry in Wales.
Any wind projects which already have planning consent, but which will be commissioned after March 2017, will be applying for CfD. Uncertainty around securing CfD may dissuade some
developers from participating in new projects and incurring costs in relation to them this may prove particularly significant for Wales, where wind farms are often used by farmers as a secondary source of income.
Decreased revenues are also expected to drive down costs across the industry and the squeeze is likely to be felt throughout the supply chain.
POSITIVE FUTURE
Whatever new challenges the sector faces, Eversheds look forward to working with their partners to promote the availability of wind energy in Wales, from the early stages through to commissioning and beyond. Despite the challenges experienced in Wales with wind developments the company is continuing to grow the business from Wales by looking at global opportunities.
A good example of this is the work the Cardiff office is doing on projects in the Middle East and South Africa. Like their clients, Eversheds is using the experience gained on projects in Wales to provide services globally in the wind sector.
Eversheds
www.windenergynetwork.co.uk
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