Be ready for the winds of change
Out with the old, in with the new… Andrea McLellan looks at the vital role of repowering in the future of onshore wind
Onshore wind farms currently provide nearly 16GW of the UK’s energy capacity but a significant number of these are approaching their 25-year decommissioning deadlines. With upwards of 5,000 onshore turbines set to reach the end of their operational life by 2050, a strong focus on repowering will be key in ensuring the UK can continue to meet its clean energy targets.
Unlike an end-of-life turbine extension, a repowering strategy sees the reconfiguration of a wind farm site with the replacement of existing turbines with newer, and typically fewer, technologically-advanced models to maximise capacity.
Repowering presents an opportunity to increase grid capacity without extending existing sites or developing new ones. It also helps sites circumnavigate grid connection challenges in light of queue management rules which give priority to projects already connected.
While the current UK Government has shown a real commitment in expediting renewable energy infrastructure through its Clean Power 2030 Action Plan, it will inevitably take time for these legislative changes to be implemented and applied.
However, repowering could drive progress towards the Scottish Government's target of achieving 20GW of onshore wind generation by 2030, more than double existing capacity in Scotland. Indeed, the Scottish Government’s Onshore Wind Policy Statement, backed up by measures in the National Planning Framework, supports “development proposals for all forms of renewable, low-carbon and zero emissions technologies”, including repowering.
The potential for repowering while simultaneously decommissioning existing turbines will be determined by the size and nature of a windfarm site. Developers must also evaluate options for the future of projects, particularly from a land rights perspective.
An initial review of ancillary land rights may be the best starting-point as the typically larger blades of newer turbines could potentially render existing access roads, pinch points and oversail rights of sites inadequate. This includes consideration of potential cooperation agreements with neighbouring developers if any project access rights will be shared.
Developers must also assess if the terms of the existing lease are long enough to accommodate the duration of a new, repowered project. If this is not the case and there is no option to extend, further negotiations with the landowner will likely be required to secure the land rights for the project.
Many older wind farm leases have been structured around a wind protection zone rather than turbine footprint. When such leases head towards their initial expiry, this could enable a new approach with larger blade turbines and reconfigured spacing.
Along with reviewing indemnity caps and insurance to ensure they are in line with current market practice, developers should also consider whether the permitted use of a site is specific to the planning consent for the original project or if it might offer broader scope to accommodate a repowering strategy.
Financial agreements are another key factor as landlords might seek to share in the uplift of increased capacity, although this may be marginal or non-existent with windfarms no longer benefitting from subsidy support.
Early consideration of these core issues will help develop a strategy to secure any variations to existing rights or agreement to new land rights required to deliver the repowered capacity.
The UK Government’s renewed commitment towards renewable energy along with the Scottish Government focus on significantly enhancing onshore wind generation provide a strong incentive to repower sites. Careful consideration and negotiation of land rights issues can help smooth the way for project developers keen to pursue this opportunity.
Andrea McLellan, is an Of Counsel, CMS