The wind is blowing in the direction of net zero, so take steps to optimise returns - Lesley Roarty

Developers are proposing ever taller wind turbines across Scotland to help projects stack up financially. The latest proposals for EDF Renewables’ Dunside project in the Lammermuir Hills in southern Scotland feature turbine heights of 850 feet.

This is twice as tall as the Glasgow Tower, which is Scotland’s tallest structure. To put this in perspective, 15 years ago, turbines were typically just 220 feet tall. Today, the current tallest onshore turbines stretch to 650 feet high.

Although the so-called ‘super turbines’ are becoming taller to capture more energy in the race to Net Zero, they pose significant landscape and visual impact considerations. They also face stiff opposition on environmental and aviation grounds. EDF will be seeking to address these as part of the planning process.

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As wind power remains the fastest growing renewable energy technology in Scotland, investments in any such projects need to perform – and there are many ways that developers can seek to optimise their return on wind projects.

Lesley Roarty is a Legal Director with Turcan ConnellLesley Roarty is a Legal Director with Turcan Connell
Lesley Roarty is a Legal Director with Turcan Connell

Battery Storage

One of the main criticisms of renewable energy is that it is not always available when it is required. Batteries counter this by ensuring continuity of supply to the grid, storing electricity when wind speeds are strong and releasing it when wind speeds drop. Batteries can also release short micro bursts of power to fill in fluctuations in generation, to maximise output.

Underlying land agreements need to provide for the incorporation of batteries or other forms of storage by the developer, otherwise savvy landowners may look to negotiate their own return on any associated uplift.

Repower

The sensible developer is also making provision at the outset of a project for the option to repower at expiry. Repower requires a fresh planning permission so it does not sink or swim solely on the terms of the agreement with the landowner – but ensuring the agreement is permissive at least leaves the door open.

Agreeing future rent can be tricky, and is often left to a ‘fair rent at the time’ mechanism. This is far from ideal but it gives developers something to hang their hat on rather than starting negotiations afresh.

Shared Grid Connection

Providing for shared grid connections (including with other technologies) can mean a significant saving. Robust contractual arrangements are required between the party holding the connection agreement and the sharer, particularly around the risk of default by the holder - but it can be made to work (typically where external funding is not required).

Overbuilding

Aside from the fact that wind farms do not always operate at full capacity, the metered output capacity can be significantly less than the rated capacity due to inherent losses, including wake losses – the space behind a turbine where the wind power decreases after passing through the turbine.

It can also include downtime and cable losses. The overall result is that the grid connection is sometimes under-utilised.

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Overbuilding ‘fills up’ the grid connection, but there are planning and other contractual considerations to bear in mind here.

Land Agreements

It is essential that land agreements enable a project’s full potential. Future proofing these can include the following:-

Building in provision for extension projects and ensuring that landowners complete any supporting servitude or other legal agreements necessary to accommodate this (and any resulting grid connection /transmission requirements). Ensuring that ancillary land agreements for access and cabling are not restricted to a defined project area or capacity (or that they contain a mechanism for extension without renegotiation). Ensuring pinch point access agreements take in sufficient land to allow for bigger turbines in the re-power scenario. Allowing for the use of emerging technologies.

Maximising renewable resources will be key not just in hitting climate change targets but also in reducing the vulnerability of our energy system to international price fluctuations. Super turbines have a role to play here but only by fully optimising projects (and the underlying land agreements) can developers play their part.

Lesley Roarty is a Legal Director with Turcan Connell