Wind Farms
The background to the wind farm market is that the Government has set a Renewables Obligation of 10% by 2010 and 20% by 2020. At the present time, only 5.5% of our power is produced by renewable energy, of which about 60% of this is from wind farms, i.e. only 3.5%. This is currently represented by about 150 windfarm projects built, consisting of approximately 1,900 turbines providing about 2,200 megawatts (MW). Only 5 of these projects are off shore. The main thrust of development is, therefore, on shore as they are much cheaper on farm land.
In the UK we have 40% of the European Wind Resource and it must be sensible to utilise this. Following the Kyoto Protocol in 1997, we need reductions in our CO2 emissions, which have increased by over 30% since 1750. As a result, global mean temperatures are rising and the Arctic icecap is 20% smaller than it was in the 1960s.
The main objection to wind farms is their visual impact on the landscape. This tends to be a ‘subjective’ view, some people think they desecrate the countryside, and others think they are very graceful. Most people are in favour of renewable energy as we currently only have about 30 years proven oil supplies left in the world, but if the wind farm is likely to be built near their property then they are nearly always against it, as they are concerned about the blight to the countryside and their property values going down.
The obvious answer to our country’s power supply is to build nuclear power stations, as they provide no CO2 emissions, but if the Government agreed to this, it would still take 15 years to get new nuclear power stations built and producing electricity.
People are also concerned about the noise from wind farms, but nowadays they are built a minimum of 600m away from residential dwelling. There are also objections from military and civilian airports as they find that windfarms break up their radar signals wind farm companies, therefore have to consult with airports if their proposals are within 30km and in certain cases, up to 70km away. The airports, in conjunction with the wind farm companies, are currently developing software for their computers to overcome this problem.
Some people are also against wind farms because they believe they kill birds. It was generally only the old lattice turbines that were built abroad, that when birds perched on the lattice towers they were sometimes killed. The main threat to our bird life in the UK is through climate change.
Mark Newton a partner at Fisher German's Market Harborough office comments, "Having been involved with over 90 different wind farm projects, I find that when you sit down with a landowner and discuss with him the possibility of earning over £100,000 per year with a wind farm on his land, then there are very few who are not interested in progressing with the project! The largest project I have dealt with provided over £800,000 income per annum to the landowner, which is like winning the lottery every year!
With farm profitability seriously eroded, the possibility of a wind farm only occupying one or two percent of the land, makes it one of the best forms of diversification. The main problem is getting planning permission which can typically cost £250,000 per application, so you need to ensure that you have the right wind farm company to start with.
Wind farm projects are typically for a 25 year period and at the end of the term, the turbines can be removed and the area restored. However, with the threat of oil and gas running out it will make these sites even more valuable and the site then, with planning permission, could be worth many millions.
Wind farm companies were originally looking for sites in the south west, the West Country, the north of England and Scotland. The majority of these sites have been located by the wind farm companies and they are now turning their attention to the less windy parts of the country. You are likely therefore, to be approached about a windfarm project on your land and it is critical to get proper independent advice.
Mark continues, "I have come across cases where one or two individuals have been setting up, pretending to be a wind farm company, to get unwary owners to sign up to option agreements on uncommercial terms, so they can sell them on for a large profit to a proper windfarm company."
There are a limited number of chartered surveyors with specialist wind farm knowledge. Mark has dealt with wind farms, only acting for landowners, in England, Wales, Scotland, Ireland and Europe. For further information, contact Mark Newton, Chartered Surveyor, at Fisher German on 01858 411215.
- Ashby de la Zouch
- 01530 412821
- Banbury
- 01295 271 555
- Knutsford
- 01565 757970
- Market Harborough
- 01858 410 200
- Newark
- 01949 851815
- Southampton
- 02380 883150
- Stafford
- 01785 220 044
- Worcester
- 01905 453275
