Local Authority land lease valuation for CIC wind turbine, Avonmouth

Location

Project summary

• Experts at Fisher German were appointed by Bristol City Council (‘BCC’) to value an area of scrubland at Avonmouth with permission for a single, large scale wind turbine of up to 150 metres tip height.
• The scheme has been devised by a Community Interest Company (‘CIC’) working in conjunction with BCC, who will lease the land for a 25-year period.
• The turbine is expected to export around 4.2MW of power to the local distribution network. BCC required a valuation for compliance with the Local Government Act 1972 and General Disposal Consent (England) 2003.

Solution

• In 2020, Fisher German acted as a Single Joint Expert to the parties, giving advice on appropriate commercial terms for a lease of the land.
• Revisiting this advice and giving consideration to subsequent information supplied by BCC and the CIC, our sustainable energy valuers carried out a full Red Book valuation including Special Assumptions as agreed with BCC.
• The investment and discounted cash flow methods of valuation were used and benchmarked against alternative investment types.

Benefits

• Fisher German were able to draw upon over 20 years’ experience in the UK wind energy sector to deliver a comprehensive valuation report.
• The report not only enabled BCC to understand the site value, but also make necessary internal decisions.
• Peace of mind for BCC that their actions are legally compliant.