Landowners feel power of the green pound as renewables firms seek sites for turbines

Picture: Ian Rutherford


Published Date: 27 June 2008
By Jenny Haworth
POWER companies are targeting landowners with the promise of tens of thousands of pounds – and the chance to make millions more – in return for the right to build wind turbines on their land.
In the race to find new sites for wind farms, energy firms are writing to farmers and estate owners offering them at least £10,500 a year for each turbine built on their land.The developers are urging estate owners to sign deals giving them exclusive rights to build wind farms, with about £1,000 usually offered as an incentive.If planning permission is subsequently granted, farmers could pocket millions of pounds in rent payments.Scottish Power Renewables has been offering farmers £10,500 a year for each turbine for 25 years. This works out at £2.6 million for any landowner who takes ten turbines.One industry insider said: "It's competitive because there's only a limited amount of land that is suitable."He said all developers were trying to sign agreements with farmers before the available land ran out.Alasdair Laing, owner of Logie Estate in Morayshire, has been approached three times by separate companies and is considering signing an agreement with one of the firms."The income from these things is extremely attractive," he said."It will often be quite a difficult decision because there are controversial things about windmills, as well as good things. "I question some of the bases of some of the arguments for wind farms. There is still very much an ongoing debate on just how green they are. My personal jury is out."But in terms of bringing money into what are otherwise fragile economies it is good news."David Johnstone, the owner of Annadale Estate in Lockerbie, has signed an agreement with Renewable Energy Systems for four turbines to be built on his land.If planning permission is granted it will earn him tens of thousands of pounds a year.He said: "I think it's a good business opportunity. Wind turbines are one of those things that people love or loathe and there doesn't seem to be any middle ground."I'm very supportive of renewable energy. We are looking at putting in biomass heating on the estate as well as microrenewables and small-scale hydro."Simon McMillan, spokesman for Scottish Power Renewables, said: "It's common practice and we are working with landowners right across Scotland."He said to meet the government's renewable energy targets more wind farms would be needed, adding: "The only realistic way we are going to hit the targets is by continuing to develop onshore wind, which currently is the most economically proven form of renewables."What we are offering landowners is the going market rate for these projects."He said before the firm approaches a landowner it looks at criteria such as wind conditions at the site and its proximity to the national grid.A spokesman for the National Farmers' Union Scotland said: "We will support our members in their individual business decisions, whether that be in developing their land for renewables projects or whether that be setting up a farm shop within their steading. "Commercial wind farms do provide an opportunity for some of our members but the decision as to whether or not to proceed lies entirely with them."Scotland set for boom in wind farmsA HUGE rise in the number of wind farms in mainland Scotland is proposed in UK government plans to reduce dependency on oil and gas.Ministers say an extra 7,000 turbines may be needed by 2020 if more than a third of Britain's electricity is to be generated from renewables.Of these, 4,000 will be built on the UK mainland and 3,000 at sea. The official consultation document states: "Subject to planning permission, we would expect that a large proportion of onshore wind development will take place in Scotland."This threatens to put Westminster at loggerheads with Holyrood, which in April turned down an application for 181 turbines on Lewis.There are also fears that it could mean years of extra costs, with the subsidy paid to encourage "green" energy development already adding about £60 a year to bills.Dr Sue Ion, vice-president of the Royal Academy of Engineering, said the challenge of developing offshore power was "immense".