We have all read the reports of proposed large scale offshore wind farms that will assist Scotland and the UK meet the ambitious targets set in recently passed Climate Change Acts. Offshore wind schemes offer a reliable source of energy, less environmental and planning issues, and less of an intrusion on our landscape. However, there are still opportunities to develop wind farms and other forms of renewable energy on land.

Not only is it cheaper to install and maintain wind turbines on land, but the infrastructure for connecting to the National Grid is, in many cases, already in place. Communities across Scotland, and in particular those in the south and east of the country, are already familiar with wind turbines, which are often highly visible but in many cases have become part of the fabric of the landscape. Many more wind farms are on the drawing board, and are either yet to receive planning permission or awaiting construction. It may appear that many of the prime sites have already been earmarked for schemes and this is why developers have been forced to look offshore. This is not the case.

Whilst it may be true to say that some of the larger sites have already been developed (for example Whitelee to the south of Glasgow) there is still plenty of opportunities for smaller scale schemes, or even a single turbine or two, to be erected on land. There is scope for landowners, or community groups, to investigate the possibility of establishing their own means of generating renewable energy through wind.

A landowner could consider allowing a renewable energy developer to take on the whole of the project, and the risk, and obtain a good return of, say, 5% of the income generated by the scheme. Alternatively, a landowner or community group may wish to consider taking the development forward themselves. The challenges that confront a would be developer are firstly, cost, and then a host of technical issues such as obtaining planning permission, grid connection, turbine supply, an agreement from a transmission company to purchase your electricity and a number of engineering and access issues. Funding is the major issue, especially as there are a number of up-front costs (scoping reports, environmental surveys, planning consultants etc) that will have to be met before certainty can be achieved through a successful planning permission.

In the current financial market banks are reluctant to offer speculative loans, although funding from banks would almost certainly be made available once planning permission has been achieved. A landowner, or developer, may have to look elsewhere for assistance with funding and for the technical aspects of putting together a planning application and establishing the wind farm. One way that this can be achieved is to enter into a joint venture with one or more parties. This may involve your neighbours, but may also involve venture capital and project managers. Landowners may have to contribute capital of their own, or they may simply have to contribute their land, but the share of the revenue generated by the project would be determined by the commitment shown by each of the joint venture partners.

Once planning permission had been obtained, the decision could be taken to either sell the rights to the proposed wind farm to an established operator, or for the individual landowner, or joint venture group, to operate the scheme themselves. In any of these scenarios it is important to obtain good independent advice.