Landowners should act now to maximise returns from Feed-in Tariff projects
While the Comprehensive Spending Review left the Feed-in Tariff unscathed for the time being, landowners looking to develop wind energy projects must ensure that their sites are operational by March 2013 in order to take full advantage of the scheme, says a leading onshore wind developer West Coast Energy. The amount of support a landowner will receive is up for review from April 2013 – and early indicators suggest a likely decline in the value of return. The government has promised a review of the efficiency of the Feed-in Tariff, rebalancing the payments in favour of ‘more cost-effective carbon abatement technologies’, leading to a need for landowners to ensure their sites are operational by this date in order to reap the greatest return on investment.
West Coast Energy advises landowners seeking developments partners to choose a company that is established within the sector and has skilled approach to project management. Many new entrants with large investment-style backers might have the cash, but do not necessarily have the knowledge and specialist skills required to deliver the best project in a realistic timeframe.
The developer’s experiences have shown that landowners should not underestimate the time, cost and complexity of projects. The planning process and requirements for finance can easily take up to two years and involves lengthy procedures such as the collection of accurate wind data and its analysis, turbine procurement, warranty and insurance negotiations and grid connection approval from overstretched network engineers.
West Coast Energy estimates that many of the projects in the planning system will not reach their maximum rate of production because projects are not utilising the most suitable turbine. Many landowners appear to be going with a machine that their neighbours have installed or have partnered with a developer or installer who might have distribution links with a single specific manufacturer, rather than opting for the best machine for their needs.
Entering a partnership arrangement with the correct developer can pay dividends by sharing the risk, gaining easier access to finance and having project values optimised by exploring all the variables and selecting the best spec for individual sites. In some cases whilst adding 15-20 per cent on development cost, changing turbines more suited to the prevailing wind conditions could more than double the annual output of a project without dramatically increasing the dimensions of the turbine.
Development manager, Richard Fearnall, comments: “We are seeing a mix of applications going in for multiple installations of small machines where it may be more beneficial to install one machine that is not significantly larger in scale but has a higher energy output and is better suited to the prevailing wind conditions.
“Our advice to landowners is to make sure you have properly investigated your options and are partnering with an experienced operator. As a skilled developer with over 15 years under our belt, West Coast Energy can help landowners understand and iron out any potential issues to help get the funds together, optimise the site and build and operate the turbine.”
For more information visit: http://www.westcoastenergy.co.uk/.











