Energy Matters Galbraith Winter 2021

Energy Matters n

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What we want from COP26 All about natural capital

Finding solutions to Scotland’s broadband challenges

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Cutting CO2: Moray East comes online

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Time for tidal power in Orkney

ISSUE 23 | WInTEr 2021/22

CONTENTS

WELCOME

By Mike Reid Head of Energy

s Climate change: what COP26 needs to deliver In november, Glasgow will host the 26th Un Climate Change Conference of the Parties, known as COP26.

Countries will be asked to come forward with ambitious 2030 emission reduction targets that align with reaching net zero by the middle of the century.

They will also be asked to adapt in order to protect communities and natural habitats, working together to enable and encourage countries affected by climate change to protect and restore ecosystems, build defences, warning systems and resilient infrastructure and agriculture to avoid loss of homes, livelihoods and even lives.

To some people it may be a surprise that this is the 26th Un climate change conference but the impact and importance of these conferences has only been realised more recently as the world wakes up to the challenges ahead.

The Paris Agreement in 2015 set the tone for tackling climate change and the intention at COP26 is to finalise the Paris rulebook and accelerate action to tackle the climate change crisis through collaboration between governments, businesses and civil society. To deliver on these goals developed countries will be asked to make good on their promise to

mobilise at least $100 billion in climate change finance each year.

The UK Government has announced plans to place farmers at the forefront of reversing environmental decline and tackling climate change by growing food sustainably and efficiently. On 7 September the Holyrood Government outlined its vision for A Fairer, Greener Scotland, many details of which remain to be settled following the SnP’s powersharing deal with the Scottish Greens in the weeks beforehand.

While more immediate concerns over power shortages must be addressed and quickly, they need not obscure the pressing longerterm necessity for a more sustainable economy.

In this issue of Energy Matters we set out what Galbraith would like to be delivered by COP26 as well as exploring other interesting topics including natural capital and energy efficiency and bringing you up to date on renewable energy development and telecommunications.

I hope you enjoy this issue. We are available to assist with advice on any renewable or utility project.

eid R e k i M

18 Tide time: A new tidal power project in Orkney is gearing up to supply the grid.

4 Only connect: Finding solutions to Scotland’s broadband and mobile network challenges.

8 Greener buildings: A new-build house which is aiming for an ‘A’ for energy efficiency.

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Energy Matters is produced by Allerton Communications, Marlborough, and designed by George Gray Media & Design, Saint-Andeux, France. © CKD Galbraith LLP.

Page 2 | Energy Matters | Winter 2021/22 | galbraithgroup.com

Solar: Why landowners should take a long-term look at solar leases

10 COVER STORY: Our wish-list for the COP26 Glasgow conference, from carbon capture to sustainable agriculture.

19 Third-party rights: Why it’s important to get good advice to avoid longer-term issues.

9 14 A9 dualling: People living near Scotland’s biggest highway project could qualify for compensation.

Trees or turbines? The financial returns from carbon offsetting are making it a realisitc alternative to installing wind turbines.

13 Their call: Mobile network operators now have the upper hand when it comes to phonemast lease renewals.

16 Making the best of it: How should you react on hearing your land is an idea renewable energy site?

6 Natural capital: Why it’s all about stacked benefits and linked supply chains. And how GIS can help to assess natural capital values.

15 Moray East: Scotland’s largest offshore windfarm is in production and making a major contribution to cutting CO2

19 Current renewable energy subsidies.

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 3

Connecting the parts other broadband struggles to reach Government and telecom companies seem determined to improve flagging connections but, as Calum Innes reports, good outcomes are sometimes hard to come by.

FOr locations seeking to acquire or improve broadband connectivity without breaking the bank, it’s essential to have a Plan B. Through its reaching 100% (r100) programme, the Scottish Government has pledged to provide every home and business with broadband speeds of at least 30Mbps. Most connections being delivered to more than 120,000 premises are using gigabit speed fibre-to-the-premises (FTTP) technology.

This would make Scotland one of the bestconnected countries in Europe, boosting economic growth. But the country’s challenging topography means engineering works take time and the scheme is unlikely to be completed until the end of 2026, so other options have been proposed.

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For rural areas confronted with poor broadband, choices can be extremely limited.

The Westminster Government’s Project Gigabit increases spending to £5 billion to connect hardto-reach locations in particular.

Meanwhile, the communications companies BT and OneWeb have linked to find ways of solving rural broadband ‘notspots’ and slow spots.

OneWeb has launched 218 small, low-earth-orbit satellites, with more proposed this year. Still in its early stages, the plan is to build a constellation of 648 satellites by the end of 2022. Elon Musk’s new Starlink service is a further disruptive influence.

For rural areas confronted with poor broadband, choices can be extremely limited due to infrastructure upgrade costs. Faced with dial-up connection-era internet speeds and the challenge of enforced home schooling, a group in Aberdeenshire took matters into their own hands.

Page 4 | Energy Matters | Winter 2021/22 | galbraithgroup.com

With 4G unavailable due to lack of coverage, they applied under the Scottish Broadband Voucher Scheme, which can offer up to £5,000 to deliver a permanent broadband link where no superfast rollout is planned.

They engaged initially with BT, which eventually came back with a seven-figure sum for connection to an exchange only a few miles away.

Their current plan is a local microwave installation with a special receiver at each participating household, taking a signal ‘bounced’ to line-ofsight access points.

It is expected the project – likely to take two to six months to complete – can be delivered through the voucher scheme, with users paying around £40 a month for 20Mbps speeds. While not superfast, it’s a big improvement on the aged copper network, though microwave quality can be impacted by Scottish weather, especially snow, rain or fog.

When they work well, such alternative projects can make a positive social contribution by bringing communities together and encouraging collaboration.

Turning to mobile communications, major improvements to 4G coverage are to be funded by the four main operators along with the UK Government in the Shared rural network (Srn)– aimed at bringing 4G coverage by at least one operator to 95% of the UK’s land area.

The Srn is a nationwide initiative which from the map shown here suggests the Highlands and Islands of Scotland to be significant beneficiaries, with 4G coverage from all mobile network

SharEd ruraL NETWOrk: FOrECaST iMprOvEMENTS iN MObiLE COvEragE iN SCOTLaNd

before SrN

Total not-spots (areas with no 4G coverage from any operator)

after SrN

Partial not-spots (areas with 4G coverage from at least one but not all four operators) 4G coverage from all four operators

Forecast improvements are subject to availability of EAS sites. Coverage improvements are subject to finding suitable sites, obtaining power supply and backhaul and securing the necessary permissions though the planning system.

operators increasing from 26% to 68% while 4G coverage from at least one operator will increase to 91%. We will have to wait and see if reality matches the aspiration.

Covid and lockdown showed communities across the country the importance of access to fast, clear, reliable communications. While a number of approaches are being tried, and technologies continue to improve, much remains to be done in ensuring remote locations catch up with urban areas.

calum.innes@galbraithgroup.com

07909 978643

FOrECaST iMprOvEMENT by rEgiON Electoral region

4G coverage from all MNOs

4G coverage from at least one MNO

Pre-SRN

Pre-SRN

Forecast post-SRN

Forecast post-SRN

Central Scotland

87%

92%

99%

99%

Highlands and Islands

26%

68%

73%

91%

Lothian

88%

94%

99%

99%

Mid Scotland & Fife

53%

78%

80%

93%

north East Scotland

59%

79%

86%

94%

South Scotland

55%

81%

88%

97%

West Scotland

59%

82%

91%

98%

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 5

Welcome to the joined-up world Stacked benefits and linked supply chains How can energy suppliers take advantage of the flourishing Natural Capital market and avoid its pitfalls?

Eleanor Harris reports.

natUral capital is all around us: it’s the buzzword of the moment. But no, really: natural capital is all around us – rocks, soil, water, plants, animals, air, even the stars above our heads.

We often hear of natural capital in the same breath as its related concept, ‘ecosystem services’. When we use minerals to build, grow plants for food or trees for timber, take a drink of water or a breath of air, they’re ecosystem services. We live and flourish on nature’s bounty.

The stars? An astronomical engineer builds his career on their fascination. That’s also an ecosystem service.

Energy is also an ecosystem service; one which, like food and timber, has long been monetised.

However, another ecosystem service – the stable climate – was one we enjoyed free. We took the climate for granted, then realised carbon emissions were running up a bill nobody could pay.

The market mechanisms employed to address burgeoning carbon emissions – feed-in tariffs, rOCs, rHIs, carbon prices, divestment, switches to renewable tariffs, r&D investment – are all examples of valuing natural capital. Once, quality climate had ‘no value’. now, it has a value which has transformed the market.

Stacking benefits So has energy ‘done’ natural capital? no: there are more opportunities to grasp, and risks to avoid. We have begun to generate energy everywhere: rooftops, hilltops, rivers, fields. Energy intersects with other sectors, where

Installing solar PV panels at a home bordered by a forest.

benefits are ‘stacked’ on a hectare of land, and costs linked right along supply chains.

At the installation of a wind or hydro scheme, it may be cost-effective to restore peatland or create riparian woodland above and beyond any obligation. This can generate valuable carbon credits, which can be sold or used towards a net zero business.

The list of natural capital opportunities for landowners will expand rapidly in coming years: arable and hedgerow carbon codes, a Woodland Water Code, Biodiversity net Gain – the list will grow. natural capital presents a huge opportunity to utilise underperforming land.

linking supply chains Supermarkets and food companies are looking out to the carbon footprint and biodiversity impacts of farmers, setting targets and making demands. Similar attention has not yet been paid

Page 6 | Energy Matters | Winter 2021/22 | galbraithgroup.com

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The list of natural capital opportunities for landowners will expand rapidly in coming years.

of natural capital The business of caring for the environment Effective stewardship of natural resources is no longer the sole preserve of government and charities. As Strath Slater reports, landowners are discovering that care for the environment is good business. aS subsidy regimes move towards a ‘public goods for public money approach’ and the critical role of our rural landscapes in responding to climate change becomes clear, the way we value our natural capital is rapidly changing.

The geology, soil, water, air and biota – animal and plant life – of which all land managers are custodians, comprise a major portion of the Earth’s natural capital stock. Together as habitats they provide ecosystem services that generate environmental and societal benefits locally and globally – food, water, energy, clean air, health and wellbeing.

to bioenergy crops. These are a rapidly growing sector of agriculture, with almost 100,000 hectares used for grains, beet, maize, rape, miscanthus, coppice.

Bioenergy is also an important component of forestry, providing 18% of softwood and 81% of hardwood markets. Patchy attention to the impacts of bioenergy on soils and timber markets has not yet translated into holistic, strategic attention to the bioenergy supply chain – but it is likely to happen.

As benefits stack and supply chains link, businesses which have a strong understanding of natural capital and can respond quickly will reap the rewards.

The value of these benefits, and by extension the landscapes from which they are derived, is measurable environmentally, socially and financially. As recognition of these benefits becomes codified in policy, the economics of natural capital will intersect with and potentially outweigh the economics of infrastructure development.

Qualifying landowners can develop income streams to support these activities under a significant and growing body of regulation and subsidy.

Understanding their natural capital balance sheet will enable land owners and managers to navigate this changing landscape and evaluate the value of their landscape assets in the longer term

against those of prospective energy or utilities infrastructure developed on them.

This knowledge will inform agreements with developers, helping landowners and managers retain the rights and flexibility to benefit from natural capital stocks alongside new and existing projects, or opt solely for the natural capital option where this is likely to be of greater long term value.

Acting early to establish a natural capital baseline will ensure land managers are strategically positioned to move quickly and take advantage of opportunities as the currently shifting policy landscape coalesces around defined financial incentives for supporting ecosystem services.

Galbraith have developed a remote assessment tool which carries out this natural capital due diligence.

Using proprietary and open-source geospatial data, the tool assesses natural capital stocks for a selected site, enabling our clients to integrate the value which flows from them into long term planning.

You can find out more here: galbraithgroup.com/gis-services or by getting in touch with me.

strath.slater@galbraithgroup.com 07917 327738

eleanor.harris@galbraithgroup.com 07585 900870

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 7

Building for a greener future Amid controversy over UK Government plans to decarbonise buildings, Calum Innes reports on a new-build house seeking an ‘A’ for energy efficiency.

thE Government has finally turned its mind to decarbonising buildings by switching to greener heating systems in its push to slash CO2 emissions.

The design of the house seeks to maximise insulation, take advantage of solar gain where feasible and incorporate appropriate technology to minimise energy usage in heating the property.

It’s a huge task – buildings emissions account for some 37% of total UK greenhouse gas discharge.

Ministers want to replace traditional gas boilers with low-carbon technologies such as electric heat pumps, hydrogen, green gas and shared heat networks by 2035.

At the time of writing, foundations are being laid, but most decisions on how the house should perform have been made: Insulation – building standards specify a minimum thermal performance for floor, walls and ceiling. in this timber frame building, the external walls have been specified for significantly greater insulation than with minimum standards.

Heating – an air source heat pump has been chosen.

Ventilation – the building is to be fitted with mechanical ventilation and heat recovery (MVHr), so air is automatically extracted then used to heat fresh air entering the house.

Renewable energy – solar PV panels will be fixed to the south-facing roof elevation an surplus energy generated stored in a battery to minimise power imported from the grid.

There’s been a considerable pushback on the Government’s plan. The green revolution has worthy aims, but achieving them will come at a big cost for households and businesses, and many wonder why the UK should bear such a burden when countries with much larger carbon footprints, such as China, russia and India, appear to be dragging their feet.

We reported previously on plans to install renewable heating technology in a historic property in order to boost energy efficiency. now we’re advising on a new build, where the challenge facing the client is whether they can create a dwelling with an ‘A’ rated Energy Performance Certificate (EPC). The flaws of the EPC have been discussed before but, given that is the measure used, the aim here is to achieve a gold star standard. Whether this can be done is uncertain.

The site is at a high elevation (1,500 ft) in an exposed location in the Cairngorm national Park, so the environment is challenging in climate, exposure and access.

Page 8 | Energy Matters | Winter 2021/22 | galbraithgroup.com

We will report further on progress and the decisions that will ultimately influence whether the ‘A’ rating can be achieved. Cost versus benefit is a further influencing factor and we’ll report on that too.

calum.innes@galbraithgroup.com

07909 978643

Trees or turbines? A major decision for landowners Subsidy changes and green codes are making carbon offsetting a realistic alternative to wind turbines.

But as Mike Reid writes, owners should take care to preserve their rights to future income.

SInCE the development of onshore wind farms, the financial returns for landowners from hosting a scheme have generally been greater than any alternative land uses and this has taken priority over the potential impact of the scheme.

However, with reductions in returns from these developments following the end of the renewable Obligation (rO) scheme and the increasing importance of natural capital, forestry and carbon sequestration the overall benefits of hosting an onshore wind farm need to be carefully considered.

Financial returns from onshore wind reduced when the rO subsidy scheme came to an end in 2017 and wholesale energy prices dropped during the 2020 Covid pandemic. This, combined with increased value of forestry planting land and the benefits of carbon sequestration under the Woodland Carbon Code or from Peatland restoration in the drive to achieve net carbon zero, has increased the returns from alternative uses. not every onshore wind farm site is suitable for peat restoration or woodland planting, but all the potential benefits of the current land use need to be properly examined.

With growing impetus for businesses to achieve net carbon zero, landowners need to assess whether any potential wind farm will restrict their ability to benefit from the carbon offsetting potential of their land to the detriment of their own business. Locking away the potential to offset carbon by concluding an option to a developer could have significant impacts on the future viability of the current business.

With sales of land suitable for tree planting achieving values of up to £19,000 per Ha and the value of carbon offset by new planting being potentially in excess of £7,000 per Ha, careful consideration of the benefits is needed when any potential wind farm might make land unsuitable for future forestry planting.

Where peat restoration is an option, landowners should look at carrying out a scheme themselves prior to the development of any wind farm and reserve rights in the option for this to be carried out. Should a peat restoration scheme be part of the planning conditions, the ability of the landowner to benefit from the carbon offset will be lost.

Without careful consideration of the alternatives, opportunities can be lost if rights are signed away in an option to a developer, so analysing the financial and other implications of any renewable scheme is paramount before committing to the next stage of the project.

mike.reid@galbraithgroup.com 07909 978642

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 9

What we want from Scotland is about to host the crucial international gathering tasked with tackling climate change.

Here, our professionals Crawford Mackay, Eleanor Harris, Georgina Weston and Rachel Russell describe some outcomes they’d like to see.

In november Glasgow will host the 26th Un Climate Change Conference of the Partners (COP26).

The intention is to bring together heads of state, climate experts and campaigners to agree coordinated action to accelerate climate change action in line with the 2015 Paris Agreement and the goals set out by the Un. The COP26 goals are to: SECUrE net zero greenhouse gas emissions – those thought primarily responsible for

Page 10 | Energy Matters | Winter 2021/22 | galbraithgroup.com

COp26 climate change – by mid-century and keep a limit of 1.5°C on warming; adaPt activity and lifestyle to protect communities and natural habitats; MOBIlISE finance to deliver the above; and WOrk together to achieve these aims.

The conference is being hailed as the most significant event to tackle climate change since the Paris Agreement. So what do we, as advisers to rural land and property businesses, consider to be the most important outcomes of COP 26 to deliver the intended goals?

£ invest global, act local Global investors are acting on climate change, making billions of dollars of finance available for decarbonisation.

The challenge is that many of the solutions are at local scale, which are inaccessible with economic benefits that are difficult to return to the investor. Moreover, since big money means big power, there is a risk that the smaller national or local businesses are effectively, and perhaps unintentionally, ‘bought out’ in the process of implementing climate solutions.

Whether it’s an old-fashioned tax or an innovative mechanism – a ‘COP contract’ – we would like to see COP26 develop a global framework to deliver big investment to tackle problems at local scale.

From the work Galbraith is currently involved with that might be implementing sustainable farming systems or creating urban tree canopies, sustainable transport systems, and climate resilient lowcarbon housing stock for whole cities at a time.

Above all, the measures have to be accessible to local landowners and businesses, so that collectively, we can implement measures at scale so that they have an impact on climate change.

uuuu

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 11

uuuu COp26 uk as a climate leader This is an opportunity for the UK to use the conference as a base for building a structure for reaching net zero which other countries can use as an example.

Scotland has a major role to play in this structure with its abundance of renewable resources and Galbraith are advising a number of landowners on how to realise this potential.

Meanwhile, England is making headway with farming subsidies in the radical move away from the Common

Carbon-capturing supply chains The efficiency and viability of renewable energy installations is improving every day and the world needs to crack on with implementing schemes which harness our natural resources.

Yet industry cannot be decarbonised through renewable energy alone, and the extraction of materials such as sand and iron ore can cause environmental problems aside from the carbon emissions.

A large part of the answer may be in regenerative supply chains, which not

One of the key changes is sustainably produced local produce, with a consideration for how food is produced and the distance it needs to travel reflected in trade agreements.

When it comes to the production of goods, this has always been actual cost/profit margin driven, with less

As a result of COP26, we would like to see the introduction of an agricultural subsidy regime that balances the demands of the environment and

A good example of this is Pumped Storage Hydro Schemes (PSH). There are currently a number of consented projects within Scotland which cannot be developed at present due to a pricing issue.

We would like to see COP26 set targets for the proportion of global commodities produced from regenerative systems, and provide farmers and landowners with the means to implement measures which tackle climate change whilst providing wholesome, locally produced food for the nation.

Sustainable diets have the potential to majorly impact carbon emissions, but change is dependent on public engagement.

With the UK’s departure from the European Union and the Common Agricultural Policy (CAP) we now have a domestic agricultural subsidy regime.

Whilst the UK, and Scotland in particular, has an abundance of renewable energy potential are we truly making the most of it? Scotland should ensure it is not left behind in this radical change and support landowners to make changes with clear legislation to enable this.

only reduce carbon but even capture it.

This includes farming practices which rebuild soil carbon, with measures such as using seaweed to tackle methane emissions from livestock by creating sustainable kelp farms, and expanding forests so as to harvest timber and reduce our reliance on mineral materials.

Sustainable diets

Sustainable agricultural support

Agricultural Policy towards ELMS and natural Capital.

climate change with that of food production (we can’t overlook the fact that we need food).

As an example, the introduction of a more localised approach to the environmental parameters set by the subsidy scheme which allow for the much more efficient deployment of capital beyond the previous “one size fits all” approach of the CAP.

Page 12 | Energy Matters | Winter 2021/22 | galbraithgroup.com

regard for the environmental impact of producing overseas and the consequential food miles.

Therefore, should the environmental cost be added to the cheaper imported price when it reaches the shelf to encourage more localised production?

Providing support for lamb, beef and dairy producers to assess and improve their sustainability credentials would help to increase their profile with those now looking for sustainability in food.

Appeal ruling gives mobile operators the upper hand Landowners face tougher terms on phone-mast lease renewals, Mike Reid reports.

practical legislation The Scottish Government has delayed confirmation of Minimum Energy Efficiency Standards for private rented property. The draft legislation was published in 2019 but has not yet been approved by the Scottish Parliament.

This is an issue which Galbraith and many clients are having to contend with. Providing clear guidance and legislation for private landlords with suitable notice, along with grant funding to enable many of these measures to be implemented, would allow for property improvements to be carried out.

Clarifying this legislation is the first step in improving energy efficiency standards in property and we call upon the Scottish Government to provide the clarity that is required.

Conclusion Overall, we need to understand how we are contributing to climate change in order to proactively do something to assist. We need to understand our emissions and the impact we’re having on the climate and then work out how we can improve it.

In order to reach net zero, there is a need to de-centralise this and let individuals, businesses and nations know how they can play their part.

crawford.mackay@galbraithgroup.com 07909 978641

eleanor.harris@galbraithgroup.com 07585 900870

georgina.weston@galbraithgroup.com 07909 978645

rachel.russell@galbraithgroup.com 07884 657219

MOBIlE phone operators are finding it easier to push through lease renewals for the siting of their towers and telecoms equipment following a key legal ruling.

As reported in the previous issue, the Scottish Lands Tribunal considered last September whether an operator could compel a landowner to grant a new lease in Scotland under Paragraph 33 of the Electronic Communications Code (ECC).

In that case, EE Ltd and Hutchison 3G Ltd v Duncan & Others 2020, two operators served notices on a number of landowners for a new lease under Paragraph 33 of the Code. The case involved tacit relocation, whereby leases are renewed on the same conditions as previously if no notice of termination is given within a certain period.

The Tribunal ruled that to justify a new lease, the operators must show particular “needs” in relation to individual sites, such as an agreement being unduly onerous or restrictive – it was not enough to claim the current lease didn't have the minimum rights available under the new Code.

The Tribunal concluded EE had not made a sufficient case for the granting of a new Code lease at renewal and its application for a new lease was dismissed.

However, EE and H3G successfully appealed this decision in May this year, when the Court of Session concluded the Tribunal had taken the wrong approach and had set the bar too high for the companies.

The Court in Edinburgh also confirmed that Scottish leases continuing by tacit relocation are subsisting agreements, so that mobile operators can modify the procedure under Part 5 of the Code.

Operators don’t now need to justify their reasons for renewing a lease under the Code, making it far easier for them to progress a lease renewal under Paragraph 33.

We are seeing proposals to align terms to the ECC, but other terms have been suggested that go considerably beyond these provisions. In accordance with a three-stage procedure described in On Tower UK Limited v JH & FW Green Limited, any changes to lease terms could have an impact on the site payment, so it is important to understand the full terms of any contract before agreeing the appropriate site payment.

The 2017 ECC was designed to phase in new rights as existing leases came to an end, so that operators could install new apparatus and upgrade existing

“

Operators don’t now need to justify their reasons for renewing a lease under the Code.

facilities to bring better connectivity and faster services.

The Westminster Government looks determined to achieve this by strengthening the operators’ position in new legislation.

However, full details have yet to be published.

The UK-wide Product Security and Telecommunications Infrastructure Bill will aim to boost digital networks by supporting equipment installation, upgrading and sharing to improve coverage and connectivity.

Ministers are reviewing responses to a recent consultation to ensure the reforms deliver results but it’s not yet clear if these will change the lease renewal procedure further.

Anyone approached about a lease renewal or new code agreement should ensure they are properly advised, and we are well placed to assist you so please give me a call.

mike.reid@galbraithgroup.com 07909 978642

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 13

A9 compensation for depreciation in property value People living near Scotland’s biggest transport scheme could well qualify for compensation.

Philippa Orr reports. thE dualling of the a9 is Scotland’s largest ongoing transport project, upgrading 80 miles of single carriageway between Perth and Inverness.

The scheme consists of 11 different projects and at the time of publication only the Luncarty to Pass of Birnam and the Kincraig to Dalraddy sections were open to traffic.

In order to undertake large transport projects, such as making the A9 two carriageways, Scottish ministers use their powers compulsorily to purchase large areas of land from farmers, estate owners and residential property owners along the length of the road.

Any owner, or qualifying occupier, who has had land acquired will have a right to claim compensation for their losses, including but not limited to the value of the land taken, severance, ‘injurious affection’ – depreciation in land value as a result of proposed construction, and disturbance.

Where ministers do not purchase any of an individual’s property, compensation may still be payable.

In accordance with Part 1 of The Land Compensation (Scotland) Act 1973 (the Act), compensation can be claimed for the depreciation in value to their property as a result of the physical factors associated with the use of the newly dualled A9.

These include noise, vibration, smell, smoke, artificial lighting and the discharge of any solid or liquid matter onto an individual’s property.

However, a Part 1 Claim does not compensate individuals generally for the loss of amenity they may suffer as a result of the scheme.

In order to receive compensation under Part 1 of The Act, the individual must be the owner of the property before the date the road first came in to public use and must

also still be the owner on the date that the claim is submitted.

Part 1 Claims have to be submitted at least 12 months after the road was open to the public and claims need to be made within five years.

The Kincraig to Dalraddy section of the A9 officially opened on September 30, 2017, which means that Part 1 Claims could be submitted from October 1, 2018. However, in order to receive compensation, claims for this section of road must be submitted before October 1, 2023.

“

Where ministers do not purchase any of an individual’s property, compensation may still be payable.

Although traffic is currently utilising the Luncarty to Pass of Birnam section of the A9, Transport Scotland, at the date of publication, had yet to issue a formal completion date.

However the timescale for when a Part 1 Claim can be submitted will be the same.

To anyone living close to the A9 between Luncarty and Pass of Birnam or between Kincraig and Dalraddy who may have suffered depreciation on your property because of the physical aspects of the A9 dualling – do consider your options, and feel free to get in touch for advice and help in preparing your Part 1 Claim.

philippa.orr@galbraithgroup.com

07917 220779

Page 14 | Energy Matters | Winter 2021/22 | galbraithgroup.com

New hires boost Galbraith energy team

Galbraith has made two important appointments to support and enhance the continued growth of its energy and utilities team.

As a land utilities management specialist, Oliver Vincent will be responsible for landowner liaison for a number of major infrastructure projects including acquisition of land, servitudes and wayleaves as well as agreeing compensation claims and access agreements.

Oliver worked in land liaison

Moray East: Making a major contribution to cutting CO2 As a historic renewable energy programme starts production, Richard Higgins reflects on its progress.

SCOtland’S largest offshore windfarm, Moray East, exported its first generated electricity in early June 2021.

After decade of work, the project, which will be fully commissioned in early 2022, began exporting electricity to the grid. Galbraith have been there effectively every step of the way.

At the time of writing 93 of the 100 turbines have been built offshore with the closest being some 13.5 miles from the coast. The maximum tip height is more than 200 metres above sea level.

When in full production the windfarm will provide 40% of Scotland’s electricity, saving 1.7 million tonnes of CO2 emissions every year. The windfarm could power up to 950,000 homes throughout the UK. With a total output of 950 MW, Moray East is

services across London and before that in surveying for a nature restoration adviser, working for a major infrastructure project, then as a seasonal ecologist with an environmental consultancy.

He has a BSc in Applied Terrestrial and Marine Ecology and is based at our Stirling office.

Pippa Ross, who joins Galbraith as an administrator focused on energy and utilities, will undertake GIS mapping and assist with project coordination. A

an important step in the Scottish Government’s plan to deliver up to 11 GW of offshore capacity by 2030.

Galbraith are proud to have been involved from the very early days of the project, providing expert advice on the onshore aspects of the project including land referencing, valuation advice, assisting with compulsory purchase orders, public consultation and ultimately negotiating land rights voluntarily with over 40 landowners over a 34-kilometre onshore cable route, terminating at a substation site extending to 70 acres close to new Deer in Aberdeenshire.

As the construction process nears an end, there remain residual land matters to finalise following the completion of the construction of the underground cable works and substation.

The project was led internally by

University of Edinburgh biology graduate based at our Perth office, she was previously a rural property manager at an estate agency.

“We’re proud to have secured Oliver and Pippa,” said Mike reid, partner and Head of Energy.

“In a competitive market for hiring professionals, we were keen to emphasise our strength and progress in renewable energy and utilities work.

“These are activities where landowners, developers and

myself and I was fortunate to have a team of dedicated surveyors, agricultural consultants and GIS (geographic information system) consultants to help manage a significant amount of data over a long time. This has served to highlight the range of skills and abilities within Galbraith that are transferrable to other projects we are involved in.

Ultimately, as with everything to do with the land and the people who rely on it, being able to identify the core issues at an early stage and set a strategy into play has meant that with some lateral thinking, attention to detail and determination we were able to deliver the necessary agreements on time.

richard.higgins@galbraithgroup.com 07717 581741

Oliver Vincent and Pippa Ross have recently joined Galbraith.

corporates rely heavily on quality property advice to secure and advance their interests.

“We believe the energy, infrastructure and natural

capital skills and experience built up over the years by Oliver will be of special interest to our clients, and we warmly welcome our new colleagues.”

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 15

Make the most of your land’s renewable energy potential How should you react on hearing your land is an ideal renewable energy site?

Crawford Mackay offers his views.

It Can be an exciting time for any landowner. a letter arrives in the post, or there is a knock at the door, from a renewable energy developer who claims that “your land is perfect” for a wind, solar or hydro development.

While this can be a thrilling moment, with the prospect of a potentially significant additional income stream, how can you be sure that the developer is the best one to take the project forward and that you are obtaining the best market terms?

The answer is to approach a renewable energy specialist to review the proposed terms. As an organisation that has represented landowners in negotiations over a number of years, we have a comprehensive understanding of what to look for in market terms and who the main players are.

However, is talking to one developer always the best thing to do? You wouldn’t sell your house to the first person who approached you, and you would advertise to ensure that you were getting the best possible terms.

The same principle applies to a renewable energy development. With a significant energy transition required as part of the drive for net Zero, there are a number of developers in the market, with mixed reputations and credentials.

Galbraith has run tender exercises on behalf of clients for wind and solar developments with positive results.

ensure best possible value and achieve complete transparency in the process. Our experience is that when developers know they are part of a competitive tender process, they improve their terms significantly beyond those initially offered.

This can vary as to the specific terms; however, we find that base rental figures and turnover rents can be increased by as much as 100% and initial exclusivity payments by significantly more.

A tender exercise also allows a landowner to consider much more than just the financial terms of a proposed development. It can avoid “land banking” of opportunities, where a developer simply secures it to prevent another developer from developing the site. It also allows a landowner to canvas a range of opinions with regards to site opportunities and constraints.

Some renewable energy developments remain controversial with local communities and stakeholders. It is therefore important that a landowner selects a developer with a strong covenant and reputation for engaging with local communities and stakeholders. A tender exercise provides a good opportunity to evaluate a developer’s credentials.

Given that significantly improved financial terms can be achieved the cost of a tender exercise can be relatively modest. In most cases the cost of the tender exercise and the landowner’s legal and professional fees will be met by the developer.

It can therefore be a cost neutral process to fully realise the renewable development potential of your land.

By marketing your land for a renewable energy development through a tender process, you can

Page 16 | Energy Matters | Winter 2021/22 | galbraithgroup.com

crawford.mackay@galbraithgroup.com 07909 978641

“

A tender exercise provides a good opportunity to evaluate a developer’s credentials

Why landowners should take a long-term look at solar leases As renewable energy gains traction, lengthy terms involved in solar farm leases may limit landowners’ power to end them. Philippa Orr reports.

Country Planning (Scotland) Act 1997, direct that planning permission is deemed to be granted.

Scottish ministers also have the ability to serve a necessary wayleave or use compulsory purchase powers for land and access rights for the installation or upgrade of electricity infrastructure.

In 2015, the first solar farm in Scotland was completed – it has been generating in the region of 1.5 million kWh each year ever since.

renewable infrastructure is controlled heavily by the private sector as the infrastructure is owned by either developers or landowners, depending upon what type of agreement has been entered into, as there is currently a freedom of contract.

Solar farms operate for 30 to 40 years and at the end of that time period, the landowner may wish to enter into a new agreement in which the solar farm is repowered with more modern technology, or the landowner may choose to have the solar farm decommissioned and the land returned to its prior use.

Scottish solar farms are in their infancy, but are seen by many landowners as an attractive means to generate renewable energy whilst possibly receiving in the region of £800 per acre (this rate will vary from site to site), which is more profitable than many agricultural practices.

Scotland is aiming to generate 65% of its energy from renewable sources by 2030 in order to achieve net zero greenhouse gas emissions by 2050. However in 2050, many solar farms in Scotland will be coming to the end of their life expectancy, so what happens then?

If we look at the electricity network as a whole, the infrastructure of pylons, telegraph poles and power stations are protected by legislation. The Electricity Act 1989 provides powers to the Scottish Ministers for the determination of applications for electricity infrastructure.

When granting consent under the 1989 Act, Scottish ministers may, under the Town and

Given Scotland’s ambitious targets for the next 30 years, will the Government produce legislation to safeguard existing renewable projects and allow ministers to build new renewable projects on suitable land?

“

Will the Government produce legislation to safeguard existing renewable projects?

For landowners with existing renewable projects, this may mean that the option of the project to be decommissioned and the land returned to its previous use may no longer be available.

If legislation is introduced, it may be that the Government approaches landowners informing them that a renewable project is to be installed on their land and it would most likely not achieve the rate per acre we are seeing with the private sector agreements.

We do not have a crystal ball and therefore much of this is speculation. However, if you have been approached by a solar developer or you have an interest in looking to see if your land is suitable for solar, Galbraith will very likely be able to assist you.

philippa.orr@galbraithgroup.com

07917 220779

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 17

Harnessing the Orkney tides A new tidal power project in Orkney is gearing up to supply the grid.

Richard Higgins reports.

anOthEr tidal-power project has been launched in Scottish waters to supply renewable energy that is more predictable than wind or solar.

The O2, the world’s most powerful tidal turbine, is currently installed and generating power at the Fall of Warness tidal test site of the European Marine Energy Centre (EMEC)after a two-day voyage under tow from the Port of Dundee.

The 74 metre long turbine is expected to operate for the next 15 years with the capacity to meet the annual electricity demand of around 2,000 UK homes with clean, predictable power from the fast-flowing waters.

The O2 is the result of more than 15 years’ product development and testing by Orbital Marine Power. The engineering company intends to commercialise its technology now that the O2 is up and running.

Moored by anchors, the floating platform uses underwater rotors to capture dense, flowing energy below the surface – tidal speeds at EMEC can exceed three metres per second.

Orbital is to lead a pan-European consortium to deliver the EU grant-supported €26.7m FOrWArD-2030 project with the goal of developing an energy system combining floating tidal energy, wind generation, grid export, battery storage and green hydrogen production.

Oliver Wragg, Orbital’s commercial director, said: “This endorsement of the Orbital technology by the European Commission is a huge vote of confidence in our capability to deliver commercially viable tidal energy. Orbital has consistently delivered step changes in cost reduction for the tidal energy sector and the FOrWArD-2030 project will enable us to take that next step.”

Speaking in April, Alistair Carmichael, MP for Orkney and Shetland, said: “The arrival of the O2 turbine in Orkney is a milestone in the expansion of marine renewables in the isles. The northern Isles have enormous potential to lead the world in tidal energy.”

Strong, consistent currents and a long coats make Scotland ideal for tidal power but the technology has had a bumpy ride in Scotland.

Two successive versions of the Pelamis Wave Power ‘snake’ device were trialled at EMEC’s Billia Croo test site, becoming the world’s first offshore wave power converter to successfully generate electricity into a national grid. The initiative stalled when Pelamis went into administration in 2014.

Meanwhile MeyGen, expected to be the world's largest tidal energy plant, is generating electricity using four 15MW turbines with 16m rotor diameter turbines on the seabed in the Pentland Firth. The company behind the project, Simec Atlantis Energy, plans to increase generation to 86MW in the coming years.

richard.higgins@galbraithgroup.com 07717 581741

Page 18 | Energy Matters | Winter 2021/22 | galbraithgroup.com

The O2 is the world’s most powerful tidal turbine.

Third-party rights Take advice to avoid creating additional burdens, says Rachel Russell.

WIth the growing demands being placed upon our electricity networks and infrastructure, utility providers, renewable energy developers and landowners are often in contact to try and balance the needs of the network and that of the landowner’s enterprise.

We at Galbraith regularly assist in relation to the rollouts, extensions, upgrades and new connections that require ‘third-party rights’ – for our purposes, rights over land that granted to essential service providers so they may undertake their duties.

Whether for the installation of fibre broadband, a private water supply, rights of access or for grid connections to renewable energy schemes, there are key points to consider before seeking to obtain or grant third-party rights.

If approached by someone seeking a right, it is important to determine whether you’re in a legal position to grant the right the party wishes to

obtain. Once established, a decision is necessary on the best way the right will be documented.

In establishing whether rights are by virtue of a Deed of Servitude, wayleave, lease, licence or statutory power as examples, the terms under the agreement type are of significant importance, in both short and longer terms.

Taking a wind farm access for example, in granting rights for the current proposals, do the terms future-proof the right you are granting against further wind farm extensions at the site that will benefit?

the right being exercised could be obtained simply by the passage of time.

The third party may have consent, but has the burden increased beyond the entitlement originally granted? Our team can help.

In each scenario, we provide clientspecific advice in relation to the proposed route, working conditions and the appropriate agreement type and consideration.

We would be delighted to assist you with any approaches in respect of third party rights, so don’t hesitate to give me a call.

We are frequently approached about third parties taking access without consent. Without careful management,

rachel.russell@galbraithgroup.com 07884 657219

CurrENT rENEWabLE ENErgy SubSidiES The Galbraith energy team has researched the current subsidy regime to produce this reference guide for the most popular technologies. Subsidy levels are subject to change, so the figures given here are for guidance only.

domestic renewable heat incentive (rhi) Tariffs revised during period 1 April 2021 to 31 March 2022 Technology

Tariff p/kWh

Biomass boilers and stoves Current details of FIT rates, ROCs and CFDs can be found at www.ofgem.gov.uk/environmentalprogrammes The Feed-in Tariff and the Renewables Obligation scheme have both closed to new projects.

Air-source heat pumps

7.01 10.92

Ground-source heat pumps

21.29

Solar thermal

21.49

ofgem.gov.uk/publications/domestic-rhi-tariff-table-2021-2022

Non-domestic renewable heat incentive (rhi) Subsidy support was extended for both non-domestic and domestic schemes until 31 March 2022 with the intention that a new support mechanism is finalised for all future applications.

Tariff name

Eligible technology

Eligible sizes

Small commercial biomass

Solid biomass including solid biomass contained in waste

Tier 1 Tier 2 Tier 1 Tier 2

3.17 2.22 3.17 2.22

Tier 1 Tier 2

3.17 2.22

All capacities Tier 1 Tier 2 All capacities <200 kWth <200 kWth ≥200 kWth ≤ 600 kWth

4.60 9.74 2.91 2.81 11.19 4.83

Medium commercial biomass Large commercial biomass Solid biomass CHP systems Water/ground-source heat pumps

Solid biomass CHP Ground-source & water-source heat pumps

Air-source heat pumps All solar collectors Small biogas combustion Medium biogas combustion*

Air-source heat pumps Solar collectors Biogas combustion

Large biogas combustion*

≥ 600 kWth

Tariff p/kWh

3.79 1.21

Source: Ofgem. Domestic and Non Domestic RHI Tariff Table (q1 – 2021/2022). Tariff rates are displayed in pence per kWth and for installations with an accreditation date on or after 01/04/2016.

galbraithgroup.com | Energy Matters | Winter 2021/22 | Page 19

gaLbraiTh’S ENErgy TEaM combines years of unrivalled skill in all property aspects of energy, utility and infrastructure. On the move and from our 13 offices across Scotland and the North of England, we bring wide experience of renewable energy technologies and associated services. We’re with you, no matter what the circumstances.

Our EXpErTS battery Storage Mike reid, richard Higgins biomass Mike reid buying, Selling & due diligence Calum Innes, Mike reid Carbon Capture & investment Heather Coyle, Eleanor Harris, Athole McKillop Compensation Claims richard Higgins, Mike reid, rachel russell, Oliver Vincent Compulsory purchase Schemes (all infrastructure) richard Higgins, Mike reid, Colin Stewart Feasibility Studies (renewables) John Pullen giS & Mapping Strath Slater hydro power Dougal Lindsay, John Pullen infrastructure, utilities & Wayleaves Mike reid, rachel russell, Oliver Vincent investment (infrastructure & renewables) Calum Innes, Crawford Mackay, Mike reid Land referencing Philippa Orr, rachel russell Minerals Peter Combe planning Calum Innes, Joanne Plant, Harry Stott project Management (renewables) John Pullen On-shore Wind Harry Lukas, Crawford Mackay, Mike reid, Hugo remnant Off-shore Wind richard Higgins Solar Mike reid Telecoms Mike reid rating Calum Innes valuation richard Higgins, Calum Innes, Mike reid

Elgin Inverness Aberdeen Galbraith offices

Oban

Regional agents

Perth Cupar

Stirling Edinburgh

Argyll Ayr

Galashiels Kelso Blagdon

Stranraer

Castle Douglas Hexham Penrith

CONTaCT uS athole.mckillop@galbraithgroup.com 07718 523045

hugo.remnant@galbraithgroup.com 07718 523051

calum.innes@galbraithgroup.com 07909 978643

john.pullen@galbraithgroup.com 07557 163140

colin.stewart@galbraithgroup.com 07711 534794

mike.reid@galbraithgroup.com 07909 978642

crawford.mackay@galbraithgroup.com 07909 978641

oliver.vincent@galbraithgroup.com 07540 723495

dougal.lindsay@galbraithgroup.com 07899 997915

peter.combe@galbraithgroup.com 07718 523034

eleanor.harris@galbraithgroup.com 07585 900870

philippa.orr@galbraithgroup.com 07917 220779

harry.lukas@galbraithgroup.com 07721 754822

rachel.russell@galbraithgroup.com 07884 657219

harry.stott@galbraithgroup.com 07909 978644

richard.higgins@galbraithgroup.com 07717 581741

heather.coyle@galbraithgroup.com 07825 382084

strath.slater@galbraithgroup.com 07917 327738