Galbraith Energy Matters Winter 2023

Energy Matters Prepare for green energy’s changing property needs Generating energy in harmony with biodiversity The challenges of carbon capture Why farmers are turning to solar Growing fight for commercial office space

ISSUE 27 | wIntEr 2023-24

CONTENTS

WELCOME

6

By Mike Reid Head of Energy

The case for sustainable energy

Grid and bear it: The multi-billionpound task of rebuilding the electricity grid for the age of renewables.

8 Only connect: The five-point plan to modernise the grid in Scotland.

Welcome to issue 27 of Energy Matters.

energy is a devolved matter, the

The debate about the UK’s transition to a low-carbon economy continues, with positions gaining clarity on how best to achieve it and even how hard we should try.

source was underlined by the UK

The case for sustainable energy in the UK is stronger than ever, underlined by the world’s two superpowers – the US and China – investing heavily in renewables and climate technologies, and Russia wielding power through fossil fuel pricing combined with military aggression.

management for onshore

Britain’s electricity transmission and distribution infrastructure has been quietly undergoing a major, expensive transformation to cope with rising demand and enable the transition to lowcarbon energy, as we describe on pages 6, 7, 8 and 9.

processes being advanced to

The volume of debate has risen as the details become clearer.

Electricity distributors favour putting up pylons as the most efficient and economical way to move power from generator to customer. But residents in environmentally and historically sensitive areas protest that overhead cables threaten precious farmland – and house prices – arguing they should be buried despite the higher costs involved.

supplying the grid and

25

controlling costs on farms.

Showtime: The energy team gets out and about.

While turbines are an increasingly familiar sight in Scotland, where

Irwin – to add to our Energy and

role of wind as a clean power Government’s decision in early September to remove its ban on

Pylon protests: Plans for electricity pylons through some of Britain’s most productive farmland have run into new objections.

new onshore wind farms in England.

We explain the role of habitat turbines on pages 12 and 18, the tendering process on page 22, and the importance of looking forward to the decommissioning stage on page 13.

20 Rooftop battle: Commercial landlords face conflicting demands for communication and energy infrastructure while complying with new rules.

Onshore wind is one component in a large and growing assortment of technologies and meet the challenges involved in

16 Electric drive: Galbraith invests in EVs to help tackle carbon footprint.

the energy transition. On page 14 we look at carbon capture and storage, on page 4 the colocation of battery storage, and on page 24 we explore the potential for solar PV in both

Meanwhile, phone networks are becoming increasingly assertive in negotiating with landlords over the siting of mobile masts, as we

24 Sunny side up: Why more and more farmers are turning to solar PV.

23 Sporting life: How three Galbraith employees excel at work - and play.

see on page 21.

To address these and other challenges encountered by our clients, Galbraith is pleased to have recruited some senior, experienced specialists – Ian Thornton-Kemsley and Larry Utilities service.

Energy Matters is produced by Allerton Communications, Marlborough, Wiltshire, and designed by George Gray Media & Design, Saint-Andeux, France. © CKD Galbraith LLP. Page 2 | Energy Matters | Winter 2023-24 | galbraithgroup.com

16 Wind of change: CfD auction failure brings pressure for reform of pricing system.

11 Market reform: Life in the post-RO world.

22

14 Capturing carbon: Technical challenges abound in the search for carbon capture solutions.

Benefits all round: A tender process can get the best from an onshore wind development.

15 NPF4: What you need to know.

26 New faces: Advisers join growing Galbraith team.

10 27 Renewable energy subsidies.

12

Compensatory planting: Energy projects drive demand for woodland creation.

One for the birds: Reducing the impact of onshore wind farms.

18 Grey areas: Getting the right balance between energy production and nature.

4

9

13

21

Better together: Future technologies and co-location need to be kept in mind when negotiating with developers.

Water works: The rating of hydroelectric schemes is the subject of a long-running legal dispute.

Funding for the future: The cost of decommissioning needs to be factored in to onshore renewable-energy developments.

Strongarm tactics: Telecoms companies are increasingly aggressive in negotiating the siting of equipment.

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 3

Togetherness is the In negotiating with energy developers, don’t overlook future technologies and co-location, argues Larry Irwin.

With the drive to net zero, there has been a significant shift in recognising the importance of developing renewable energy schemes across the UK. In Scotland, this has been recognised in legislation and planning, most notably following the implementation of NPF4, which has a presumption in favour of such renewable energy subject to certain requirements.

As a result, developers have been seeking to secure sites from landowners which meet the criteria of their preferred primary energy development (e.g. wind or solar).

Page 4 | Energy Matters | Winter 2023-24 | galbraithgroup.com

While appetite is at an all-time high for such projects, the availability of grid capacity and the cost of associated infrastructure means there is a strategic dilemma for developers to overcome.

As the sector has developed and matured the availability of prime sites has naturally dropped as they are built out and operated.

So new sites should maximise their potential.

With the grid increasingly constrained by capacity limits, developers are looking to the energy market in considering how best to maximise their returns, and are turning to technology to help. This has resulted in multiple technologies being promoted and located within a single site.

“

Using the same site can be cheaper as the assets are integrated from the outset. This also improves the returns for the scheme, meaning improved profitability.

way forward for renewables This is known as co-location, where multiple renewable generation or storage assets share a grid connection.

Using the same site can be cheaper as the assets are integrated from the outset. This also improves the returns for the scheme, meaning improved profitability.

A prime example of this is solar farms.

Until a few years ago, a developer would simply seek a suitable site where there was grid capacity and sufficient area with a suitable aspect to capture the sun to build out the solar farm. As a result of curtailment, where a generator may be prevented from exporting into the grid due to lack of demand and/or surplus of generation, this output is lost revenue.

By co-locating and introducing battery storage into the scheme, the

developer now has the opportunity to store a proportion of the electricity generated in the batteries, where it may otherwise have been curtailed, to release into the grid at an optimal time at a greater value.

This provides two benefits – improved overall capacity of generated power as the equipment is not subject to curtailment, and the storage allows for a premium to be obtained for the otherwise lost generation.

Solar and battery co-location is now an expected element from developers seeking new sites. However, as the energy sector continues to grow, we are seeking approaches for other technologies also, such as hydrogen – which is another means of storing energy for future use.

It is therefore very important to understand the basis of any potential renewable energy development on your land, and consider what technology and assets are being deployed alongside the commercial basis of any agreement.

Different technology will also have different potential impacts on the use of the wider property.

As with all modern technology, the drive for improvements in efficiency, duration and cost means new and improved versions are developed and deployed.

As assets reach the end of their lifecycle, a developer will naturally look to improve their viability and profitability using the latest technology available, e.g. solar panels have become increasingly energy dense, so fewer panels can produce more power than their predecessors.

One additional benefit for developers is that where future capacity becomes available, it can be used by incorporating improvements in technology to maximise output, to take advantage of any additional capacity in the grid.

If the agreement is structured correctly, this should be to the mutual benefit of all parties.

larry.irwin@galbraithgroup.com

07795 532146

Rare opportunity to invest in onshore wind An unusual opportunity for onshore wind investors is coming to the market in southern Scotland.

support this process. A grid offer for 60MW has been secured for connection in 2029.

Galbraith, the independent property consultancy, is inviting qualified parties to step into the developer’s shoes and progress with a 60MW development in Dumfries and Galloway. The offer is likely to be of interest to specialist institutional investors and developers.

Calum Innes, the partner handling the sale, said: “The UK Government has made it clear that onshore wind remains a key technology in meeting our renewable energy targets and combating climate change.

In preparation for progressing with a formal planning application, the potential wind resource has been measured and ecology/ornithological and other studies undertaken to

“This opportunity is unusual in that it’s so far advanced. We are pleased to offer an exciting project with the benefits of land rights and a formal grid connection offer.”

The vendors hold formal option/lease agreements over approximately 1500

acres for the purpose of developing a wind farm.

An online data room contains detailed information with regard to the grid offer, legal agreements and other documents.

The vendor is seeking initial expressions of interest to Galbraith as agents. Parties wishing to register their interest are invited to contact Galbraith to initiate the NDA process.

A further process may follow to clarify matters with regard to submitted offers.

Viewing is by prior arrangement.

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 5

The pricetag for a grid fit for the age of renewables

£54bn Miles, megawatts and money – Ian ThorntonKemsley investigates the mind-boggling task of rebuilding the electricity grid for the greenenergy era.

Remaking the way electricity is transported to homes, factories and offices is a project you don’t hear discussed much – yet it’s crucial to Britain’s transition from reliance on fossil fuels for energy production to embracing renewable energy.

Transforming the grid — the network of cables, substations and transformers that carries electricity around regions and countries, and across borders – is among Britain’s biggest infrastructure projects, coming with a £54bn price tag.

Involving 4,500 miles of overhead line and more than 900 miles of underground cable, it’s costlier than the stalled £18.6bn Heathrow expansion, and longer-running than Hinkley Point C nuclear power station. Like HS2 (whose budget ballooned to £72bn until the Birmingham to Manchester line was scrapped in September), the costs may rise.

The UK is legally committed to reducing greenhouse gas emissions by 100% of 1990 levels, i.e. to ‘net zero’ carbon, by 2050. Much of this will be delivered via wind power. However to meet the Government’s target of 50GW of offshore wind by 2030, the electricity industry must also

deliver more than five times the amount of transmission infrastructure in the next seven years than has been built in the past 30.

More recently, war in Europe and consequent higher energy bills have hit householders and businesses, prompting the Westminster Government to step up its plans for boosting energy independence, with targets of 11 gigawatts (GW) offshore and 12 GW onshore wind by 2030; a promise that can be delivered only with a properly functioning system of supply.

Achieving Government objectives will comprise an evolving jigsaw of components such as Eastern Green Link 2, a 2GW high-voltage direct current (HVDC) cable connecting Peterhead in Aberdeenshire to Drax in North Yorkshire.

This is designed to overcome a Borders bottleneck, whereby only 6GW of electricity can be transmitted from north to south, despite Scotland having 10GW of wind capacity and accounting for 10% of British electricity demand.

The undersea EGL2 will unlock Scotland’s renewable energy capacity to deliver clean energy for around 2m homes and the aim is to have this operational by 2029; government consent is already in place.

A recent report by Scottish Renewables points out that investment in the UK transmission network has “remained flat, and even decreased since 2017”. The renewable market is being held back by an electricity grid designed for fossil fuels almost a century ago.

Electricity firms looking to build new lines or pylons face protests, with groups such as the Strathpeffer and Contin Better Cable Route challenging power giant SSEN over the route chosen for a network of pylons that will run for about 100 miles from Spittal in Caithness to Beauly, near Inverness.

Scottish Power and Scottish & Southern Energy, the regional electricity companies responsible for the grid are also profiting from such large

Page 6 | Energy Matters | Winter 2023-24 | galbraithgroup.com

renewable projects. It is these private companies who have failed to invest in infrastructure over past years and are now pressing for such new lines and seeking increased powers to force these through.

Nick Sharpe, director of communications and strategy at Scottish Renewables, has criticised groups and individuals who object to the construction of power lines, pylons and substations suggesting that they “largely do so because they do not like the way they look”.

This however is unfair; the impact of such schemes is a valid planning objection and local involvement is essential.

Often projects are introduced and appear ill thought-out. After planning to upgrade existing lines for the past seven years, in May this year SSE introduced a controversial new line between Kintore-Fiddes-Tealing, passing through historic Mearns farmland, with little prior notice (see next page). A linear project of this nature risks the spread of potato cyst nematode across a key seed potato area, putting at risk an industry worth £250m to the Scottish economy and employing 2,000 people.

Recent planning frameworks does not preclude development on prime agricultural land, but affected parties have good reason to doubt assurances regarding biosecurity. Scotland supplies about 77% of seed potatoes for a £928m industry across the UK and is responsible for exports worth in the order of £55m.

Currently households affected by such pylon projects but where no land is taken have no right to compensation and might be put into negative equity situations. Home buyer reports identify the concerns of potential purchasers regarding the proximity of pylons and there are already instances of properties being blighted by the announcement of new lines or substations.

“

The renewable market is being held back by an electricity grid designed for fossil fuels almost a century ago.

Southeast and East of England £410m over five years by using flexibility to deliver network capacity at lower cost than building new infrastructure.

Electricity storage will play a big role in reshaping the grid, as it is needed address intermittency – the problem of what to do with excess energy One difficulty is the multitude of storage types are mostly in the early stages of technical development, and grid administrators are delaying investment decisions pending the emergence of winners – whether advanced pumped-hydro, green hydrogen, gravity storage or one of several battery types.

However, the need to boost grid capacity and achieve balanced distribution will only grow with the move to renewables. On- and offshore wind power has provided a tremendous boost to UK green energy supply and to the Scottish economy in particular. Yet on the windiest days, generation is deliberately capped to prevent turbine damage.

Worse than the wasted energy is the fact of curtailment – paying windfarm owners to turn them off.

Aware that some measures will cause disruption and likely involve higher utility prices, National Grid, the company with primary responsibility for Britain’s transmission and distribution network, is making a virtue of what it calls the Great Grid Upgrade, partly to persuade the public of the need for change. Public consultation is a key component in delivery of net zero.

ian.thornton-kemsley@galbraithgroup.com

01224 860710

Suggestions of setting up local community funds do not address the legitimate concerns of affected parties.

Even when utility company engage with residents likely to be affected, they are also understandably concerned about costs. While operation and maintenance expenses are broadly the same for underground and overhead lines, capital build costs can vary greatly, potentially making buried cables several times more expensive.

On top of more capacity, grid administrators are aiming for greater flexibility, or doing more with limited resources. In June, UK Power Networks pledged to save its customers in London, the

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 7

National Grid launches plan to speed upgrade A five-point plan has been unveiled to modernise the Scottish electricity grid. Rachel Russell reports.

Scotland's electricity grid network is an extensive system of power generation, transmission and distribution that ensures the flow of electricity throughout the country.

The existing grid connection process was designed over 20 years ago at a time when connection applications were made by a small number of large fossil fuel generators.

The country’s positive progress on decarbonisation over recent years has led to an unprecedented number of applications to connect to the electricity transmission system and the network and processes are under pressure to reform.

In February, National Grid, the electricity system operator (ESO), launched a five-pointplan of tactical initiatives to help improve the connections process in the short-term: 1. tEC (transmission entry capacity) amnesty: Allowing customers to leave the queue for new connections without incurring penalties for doing so. This amnesty closed in April 2023 and received over 8GW of interest, alleviating pressures within the pipeline of projects.

2. Background modelling assumptions: The ESO is updating how they calculate project connection dates.

3. Storage: Batteries and other energy storage technologies soak up energy generation when connected to the grid as well as releasing it back into the grid. As this technology has a dual purpose, the ESO has changed how they calculate their impact on the system.

4.Contract terms: The ESO is developing new contractual terms for connection contracts to manage the queue more efficiently, so those projects that are progressing can connect and those that are not can leave the queue.

5. Interim offer for BESS (battery energy storage systems): The ESO will be enabling energy storage projects to connect to the grid more quickly.

In May, Ofgem launched a policy review on reforming the electricity connections system. In an open letter to the energy sector, the energy regulator set out potential options to deliver new connections at scale to meet long-term energy demand with offshore wind, solar, new nuclear and other generation – alongside Ofgem’s work building strategic network investment and efficient, flexible network management.

With the ESO Future Energy Scenarios modelling showing that Great Britain needs between 123-147 GW of lowcarbon transmission generation by 2030 to be on a net zero compliant pathway, the system is under pressure to deliver shortterm solutions.

The proposals by Ofgem and National Grid demonstrate the appetite to aid grid reform in the UK; the challenge remains as to whether the roll-out of the reform proposals can keep apace with demand.

With a rapidly changing grid connection process and project connection dates in to the late 2030s, getting advice before committing to exclusivity, option and lease terms for renewable energy projects is imperative.

With existing electricity transmission and distribution asset upgrades forming part of the network upgrades, the impact of the grid reform rollout is far reaching.

Galbraith is on hand to assist you through the challenges and opportunities that the grid reform presents.

rachel.russell@galbraithgroup.com 07884 657219

Page 8 | Energy Matters | Winter 2023-24 | galbraithgroup.com

Pylon project Ian Thornton-Kemsley looks at the controversy surrounding a key element in plans to renew the electricity grid.

Plans to put up electricity pylons through some of Britain’s most productive farming land have run into new objections from local residents.

SSEN Transmission, Scottish & Southern Electricity Networks’ grid arm, began planning a new 106km overhead pylon route from Kintore, west of Aberdeen, to Tealing, just north of Dundee, in January 2023.

Two new substations are required at Fiddes, just south of Stonehaven, and Tealing. Plans for the 57 metre pylons are among a number of infrastructure projects to address the requirement for net zero, while providing enough energy for homes and businesses.

SSEN says possible routes were consistently and rigorously ‘optioneered’ – considered in depth among various alternatives – to find the best overall solution for the routes and provide a short list of substation sites.

The options were selected to minimise impacts on “important resources or features and to reduce disturbance to those who live, work or visit the area in which they are proposed”, according to SSEN.

Hydro wrangle still in full flow The rating of hydroelectric generating schemes is the subject of a long-running legal dispute, says Calum Innes.

Anyone involved in the hydro sector will be well aware of the long-running saga relating to business rates which has now been going on for a decade – twice as long as the First World War! There is no need to rehearse the detail of the process but suffice to say the disagreement in valuation methodology was first raised in connection with the 2010 revaluation.

The case has been considered three times by the Valuation Appeal Committee for Tayside and twice appealed to the Lands Valuation Appeal Court (Court of Session).

In the intervening period the Scottish Government has undertaken significant reform of the process by which a ratepayer can dispute the assessor’s valuation and indeed the Valuation Appeal Committee that diligently gave consideration to this disagreement on multiple occasions has been abolished, doubtless much to its members’ relief.

brings new protests The routes were revealed at consultation events at local venues in early May and came as a surprise to politicians, councillors and those impacted who had been given little prior warning.

SSEN sought feedback on the proposal which involved about 68km of cables being installed through some of the best agricultural land in Scotland, posing a potential threat to the key seed potato industry.

Public reaction to the poorly advertised events meant the consultation period had to be extended twice.

Within four months of the initial launch, SSEN appears to have found a “far better” site for the proposed Fiddes substation, and this may lead to a radical rethink of the whole route. In the meantime those affected by the current proposals have had their lives and properties blighted.

Amid SNP moves to remove the democratic right to object to such proposals, there has to be a better way to address such infrastructure projects and retain the necessary public support for their delivery.

“

Public reaction to the poorly advertised events meant the consultation period had to be extended twice.

The disagreement between the ratepayers and the assessor relates to the correct interpretation of The Valuation for Rating (Plant and Machinery) (Scotland) Regulations, a complex instrument which determines the rateability of assets that are neither lands nor heritages i.e. physical equipment in or on a non-domestic property, other than the structures or buildings themselves We expect the next action in this saga to be a case before the Upper Tribunal, a court which has taken over responsibility for rating matters from the Lands Tribunal for Scotland before which the majority of hydro ratepayers have appeals relating to the 2017 Revaluation.

Galbraith has been at the centre of this dispute since the beginning and we continue to represent the vast majority of hydro operators in Scotland. We continue to act on behalf of the industry and look forward to reporting further on this matter.

If this brief update raises any questions, please direct them to the author.

ian.thornton-kemsley@galbraithgroup.com

calum.innes@galbraithgroup.com

01224 860710

07909 978643

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 9

Energy projects drive demand for woodland creation Claire Acheson explains the advantages of compensatory planting – an alternative way to deliver woodland creation.

The ever-increasing programme of upgrading Scotland’s electricity network and a steady stream of renewable projects means demand for land to deliver compensatory planting from developers and utility companies has never been higher.

design a scheme, which had obtained Scottish Forestry approval. This was particularly attractive to the developer who was seeking to secure sites that were proven and ready to go. The costs already incurred by the landowner were all reimbursed under the agreed terms.

For many landowners this can offer an attractive alternative to traditional government grant scheme funding for woodland creation projects.

Developers will also consider sites where no feasibility has been carried out. A basic desktop feasibility assessment can be undertaken to establish a site’s suitability as a starting point.

Developers, including those with statutory powers such as utility companies, have a legal obligation to replace any trees or woodland that are removed as part of their development, and compensatory planting is generally a condition of planning consent.

The preference is usually for the compensatory planting to be carried out within the same site or as close as possible to the development, but his is not always possible so the developer will seek suitable land within the same local authority area as the development to deliver the compensatory planting.

The key difference between a compensatory planting scheme as opposed to a new woodland scheme (grant funded or not) is that the woodland is not deemed to be ‘new planting’ as it is considered to be a legal obligation, so it does not meet Woodland Carbon Code (WCC) criteria.

The introduction of the National Planning Framework 4 (NPF4) this year has added an additional layer of complexity to the siting and design of woodland creation schemes, particularly in relation to compensatory planting which is effectively a planning condition.

Policy 3 of NFP4 requires that all development proposals contribute to the enhancement of biodiversity. This has introduced the requirement for biodiversity net gain (BNG) assessments to be carried out in relation to all schemes, and in some circumstances can restrict the viability of land for woodland if it is considered that planting could have a negative impact on other species or habitats.

This means the landowner cannot generate or sell any WCC accredited carbon units associated with the scheme. With carbon now considered a key driver in the financial viability of woodland creation schemes, developers have realised that in order to secure land for compensatory planting, they need to ensure that the terms offered compensate for this potential loss of income.

Developers will consider potential sites at various stages. We have recently been involved in a scheme where the landowner had already carried out the initial feasibility and survey work to

Page 10 | Energy Matters | Winter 2023-24 | galbraithgroup.com

This could potentially restrict the available area of land for planting, but it could also have wider benefits in that there will be greater credibility that, where land is suitable for planting, the biodiversity benefits will be greater.

It also opens up an opportunity for more ‘mixed use’ schemes that incorporate woodland creation alongside other land management prescriptions, creating a more holistic design that truly enhances local biodiversity.

There are a number of ways a compensatory planting agreement could be set up, so it’s important to find a structure that works for both parties.

Typically a developer will seek a 20-year lease over the land, which is considered the minimum period to establish the woodland to a point of maturity. The developer may also seek an option agreement initially in order to secure the compensatory planting rights in principle prior to planning consent being granted. The developer will incur all the costs to fence, plant and manage the woodland for the duration of the lease. At the end of the lease the trees and timber rights belong to the landlord.

The structure of financial terms can also vary, so again it’s important to take advice. Typically a landowner may seek to have an upfront development fee or compensation payment for giving up the rights over the land, with an annual rent.

Careful consideration should also be given to access and sporting rights.

There are a number of reasons why entering into such an agreement can be attractive for a landowner.

Unlike grant schemes where the landowner has to pay the costs of feasibility, design and establishment upfront and claim back the grant money, a compensatory planting scheme can pass all those upfront costs on to a developer. The developer has all the liability for ensuring that the woodland establishes successfully, including monitoring and any required beat up, again relieving the landowner from this obligation.

A 20-year lease is also significantly shorter than a Woodland Carbon contract which has a minimum obligation period of 35 years, but usually more than 60 years to sequester a viable quantum of carbon. Therefore provided the financial terms are comparable, a compensatory planting scheme will be much less onerous in terms of a longterm burden on the land.

claire.acheson@galbraithgroup.com 07824 413559

Bye-bye RO: towards a more reliable energy market The end of the Renewables Obligation looms.

Richard Higgins and Cameron Main report.

The UK government introduced the Renewables Obligation (RO) scheme in 2002 to encourage renewable energy production by UK-licensed generators and suppliers.

Under the RO scheme, energy firms must source a proportion of the electricity they supply from approved renewable generators, dependent on a number of supplier-specific calculations.

Generators report the amount of megawatt hours of renewable energy they have produced monthly to the energy regulator Ofgem, which issues them with the relevant number of Renewables Obligation Certificates (ROCs). Generators can then sell these to suppliers, who can in turn demonstrate to Ofgem that they are complying with the ROs, or otherwise risk paying a ‘buy-out price’ penalty fee to the regulator.

In 2011 the UK Government announced the RO scheme would close to new energy capacity on March 31, 2017.

From March 2027, ROCs would be set

at a fixed price until 2037 when the scheme ends entirely.

With the 2027 cut-off looming, we are witnessing a quickening in pace of the transition by UK suppliers and generators away from RO support towards the Contracts for Difference (CfD) support mechanism.

Under that system, participating generators are paid the difference between the ‘strike price’ – a price for electricity reflecting the cost of investing in a particular low-carbon technology, e.g. wind – and the ‘reference price’– a measure of the average market price for electricity in the GB market.

The Galbraith Energy team is well placed to monitor the impact of this transition period for the UK energy market on both energy suppliers and customers/landowners.

From an energy supplier’s point of view, the reform aims to help the low-carbon market keep pace with the historically conventional fossil-fuel generated energy as well as

presenting an opportunity for job creation and sector growth unlocking an estimated £110 billion of investment into UK energy infrastructure.

For customers, peace of mind that the energy they use is both environmentally sourced, where possible, and more reliably priced going forward is encouraging.

The reform – designed to create a more reliable energy market – should provide landowners with better compensation for the use of their property for energy infrastructure installation.

If you have had dealings with energy suppliers in the past or land you own is directly impacted by energy company infrastructure, please feel free to contact our Energy team with any queries.

richard.higgins@galbraithgroup.com 07717 581741

cameron.main@galbraithgroup.com 07342 093477

“

The reform should provide landowners with better compensation for the use of their property for energy infrastructure installation.

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 11

A tern for the better: reducing the impact of onshore wind Habitat management plans provide much-needed wildlife protection in the development of onshore wind, says Mike Reid.

Wind farms are a rapidly growing source of clean energy but their development can have a significant impact on local wildlife and habitats.

It is important for Habitat Management Plans (HMP) to mitigate the adverse impact on wildlife and their habitats caused by the construction, operation and decommissioning of wind farms.

HMP are typically developed in collaboration with environmental assessments and feedback from relevant stakeholders to ensure that key

“

Other important aspects of HMPs include the enhancement of habitats degraded by previous land use practices, and the creation of new habitats for displaced species.

wildlife species and habitats are identified, protected and enhanced as far as possible.

Wind farms are often located in areas that are already important for wildlife such as on migration corridors or near to nesting sites for red-listed species – threatened breeds requiring special protection.

they could benefit from the income from the development.

However, times have changed and with a growing awareness of the importance of natural capital, biodiversity and carbon sequestration the HMP is looked at in a different light and can provide other, spin-off benefits on the adjacent land.

It is important for landowners to review any proposed HMP carefully to ensure they don’t lose the opportunity to maximise the environmental benefits from their property. If a landowner directly carries out a peat restoration project, they will benefit from the carbon sequestered. But if the same project is carried out as a requirement of any planning consent for a renewable development, that opportunity will be lost.

We at Galbraith are agreeing terms and conditions for HMP on a variety of renewable projects and whereas the HMP is often in close proximity to the wind farm, that isn’t always possible.

When a particular species is identified as a priority species for protection, an appropriate habitat to be enhanced can be many miles from the actual development.

We are involved in discussions for an HMP more than 400 miles from the location of a wind farm. It will provide a suitable habitat for sandwich terns where a site has been identified for an alternative habitat, which will be created in a new sustainable location.

mike.reid@galbraithgroup.com 07909 978642

Other important aspects of HMPs include the enhancement of habitats that have been degraded by previous land use practices, and the creation of new habitats for species that may be displaced by the wind farms.

When onshore wind farms were initially developed, landowners often viewed the HMP with frustration and as a disruption to their current land use practices, while necessary for the project to proceed so

Sandwich terns.

Page 12 | Energy Matters | Winter 2023-24 | galbraithgroup.com

What goes up must come down

extend beyond wind to solar (photovoltaic) and battery storage and we are increasingly considering the decommissioning and restoration costs of these developments before a spade has been put in the ground.

It’s essential to provide for the cost of decommissioning onshore renewable-energy developments, says Calum Innes.

This is largely a consequence of councils and planning authorities taking a much more proactive approach to future liabilities.

As the urgency grows to effect the transition to zero carbon emissions, renewable electricity generation projects are proliferating.

Part of this change in attitude may result from the failure of Scottish Coal a decade ago when it was discovered that insufficient provision had been made for the restoration of opencast coal sites.

Most of the technologies being deployed have a finite lifespan and their planning permission is of a fixed duration, so consideration needs to be given to the obligations arising at the end of the project’s useful life.

Costs associated with the decommissioning and restoration of onshore windfarms have been a staple part of our professional workload for a long time. The majority of onshore windfarms are developed under a leasehold arrangement with the terms of the lease placing the obligation to meet decommissioning and restoration costs on the tenant.

The projected cost of this obligation is generally secured by a bond or a sum of money held on deposit; however, it is important that such costs are reviewed regularly to ensure the sum is sufficient to meet the liability.

Most leases allow for review of decommissioning costs every five years, but it is an aspect of the lease which is often ignored as it has no immediate impact upon the landlord’s income.

However, for obvious reasons, it is not something to be ignored particularly as many early developments are approaching the end of their permitted life.

Of course, timelimited renewableenergy technologies

Further evidence of the cautious approach being taken by public authorities in this regard is their increasing tendency to refuse any value to be attributed to recyclables arising from the decommissioning process.

In terms of renewable developments the old adage of ‘what goes up, must come down’ is particularly true and it is important to give detailed consideration to future costs and liabilities at an early stage.

calum.innes@galbraithgroup.com

07909 978643

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 13

Rising to the challenges of carbon capture and storage Carbon capture and storage is one of the many ways to reduce CO2 emissions but, as Larry Irwin reports, the technology has its challenges. Best be prepared.

In pushing to achieve net zero by 2050, the UK and Scottish governments are obliged to look at all options for the long-term reduction, removal and storage of carbon dioxide (CO2) so it no longer contributes to the greenhouse effect.

As part of a UK commitment to reducing emissions by 5m tonnes a year by 2030, £100m of public money is available for innovation funding such as direct air carbon capture and storage (DACCS). Regardless of the technology employed, there is a challenge in identifying suitable long-term storage solutions.

What is CCS? CCS refers to procedures that capture and store CO2 emissions, generally from industrial processes. Proposals include storage within rock formations in the UK continental shelf, such as depleted oil and gas reservoirs.

How does it work?

Capturing the carbon dioxide for storage: CO2 is separated from any other gases produced, e.g. in industrial processes such as coal and natural-gas power plants or steel or cement works.

Transport: The CO2 is compressed and

transported, via pipelines, road transport or ships, to a site for onward storage.

Storage: CO2 is injected into suitable rock formations deep underground for permanent storage.

One constraint, particularly in early stages of the net zero transition, will be the limited capacity for the transportation and injection of CO2 and

hydrogen, both of which require the building of suitable infrastructure.

As oil and gas is a mature industry in the UK, with the hazards involved well known. The primary risk of an oil rupture is a spill causing environmental contamination, only rarely will human life be directly at risk. A natural gas pipeline will typically explode on rupture, with the threat of fire leading to human casualties and property destruction.

The hazard zone can be estimated using readily available computer models and is indicatively 500m; planning for such pipelines is subject to statutory consultation with the Health and Safety Executive.

As it is an emerging technology, little is currently known about the hazards of CO2 pipelines.

The dangers stem from the pressures under which they operate, and the large volume of gas they might release. Potentially spreading a mile or more from a breach, this could cause asphyxiation, while the high pressures required for transportation could cause a more widespread impact along the line.

Models exist to predict danger zones, but they are evolving as new data is gathered while the sector and technology develop.

Reviews are underway to

Page 14 | Energy Matters | Winter 2023-24 | galbraithgroup.com

explore whether existing oil and gas pipelines can safely be repurposed for moving CO2. The Energy Security Bill to govern delivery of CO2 and hydrogen storage and transport is currently at the Report stage in the Commons, prior to a third reading to reach final stage before Royal Assent.

Even with repurposing, additional land rights and safety measures will be necessary to address the differences involved, and new pipelines will need to be installed to provide capacity.

Developers will need to approach landowners to secure such rights for such apparatus to be installed on their property, whether for new or existing pipelines.

It will therefore be crucial for those involved in such schemes to understand the nature of the works involved, land rights required, and potential impacts to property in order to properly assess development proposals received in the future.

Planned CCS projects There are six Carbon Dioxide appraisal & storage licences currently on the UK Continental Shelf: • Pale Blue Dot Energy (PBD) = Acorn CCS project • Eni - Liverpool Bay area • Harbour Energy - Viking CCS project • National Grid/BP/Equinor Northern Endurance Partnership Two separate licences have been issued to • BP/Equinor - Northern -Endurance Partnership East Coast cluster Further details about the licensing regime and the carbon storage public register can be viewed here via the North Sea Transition Authority.

larry.irwin@galbraithgroup.com

07795 532146

What you need to know about NPF4 Securing planning consent for some larger renewable-energy projects has been made easier by the Scottish Government. Neil Collar, Head of Planning Law, Brodies LLP, reports.

As energy transition gains momentum, policy support from the Scottish Government is crucial.

The National Planning Framework 4, published in February, contains important policies for onshore energy projects seeking planning consent.

The NPF gives a clear statement of support for development proposals for all forms of renewable, low-carbon and zero emissions technologies (NPF4 policy 11).

It also identifies some types of energy projects as national development: strategic renewable electricity generation of more than 50MW, transmission infrastructure, and pumped hydro storage.

National development status establishes the need for the development. That removes a potential obstacle from the consenting process, but national developments must still obtain planning consent. Site-specific impacts need to be considered, using the environmental impact assessment process where appropriate.

NPF4 also identifies national developments by location: for example, Arnish Renewables Base and Outer Hebrides Energy Hub; opportunities in Shetland and Orkney; Aberdeen Harbour; industrial green transitional zones at St Fergus, Peterhead and Grangemouth; Hunterston strategic asset; and Chapelcross power station redevelopment. Many of the individual listings include aspects of renewable energy generation or transmission, including production of hydrogen, and also quays to service renewable energy.

A few months after publication of NPF4, Opportunity Cromarty Firth and Firth of Forth Green Freeport were selected jointly by the Scottish Government and UK Government as the locations for Scotland’s first Green Freeports, with key policy objectives including promoting decarbonisation and a just transition to a net zero economy.

NPF4 also tasks local authorities with identifying a range of opportunities for energy development when preparing new local development plans.

The reuse of the Cockenzie power station site for renewable energy supply is an example of the type of large scale opportunity which might arise.

Landowners should be pro-active in promoting opportunities to local authorities, including obtaining professional advice on the level of detail required.

Neil Collar is a partner and Head of Planning Law at Brodies LLP Solicitors. brodies.com 0131 656 0125 / 07977 182114

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 15

Environmental change begins at home New EVs highlight progress in the firm’s plan to tackle carbon footprint.

Edward Fletcher reports.

In addition to delivering environmentally friendly projects on behalf of clients, we at Galbraith believe it is equally important to deliver change ‘at home’.

That’s why we are involved in projects helping the drive towards achieving net-zero greenhouse gas emissions.

The firm has committed to a ‘Green Journey’, aiming to tackle our carbon footprint and boost our environmental credentials through coordinated actions across the business.

An important step was undertaken in June, when Galbraith introduced a new fleet of electric pool cars across five of our offices. The previous fleet of Mini Coopers was replaced by new Vauxhall Corsa EVs – preceded by the installation of 7kW Pod Point TWIN EV charging points at our Inverness, Aberdeen, Perth, Stirling and Cupar offices.

The project was coordinated by our building consultancy team, who are experienced in delivering

environmentally friendly infrastructure on behalf of clients across Scotland and Northern England.

The success of the project was down to the work of colleagues from across these offices, who spent many hours testing the system and ensuring the infrastructure was ready to go when the vehicles were delivered.

The Corsa EV was chosen for its combination of range and charging capability. Feedback from colleagues has been very positive, particularly on the range of the vehicles. This is crucial as colleagues are often travelling to remote rural locations, far from a charging point.

In addition to upgrading our fleet of pool cars, we at Galbraith are working to reduce our carbon footprint through several strategies, including a cycle to work scheme, hybrid working and going paperless.

By implementing a range of positive steps across the business, Galbraith demonstrates the importance of not just talking about change, but delivering it!

edward.fletcher@galbraithgroup.com 07990 130753

CfD auction pressure for The Contracts for Difference auction failure strengthens the case for offshore wind market reform, says Cameron Main.

The UK Government and industry leaders are under pressure to reform the key pricing mechanism for electricity generated by offshore wind farms following the failure of the latest Contracts for Difference (CfDs) auction round.

CfDs were a big success following their phased introduction in 2014 with the aim of encouraging investment in offshore wind to produce clean, green electricity. In contrast to the previous renewable obligations certificates (ROCs) system, generators received a fixed, pre-agreed price per megawatt hour (MWh) for producing low-carbon electricity for the time their contracts ran, protecting them from market fluctuations.

At the time of writing the UK has the potential to produce about 45% of the nation’s daily electricity requirement through wind power, and

Page 16 | Energy Matters | Winter 2023-24 | galbraithgroup.com

failure brings mounting reform of pricing system in 2022 nearly a third of our electricity was generated through wind turbines.

Additionally, the cost of offshore wind energy has fallen by 67% since 2017, due largely to CfDs creating a more competitive market with generators bidding for the lowest CfD price in order to win the ‘low-carbon contract’. Therefore, the positive impact CfDs have had on the development of the nation’s renewable energy assets was evident up until September this year.

No new offshore wind development contracts were agreed in this year’s fifth round of CfDs, creating a problem for a Government committed to producing 50GW of offshore wind by 2030 compared to less than 14 gigawatts at present.

As an island nation, we’ve lately discovered the impact that any major world events can have on our delicate energy supply chain. With continuing uncertainty and fluctuations in both the cost of wholesale energy for suppliers and the day-today costs for business and individual consumers, the argument for energy market reform is perhaps greater now than ever before.

Prior to the recent auction, the strike price for the

“

Recent inflationary rises were flagged by industry leaders as making offshore wind farms economically unviable.

next round of CfD bidding was expected to remain the same or perhaps increase, contrary to historical CfD auctions. However, recent inflationary rises were flagged by industry leaders as making offshore wind farms economically unviable going forward, even with CfD subsidy.

Wind power remains cheaper than other technologies, while creating and maintaining skilled jobs and inward investment. The CfD scheme has been a success, but this year’s events show a clear need for changes to the framework to ensure the UK can enhance its energy security while controlling costs in order to remain competitive globally.

Our experienced energy team at Galbraith would be delighted to answer any questions you may have or offer advice with negotiations between energy suppliers and landowners giving up land for infrastructure development whether wind, hydro, battery storage or solar. cameron.main@galbraithgroup.com 07342 093477

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 17

Grey areas: the balancing act between nature and energy Like many activities, renewable energy production can harm natural habitats. But, as Eleanor Harris writes, the advantages are many and the challenges can be addressed.

“I’ve grown to love the grey.” This was how Max McCall, the dodgy, self-made lawyer from Leith played by Mark Bonnar in the BBC Scotland hit drama Guilt, reflected on his journey.

He had gone into law because it seemed to offer black-and-white answers to the chaotic world in which he grew up. Yet he came to realise that the interesting bit, where lawyers made money – and, we see in the drama, his own selfishness and benevolence become entangled – was in the grey areas.

growing to love it, because we’re going to be here a while.

Minimal disturbance Champions of biodiversity can easily list damage the production of renewables can do. Roads and infrastructure can slice up wild habitats. Wind turbines can cause rare bird mortality and damage peatlands. Offshore installations can affect fish and marine mammals. Water abstraction for hydro can cause riparian ecosystems to dry up. The ecological impacts of mining raw materials for renewables are significant.

Likewise, champions of renewables can easily list positive impacts.

Infrastructure, once in place, largely looks after itself, and is either barred or unattractive to visitors. This enables wildlife to colonise new habitat with minimal disturbance from humans and their traffic, agri-chemicals, pet dogs, litter, and so on.

The renewable energy itself is tackling climate change, one of the greatest threats to biodiversity. It also tackles local pollution impacts: electrification of vehicles, for example, massively reduces air pollution in cities and along roads, where wayside-flower communities are being changed by nitrates from fossilfuel exhaust fumes.

Generating renewables in harmony with biodiversity in the UK takes demand off not just fossil fuel, but also imported renewables which may not be generated to such high standards.

The truth lies in the middle, in the grey.

The need for both renewables and biodiversity is so important that those who persist in black and white start looking like they have another agenda.

We need to be comfortable in the grey area, where we weigh up impacts and trade-offs, attempt to work out full-cost synergies.

Producers of renewables need support from champions of biodiversity, not criticism – but to win it they need to step into the interesting grey where we

The need to generate renewables in the grip of a biodiversity crisis puts us right in the midst of the grey. It’s worth

A Bog Sun-jumper spider.

Page 18 | Energy Matters | Winter 2023-24 | galbraithgroup.com

Service businesses with no link to the land have no direct way to do this.

Renewables producers, however, are occupying land, often with high biodiversity potential. Opportunities exist to supply this growing ‘demand’ for biodiversity.

stack the benefits of renewable energy with environmental restoration and carbon sequestration

Damage compensation The ability to do this is tangible.

Developers, landowners and investors alike recognise the complementary benefits and overall contribution to established objectives. In many cases, the revenue produced from renewable energy generation is enabling environmental restoration.

In 2016, I was working to raise the profile of the tiny but fabulous Bog Sunjumper spider. It inhabits raised peat bogs in the central belt of Scotland which Buglife, funded by Scottish Power Energy Network (SPEN), was restoring.

Yes, SPEN was undertaking the restoration to compensate for damage to other degraded bogs elsewhere, but the income from renewable energy was providing an income stream for restoration which otherwise would not have been available.

In 2019, SEPA and NatureScot produced good practice guidance for hydropower construction. In 2022, Solar Energy UK launched Best Practice Guidance on increasing biodiversity at all stages of a solar farm’s lifecycle. The more this is done, the easier it gets; it is much easier to deliver good practice by following guidance than by trying to develop it from scratch.

There is another step. Renewable energy has a clear value whereas

Unlike the good-practice guidance, these opportunities are new and undocumented. This is not yet easy. Yet when we worked on the bogs seven years ago, that was where we were with habitat restoration on the ground.

I am optimistic that, well within the next seven years, we will see rapid developments in biodiversity markets.

It’s something we are actively working on in Galbraith, for example through our involvement with projects under the Financing Investment Ready Nature Scotland grant scheme. biodiversity restoration and protection has, so far, been a cost. Yet biodiversity is, globally, being assigned economic value.

Does that mean anything in practice? A unit of biodiversity cannot currently be sold as a unit of energy can. The consumer will never need such a thing: we all need nature, but not as a personal possession, but as a common resource.

Those who have already developed an interest in biodiversity – stepping into the interesting grey – will be on the front foot to access them. It’s a journey we would love to explore with you.

eleanor.harris@galbraithgroup.com 07585 900870

Biodiversity markets Businesses, however, competing for ESG credibility, are starting to explore how they can add value by demonstrating benefit to nature.

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 19

Energy saving v comms: the battle for commercial roof space Commercial landlords are facing demands for communication and energy infrastructure while complying with new rules.

Larry Irwin reports.

Commercial landlords face an uphill struggle to boost energy efficiency and reduce carbon emissions while providing rooftop space for the infrastructure required to support the digital economy.

The Assessment of Energy Performance of NonDomestic Buildings (Scotland) Regulations 2016 require building owners to meet certain requirements when selling or leasing properties.

The regulations apply to non-domestic buildings with a floor area larger than 1,000 sq m (and units within buildings with floor areas larger than 1,000 sq that can be used separately) which do not comply with the 2002 Scottish Building Standards.

These regulations require building owners to produce an action plan when a property is leased or sold. The plan lists the carbon and energy savings that will be achieved. The owner must then choose either to: 1. carry out the proposed improvement works within 3.5 years of the date of the action plan; or 2. defer carrying out the works and continue to monitor and formally report on the energy efficiency of the building annually.

Complications arise when looking at potential carbon reduction options for commercial premises and the opportunities for rooftops to accommodate renewable energy installations such as solar or wind.

As a result of the introduction of the new telecoms Code under the Digital Economy Act in 2017, network operators are increasingly aggressive in seeking to secure sites suitable for hosting masts and telecoms apparatus. With technology continuing to develop and the evolution of 5G (and greater numbers of smart

Page 20 | Energy Matters | Winter 2023-24 | galbraithgroup.com

devices being connected), a significant increase in the density of mast sites is required to provide coverage.

Due to technology advances and the growth of data-carrying capacity, the power consumption of new 5G antennas may be four times that of their 4G predecessors and as much as 12 times, network-wide.

Operators also need to find replacement sites where existing site providers terminate agreements as part of redevelopment proposals.

Following the significant downturn as a result of Covid19, with its unprecedented impact on building occupancy, and the ongoing energy crises, building owners have increasingly sought to make their buildings more attractive to tenants and occupiers.

Demand has grown for energy to power heating and lighting, coinciding with improvements in wind and solar options for rooftop spaces.

In England and Wales, a minimum EPC rating of E is already required on all existing and future commercial premises. The Scottish Government is looking at whether to follow suit. With Scotland aiming to achieve net zero by 2045 – five years ahead of the rest of the UK – it seems likely similar measures will be introduced. This means up to one third of all office space in Scotland would become unlettable based on current EPC ratings.

To address this issue, building owners will need look at options to redevelop and improve energy performance in the most economic ways possible.

Complications arise when looking at rooftops that are being used to accommodate telecomms equipment.

Work patterns are still settling into new norms

following the considerable disruption of Covid-19.

Building owners need to find innovative ways to make their sites more appealing and costefficient in the face of such changing circumstances.

Aside from insulation – the first thing most responsible property owners will have already done – renewables will likely be high on the list.

Photovoltaic (PV) solar panels can help reduce carbon footprints and increase EPC ratings by a whole band in some cases. Likewise, innovations in small-scale wind turbines have emerged with urban landscapes in mind, potentially outperforming solar PV. Prime urban rooftop space is therefore at a premium, just as telecommunications network operators seek to use it to deliver connectivity – at a potential opportunity cost to site providers.

While the benefits of improved coverage are not in doubt, site providers cannot be expected carry the associated burden without financial return, particularly where hosting such sites incurs additional management and operational costs for the site provider.

Building owners face being potentially further penalised by the loss of rental income and fines if they do not comply with energy efficiency legislation. Where rooftop space is already occupied by network operators, further solutions need to be found to co-locate. Otherwise, site providers may be driven to terminate agreements in order to address their core requirements, in doing so reducing connectivity and its benefits.

There is an opportunity for network operators to advance their own net zero requirements and enhance their low-carbon credentials by working with site providers in finding innovative green solutions for such installations.

larry.irwin@galbraithgroup.com

07795 532146

“

Site providers may be driven to terminate agreements in order to address their core requirements.

Tough tactics: telecom firms exploit new powers Telecoms companies are increasingly aggressive in negotiating the siting of equipment. Ian Thornton-Kemsley looks at latest developments.

Operators are adopting a very aggressive approach in radio mast negotiations.

During the 32 years of the previous code, some 52,000 radio masts were rolled out across the UK with only seven reported cases of the use of compulsory powers, but this has totally changed following the introduction of the Electronic Communications Code 2017 (“the Code”) as operators exploit their new powers.

This is important to landowners such as farmers as typically, they own or control the land on which telecom providers wish to site their masts.

The Westminster Government is keen to facilitate the process to modernise the UK economy, ensuring more remote areas aren’t left behind in the mobile and wireless revolution.

In the three years following the introduction of the new Code there have been over 900 applications to settle siting disputes in England and Wales and some 80 in Scotland to the tribunal. Contrary to the expectations of Government during the introduction of this legislation, operators have shown a propensity to litigate under the Code rather than negotiate.

Despite the requirement that the legal tribunals award terms that protect landowners, operators are not really prepared to consider representations made by landowners on key contractual terms, often leaving them unable to safely access their own roofspace. Rather than increase the rentals they offer, some telecom companies use other inducements to obtain a consensual agreement; such as premiums of up to £15,000, considering these as ‘commercial payments’ rather than part of an agreed package.

In respect of lease renewals, notwithstanding the provisions of the Code, operators ignore the terms of the existing agreements, and seek new agreements heavily weighted in their favour.

Despite established case law, they make little attempt to justify their position and it is only if the matter goes before a tribunal that they make any attempt to justify the changes demanded (which are heavily weighted in their favour).

Recent cases have highlighted the anticompetitive nature of agreements reached between operators and we have seen instances where landowners who have offered to build out sites themselves rather than accept the terms and payments offered facing Code applications.

ian.thornton-kemsley@galbraithgroup.com

01224 860710

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 21

Tender advantages: getting the best onshore wind deal There are ways to maximise the potential of onshore wind development.

Mike Reid looks at the tender process.

With the increasing demand for renewable energy to achieve the United Kingdom’s net zero targets, onshore wind has established itself as one of the cheaper forms of electricity generation.

The UK Government announced on 5 September a series of changes designed to make it easier for developers to build onshore wind farms in England, where there is local support for a scheme.

This will still inhibit England’s full onshore wind potential but is a

“

Many owners who originally discounted the option of wind turbines on their land are now reconsidering.

move towards opening up development.

Also in September, the Scottish Government announced an ambition to speed up the consenting process for Section 36 Applications where there is no public inquiry in their Programme for Government 2023-24.

The Renewables Obligation (RO) subsidy system encouraged technological advancement in the industry, which has allowed onshore wind generation development to proceed without subsidy support.

Onshore turbines are now generating far more electricity than those installed under the RO scheme, maximising the renewable energy potential of sites rather than having turbines erected to, effectively, farm the subsidy payments.

There is increasing demand from

onshore wind developers to secure land for new projects and landowners are often approached by multiple developers where they have a suitable development site.

The developers can be very persuasive and it is often difficult for landowners to assess the best development partner.

Landowners’ views are also shifting, and many owners who originally discounted the option of wind turbines on their land are now reconsidering matters.

Land ownership and management is also changing as the increasing importance of natural capital and carbon offsetting change the way many people manage their land. It is important to make sure that any renewable development complements these potential land uses rather than conflicts with them.

A good way forward is for landowners to carry out an onshore wind farm tender process where selected developers are asked to put forward their proposals for the overall development and also to confirm how these proposals will complement the other land use priorities.

It is important to assess the potential for alternative and future technologies as part of any development, such as battery storage and hydrogen production.

The tendering process gives time for the developers to properly assess the potential of the site, produce details of an indicative scheme as well as putting forward their best offer for the commercial and other terms.

An interview is held with a shortlist of developers so the landowner can discuss each developer’s overall ideas for the project, meet the developer face to face and decide the best development partner to progress the scheme.

We have successfully run many tenders in this way which have led to on shore wind projects being developed to the benefit of all parties.

mike.reid@galbraithgroup.com 07909 978642

Page 22 | Energy Matters | Winter 2023-24 | galbraithgroup.com

Each one an expert in their chosen field As we step up our recruitment to serve Galbraith clients, Callum Kerr looks at the sporting lives and achievements of some of our team.

Galbraith is hiring. As a leading, innovative independent property consultancy, we’re on the lookout for people of promise. See examples on our careers page.

With a team of almost 200 employees in offices across the UK, we offer an unparalleled breadth of skills across all property sectors.

With a reputation built on trust and the ability to deliver results, we provide the highest standards of professionalism in everything we do.

The term ‘land agent’ is one you hear a lot in the industry, but Anna Fisher is equally adept on water. The talented rower competes for St Andrew Boat Club and has also represented Scotland. Anna works full-time in our Stirling office as part of the rural team, while fitting in between six and nine training sessions a week, depending on schedule and programme.

She finds being organised with meals and nutrition in advance – and scheduling longer training sessions in the evening after work – allow her to manage the workload effectively.

Anna’s highlight to date is being selected for the Scotland team for the home International

This is down to our people, who view their work as an important - but not the only - part of their lives. For some, that expertise extends into the sporting sphere. Many relax out of hours with hobbies and sport as a means to re-charge, but some have found excellence to match their I talked to three Galbraith employees who walk the tightrope of both professional and sporting success.

“

For a graduate the journey to pass your APCs – assessment of professional competence and become RICS-accredited may feel like scaling a mountain on horseback. For Iain Paterson that sounds like a weekend well spent. He works in our Perth office and when not supporting the Residential Sales team he

Regatta and winning gold in the eight.

Attention now turns to qualifying for the 2024 Henley Royal Regatta.

Above: Super-fit Rachel Urquhart at the Britain’s Fittest Farmer finals, where she took second place.

These three agents personify the sporting balance many of the firm’s workforce find weekly.

It takes a degree of mental fitness to juggle the workflow of a rural surveyor but it’s Rachel Urquhart’s physical fitness which has brought sporting success. Rachel, who works in our Highlands hub, started CrossFit as a hobby after moving back home following university.

After getting a taste for it she began competing, and success in Britain’s Fittest Farmer qualifiers at the 2023 Royal Highland Show led to second place in the finals in September.

They do say there’s nothing like some friendly office competition and Rachel is also looking forward to participating in the Baxters 10k run in Inverness soon, alongside nine of her colleagues.

Gold-medal rower Anna Fisher, left, trains up to nine times a week.

Iain Paterson, right, has his sights set on becoming Scottish endurance riding champion.

qualifying his young horse for British team selection.

To maintain competitive pace Rachel manages four to five CrossFit sessions a week around her working schedule, alongside hill walking and rolling wool at the weekends. competes in endurance horse riding – longdistance racing across tracks varying from 80 to 160 kilometers.

These three agents personify the sporting balance many of the firm’s workforce find weekly.

This passion was engrained in Iain from the age of 10 by his mother who was keen to keep him interested in horses. He juggles daily training alongside the day job, as well as travelling the globe competing. Iain’s talent has seen him represent the Scotland national team seven times and also win the toughest endurance race in the country – 100 miles in one day over the Cairngorm Mountains.

Far from being a hindrance, high performance alongside full-time employment underlines their unwavering commitment and dedication to their careers, and that allows them to excel on both fronts.

Still not satisfied, he has his sights set on becoming Scottish Champion, as well as

callum.kerr@galbraithgroup.com 01292 292313

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 23

Solar synergy: more and more farmers are turning to PV Solar power generation can complement existing agricultural activities.

Philippa Orr reports.

Solar farming is fast becoming popular as it harvests sunlight to create energy and is a good way to generate an additional revenue stream.

Solar is a fantastic potential opportunity particularly for rural businesses, to significantly reduce their contribution to climate change whilst also benefiting from financial savings.

About 25 acres of land is needed to produce 5 megawatts (MW) of power, and for every 5MW of capacity installed a solar farm will typically produce enough energy to power more than 1,350 homes while saving 1,200 tonnes of carbon annually, based on an average consumption of 3,600 kWh of electricity per home.

Agriculture, rural businesses and the role of farmers are essential for rural communities.

Agriculture’s contribution to the rural economy goes further than its economic functioning as it provides public services such as that of stewarding the landscaping and creating and managing biodiversity.

For larger solar farms, a developer would build and operate the scheme under a lease while providing lease revenue. Large solar projects require significant areas of land that would be required to be taken out of agricultural production be that producing crops or housing livestock.

In recent years, it has become more prominent that upland farmers are vital in managing peatland for carbon sequestration. Energy generation and renewables is another way in which agriculture can assist in tackling climate change and supporting the rural economy.

Having solar panels on the roofs of farm buildings and residential properties could be a crucial part of the solution to keeping land in agricultural rotation and to the energy bills crisis that is hitting rural communities as solar panels on roofs could reportedly cut the typical family electricity bill by £300 a year.

Large scale solar farms can help to power local communities using clean, affordable and reliable power. The public health benefits include zero emissions from a carbon-free fuel source, offset carbon emission from cars and buses, reduced need for traditional power plants (such as coal and natural gas) and reduced need for electrical transmission lines.

The environmental benefits to solar include supporting a pollinator-friendly habitat, habitat restoration on contaminated brownfield or landfill sites, creating shade of livestock such as sheep and poultry and land banking for future agricultural use and soil quality improvements.

Page 24 | Energy Matters | Winter 2023-24 | galbraithgroup.com

The energy bill crisis has led to a big rise in demand for solar, with more panels installed on British roofs than ever before. Solar is not for everyone, as there can be an upfront investment of thousands of pounds, and the right type of property is required.

In terms of solar on farms, it is important that farmers start to look at options that complement their main activities either by reducing electricity bills or hosting a larger renewable project whose revenues will help when arable prices are low.

The combined expertise of Galbraith’s Energy and Building Consultancy teams means we can advise

Showtime for the energy team From the Highland Show to All Energy Glasgow, our team is out there, Edward Fletcher reports.

The renewable and low-carbon energy sector in Scotland is at the forefront of the UK’s drive towards cutting greenhouse gas emissions.

on a range of different scales of solar PV development.

At the larger, developer-led end, this would take the form of providing advice and guidance to the landowner from the initial approach, option appraisals, through the heads of terms to the option and lease agreements to maximise the rental return.

At the smaller, self-developed scale, we can undertake site appraisals, feasibility studies and project manage the design, consenting, procurement and construction phases to ultimately reduce utility costs and potentially generate a permanent income.

philippa.orr@galbraithgroup.com

07917 220779

Solar installations on farms can range from the roof of a barn, above, to a large-scale development.

The industry boasts a wide array of technologies, and the companies developing them and delivering new schemes are diverse too, operating in a constantly evolving legislative and regulatory environment.

Galbraith’s energy team regularly attend industry events to stay abreast of developments and engage with other experts in the sector, for example the All-Energy and Dcarbonise exhibitions and conferences which ran in tandem at the SEC Glasgow in May,.

The two-day events provide an important meeting space. All-Energy is aimed at organisations across the full renewables supply chain, whilst Dcarbonise is targeted at energy endusers.

With a range of expert panels and exhibitions from across the sector, the events underlined the importance of renewable energy technologies to the Scottish economy. Among topics discussed, the concept of agri-voltaics (farming under solar panels) and biodiversity uplift in connection with solar PV developments were of particular interest to the Galbraith team, given their current portfolio of work.

Galbraith’s energy team also continues to have a strong presence at agricultural and rural shows across Scotland and Northern England. They provide an excellent opportunity to connect with clients, the highlight of the season being the Royal Highland Show, held at Ingliston showground on the outskirts of Edinburgh at the end of June.

While the focus of the show is farming and rural life, renewable energy has become an important topic of discussion. Conversations around solar PV developments, battery storage and increasing grid capacity were prevalent in the Galbraith tent, reflecting the projects we are delivering on behalf of our clients. edward.fletcher@galbraithgroup.com 07990 130753

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 25

“

The need for improved connectivity and the push to decarbonise present both challenges and opportunities to rural communities.

New faces: Larry Irwin and Ian Thornton-Kemsley.

Advisers join growing team to guide Galbraith clients Galbraith is pleased to announce the appointment of two highly experienced experts to join our growing team.

Ian Thornton-Kemsley, an adviser on energy, telecoms and rural professional issues, is helping clients navigate ongoing changes in the rural economy.

He has more than 30 years specialised experience in compulsory purchase, wayleaves and telecommunications projects throughout the UK. Larry Irwin, an adviser on rural valuation, professional and management work, specialising in telecoms, compulsory purchase and renewable energy, joins Galbraith’s growing Energy and Utility team. Hs works on compulsory purchase and compensation, telecommunications code agreements negotiations.

He will also deal with renewable energy projects, management of farms, estates and agricultural holdings and contract farming arrangements.

Ian is a recognised expert on the property aspects of radio masts and fibre optic cables and has been advising on them since 1993, mainly for

landowners in negotiating new agreements, rent reviews and renewals.

He provides counsel on valuation matters affecting leases across the UK, is an expert witness in Scottish and English legal cases, and was the arbitrator in the Bridgewater case, which led to the review of the UK Electronic Communications Code.

A long-time adviser on all land aspects of energy projects, Ian holds senior positions on several independent bodies embracing agriculture, arbitration, valuation and compulsory purchase groups. He has written for and contributed to several specialist publications on land valuation in respect of radio mast sites and telecommunication cables.

A seasoned adviser to financial institutions and private and corporate clients, Larry is an expert in projects ranging from significant renewable energy schemes and cable routes to negotiating terms for development of land. He is experienced in dealing with the Electronic Communications Code and negotiations with

Page 26 | Energy Matters | Winter 2023-24 | galbraithgroup.com

telecommunication operators, addressing proposed Code agreements, and is an expert witness in associated legal proceedings.

Mike Reid, Head of Galbraith’s Energy division, said: “We are building an expert team at Galbraith to ensure owners, managers, companies and institutions receive the best advice and support in negotiating the property, rural, energy, environmental and communication issues that are part of our evolving economy.”

Ian, a Chartered Surveyor who also runs a 1,200-acre family farming business comprising mainly arable cropping, said: “The need for improved connectivity and the push to decarbonise present both challenges and opportunities to rural communities. I am working with my colleagues so Galbraith clients continue to receive the best advice and support.”

Larry, a Scottish Agricultural Arbiters & Valuers Association Council member and Fellow of the Central Association of Agricultural Valuers, said: “I know the Galbraith team well from work over the years and have seen how effective they are in creating value.”

He has been involved in several Scottish Lands Tribunal cases, preparing preliminary and final reports in anticipation of disputes and providing evidence to the Tribunal over the years.

RENEWABLE ENERGY SUBSIDIES

written loan offer, not on application to the scheme.

Grants and loans for domestic improvements

If you would like to find out if you are eligible and how you apply for the grant and loan funding please follow the link below.

The Domestic and Non-Domestic Renewable Heat Incentives have both closed to new applicants as of March 31, 2022. If you are already on the scheme, you will receive payments as usual as long as you continue to meet your ongoing obligations.

The Government is still providing financial support to help with the role out of low carbon heat technologies.

Scotland Home Energy Scotland Grant and Loan The Home Energy Scotland Grant and Loan is designed to make homes warmer and more comfortable by helping homeowners install a range of energy saving measures, through grants and/or an interest-free loan funded by the Scottish Government.

You can now apply for grant funding.

Grants for energy efficiency improvements is up to 75% of the combined cost of the improvements, up to the maximum grant amount of £7,500. A rural uplift (up to £9,000) is also available to provide extra support to rural and island homes which can face increased costs to install home improvements.

In respect of how much a household can borrow, it depends on what improvement or installation is required.

These are grouped into two types – energy efficiency improvements and renewables systems.

For energy efficiency Improvements the maximum grant and optional loan available for each improvement is as follows: • Solid wall insulation: up to £10,000 (£7,500 grant plus £2,500 optional loan) • Electric heating: up to £5,500 loan (£2,500 grant available for high heat retention storage heaters when installed as part of a package of measures) • Glazing: up to £8,000 (no grant available)

• Insulated doors: up to £4,500 (no grant available) • Flat roof or room-in-roof insulation: up to £4,000 (£3,000 grant plus £1,000 optional loan) • Loft, floor or cavity wall insulation: up to £2,000 (£1,500 grant plus £500 optional loan).

For renewable systems the maximum loan/grant amounts are as follows: • Heat pumps (either air source to water, ground source to water, water source to water, or hybrid air source to water): £15,000 (£7,500 grant plus £7,500 optional loan, or £9,000 grant plus £7,500 optional loan if the household qualifies for the rural uplift) • Solar Photovoltaic (PV) panels: £6,000 (£1,250 grant available if taken as a package of measures) • Solar water heating systems: £5,000 (loan only, no grant available) • Hybrid solar PV/ water heating systems: £5,000 (loan only, no grant available) • Energy storage systems (heat or electric batteries): £6,000 (£6,000 loan, £1,250 grant available if taken as a package of measures) • Wind or hydro turbines: £2,500 (loan only, no grant available) • Biomass boilers or stoves (nonautomated, non-pellet stoves or room heaters are not eligible): £15,000 (£7,500 grant potentially available upon evidence that a heat pump is unsuitable for the property (£9,000 if the household qualifies for the rural uplift)) • Connections to a renewably powered heat network scheme: £7,500 (loan only, no grant available).

The grant and loan values stated above are subject to availability while funds last or until the end of the financial year – whichever is sooner. Funds will be allocated on a first-come, first-served basis. Funding is reserved for householders when they receive a

Source: https://www.homeenergyscotland.org/fi nd-funding-grants-and-loans/interestfree-loans/overview/

England the Boiler Upgrade Scheme The Boiler Upgrade Scheme (BUS) is a UK Government initiative to encourage more people in England and Wales to install low carbon heating systems.

The BUS covers three low carbon heating systems: • Air Source Heat Pump: £5,000 off cost and installation • Biomass Boiler: £5,000 off cost and installation for properties in rural location and properties not connected to the gas grid • Ground Source Heat Pump: £6,000 off cost and installation This scheme runs from 2022 to 2028 and is an installer led scheme which means the installer will apply for the grant on behalf of the home owner.

England, Scotland and Wales Smart Export Guarantee the Smart Export Guarantee is a support mechanism designed to ensure smallscale generators are paid for the renewable electricity they export to the grid.

You are eligible to apply if you have one of the following renewable energy generating technologies: • Solar PV Panels • A wind turbine • Hydro • Anaerobic digestion • Micro combined heat and power Under the scheme all licenced energy companies with 150,000 or more customers must provide at least one SEG tariff.

Source: https://energysavingtrust.org.uk/grantsand-loans/boiler-upgrade-scheme/ https://energysavingtrust.org.uk/advice/ smart-export-guarantee/

Follow us on Twitter:

Like us on Facebook:

@Galbraith_Group

facebook.com/GalbraithPropertyConsultancy

@Galbraith_ENRGY

Join us on LinkedIn:

See us on Instagram:

www.linkedin.com/company/galbraith

www.instagram.com/GalbraithGroup

galbraithgroup.com | Energy Matters | Winter 2023-24 | Page 27

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, Rachel Russell, Larry Irwin, Philippa Orr Biomass Athole McKillop Buying, Selling and Due Diligence Mike Reid, Calum Innes, Larry Irwin Carbon Capture and Investment Athole McKillop, Eleanor Harris, Edward Fletcher

Galbraith offices

Compensation Claims Mike Reid, Richard Higgins, Rachel Russell, Philippa Orr

Regional agents

Compulsory Purchase Schemes (all infrastructure) Mike Reid, Richard Higgins, Larry Irwin, Ian Thornton-Kemsley Feasibility Studies John Pullen GIS & Mapping Strath Slater, Brogan Cutter, Ashish Dutta Hydro Power Dougal Lindsay, John Pullen Infrastructure, Utilities and Wayleaves Mike Reid, Rachel Russell, Larry Irwin, Ian Thornton-Kemsley, Philippa Orr Investment (infrastructure and renewables) Mike Reid, Calum Innes, Crawford Mackay, Larry Irwin

CONTACT US

Land Referencing Rachel Russell, Philippa Orr

athole.mckillop@galbraithgroup.com 07718 523045

mike.reid@galbraithgroup.com 07909 978642

Minerals Peter Combe

brogan.cutter@galbraithgroup.com 07500 794928

peter.combe@galbraithgroup.com 07718 523034

calum.innes@galbraithgroup.com 07909 978643

philippa.orr@galbraithgroup.com 07917 220779

crawford.mackay@galbraithgroup.com 07909 978641

rachel.russell@galbraithgroup.com 07884 657219

dougal.lindsay@galbraithgroup.com 07899 997915

richard.higgins@galbraithgroup.com 07717 581741

eleanor.harris@galbraithgroup.com 07585 900870

strath.slater@galbraithgroup.com ian.thorntonkemsley@galbraithgroup.com 07951 536351

Planning Calum Innes, John Pullen Project Management (Renewables) John Pullen On-shore Wind Mike Reid, Larry Irwin, Ian ThorntonKemsley, Harry Lukas, Hugo Remnant Off-shore Wind Richard Higgins, Larry Irwin, Ian Thornton-Kemsley Solar Mike Reid, Richard Higgins, Rachel Russell, Larry Irwin, Ian ThorntonKemsley, Philippa Orr

harry.lukas@galbraithgroup.com 07721 754822

Telecoms Mike Reid, Larry Irwin, Ian ThorntonKemsley

hugo.remnant@galbraithgroup.com 07718 523051

Rating Calum Innes

john.pullen@galbraithgroup.com 07557 163140

Valuation Mike Reid, Richard Higgins, Calum Innes, Larry Irwin, Ian Thornton-Kemsley

larry.irwin@galbraithgroup.com 07795 532146

edward.fletcher@galbraithgroup.com 07990 130753 ashish.dutta@galbraithgroup.com 07917 220784