Figures highlight growth of Scots wind farms

Rental income from Scottish wind farms rose by 10-15% last year, according to research by property consultants CKD Galbraith.

The firm said interest in wind power remained strong, with developers keen to make the most of sites with reliable wind, low population density and new grid connections on the way.

Some 13 wind farms became operational in Scotland in 2011, providing an extra 382MW and taking the total installed capacity to 2,784MW, it said.

Ayrshire and Lanarkshire saw the biggest increases in installed capacity, with 176MW and 141MW added respectively. This was mainly due to large developments coming on line, such as the Arecleoch wind farm in Ayrshire and the Clyde South wind farm in Lanarkshire.

With around 500MW of installed capacity, the Highlands remained the favoured region for developers, with a further 630MW approved or under construction and another 1,004MW submitted to planners for approval.

But challenges still remained, as 17 wind farms (309MW) were refused planning permission last year.

CKD Galbraith identified a number of trends in the wind farm market:

• Leases are becoming more site-specific and complex

• Negotiation periods are becoming shorter

• Landowners are more focused on the tax implications of agreements

• Habitat management agreements and compensatory woodland planting are increasingly a condition of planning consent

• Developers are reverting more to landlords to extend wind farms – planning may be easier than on new sites

• Landowners are increasingly leading medium-scale projects themselves

• Developers of single-turbine projects are offering landowners rentals of 8-15% of gross income – often on fixed rents

• Single-turbine projects remain subject to planning delays as councils decide how to measure cumulative impact on the countryside.