More competition for Scots wind turbine sites
New Scottish planning proposals will result in increased competition for wind turbine sites and potentially higher rents for landowners, says property consultancy CKD Galbraith.
The Scottish government proposals will limit where wind turbines can be located in a bid to protect the country’s “wild land”, and turbines could be banned on up to one-fifth of Scotland.
According to CKD Galbraith, the proposals could jeopardise any potential wind farm developments in the provisional “wild land” areas, and also intensify the development pressure on other suitable sites across Scotland.
The firm reported a 20% increase in predicted rental income from wind farm sites in 2012, compared to 2011, as a result of competition among developers for a reducing number of suitable wind farm sites. The agreed turnover rent rose from 5% to 6%, meaning the predicted rental turnover income from a 3MW turbine increased from £35,000 in 2011 to £42,000 in 2012.
A 320% increase in agreed base and turnover rents, paid to landlords in the 10 years between 2002 and 2012, was also reported.
Planning constraints had also resulted in an increase in the number of applications for extensions to existing wind farms, because the visual effect already largely existed for local communities and the infrastructure was already in place, said the firm.
Scots planning plans could limit wind turbines