Renewable Energy projects are fast
approaching tourism as the main source of diversification income on UK farms. Hydropower
is of particular interest to farmers in Wales, especially since the
introduction of Feed-In Tariffs (FIT’s).
FIT’s allow individuals to invest in
small-scale low-carbon electricity, in return for a guaranteed payment from an
electricity supplier of their choice for the electricity they generate and use
as well as a guaranteed payment for unused surplus electricity they export back
to the grid.
As attractive as this may seem, it is
important that the correct level of research is undertaken at the outset before
committing to any Renewable Energy project.
Although the thought of having to spend a
considerable amount of money at such an early stage in the process may be off-putting,
failure to do so could prove to be very costly in the future.
Some of the points that need to be considered
are as follows:
- Is my land suitable?
- Is there sufficient
water flow in both winter and summer?
- Is there
sufficient fall in the water flow across the land?
- Are connections
to the grid available at an affordable cost?
- Will it be
possible to obtain a water abstraction licence and impoundment consent?
- Will planning
permission be granted?
- Is access to enable construction going to be a problem?
- The experience of the engineers and contractors (i.e. track record). References should be obtained from individuals who have dealt with the engineers and contractors you propose to instruct?
- Creditworthiness of the parties involved. Many companies are formed and dissolved overnight. This has left many individuals out of pocket as often large up-front payments are required before the construction process can proceed?
- The availability and timing of any finance involved?
- Lease arrangements for the land if you are a Tenant?
- Ownership of the watercourse e.g. does the land on the other side of the stream belong to someone else?
The above points are only a brief outline of
the issues that need to be considered. Provided that the correct investigations
are undertaken at the outset, Renewable Energy Projects can and do offer a
great opportunity for those who wish to diversify to increase farm profits and reduce environmental impact.
We can offer specialist advice on any legal issues you
may have in connection with Hydro, Wind and Solar Energy Enterprises.
For more information on this or any other Agricultural matter please contact Edward H.Nutting Director at Allington Hughes Limited t/a Cyfraith JRL Law on: 01492 641
222 or email edward@jrl-law.co.uk
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| Ed Nutting is a director of Allington Hughes Ltd based in the Llanrwst office. |
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