Land Agreements
Lasting for many years, our relationship with landowners is hugely important and maintaining an open and concurrent dialogue with our landowners throughout the development process is critical to project success.
Land Title and Land Availability
The first step in securing the land required to host a renewable energy project is to identify all landowners who might be directly or indirectly involved in the project. Once the relevant land has been identified and landowner interest confirmed, an initial review of the title deeds is undertaken to identify any significant issues early on.
Exclusivity and Heads of Terms
We typically request that landowners enter into a period of exclusivity, normally 12 months, to allow us sufficient time to undertake our feasibility assessment and gain investment approval for project development. It is important to note that we will not be able to secure a full grid connection offer without an Option for Lease in place.
Option for Lease
During the development phase of a project i.e. pre-planning and pre-construction, we would enter into an Option for Lease with the main landowners involved in the project, including those required for access and the grid connection. The term of this Option Agreement would typically be for an initial five years, with extensions allowing for an option period of up to ten years. Payments made under the Option Agreement are subject to individual negotiation, but it is worth noting that we would place no restrictions on the day-to-day activities of the landowner, other than those which might create a permanent constraint on the project.
Once the project is ready-to-build, the Lease Agreement is entered into and the project is then able to start construction. The term of the Lease Agreement is typically between 40-45 years, allowing for construction, a 40-year operational period and a period of decommissioning.
Once the project is ready-to-build, the Lease Agreement is entered into and the project is then able to start construction. The term of the Lease Agreement is typically between 40-45 years, allowing for construction, a 40-year operational period and a period of decommissioning.
Decommissioning
Whilst we would always hope to be in a position to repower our projects, replacing the scheme with a new project at the end of the project life, there are occasions where this is not possible or desirable. In any event, we include provisions within Lease Agreements for the restoration of the site post-decommissioning and typically put in place financial security to ensure funds are available for such decommissioning in future.