Onshore wind: Back on the menu after a decade off

Last year, the newly-elected Labour government lifted the 'de-facto ban' on onshore wind development, which had been in place for a decade. This was one of the early steps it has taken to show that it means business in the clean energy space. The announcement was followed by a series of positive actions, including a 52% increase to the Contracts for Difference (CfD) budget for Auction Round 6, ministerial approval of three large-scale solar farms in the north of England and the establishment of Great British Energy: a publicly-owned, clean energy company that aims to catalyse investment for the government's net zero goals.

In this article, we take a look at the role of the Onshore Wind Industry Taskforce (OWIT) and consider some of the challenges it will be looking to resolve to make onshore wind viable now and in the future. Despite industry concerns, there appears to be optimism amongst stakeholders, supported by the government's actions and commitment in this space so far.

The OWIT

In July 2024, Ed Miliband announced to parliament that the government would establish the OWIT with the mission to drive new developments of onshore wind technology and identify actions needed to make this happen. The OWIT is comprised of a core group of executives from the renewables industry which is broken down into several sub-groups, all focussing on different areas, including (but not limited to) site scoping, planning/environmental consenting, grids and networks.

Currently, the OWIT is working on the publication of a formal policy statement which aims to "clearly set out a roadmap to 2030 and beyond, the challenges and opportunities of delivering accelerated onshore wind to meet our ambitions, and commitments to the actions needed to achieve this." This is expected to be published in early 2025.

It is clear from the establishment of this taskforce that the Labour government is committed to delivering on its promises in the clean energy space. This commitment is welcomed by members of the industry; however, for the government's goals to be met, there are several challenges that must be considered and overcome.

Barriers to onshore wind

Grid connection remains a significant barrier to the development of onshore wind, due to the ever-expanding grid queue and the resultant extremely long delays for developers to connect their projects to the electricity grid. There is ongoing reform underway in this area, with the latest messaging from Ofgem suggesting that projects that are first ready and needed (the latter relating to its alignment with NESO’s Clean Power 2030 report) will take priority over other projects that do not meet these criteria.

For more on grid connections reform and Clean Power 2030, we have written about these topics here and here, respectively.

Removal of the de-facto ban on onshore wind projects under the National Planning Policy Framework (NPPF) was no doubt a first step in the right direction. However, the OWIT is well aware that there is a lot more to be done in this area. We understand that some proposals include the introduction of a presumption in favour of renewable developments, as well as bringing onshore wind developments back into the scheme for Nationally Significant Infrastructure Projects (NSIPs). As of 13 December 2024, based on the government’s Clean Power 2030 Action Plan, onshore wind will be brought into the NSIP regime at a new threshold of 100MW.

Leading industry players have also emphasised the importance of getting the resourcing and skillset right at the local planning authority (LPA) level. Currently, LPAs are under immense pressure to progress applications and with the decade-long pause on onshore wind developments, it will be important to have training and updated guidance on progressing applications for this type of technology.

The same will go for the repowering of existing energy assets with estimates of about 150 sites requiring repowering by 2030. It will be crucial to have a system and dedicated decision-makers in place and ready for these applications when the time comes.

The uncertainty around planning and grids has had a knock-on effect on investor confidence and the financing of projects involving significantly higher capex than smaller ventures such as solar PV. Some developers have queried the financial viability of onshore wind projects and have called for a reassessment of the current CfD support, so that it is fairer across all projects rather than favouring some asset types over others. Arguably, wind speed is the main driver for onshore wind projects (the higher the wind speed, the more cost-efficient the project will be). One Bristol-based developer has said that “Pretty much all of lowland UK is not an option for onshore wind”. With other planning barriers (e.g., national parks and environmental designations) and the increasing size of turbines, it becomes increasingly difficult to justify the business case for projects not situated high up, often in Scotland.

Should the barriers and uncertainty mentioned above in relation to planning and grid be alleviated, it is hoped that this will have a positive impact on investor confidence.

The OWIT will be looking at the supply chain aimed at assisting with onshore wind build-out in the UK. With a limited-to-non-existent pipeline during the decade-long ban on the technology, there are challenges involved with securing additional assets quickly and in time to meet government targets. Compared to its neighbours, the UK is arguably suffering from ‘last-mover disadvantage’, whereas countries such as China have positioned themselves centre stage for the manufacture of wind turbines and associated infrastructure. The OWIT will be looking at ways of increasing UK supplies (considering O&M, ports and manufacturing) and alleviating constraints in the supply chain more generally (freighting components to site, escorting abnormal loads, etc.).

As mentioned above, turbine sizes have increased dramatically over the years. A decade ago, turbines would be unlikely to be any more than 1MW, whereas today, standard turbines are often bigger than 5MW. This impacts planning considerations, due to the additional space they take up, in light of the fairly high density of housing in England, smaller field size and rules around blade tip proximity to hedgerows. Concerns around turbine size extend to the repowering of existing assets, as planning and legal rules will apply to them differently than they did when first constructed. Access issues relating to the size of larger turbines must also be considered.

Insurance costs are some of the highest costs involved in wind projects and are often lamented by developers. Insurers are understandably looking to protect themselves from the risks associated with these developments, such as the higher costs occasioned by the scale-up in turbine size (e.g. increased costs of repairs or claims arising from the transport of larger parts to and around site) and technology used (e.g. larger cables liable to disruption or O&M software failures), not to mention the inflationary impact on supply costs and supply chain bottlenecks more generally.

There have been calls from stakeholders to policymakers to consider how additional support could be provided to alleviate this issue.

There are statutory barriers in place in relation to wind turbine height and size, because of the impact this might have on aviation (especially radar systems). This can often lead to objections being made as part of the planning process.

The OWIT are considering what could be done to increase transparency and minimise some of the barriers in this area. The government’s Clean Power 2030 Action Plan states that “DESNZ and [the Ministry of Defence] are working at pace to seek an acceptable mitigation” where onshore wind projects impact military aviation.

There have been concerns that communities are not sufficiently involved or able to become involved in onshore wind and we understand that this is a key priority for the OWIT, but also for other industry bodies, such as Regen (see its Priorities for the Onshore Wind Industry Taskforce report). There have been calls for the industry to bring communities along on the journey by providing clear guidance on how to get involved and the support available.

Following the release of the government’s Clean Power 2030 Action Plan, the intention is to “publish voluntary guidance to increase the quantum and consistency of Community Funds for transmission networks” and “support the launch of a public communications campaign… to encourage public awareness of the importance of networks infrastructure in supporting net zero” to be launched in early 2025.

Although there appears to be less opposition from communities now than there was previously, it will be important to engage better with communities in relation to the benefits involved in living close to onshore wind energy infrastructure and the part they can play in achieving the net zero targets.

Looking ahead

The fact that challenges exist is not new in the renewables industry. Despite the concerns discussed above and thanks partly to the government's messaging and commitment to achieving its net zero goals by the end of the decade and beyond, there appears to be optimism amongst developers. News reports have shown that energy companies are not afraid of getting back in the saddle when it comes to onshore wind projects – in fact, plans for the largest onshore windfarm in England were submitted in November.

Aside from developers, experts still operate in this space. The supply chain has not fully collapsed, even if it does need bolstering. The law has not seen a major overhaul, although the increased turbine sizes will require more consideration in property and planning terms than turbines perhaps did a decade ago.

Now, the industry is looking to the policymakers (including the OWIT) for solutions, certainty and transparency. It was a busy 2024 for the energy sector, with updates seemingly rolling in on a weekly basis at time. The commitment is there. So are the targets. Hopefully, delivery will follow as well.

How can we help?

At Foot Anstey, we advise clients throughout the development process, from the early property-related enquiries to the planning and consenting stage through to the construction and later operation and maintenance of the site. Our corporate team has ample experience advising our clients on the corporate aspects of onshore wind portfolios when considering investments, sales and purchases.

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