Andy McFarlane, Head of Renewables at law firm Wright, Johnston & Mackenzie, discusses the current state of the renewables industry in Scotland – the opportunities, challenges and the way forward  

The Herald:

COVID-19 has had an extremely profound impact on the economy. Sectors which have been a bedrock of the Scottish and British economy have been damaged and some changed forever. However, there are some areas which remain relatively unharmed and which may help to lead recovery from the now confirmed recession.  

Renewables is one of these sectors. While politicians herald a green recovery, on the ground the pandemic has seen developers adapting to remote working and new ways of communication. But their desire to progress their projects has continued largely unabated. 

Alongside that, investor appetite in the Scottish onshore wind market remains strong despite both the pandemic and continued political uncertainty from Brexit and renewed support for Scottish independence.

There are plenty of opportunities when it comes to the renewables industry and onshore wind, particularly in Scotland at the moment. Scottish onshore wind projects are attractive to developers who know there is a ready market for investors. 

Currently, the market is highly competitive, with landowners again able to tender sites to a reinvigorated developer community in the UK who are finding themselves joined by new developers coming from abroad to get involved in the sector.  

At the same time, the industry has finally achieved some overdue good press with recent front pages trumpeting that onshore wind could result in cheaper energy bills, making a welcome change from unfounded scare stories in the past.  

Despite the optimism, the industry continues to face some challenges. 
Planning remains frustrating. The new National Planning Framework (NPF4) was due to be published in September, and it was hoped it would give a clearer steer on development on and around wild land. 

Developers were also hoping for some clarity when considering whether to replant and repower existing wind farms or to extend the lifetime of existing machines. 

It’s very disappointing against this background that NPF4 has been delayed. Politicians like to talk about the green recovery and there is no doubt the Scottish Government’s warm words regarding renewables add something to the allure of Scotland for developers, but on a more basic level, progressing NPF4 was – and remains – a real opportunity to provide clarity and bring forward development, which can help a recovery as well as reaching the ambitious renewed targets for 2030.

Our renewables team continues to be very busy, notwithstanding lockdown and everything since. We recently completed the development and sale of the proposed Blary Hill Wind Farm on the Kintyre Peninsula. A high-value project, with Scotland’s first-ever joint ICP (independent connection provider) grid connection, this is a significant example of developers working together to develop projects in the “subsidy-free” market.  

As uncertainty persists around NPF4, our planning team remains busy with strategic advice, ongoing public inquiries, and dealing with specialist consultees, notably on the aviation side.

On transactions, our team continues to be kept busy at the early stages of the development process, as well as when projects progress to spades in the ground phase, and financial close.  

The team has a diverse range of specialisms across property, agricultural and crofting law, planning, construction, tax, and dispute resolution. 

www.wjm.co.uk