There has been an amnesty for developers wishing to cancel or reduce their grid capacity applications for grid connection projects that have stalled. It means grid capacity has become more readily available, leading to increased demand from developers for suitable sites – and more approaches to landlords and tenants.
BESS storage sites remain a profitable and safe option to consider. Those with potentially suitable land should not be put off by concerns about the well-publicised risks of possible combustion and contamination.
Undertaking due diligence of the developer will establish if they have the appropriate expertise and financial capability, and those that are, will have scoped possible sites for planning, grid connection, fire distances etc; however robust negotiations from a specialist advisor at the outset will ensure landowners are suitably covered and de-risked.
At Davidson & Roberston, we engage with well capitalised developers with a deep knowledge bank of how to deliver energy projects; the days of sharp practice by the small and single ownership operators are ending, but landowners should still exercise caution when approached. Seeking expert advice and engaging legal representation to negotiate and draft the commercial rents and terms are still crucial to protecting landowners throughout the lifecycle of the project.
For more information contact Stuart Lobb, D&R Associate Director on 0131 449 6212.
