The All-Energy Conference brought together renewable developers, suppliers, and organisations whose focus is on the delivery of renewable energy. Emphasis was very much on the grid, the challenges around delivering renewable energy and the vast requirement to deliver infrastructure in the coming 5 years to meet the 2030 Clean Energy Plan. There were discussions on grid reform, workforce, material availability and budgets, but concerning that there was no mention of land rights required from farmers and landowners who will be affected.
Ian Austin, Davidson & Robertson Director, and Head of Utilities Energy & Infrastructure said
Ultimately, transmission development is behind where it needs to be, but there is huge political support driving delivery to meet targets and that was very evident at the conference.
It was stated that the industry now needs twice the level of transmission infrastructure (pylons) that has been created in the past ten years – but it needs to be achieved in just the next 5 years. That is a big target requiring a huge commitment, but there is now political might to see this happen.
National Energy System Operator (NESO) Review
The government’s National Energy System Operator (NESO) has been in place since November, and with a full reform of the grid connection process, is hopeful of getting more deliverable projects approved and progressing at a faster pace.
“The NESO Grid Reform Review halted grid applications so they could review and redefine the process to unclog the 700GW backlog of projects and improve procedures. The revised application process is scheduled to reopen in the autumn having gate-checked existing applications to ensure: land right agreements are in place with landowners; the proposed development is fully justified and is required for the delivery of the 2030 Clean Energy Plan; there is progress with planning; and therefore, can demonstrate its requirement for a grid connection. All new applications will be subject to the same checks.
“For many landowners, this does mean there will still be a rush to have contracts concluded with their developer partners. Some developers believe these reforms will give viable projects already in the system, an earlier revised grid connection date that will, in many cases, be determined by delivery of Grid enhancement works.
“The review has also resulted in landowners seeing large-scale Lithium Iron Battery projects being dropped by developers as in many cases, they cannot establish the need given battery storage was so oversupplied to meet the 2030 Clean Energy Plan.
Deadlines for agreeing land rights
“D&R predicts that summer will see more urgency coming from developers moving at pace to capitalise on the planned reopening of grid applications. Landowners will be faced with a June deadline for agreeing land rights allowing applications to proceed where developers try to hold on to existing grid offers. We are already seeing developers rushing to re-engage on contracts for projects currently on hold or looking to swap projects or introduce new ones. With this in mind and the requirement for even more transmission and distribution infrastructure, our key message to landowners is crucial:
Take expert professional advice before consenting to land right agreements
“For farmers and landowners faced with infrastructure project crossing their land, it is more important than ever, to take professional advice from Agents who have significant years of experience in this sector. Above all, do not sign anything until you are fully aware of your rights and options, and be aware that in most cases, utility companies and developers will reimburse reasonable professional costs as part of your compensation or as part of a commercial deal.”
SSEN has already committed a £22 billion transmission line investment in Scotland alone by 2030. For the first time, the conference debate extended beyond transmission lines and pylons, taking a wider view considering the distribution of energy to the wider networks (pole lines). During one seminar, Tom Hughes, Assistant Director of Energy, National Infrastructure & Service Transformation Authority estimated that £37 – £50 billion spend will be required for new distribution works – that is on top of existing pole repair and renewal budgets. For landowners, distribution infrastructure has a huge impact as it affects a significantly greater number of landowners.
Technology advances in energy production
Commenting on other key highlights that could affect landowners, Ian Austin said “As technology advances, hydropower may become more of an option for landowners. High-density ‘heavy water’ is 2.5 times denser than water, meaning that where a hydro project typically needed 500 metres of fall, in the future only 200 metres may be sufficient. It could open up the option for more landowners to consider. Agreements will need to consider issues arising from leaks and any resulting liability for damage to waterways.
“There was strong debate between the District Network Operators (DNOs) and NESO on the possibility of introducing zonal pricing where need/availability is taken into account. The DNOs (SSEN and SSE) were firmly against this, citing uncertainty and investment risk and threatening project viability. NESO, however, argue the opposite saying it created opportunities-focused development where is required and can facilitated. For farmers, the only opportunity from this would be battery storage, with some battery developers in D&R’s experience making the same argument. The future will likely see lithium batteries superseded by technological advances which include looking at liquid flow batteries and compressed air flywheels.
Onshore wind farm construction
“The UK operates 10GW onshore wind with 1GW in construction and a strong pipeline of future projects strengthened by lifting the wind ban in England which will be good news for farmers south of the border looking at wind farm opportunities. A total of 27-29 GW of onshore wind is needed to meet UK 2030 goals, so developers are hugely keen to acquire sites and agree terms to make a grid application.
“Solar too will continue to see an increased demand currently generating circa 20GW electricity with a 2030 target of 60GW.
“Demand for materials outstrips supply and there is a severe shortage of skilled people employed and coming into the industry due to a lack of training, knowledge, and awareness of the sector. It was commented that this is not helped by the fact that there are no courses tailored to match industry needs.
“95% of our current energy use is low carbon, and in 2025, the aim is to achieve 100% low carbon energy for at least a few hours – an achievement that is on target and demonstrates the political will to make things happen.”
The next NESO plan will provide energy guidelines for 2030 – 35 and is set to be even more ambitious because it must take into account the population increase and rising energy requirements. This is due to be published in Q4 2026.
In summary, Ian Austin said, “Overall, D&R believes there appears to be a lack of appreciation from some of the key decision makers within SPEN, SSEN, NESO and developers, in terms of consents by landowners and how the transition to clean powers will affect them. The reality is that, right across the UK, more landowners than ever before will be faced with approved infrastructure projects on their land.”
Anyone likely to be affected by infrastructure projects should contact or appoint an agent as soon as possible to seek professional advice. For more information contact the D&R Utilities Energy and Infrastructure team on 0131 448 6212 or email Ian Austin IA@drrural.co.uk
