One of Labour’s flagship energy policies mean onshore wind should be more visible in more places.
When Labour took control of the UK Government in 2024, the winds of change brought about a significant shift in energy policy. Downing Street is now far more supportive of renewable energy generation.
In contrast to the previous administration, the current administration views the deployment of renewable energy and supporting technologies as essential for energy security as well as meeting net-zero targets. Building on a key pillar of its manifesto, the government wasted no time in changing policy, consenting large schemes and generally talking up the sector.
One of the most significant changes has been July 2024’s policy statement on onshore wind, along with the government’s draft revisions to the National Planning Policy Framework (NPPF). Removing the footnote in the NPPF which had put onshore wind on an uneven footing compared with other renewable technologies has removed a significant barrier to turbine installation.
The government has also committed to a target of doubling onshore wind capacity from 15GW to 30GW by 2030. Much of this capacity is likely to come from Scottish projects and re-powering projects in England by upgrading existing sites.
However, this policy change also presents an opportunity for sites with high energy use, enabling them to generate energy locally, making long-term energy cost savings and supporting energy security.
Turbines can be installed on-site or nearby, connecting directly into the building to provide energy. This can offer between 200kW and 4MW of localised power. Sizing will be driven by energy demand, planning considerations and grid capacity, depending on how much energy is likely to be exported.
The renewable energy will offset consumption from the grid which can often equate to 22-26p/kWh in the current market. Any energy that is not used can be exported to the grid for a lower price of 7-9p/kWh through an export power purchase agreement (PPA).
Site owners should note that sites which have previously been discounted may now be viable, as a result of the advances in technology and increased means of mitigating issues relating to radar and aviation.
In terms of recent case studies, we are currently working with a cold store on the feasibility and grid connection for a wind project to help support their high energy demand. Although they already have solar which naturally peaks during the summer months, they still have significant remaining demand through the year. Wind turbines, on the other hand, generate electricity all year round but mostly during the winter months. As a result, a turbine can complement an existing solar installation on such sites.
We are also supporting a pig farmer with a turbine repowering, which will increase his onsite generation due to growing farm operations. As he already has a turbine installed, we have recently submitted a planning application to install a taller turbine which will have higher energy generation.
On another project, we are assessing the feasibility, including of grid and planning, for a turbine connected to a leisure facility. The facility has a flat profile through the year and during the day, making a wind turbine, likely supported by solar, a good fit.
Battery storage can also complement wind turbines, storing excess energy generated onsite to be used later. While battery storage costs have, and continue, to come down, they are still high. As a result, it is important to consider whether a battery is really required on a project-by-project basis.
The main drivers for using batteries on-site are where maximising localised renewable energy usage is key, potentially due to energy security or other ESG targets. And where there are restrictions on available grid capacity, which results in minimal or no export being available.
As with all renewable energy generation, the resources available vary by location and one of the first stages with any wind project is to understand the local wind speeds. Once these are known, then it is possible to understand the business case in more detail.
For example, a 1MW turbine can generate in the region of 3,000 MWh annually (depending on wind speed). Typical costs of £1.3m – £1.5m per MW will vary as a result of the logistics of delivery, any planning mitigations and ground conditions.
The payback period is highly dependent on energy consumption but the more that is used onsite, the quicker the payback. An export PPA can be arranged for any electricity which is exported, but the turbine should ideally be sized to minimise export.
While last year’s policy change means that onshore wind is again on a level footing with other types of renewable energy generation, turbines still need to pass through the full planning application process. There is no longer the potential for a single objection to derail a wind project, rather local authorities need to take neighbourhood opinion into account while assessing the overall value of development. They must also be supported by the necessary surveys, studies and planning case.
There is a wide range of constraints which can impact a turbine development and these must be assessed at the outset. One example is nearby residential developments and appropriate clearance distances from paths and roads. One of the benefits of installing wind schemes near a building with high energy use and connecting directly into the building is that it presents a clear rationale for the turbine to be at that location, which can greatly help with building the case with the planning authority.
With a much more positive approach to onshore wind being taken by central government, we see huge potential for companies to take advantage of the opportunity to install a wind turbine at their sites. This will allow buildings to generate their own renewable energy with the potential for considerable savings on energy costs to drive a quick payback on this investment.
Jamie Baxter is an Associate Partner at the property consultancy and estate agent Carter Jonas.
Image: Chelms Varthoumlien/ Unsplash
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