Renewable energy is an expanding industry, with over 300 wind farm plants now energised across the country and plans in place for more.
About 200 of these 300 wind farms were developed just in the last 15 years, according to a spokesperson for the Department of the Environment, Climate and Communications.
Typically, farmers are approached with a proposal by renewable developers interested in utilising farmland for wind farm projects.
Proposals for wind energy developments are subject to the statutory requirements of the Planning and Development Act 2000.
From there, if an agreement is signed, developers can continue with applying for planning permission.
Partner and commercial manager of ifac, Martin Clarke warned that farmers should “seek advice” before signing an agreement.
Wind farm considerations
Clarke said that developers approach the farmer with what is known as an “option agreement”, which he described as “the critical document”.
“Once the farmer signs that option agreement, they have effectively signed over their land to the developer,” Clarke said.
Clarke said that farmers need to make sure they are getting the best rate in context to the size of the farm and turbines.
Clarke said farmers should ask themselves a checklist of questions before signing this proposal. The questions include:
- Are you getting the market rate?
- Is this the best structure for you and your family?
- Have you considered all options with regards to renewables?
- Have you spoken to adjoining landowners?
- Have you spoken to a solicitor?
He said that plans could take several years to come to fruition, and said farmers should know that most leases are anything from 20 to 35 years.
A lot of potential wind farms must first erect what is known as a “trial mast” to record wind speeds for a year or two years, which Clarke said makes it a “long slow process”.
Family land
Clarke added that advice specifically in relation to tax implications should be considered possibly from a solicitor who is familiar with renewable contractual option arrangements.
For an example of considerations, Clarke used a scenario whereby a farmer were to receive one turbine on their land, which would cover around 4ac, and received a potential income of €50,000/yr.
He said that in this scenario, a farmer would have to “weigh up” if the amount is enough, and also to look further down the line to transferring land and succession planning.
E.g., if a farmer is planning on splitting up land to family, they should ask themselves who would receive the land generating money?
Wind farm tax
One “bone of contention” that Clarke highlighted is that there is not the same tax treatment available for wind farms as there is for solar leases.
Agricultural relief can be retained from land with solar panels on it, however the same does not apply for wind farms.
Another thing farmers may consider is the “negative impact” windfarms could have on property value of nearby houses, according to Clarke.
He said that while a lot of progress is being made in this area, it is still causing “divisions within communities”.
If farmers oppose plans for wind farms in their area, objections follow the same rules as any other development planning process.
Objections
Meanwhile, citing concerns over the size of wind turbines, noise, and peatland damage, the Communities and Environmental Protection Alliance (CEPA) will hold a march to the offices of Dáil Éireann next month.
The protest being held on May 21 by CEPA includes 41 windfarm action groups, and is calling for robust wind farm regulations.
The group has stated that wind farm guidelines are “outdated” and is calling for “evolution of Ireland’s climate and energy objectives”.
The Department of Housing, Local Government and Heritage, in conjunction with the DECC is currently working to advance guidance on the noise aspect of guidelines.
The Department of Housing confirmed to Agriland that work is “substantially complete”.
In terms of peatland disruption, the current 2006 Wind Energy Development Guidelines remain in force.
The guidelines state that planning authorities must ensure that a proposal, which is likely to have a significant effect on special areas of conservation, is authorised only if it will not adversely affect the integrity of the area.
If necessary, authorities can seek changes to the development proposed or attach appropriate planning conditions.