As the UK’s renewable energy sector matures, wind farm life extension is becoming an increasingly important consideration as more onshore wind farms near the end of their intended operational lives. This pivotal moment forces developers and asset owners to decide between decommissioning, repowering, or extending the life of their wind farms—each option presenting its own set of opportunities and challenges
Table of contents
The trilemma: Decommission, extend, or repower?
Decommissioning: A clean slate
Decommissioning involves dismantling the site, removing turbines and infrastructure, and restoring the land to its original state. This option, while seemingly straightforward, carries significant costs and environmental considerations.
Recent forecasts from Zero Waste Scotland suggest that by 2050, decommissioning activities could generate up to 47,000 tonnes of blade material alone. This number alone underscores the importance of forward-thinking waste management strategies in the wind energy sector.
Wind farm life extension: maximizing existing assets
Extending a wind farm’s operational life involves prolonging land rights and planning consents, often coupled with strategic upgrades to turbine components. This approach can offer a cost-effective means of maintaining energy production without the need for wholesale changes.
Repowering: Embracing technological advancements
Repowering entails replacing existing turbines with newer, often larger, and more efficient models. This option capitalizes on technological advancements, potentially increasing energy output and overall farm efficiency. Industry organization Wind Europe has called for more repowering of wind farms, as it sees this as an opportunity yet to be fully exploited by the industry.
Last year, and for the first time in Scotland, ScottishPower started the repowering process of the Hagshaw Hill wind farm in South Lanarkshire, which upon completion will have upgraded the 16MW wind farm to 79MW.
Legal considerations for wind farm life extension and repowering
Land Rights: The foundation of extension
Extending a wind farm’s lifespan often hinges on the provisions within the original project lease. Developers and asset owners may find themselves in one of three scenarios:
- Exercising existing extension rights:
Some leases contain clear provisions for extension, simplifying the process if terms are well-defined and workable. - Negotiating lease extensions:
Where explicit provisions are absent, developers must enter negotiations with landowners. These discussions can be complex, reflecting the evolution of wind farm leases over the decades. - Crafting new agreements:
In some cases, negotiating an entirely new lease or option agreement may be necessary, particularly when considering repowering projects that might require different terms.
Planning permissions: Navigating regulatory waters
The path forward often depends on how the original planning permission was structured:
– If duration or turbine height restrictions are in the development description, a full planning application may be required.
– Restrictions within conditions may allow for a simpler variation process under Section 42 in Scotland or Section 73 in England and Wales.
For larger projects exceeding 50MW in Scotland, the Section 36 consent process through Scottish Ministers adds another layer of complexity.
Looking ahead, consent applications might be easier to obtain given that the current UK government is looking at reintroducing the two-tier system, removed in 2016, but with a threshold of 100MW. At present, all onshore wind projects in England are required to apply to the local authority for planning permission. If Labor successfully adopts its draft planning approach, projects above the 100MW threshold will be consented by Ministers through the NSIP regime (Nationally Significant Infrastructure Projects), whereas projects below will be handled by local authorities.
Technical and operational considerations
Grid connections: Powering the future
Repowering projects that increase capacity will necessitate new or upgraded grid connections. Given the current constraints on grid capacity, early engagement with network operators is crucial.
Even without capacity increases, changes to turbine equipment may require modifications to existing connection agreements.
Contract for Difference (CfD) support
Recent developments in the UK’s CfD scheme offer a glimmer of hope for repowering projects. The seventh allocation round, expected in 2025, may include eligibility for repowered onshore wind farms, subject to specific conditions such as maintaining or increasing capacity and aligning with CfD intervention principles. If this becomes the reality, repowering could get a well-deserved boost.
Financial and market dynamics
Power Purchase Agreements (PPAs)
Existing PPAs may contain obligations that impact decommissioning or repowering plans. Developers must carefully review and potentially renegotiate these agreements to ensure compatibility with future project phases.
Economic viability
The decision to extend, repower, or decommission ultimately hinges on economic factors. A 2021 analysis by Wikborg Rein highlighted that while repowering can offer significant benefits in terms of increased energy production and efficiency, it does often require a substantial capital investment. If it’s possible to do a partial repowering (not undertaking major infrastructure works) would likely offer the best return to developers. A full repowering would in many cases lower a return if infrastructural changes are required as opposed to merely replacing turbines.
Life extension, on the other hand, may provide a more cost-effective solution in the short term but could face diminishing returns as equipment ages, and
Environmental and community impact
Whichever path developers choose, considerations extend beyond mere economics. Environmental impact assessments, community engagement, and local economic benefits all play crucial roles in shaping project outcomes.
The Wind Europe guidelines on decommissioning emphasize the importance of sustainable practices, including the recycling and repurposing of turbine components. As the industry moves forward, these considerations will likely become increasingly central to project planning and execution.
Charting the course ahead
As the UK’s wind energy sector stands at this juncture, developers face decisions that will shape the industry’s future. The choice between life extension, repowering, and decommissioning requires a nuanced understanding of legal, technical, and economic factors.
By carefully weighing these options and engaging proactively with stakeholders, developers can more easily navigate the landscape, ensuring the continued growth and sustainability of the UK’s renewable energy sector.
