Powering Ahead – Building Success in Onshore Wind

As the global energy transition accelerates and the demand for clean, renewable energy increases, renewable energy projects are scaling up rapidly. Our colleagues Cathryn Tracy and Sarah Sutherland commented previously on how the UK Government’s decision in July 2024 to lift the de facto ban on onshore wind in England, along with other strategic changes, has sought to promote the development of onshore wind.  For nearly a decade, planning rules effectively halted new developments, with England seeing virtually no large-scale onshore wind approvals since 2013. With this ban lifted, we are seeing another wave of onshore wind projects being brought forward. 

A key element for the success of these projects is to ensure the right partnering between developers, turbine manufacturers, operation and maintenance (“O&M”) providers and balance of plant (“BoP”) contractors.  These contracts regulate the proper installation and performance of turbines, detail the manufacturer's responsibility to supply, construct, and commission turbines and their components and to ensure the smooth day-to-day running of the project once operational.  

The procurement process for these packages of work is about much more than just price – it is about reliability, bankability, appropriate contract terms and long-term alignment.  The supply of turbines is becoming increasingly international and complex, with developers and suppliers being required to navigate novel risks that are particular to the supply of energy infrastructure.  In recent years, counterparties have also had to grapple with global disruptions including COVID-19, tax exposure, tariffs, grid constraints and evolving force majeure-type events.

A well-structured Turbine Supply Agreement and BoP contract should allocate risk appropriately and clearly, ensure delivery requirements and key milestones are set out, and address key performance requirements.  Likewise, O&M agreements need to reflect realistic performance/availability guarantees and maintenance regimes that align with lender expectations.  Bankability hinges on matters such as proven technology, credit risk and performance security, predictable cash flows, and a contractual framework that withstands international supply chain shocks.  The technological advancements in larger blades and advanced blade designs are going a long way to reduce the cost per megawatt-hour. A.I. software is also being integrated into complex maintenance programmes to more accurately predict maintenance schedules, extend turbine lifespans and cut O&M costs. 

Members of Burges Salmon's Energy Team will be attending the Onshore Wind Conference in Edinburgh on 16 and 17 of September.  We look forward to connecting with developers, suppliers, and financiers shaping the next generation of wind projects.  If you are navigating procurement structures, contract negotiations or planning ahead for financial close, we would be delighted to discuss how strategic legal support can help your project become a success.

Amy McPherson and Marcus Jones