Land rights for renewable energy projects: speed is vital

Our renewable energy developer clients are telling us that alongside the challenges of obtaining grid connections and planning permission, a key issue that has emerged is getting land deals done, and 2024 will be a key year for putting land rights in place for new projects.

We have thought a lot about how to get land deals done quickly for our clients and here are some of the key points which developers can bear in mind:

• Agree clear heads of terms at the start of the process. These should include a clear plan and not taking more land than is required for the project. If possible, accesses and cable routes should be identified at an early stage.
• Agree timing milestones with the landowner and their lawyers and land agents at the start of the process for eg return of drafts, replies to enquiries and an all-parties’ meeting.
• Start with a balanced, reasonable draft option and lease.
• Go and see the landowner in person to resolve any issues which come up during the process.
• Ask the landowner to chase their solicitor if they are not responding in a timely fashion.
• Have an all-parties’ call after one or two turns of the document to get all outstanding points agreed.
• The developer’s solicitor must continue to chase and be responsive and proactive.
• Possibly incentivise landowners with a bonus payment if the deal is done quickly.

The Burges Salmon team is always happy to speak to developers who would like to get their land deals done quickly!

An all-parties' call at the appropriate time can be an excellent way to get the land agreements finalised in a timely fashion.