WORKING AT HEIGHTS - Wind Energy Network

SPONSORS OF legal eaglesLEGALEAGLESAndrew Jackson’S experience in therenewable energy sector, and inparticular the wind energy industry,is significant and has helped manyof our readers ensure progress andunderstanding in this extremely fastmoving business environment.We welcome them as sponsors ofour first Law feature and let MartinCollingwood give us an overview tostart the ball rolling...Wind & renewable energydevelopmentsRenewable energy has seen significantdevelopment in recent months andAndrew Jackson has seen its involvementin renewables continue to increase.The past year has seen significantactivity from central government throughconsultations, legislation and the issue ofstrategy documents.November 2012 saw the EnergyBill published and shortly after thegovernment’s Gas Strategy was delivered.The Renewables Roadmap was alsoupdated.Whilst the developments in policy gavesome comfort there is still uncertaintyarising among investors as to how it wouldall work in practice – the devil will be in thedetail as they say.Decarbonisation targetOne of the significant areas of debateremains the absence of a decarbonisationtarget in the policy proposals. Theintroduction of such a target is seenby many investors as central to instilconfidence in the support mechanismfor the industry and create a long termmarket. The question often asked is “whathappens after 2020?” This is importantgiven that the industry is proposingdevelopments which will be operating inthe longer term – 20 to 25 years - andinvestors need confidence that they willhave support throughout the period.Renewables ObligationCoupled with this there is the proposal forchange from the Renewables Obligation toContracts for Difference and no-one is quitesure how that will work – detail again.The cost debate continues to rageconcerning the relative cost of the varioustechnologies, whether wind (both on andoffshore) and other technologies includingnuclear.Wind energyIn terms of wind power, onshore windcurrently is a cost effective technology butthere has been significant debate overwhether we have enough land basedschemes. Planning approvals, at leastin England, remain difficult, although itwould seem the position is more relaxedin Scotland.There has for many years been greatinterest in the offshore wind industryand the Round 3 developments promisegreat potential. From a cost point of viewoffshore wind remains comparativelyexpensive and the industry is being taskedwith targeting cost reduction at a timewhen the support mechanism throughContracts for Difference is uncertain. Theoffshore industry is, in addition, plagued bysignificant risks in terms of construction,installation and operation all of which itis seeking to minimise by technologicaladvances.Andrew Jackson continues to act forseveral offshore developers in respectof development issues and in relationto the roll out of strategically importantoperating and maintenance facilities andinfrastructure to service the offshoreindustry and the development of onshorewind farms. We have seen an increase inrenewables related health and safety work,both pro-active and reactive.Significant frustrationOne message which is frequently relayedby the supply chain in relation to theseprojects is “when will it happen?” Thereis significant frustration over the delay toimplementation of projects, particularlyoffshore projects in Round 3. Thesedelays are, in part, caused by the lack ofcertainty arising from government policyand the reluctance of investors to commit.78www.windenergynetwork.co.uk