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The renewable energy market continues to evolve. For landowners, the right response is not to rush, but to investigate opportunities early and negotiate from an informed position.
For many farmers and estate owners, the first contact about a renewable energy scheme arrives as an unsolicited letter. The figures may look suspiciously attractive, the developer is likely to be unknown and there may already have been several approaches involving different technologies. It is understandable that letters are often put aside. Today, however, doing nothing could be as consequential as signing too quickly.
The opportunity is real, particularly for wind energy, but it is becoming increasingly selective and time-sensitive. The Government’s Clean Power 2030 programme is driving a rapid expansion of home-grown generation and supporting infrastructure. At the same time, reforms to the electricity connections process are designed to prioritise projects that are both ready and strategically needed, rather than allowing the queue to be dominated by speculative applications.
A market with momentum, but not unlimited opportunity
Onshore wind has returned to the centre of development activity in England. The Government’s pathway identifies 8.6GW of onshore wind across England and Wales by 2030, with 1.9GW allocated to the Northern Powergrid distribution area, equivalent to around 22% of the total requirement.
For landowners considering opportunities now, 2035 is arguably the more relevant horizon. New projects starting land assembly today would face a challenging timetable to be ready by 2030. Instead, the connections reform framework looks ahead to longer-term delivery, and provides for 15.8GW of onshore wind capacity across England and Wales by 2035.
Taking existing generation and the current project pipeline into account, NESO analysis indicates that a further 5.7GW of onshore wind will still be required. While the 2035 requirement is not allocated by individual distribution network areas, reflecting the uncertainty over where future schemes will emerge, it reinforces the need for additional projects to come forward over the next decade.
Developers began building their pipelines before the 2024 General Election, anticipating a more supportive policy environment. Much of that activity currently remains outside the public domain because projects require land assembly, grid assessments and environmental surveys before planning applications can be submitted. However, in areas with suitable wind resource, including parts of Yorkshire, Northumberland, County Durham and Cumbria, private discussions are already translating into contracts with developers.
Solar opportunities remain available, although the strongest prospects are becoming increasingly dependent on location, grid availability and deliverability.
Battery storage continues to play an important role in the energy system, but the development pipeline has been heavily oversubscribed. As a result, the focus has shifted towards progressing the existing pipeline or co-locating battery storage with other technologies, rather than the origination of new sites.
Grid reform is removing speculation
Recent changes to the grid connections process are intended to prioritise projects that have a genuine prospect of being delivered. Projects seeking the valuable Gate 2 status must demonstrate readiness and strategic alignment, which involves specific land and planning criteria, together with continuing compliance requirements. This should make it harder for lightly capitalised businesses to secure large areas of land merely in the hope that an option agreement can be sold on later.
In part, this is a positive development for landowners. The earlier solar and battery boom left some land tied into dormant agreements that ultimately went nowhere. Developers must now demonstrate that a project has suitable land with a credible connection, planning strategy and route to investment before securing the most valuable positions in the queue.
Nevertheless, it remains important for landowners to negotiate robust contractual protections. Option agreements should still contain clear milestones, performance obligations and termination rights. A stronger national filtering process does not remove the need to hold an individual developer to account.
The Government is also developing a longer-term plan to guide where future energy infrastructure is most likely to be needed. The Strategic Spatial Energy Plan, expected in autumn 2027, will identify zonal locations, quantities and timings for generation and storage. While it will not select individual schemes, it is likely to influence where future investment and network capacity are directed. For landowners, this reinforces the value of understanding whether their property currently sits within an area of opportunity, before the market becomes more prescribed.
Wait & you risk losing the opportunity
There is no need to sign the first document put forward, but there is a strong case for investigating an approach promptly. Environmental survey windows can affect timescales, neighbouring ownerships may be essential to create a viable layout, and a competing project could secure the available grid connection first.
The current framework supports accelerated clean energy delivery, and developers are understandably seeking to progress credible projects while that direction remains clear. With the next General Election required by 2029 at the latest, there is considerably less certainty beyond that point.
Scale also matters
Many wind and infrastructure projects need several ownerships and occupancies to create a workable boundary, access route and cable connection. A smaller landholding may therefore be strategically important, even where it could not host a standalone project.
Acting collectively with neighbouring ownerships can strengthen the proposition, prevent one parcel of land becoming the missing piece and give landowners greater influence over layout, access, mitigation measures and commercial terms.
We have seen this work in practice. On one scheme, neighbouring holdings that were unlikely to attract a wind developer individually were brought together to form an opportunity of sufficient scale. By working collaboratively on the commercial package, we were able to achieve equitable treatment across the project.
Appraise early, negotiate with strength
The most effective starting point is a high-level appraisal of the site’s potential, including technology suitability, planning and environmental constraints, neighbouring land requirements and grid position.
If the fundamentals are sound, a structured tender process can improve commercial terms and test developers’ experience, funding and proposed protections.
However, direct negotiation may be preferable, particularly where a developer has already started to assemble a project. The aim is to choose the best route, establish value and strengthen the landowner’s negotiating position.
The financial impact can be significant. In one recent tender for a proposed renewable energy site, initial bids indicated potential lifetime lease income ranging from approximately £48.6 million to £62.9 million. Following a re-tender, the strongest revised proposal increased to around £68.4 million, representing approximately 41% more than the lowest initial offer and 9% above the previous best. These figures demonstrate the value that healthy competition and expert advice can deliver for a landowner.
However, the objective is not simply to secure the highest rent on paper. It is to select the right development partner and negotiate an agreement that protects the landowner’s interests while giving the project the best prospect of being delivered.
The message is straightforward: do not be pressured into an agreement, but do not assume that an opportunity will still be available in two years’ time.
Investigate early, choose your development partner carefully and secure terms that reward the landowner while keeping the project moving.