Energy
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ISSUE 17 | WINTER 2018/19
MATTERS
l Time to prepare for new energy efficiency rules l Making the case for hydro storage l Why AD pioneers should get a better deal l Offshore wind: The race is on l How blade extensions boost turbine income
Rural Scotland’s long wait for fast broadband
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WELCOME
An urgent need for internet investment INterNet access is a cornerstone of the digital economy. So said José María ÁlvarezPallete, CeO of the Spanish telecoms company telefónica, in August.
CONTENTS
4 Offshore wind – the race is on.
6 COVER STORY: Highspeed broadband makes slow progress.
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People need internet access at a reasonable speed. Some work from home, others run fast-growing businesses, miles from cities or towns. Increasingly we log on to handle personal finance, shopping, healthcare, entertainment, even continuing education.
Wind turbines: Blade extensions, and decommissioning costs.
Ironically, in Britain, a telecoms pioneer, we suffer from patchy connections due to our historic reliance on copper wire – less effective and far slower than modern optic fibre – to connect with local exchanges.
Off grid: Energy selfsufficiency in the hills. Student placements.
Spain has more fibre than the UK, France, Germany and Portugal combined. Its main provider, Telefónica, allocates €8bn annually for capital upgrades, dwarfing BT’s equivalent spend. In the UK, the effects of under-investment are most severe in Scotland, with its remote populations and a mountainous terrain that drives up investment costs. Similar obstacles hinder mobile expansion. As experts argue in our report on page 6, public investment remains vital to ensure sparsely populated areas are not left behind as digital growth continues in cities. Meanwhile, entrepreneurs are teaming with local people to transform services at a fraction of the prices set by big suppliers. Scotland cannot be held back by a failure to invest in its broadband infrastructure. The necessary financial commitment must be made, whether by telecoms operators or the state. Mike Reid Galbraith Head of Energy and Utilities
GALBRAITH is Scotland’s leading independent property consultancy. Drawing on a century of experience in land and property management, the firm is progressive and dynamic, employing more than 230 people in offices throughout Scotland. We provide a full range of property consulting services across the commercial, residential, rural and energy sectors.
10 12 The changing face of Scotland’s ports. Why mobile network expansion is on hold.
14 Hydro storage in the Highlands.
16 After FiT... challenges and opportunities. Added value in an ESN mast contract.
18 Why AD pioneers deserve a better deal. Records of condition.
20 Thermal batteries... made in Scotland. A9 upgrade update.
22 Show round-up.
23 Current subsidies.
Galbraith provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances.
Follow us on Twitter: @Galbraith_Group @Galbraith_eNrGY Like us on Facebook: facebook.com/ GalbraithPropertyConsultancy See us on Instagram: instagram.com/GalbraithGroup Join us on LinkedIn: linkedin.com/company/galbraith
Tough rules on the energy efficiency of buildings are due to become law in Scotland in April. Calum Innes says landlords should be preparing now.
Energy Matters is produced by Allerton Communications, London, and designed by George Gray Media & Design, St Andeux, France. © CKD Galbraith LLP.
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New laws will make it illegal for landlords to issue a new lease on a building that lacks an energy performance certificate (ePC) of e or higher. REEPSH (Regulation of Energy Efficiency in Private Sector Housing) becomes effective in Scotland in April 2020. The UK Government is obliged by the Paris Agreement to significantly reduce greenhouse gas emissions by 2050 and ensure targets are evidence-based and independently assessed. Buildings are estimated to account for between 12.6 and 40% of energy consumption. While in England and Wales the Minimum Energy Efficiency Standard Regulations (MEES) applies to both residential and commercial tenancies, its Scottish equivalent REEPSH affects only homes. With both, the official approach has shifted from carrot – renewable-energy subsidies – to the stick of mandated standards and costly penalties. The Scottish Government’s Energy Efficient Scotland Route Map, published in May, provides for these minimum standards in privately rented properties: • EPC band E at change in tenancy from April 1, 2020; • EPC band E in all properties by March 31, 2022; • EPC band D at change in tenancy from April 1, 2022 and • EPC band D in all properties by March 31, 2025. Social landlords must ensure they achieve the relevant minimum E ratings by December 31, 2020 for social housing, though requirements change with building type and heating. The Scottish Government Guidance for Social Landlords gives full details. While there are currently no minimum EPCs for commercial property in Scotland, there are protocols for the sale of commercial properties above 1,000 square metres and F or G rated. This involves an action plan on how the minimum E can be met after sale. This obligation comes from Scottish regulations, which came into force on September 1, 2016, and applies to non-domestic buildings (or units designed for separate use) with a floor area of more than 1,000 square metres, unless they comply with Scottish Building Standards from 2002 or later. If the regulations do apply, the owner will need to obtain a section 63 Action Plan before letting or selling the property – essentially, they allow a property with a poor rating to be let, but the focus is on either carrying out the improvement works recommended in the action plan or monitoring and recording energy efficiency annually by obtaining a Display Energy Certificate. While REEPSH will apply to most privately rented homes, lower levels of energy improvement may be accepted for legal, technical or cost reasons. Consultations under Energy Efficient Scotland are due to determine how exceptions will apply and work in practice and enforcement by early 2019. The Scottish Government has also been
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g n i of t n st u o o c y ts C e g r e h e t g n r e ta
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Those affected by the legislation should consider their approach sooner rather than later.
consulting on raising the standard for all privately rented properties to EPC Band C by 2030 “where cost-effective and technically feasible”. A higher proportion of private rented dwellings with low EPC ratings is situated in rural areas.
There, based on rateable values, penalties for unlawfully renting out a property will be between £5,000 and £50,000 for contraventions of up to three months, rising to between £10,000 and £150,000 for longer periods.
The new rules exclude owner-occupiers even though they emit carbon. The plan is that they reach EPC C by 2040.
Those affected by the legislation should consider their approach sooner rather than later. Noncompliance may have consequences beyond sizable fines. Large agents could face depreciating asset values; landlords will struggle to renew leases or could be forced into rent reviews by tenants. Rather than undertake costly renovations or installing new boilers, landlords may consider installing green technologies such as PV plus battery storage to generate daytime power for use after dark.
Until the Scottish position on enforcement is clearer, it may be useful to consider the practice in England and Wales. There, challenged by local trading standards officers, landlords must prove they have complied and, if they cannot, will be given a short time to do so. South of the Border, MEES does not apply to residential tenancies of local authority landlords, only to their commercial tenancies; whereas for private landlords it applies to both. This is despite public sector-owned properties often being very energy-inefficient.
calum.innes@galbraithgroup.com 01738 456075
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A LANDMARK PROJECT IN THE MORAY FIRTH The Moray east offshore windfarm is a game changer for the decarbonisation of the energy sector. The development, along with the hornsea Project 2 off the coast of east Anglia, will mark the first time renewable electricity has been generated at a price equivalent to conventional gas. Galbraith has been involved with the project since its inception and continues to work alongside the developer as the project moves towards construction. Site investigation work and final design details have now been completed and enabling works are currently taking place. Construction of the on-shore assets is due to begin soon. Richard higgins, in charge of the Galbraith Moray east team, says: “It is a very exciting project to be involved with and after nearly seven years of hard work, it is fantastic to see physical work taking place on the ground. The project has not been without its challenges, and we do have a long way to go, but a practical and pragmatic approach has been key to minimising the impact on all stakeholders.” Construction will begin in late 2018, with the first electricity due to be generated in the early 2020s.
Wind turbines for the hywind Scotland development near Peterhead were assembled in Norway and towed into position.
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The race is on for new offshore wind sites A review of Scotland’s seabed is set to create opportunities for more off-shore wind farms. Gareth Taylor reports.
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A dISCuSSION document outlining plans to lease more of Scotland’s seabed to encourage further exploitation of offshore wind potential and the opening up of economic opportunities was released by Crown estate Scotland in May. Scotland already boasts two operating offshore windfarms – Robin Rigg and Hywind Scotland – with several gigawatts of power under construction including the Beatrice Offshore Windfarm and Moray East, both in the Moray Firth. The auction and leasing process requires applicants to have consent and other permissions from Marine Scotland, the Scottish Government’s offshore waters protection agency, before Crown Estate Scotland is able to grant a lease. For developers this can be a risky process, committing significant resource to the research and application process of a project before having the security of a lease over the seabed and the rights to lay cables. However, Crown Estate Scotland, in acknowledging this, may grant an option over the seabed, offering the developer exclusive rights to a site and setting out the terms upon which a lease will be granted. This should give comfort to developers and is encouraging for the offshore wind sector. Marine Scotland is currently identifying general areas of the seabed with development
potential which will be outlined in a consultation document, to be published later this year. Once an official draft plan of these areas has been released, applications can be made to Crown Estate Scotland. Having been involved in more than 100 onshore wind and several offshore projects across Scotland, as well as other marine infrastructure projects, Galbraith is well placed to offer early advice to developers looking to take advantage of this round of sea-bed auctions. Galbraith has significant involvement in obtaining onshore grid connections and understand the requirements for large scale projects including referencing potential routes, negotiating complex land rights, working alongside legal teams, advising on compensation mitigation and providing practical, reasoned advice during the design and construction phases of cable route and sub-station assets. Whilst costs on-shore are less onerous than they are off-shore, getting the power to grid is essential and often overlooked and should be considered early in the scoping process. Given the lengthy timescale involved in these projects and the upcoming release of potential development, the race is now on.
gareth.taylor@galbraithgroup.com 0131 240 6962
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Marine Scotland is currently identifying general areas of the seabed with development potential which will be outlined in a consultation document.
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Rural broadband: the need f FOr most people, a quality internet connection has moved in one generation from being a luxurious novelty to an absolute necessity.
Large parts of Scotland risk being left behind because they lack a fast broadband connection. Rachel Russell reports on the digital divide affecting rural areas.
Technical advances mean not everyone must occupy a costly office to do productive work. Meetings are conducted in the cloud. Many employees prefer to work from home. In personal finance, shopping, interactions with officialdom, education, healthcare and of course business, the world has moved online. And as highstreet bank closures show, we often have no choice but to go online. Increasingly, much of this activity requires a high-speed connection. In December, the Westminster Government, which oversees digital accessibility, pledged that everyone in the UK would have ‘high-speed broadband’ of 10 Mbps by 2020 under a regulatory Universal Service Obligation (USO). But not everyone thinks 10 Mbps – deemed by the industry regulator Ofcom as meeting the requirements of an average family – qualifies as high speed when, for example, commercial transactions and regulatory paperwork are being withdrawn from rural businesses. While broadband is a policy area reserved to Westminster, there are disagreements between London and Edinburgh on how best to address the problem given Scotland’s mountainous terrain and large areas inhabited by small populations. Britain’s fixed-line broadband is largely delivered through the old telephone network. For many, voice and data are still carried via copper wire and
download speeds are influenced by distance from local street cabinets. If the ‘final mile’ exceeds 1.2km, superfast broadband can’t be delivered. That’s less a problem in urban areas where large parts of the network are being progressively replaced by fibre-optic cable, enabling high speeds to multiple addresses. But it’s a big problem for remoter, rural areas and in large parts of Scotland especially. Does this matter? Yes, according to research by Lorna Philip of the
THE vALuE OF A GOOD CONNECTION RuRAl infrastructure is slowly being upgraded to fibre, but there is a long way to go. It is becoming easier for rural consumers to purchase goods online for delivery rather than going to retailers, saving time, energy and transport costs. ‘lifestyle’ homebuyers or retirees have historically been less demanding than those requiring a business connection, but we are seeing more examples of these consumers also expecting satisfactory connection speeds. A good connection increases the saleability of a property – it may sell faster than a similar property lacking a satisfactory internet connection – but it has not, as yet, translated into a higher value or selling price. We had a case where a tenant chose to rent one property, with a connection to
fibre broadband, over another as they required reliable high-speed internet access. The property without a highspeed connection let a month later – essentially costing the owner one month in lost rent. The emergence of high-speed broadband in certain locations in Scotland means there is a disparity between the digital ‘haves’ and ‘havenots’, highlighted when one compares a 0.5 Mbps speed versus 50 Mbps in the same postcode area. Consumers are being influenced by availability, but this still depends on their need and their willingness to compromise on type and location of property. David Corrie david.corrie@galbraithgroup.com 01556 505 003
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University of Aberdeen and her colleagues. “The range of activities routinely undertaken online is increasing, the data requirements of many applications and websites are growing and home broadband is now expected to support multiple device-owning and simultaneous-user households,” they write in a paper entitled The Digital Divide. “A broadband service that meets these expectations is not available to all British households.” Infrastructure improvements bringing fast broadband to consumers have concentrated on densely populated urban areas, creating a ‘two-speed Britain’. And, as the research finds, country dwellers are just as keen on fast broadband as city folk. The challenges involved in getting the ‘final few’ properly connected will require alternative technologies – either mobile or satellite. But despite the rapid take-up of mobile phones in recent years, they have failed to provide an alternative for Scottish homes and businesses. Dr Philip’s report says mobile infrastructure is best across England and worst in Scotland, especially in rural areas. “Across almost a quarter of rural Scotland there is no reliable 2G signal from any operator. Almost half of rural Scotland does not have a reliable 3G signal from any operator. Across half of the Scottish land mass it is impossible to be online, on the move, unless the user finds a Wi-Fi hotspot.”
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d for speed
BRINGING FAST INTERNET TO FARMING COMMuNITIES ONe man fighting to get people and businesses connected is focusing on a mix of fibre-optic broadband and mobile technology to bring large parts of eastern Scotland into the fast-digital age. engineer David Short realised better connections were needed as he built his business, DS electrical, to help farmers control their wind turbines and biomass boilers remotely, using smart phones. Angus WISP – Wireless Internet Service Provider – provides broadband speeds of 40 Mbps and more, in even the most difficult to access areas, through a combination of fibre-optic and a network of landbased repeater stations that pass on signals using wireless technology.
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Tackling rural digital divides and future-proofing investments in rural digital infrastructure are essential to ensure that rural communities and businesses can fully engage in an increasingly digital society. — Dr Lorna Philip
Satellite may be part of the answer but its line quality has yet to match superfast fixed-line services, and latency – delay in sending and receiving data – remains a problem. Also, unlimited download allowances are rare, making this a potentially expensive service. If these limitations can be overcome satellite would be a credible alternative for those who cannot be served by conventional fixed broadband. Large-scale investment is needed if less concentrated populations are not to miss out on a digital future. While Ofcom and BT have spent two years fighting over how to fix Britain’s creaking broadband network, the Spanish telecoms giant Telefónica spends €8bn a year on capital expenditure compared to BT’s £3.5bn capex bill last year. But with Government facing infrastructure priorities such as healthcare, housing and the controversial HS2 railway, any major public spending boost looks unlikely. Yet according to Dr Philip, Britain will
suffer without investment in a range of technologies. “Tackling rural digital divides and future-proofing investments in rural digital infrastructure are essential to ensure that rural communities and businesses can fully engage in an increasingly digital society. “A variety of connectivity methods will be required to bring fast broadband to all premises in rural areas including, for example, satellite and fixed wireless and, potentially, mobile broadband running on proposed 5G mobile phone networks. “Government will have a role to play in ensuring alternative technologies are priced competitively to ensure rural consumers need not overpay. Continued public investment will remain necessary to ensure that sparsely populated areas are not left further behind as developments in digital telecommunications continue apace.”
rachel.russell@galbraithgroup.com 01334 659 989
The methods aren’t new but, according to Mr Short, delivering a fast, reliable service relies on local knowledge and bringing communities together so they can prioritise their needs and retain control. The company manufactures its own masts and handles on-site welding, painting, concreting, software, set-up, commissioning and upkeep. Some repeaters are powered by wind turbines. local involvement means that communities can get together to buy fast broadband at a fraction of the price of fixed-line infrastructure, at much lower monthly charges than satellite and without the line delay that comes with it. The mobile-cable formula is being rolled out further north by Marykirk.com and by similar initiatives in other parts of rural Scotland. “For agricultural communities, digital connections are too important to be entrusted to large telecom providers – it’s not worthwhile digging up miles of road to build the necessary infrastructure,” said Mr Short, whose company recently connected 50 properties at Glen Clova in the Cairngorms.
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Decommissioning: have the costs been accurately assessed? Claire Acheson on the importance of preparing for the day the turbines stop turning.
whIle the turbine blades are spinning in the wind, and the rent and subsidy payments are rolling in, it’s easy for landlords and operators of wind farms to forget about what might happen at the end of the lease term. But many lease agreements in Scotland are midway through their term or beyond, so that time will come around sooner rather than later. Some sites will be suitable for a lease extension or refurbishment to continue operating, but it is inevitable that others may no longer be viable in the prevailing energy market and will be forced to decommission. This is when the provisions in the lease and the reinstatement bonds held will be vital to ensure that the operator has adequate funds to reinstate the land to the specifications set out in the planning consent, and that the landlord is not left with any unwanted infrastructure or future liabilities.
Do the roads require to be fully reinstated under the terms of the planning consent or are there options for sections of roads to be retained or partially reinstated? • Removal of wind turbines and concrete foundations: generally foundations need to be chopped back to a specified distance below ground level and the ground reinstated above. There can be scrap value in the turbines which may to some extent offset the cost of reinstatement. • Site electrics and cabling: in some cases underground cables can remain in situ, but generally all substation
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Decommissioning reports often lack sufficient analysis of the cost.
In many cases a reinstatement cost assessment or decommissioning report will have been provided by the operator at the start of the lease, and normally a bond would be put in place for the amount specified. However these reports often lack sufficient analysis of the cost. More importantly, the costs may not be reviewed during the lease to ensure that adequate sums are maintained, although many leases do provide for decommissioning costs to be reassessed periodically at the expense of the tenant. Key matters to be addressed in a decommissioning assessment report include: • Site access and roads: has the full extent and area of the roads been accurately mapped, including all passing places, turning circles, cattle grids, drainage ditches, etc?
switchgear and any overhead lines should be removed. • Any other control or associated buildings may have to be removed. • Are materials for ground reinstatement such as topsoil or peat available on site or will this require to be bought in? • Are any additional landscaping works required, such as tree planting? Galbraith can act as an independent expert to provide decommissioning reports for clients. We can review lease terms, planning consents and section 75 agreements and combine our GIS expertise to accurately survey a site, alongside coordinating suitable technical consultants to provide a detailed cost assessment, which can be used to inform the position and negotiate updated bonds.
claire.acheson@galbraithgroup.com 01463 245 353
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Blade extensions help to boost flagging revenue Not all wind farms live up to expectations, but one company reckons it’s found a simple, effective way to boost energy output. Mike Reid reports.
PrOPertY owners who invest in renewable energy technology to boost revenue are only human, so they enter the process with high hopes, not expecting retrospective Government changes that affect the business case. The last four years have seen major changes to policy affecting revenue for onshore wind, including removal of the Renewables Obligation, Feed-in Tariff, Levy Exemption Certificates and a reduction in embedded benefits, the latter two affecting all distribution connected operational windfarms. Things don’t always go as planned and when wind farms deliver uninspiring returns, the associated costs usually rule out decommissioning and reverting to previous use. The solution is likely to involve incremental improvements to push income closer to original expectations. The idea of tampering with an approved installation for improvements that aren’t guaranteed may prompt a sharp intake of breath by turbine owners.
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But some are addressing the problem by stretching their rotor blades to beef up annual energy production. In 2009 a German company, Energiekontor, joined forces with fk-wind, the Institute for Wind Energy at the University of Applied Sciences in Bremerhaven, to explore how to increase income from installations that fall short of expected production rates. Energiekontor, which operates onshore wind and solar sites across the UK and Europe, acted after analysing its own production and finding some sites were falling short. The extension prototype designed by fk-wind comprises an additional segment fixed at the tip of the rotor. It was certified by DEWI / OCC wind energy standards body in 2012. Rotor Blade Extension (RBE), set up by Energiekontor to carry out the process, says it can increase production by up to 7% with a payback period of one to three years without replacing blades or turbines, using existing infrastructure and with minimal environmental impact. The lightning protection system on the blade is removed and refitted in the new tip with a connection to the original system. Two half shells overlap the existing rotor blade tip and are fixed with adhesive resin. A final polishing and painting of the blade protects the material. The original rotor blade remains unaffected. Energiekontor has installed RBE on 20 turbines, delivering a 1.3MW ‘bonus’, or 7% yield uplift, and has earmarked a further 23 in Scotland for deployment, focusing on MM82, GE1.5 and Bonus 1.3 turbines which
are predicted to benefit from an increase of annual energy production of up to 9%. The company is considering adding RBE to more windfarms, with turbines of up to 5MW. As the extra loads involved are within parameters defined by the standards of the International Electrotechnical Commission, the lifetime of the turbines should be unaffected. Disruption is minimised as installation is carried out on-site on a hanging blade, minimising production downtime.
A rotor blade extension being installed on a hanging blade.
“Despite the loss of incentives, it is still possible to develop and build economically viable onshore wind projects. This is thanks to advances in turbine technology, including RBE,” said Energiekontor project manager Lambert Kleinjans. “RBE is being developed to enable our new windfarms to be financed and built subsidy-free as part of a larger programme of cost and yield improvements, and to enable existing windfarms to maximise existing hardware by extracting more energy out of the wind. “With RBE Energiekontor has been able to improve revenue from existing windfarms and will continue to roll out development and installation of this low risk, high return technology.”
mike.reid@galbraithgroup.com 01334 659 984
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Going i
A summer of surveying eACh summer, our offices open their doors to placement students who have successfully completed the Galbraith work experience application process. This summer, we welcomed eight placement students across six of our 11 offices. Although placements typically last four weeks during the university summer holidays, the 2018 summer students were on board to assist the rural and energy divisions for between two and seven weeks. A placement gives the opportunity for site visits, to attend client meetings, write reports and conduct research. It also provides a valuable insight into Galbraith and the broad spectrum of property-related services we offer. Rory Morrison-Low, a 2018 summer placement student, has reflected on his time at Galbraith: “Having successfully gone through the Galbraith work experience application process, I undertook a placement with the rural and energy teams in the Cupar office. During the two-week placement, I got involved with a wide range of work out on the ground including a farm valuation, telecoms mast inspections, preparing records of condition, and crop walks for establishing compensation due. “I was also exposed to the office-based side of being a land agent such as finding land ownership. “The Galbraith team were extremely helpful, giving up a large amount of their time to explain different aspects of their profession. This experience has broadened my knowledge of the real estate industry and will be invaluable in supporting my studies at the University of Reading. The placement also provided a very practical insight into career options.” At Galbraith, we're always keen to hear from talented, dedicated and ambitious students who want to break into and make their mark in the industry. For more information on work experience, visit www.galbraithgroup.com/work-experience or contact your nearest Galbraith office.
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g it alone miles from the grid harry lukas explains how a fivebedroom house in southern Scotland has become self-sufficient in energy.
IMAGINe a house in the hills more than four miles from a public road and any source of mains electricity. When the owners acquired the property there was an inoperative small hydro scheme and a diesel generator. A renewable-energy solution took time, money and effort but has provided a five-bedroom house with a full, sustainable and manageable electricity supply including heating, with no future reliance on the grid. A self-sufficient solution which reflected the lifestyle demands of the property was needed, and after careful research on contractors who had already achieved good working schemes, the couple installed a new hydro scheme and a solar photovoltaic array with back-up heat from a biomass boiler. The electricity generation benefited from the Feed-in Tariff (though with no export premium) and the biomass is eligible for Renewable Heat Incentive (RHI) payments. The hydro scheme was devised using two turbines, 1kW and 10kW, so output can be regulated according to demand. The hydro has a 90-metre fall on a hill burn over 800 metres, producing about nine bars of pressure – enough to power a family home. The larger turbine is mainly used when demand is high and there is sufficient water in the burn. It automatically adjusts to the available water. The turbines are enclosed in a purpose built turbine house. The owners installed a 9kW dual-axis ‘tracker’ array of solar panels on the hill above the house to follow the sun and obtain optimum power output. The array is self-powered and will flatten in strong winds to reduce the risk of damage. The power generated by the turbines and the solar array is fed through invertors to convert the DC to AC and is led either directly to the property or to a bank of 12 2kW batteries giving 24kWh total storage which provide great flexibility. The combined available power from these sources together with the batteries makes a total possible output of more than 40kWh. The ‘mini-grid’ is run by a management system and electricity usage is closely monitored with an ‘Owl’ wireless monitor. Because the house is off the mains grid the power generated needs to be used so if the property is empty it is fed to dump heaters in the house. The owners also installed a biomass boiler to replace the original oil heating system. The biomass is a 75kW Heizomat woodchip boiler fed by wood chip from timber available on the property. However the boiler is only needed in the colder months and when the house is full. The costs of buying and installing the renewableenergy system were not inconsiderable. However the hydro and solar bring in about £9,000 a year in FiT payments (for generation only as there is no feed-in to the grid) which may pay back the original cost of the generators in a little over 10 years. FiT ends in April 2019 for new registrations.
The success of the electric generation means the biomass element is little used so the RHI is small and any payback on the cost would be considerably longer. The owners stress that for anyone considering a self-sufficient power or heating system, careful choice of companies to work with is very important. It is well worth checking their track record and to follow up on some of their previous contracts.
Facing page, from top: The hill burn dam, the turbine house, and the turbines. Above: Battery storage in the turbine house, and the 9kW solar panel array.
Many people aspire to become independent and self-sufficient with heating and lighting on varying scales, and it is possible using a variety of renewable options, which could include ground and air source heat pumps, geothermal installations and bio-digesters, as well as wind, solar and hydro. The rapid leaps forward in battery technology will see a widening of the use and provision of home scale generation and selfreliance off grid. Galbraith has extensive experience of facilitating estate and farm hydro schemes and solar generation provision.
harry.lucas@galbraithgroup.com 01896 662829
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Landlords’ revolt puts network expansion on hold Mobile operators are looking to use new rules to cut rents – in some cases to less than £5 a year. Mike Reid reports.
AS reported in Energy Matters (issue 16), the electronic Communications Code was introduced with effect from december 28, 2017. More than nine months later you would have expected there to be more certainty about some of the provisions, but that isn’t really the case. In early 2018, particularly where terms had been agreed prior to the change of the code but the lease hadn’t been completed, some operators were honouring the previously agreed terms, including the rent, provided the lease specified this hadn’t been assessed in accordance with the provisions of the new code. Leases then concluded, after being adjusted to comply with the new code, and the masts have been constructed. Where previous negotiations were aborted and negotiations were instigated under the new code, sites have stalled, largely due to the levels of payment being offered to site providers which, in some instances, have been less than £5 a year. It probably isn’t surprising that site providers aren’t keen to be bound by code rights for this level of payment, but operators are taking the view that consideration should be in a ‘noscheme’ world, based on the existing use of the land, ignoring that code rights are being imposed.
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It is hardly what the Government intended would be the main focus of the new code.
Top: Construction is underway at Aberdeen harbour Board’s £350 million development in Nigg Bay. Above: Dundee’s ambitious waterfront development. Below: Peterhead harbour is undergoing extensive redevelopment.
We don’t believe this is how consideration should be assessed under the code. The Government’s intention for the code was that it would increase connectivity and speed up deployment of sites. However, the majority of approaches we have received are by operators wishing to re-negotiate existing sites, moving them on to new code agreements in order to reduce the rent, rather than increasing coverage by deploying new sites. It is easy to see why operators are taking this course, but it is hardly what the Government intended would be the main focus of the new code. In the coming months, precedents will be set for appropriate consideration and compensation payments and new leases will be agreed, but for the moment the new code has stopped deployment of sites, the very opposite to the Government’s objectives.
mike.reid@galbraithgroup.com 01334 659 984
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Safe harbour: Scottish ports gear up for a bright future They are major contributors to the UK economy, handling millions of tonnes of freight every year. Richard higgins reports on the changing face of Scotland’s harbours.
AS a maritime nation, the uK’s ports and harbours have been a vital and vibrant part of our collective infrastructure for centuries. Despite the significant changes over that timeframe of how we live and service our trade and industry, the ports and harbours remain critical assets and generate opportunity for the wider areas they serve. In April, the Scottish ports industry, in conjunction with Scotland’s enterprise bodies, published a report entitled Scottish Ports: Gateways for Growth*, and when it was launched, Lorna Spencer, chair of the Scottish Ports Group, commented: “Scottish ports are fundamental to the Scottish and UK economies. This document and initiative highlight the unique role Scottish ports play, not only in providing a base for trade and employment, but in connecting communities. “Ports provide the landside gateways for Scottish trade as well as acting as a hub for vital industries such as offshore energy, fishing and the cruise sectors. It is estimated that each year Scottish ports contribute £1.9bn in gross value added to the economy.” The ports themselves rely on land-based connectivity and resources, not least road and rail networks, availability of a skilled workforce and land and buildings to accommodate shore-based activities. Ports act as focal points for the supporting service industry across all sectors and it is no coincidence that much economic development centres around them. Ninety-five per cent of trade comes through seaports, Scotland handles more than 67 million tonnes of freight annually (more than double that of England) requiring more than 21,000 cargo vessel
movements each year. Freight is only part of the wider activities. The oil and gas industries are heavy users of ports, particularly in the north-east, and the skills, supporting industries and infrastructure which have grown during the past 50 years are deployed into the increasingly important renewables sector. The decommissioning of the North Sea oilfields and the next round of offshore wind and other renewable developments will provide work for many years to come to surrounding ports. Construction has now begun on Aberdeen Harbour Board's £350 million development of additional facilities in Nigg Bay, to the south of the existing harbour. Further improvement and redevelopment works are also underway at Peterhead, Montrose and Kishorn among others. As well as recognised users such as fishing, defence, marine support and survey vessels, oil and gas, the importance of leisure and tourism is demonstrated by the waterfront redevelopment at Dundee and the growth of cruise tourism at Invergordon, which welcomed more than 150,000 passengers in 2017 – more than anywhere else in Scotland. The port is planning a £23 million capital expenditure to build a new quayside. The economic development opportunities are significant in the more “remote” ports (looking from the land perspective) and, given the importance of marine activity and future opportunities, the position looks bright. Land-based opportunities around the ports are huge, and the continued activity will support the wider economy which requires business premises, offices, hotels and supply chains to operate. * scottishports.org.uk/news/ new-publication-highlights-value -and-contribution-of-scottish-ports -to-the-economy
richard.higgins@galbraithgroup.com 0131 240 6966
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All pumped up: making the case f Networks going green means utilityscale electricity storage is in demand. As John Pullen reports, pumped storage hydro has a role – and the Highlands can provide an ideal location.
AS we move to more intermittent and variable sources of generation, there is no doubt that energy storage will be an essential requirement of the modern electricity grid. The recently commissioned 50MW Statera Energy battery installation at Pelham, near Bishop’s Stortford in Hertfordshire, can store up to 50MWh of electricity in its seven 40ft containers, encompassing 150,000 lithium ion batteries. It is the largest single installation in the UK, yet it can supply back to the grid only for a maximum of one hour at full power. But there’s more than one way to stockpile power. Pumped-storage hydro (PSH) is a type of energy storage used by National Grid for load balancing. Surplus power is used to pump water to an upper reservoir. It is later released through turbines to produce electric power in periods of high electrical demand. A long-established mainstay of UK energy storage are the four pumped hydro storage schemes operating in Scotland and Wales. When constructed, the main purpose of these plants was to hold surplus overnight power from large nuclear and coal power stations for peak morning and evening demand. Despite the huge 2.8GW generating capacity and 24GWh storage ability of these schemes, no PSH schemes have been built in the UK in almost 40 years. Although on one level these are the most efficient form of energy storage, with no degradation in performance even over the expected 50year life, it is hard to justify the huge capital cost of these infrastructure-scale projects. The demands on the network are changing at a pace faster than new developments can be approved, let alone constructed. The energy group SSE has reworked its consented 600MW Coire Glas PSH scheme above the Great Glen to see if a much larger 1,500MW project can make financial sense against a shifting landscape of revenue opportunities. Demand for clean power can only rise with the expected rapid adoption of electric vehicles, domestic heat pumps and other technologies associated with modern living,
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Artist’s impressions of the landscape impact of the Coire Glas pumped hydro storage system.
HOW A PuMPED HYDRO STORAGE SYSTEM WORKS
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e for hydro storage
As reported by Toby Kirkwood in issue 16, National Grid uses the capacity market to incentivise flexible, fast-responding generation during peak times. Similarly, as noted in issue 15, National Grid is also procuring an ever increasing quantity of system services, such as enhanced frequency response to ensure the grid operates within strict parameters. Agile generators with flexible systems such as PSH can maximise these payments in addition to merely absorbing cheap electricity and re-selling it later at peak times, so called energy arbitrage. While combining or “stacking” these different revenue streams offers electricity suppliers additional income, the short duration and plummeting value of the available contracts make any new projects difficult to finance. Difficult, but not impossible. Intelligent Land Investments, part of ILI Group, is developing the 400MW Red John PSH scheme on the outskirts of Inverness. Close to several wind farms, with good grid infrastructure and suitable topography, this will pump water from Loch Ness to a manmade reservoir 200 metres above. The developers have clearly calculated that a consented PSH scheme has a rich financial future.
john.pullen@galbraithgroup.com
Sale of family hydro scheme rewards pioneers leADING hydro developer Gilkes energy has recently completed the purchase of the 750kW Frenich hydro Scheme (right). The scheme was developed in 2013 by the landowning McKerrow family in a joint venture with Gilkes energy. electrical and mechanical equipment was provided by Gilkes energy’s sister company Gilbert Gilkes & Gordon. The project company holds a long-term lease over the land and water rights required to operate the scheme. Gilkes hydro Investments, an equity fund focused on hydro investment and administered by Gilkes energy and edinburgh-based NCM Fund Services, has now acquired the family’s shareholding.
Calum Innes of Galbraith, who advised the family, commented: “The demand for operational renewable energy assets is currently very strong, especially those which are underpinned by the government’s Feed in Tariff and we are delighted that the family’s pioneering entrepreneurial spirit has been rewarded.”
01463 245 372
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What is the future for small-scale renewables when FiT disappears? The end of Feed-in Tariffs next year will bring both challenges and opportunities says hannah Smith.
BeFOre 2010, the generation of electricity was the preserve of large fossil fuel power stations. The connection between burning a tonne of coal and the lightbulb in a consumer’s kitchen was opaque, and something to be taken for granted. The Feed-in Tariff changed all that. The scheme, and the technologies it supports, gave consumers, at last, the opportunity to make their own power. The FiT was established by the Government to encourage small-scale renewable energy production. It allowed homes and businesses to install solar panels, small wind turbines, hydropower schemes and more – and paid them for the energy they used and any excess which could be exported to the grid. The economy of rural Scotland grew with the help of the FiT, with additional income to rural businesses, such as farms, boosting their viability and in turn creating jobs and local investment. An announcement by the UK Government in July confirmed the FiT is likely to close to new applicants next year. The industry has been thinking about what happens without a Feed-in Tariff for some time. So what’s next? The best place to use renewable electricity is close to where it’s produced, and that won’t stop being true. Communities across the country have benefited from the installation of renewable energy projects, with Applecross, Gigha and Eigg just the most well-known examples. And it’s not
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just clean energy which these projects have generated; they’ve also helped Scotland build the skills that will be vital as the world transitions to a clean energy future. Those skills stand us in good stead as the future looks less certain for schemes like the Feed-in Tariff. The rise in electric vehicle ownership and electricity storage technology will play a part in the future for FiT-scale technology, too. Households across the country will get ‘smarter’ and take even more control of how they generate and use energy. In future it is likely to be far better to charge an EV with local-produced clean energy – and far easier to do so if, for example, solar power produced during the day can be used to charge that EV overnight thanks to a local battery. Our electricity network isn’t perfect, so there’s room for local generation to help balance supply and demand too – particularly with hydropower, which can generate 24-7 for decades. The end of the Feed-in Tariff, then, presents a significant challenge to the small-scale renewable energy sector, but it presents opportunities too. The industry must now come together to work with government and determine how to maximise the benefits these technologies can deliver. Hannah Smith is Senior Policy Manager with Scottish Renewables www.scottishrenewables.com
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“
Our electricity network isn’t perfect, so there’s room for local generation to help balance supply and demand.
Farmer finds added benefit in ESN mast contract An approach by a telecoms provider or utility can lead to profitable collaboration. Mike Reid reports.
wheN the telecoms company ee contracted to provide the new emergency services network (eSN), it undertook to deploy additional telecommunication sites over and above its commercial network. This was because the emergency services coverage has a wider geographical base than the population coverage requirements under the company’s current commercial licences. Our client was approached about a possible site for a new telecommunications mast in early 2017, prior to the introduction of the Digital Economy Act 2017. We agreed appropriate heads of terms for a lease of the 100 square metre site to EE for its new 30-metre high mast but the farmer was able to offer more than just the land to EE.. The farmer was a civil-engineering contractor and was able to help with construction of the extension to the access track to the site, as well as preparatory work for the mast itself. These costs were paid by EE together with an appropriate
“
A power purchase agreement was made for the renewable energy.
contribution towards the construction of the shared access track from the public highway to where the spur to their site branched off.
Power for the eSN radio mast (top) is provided by the hydro scheme turbine (centre). Below: The hydro scheme pump house.
A hydro power scheme by Green highland Renewables.
Our client’s contribution towards the project didn’t end there, as he operates a 33kW hydro scheme on the farm and terms were agreed for the farmer to lay the electricity cable to the mast and a power purchase agreement was made with EE for the renewable energy to run the mast. Any additional power would be supplied by the grid when localised generation wasn’t sufficient for the power requirements of the site. This not only gave EE a renewable energy source for its installation at below market rates but also provided the farmer with a direct customer for his power at a higher price than he might receive from selling into the grid. When approached by any telecommunications company or utility provider, you shouldn’t just look at the proposed installation from a simple lease basis, but also assess how collaboration can lead to additional benefits for both parties.
mike.reid@galbraithgroup.com 01334 659 984
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Anaerobic pioneers deserve a better deal
Business rates on renewable energy assets risk creating an uneven playing field. Calum Innes reports.
tAxAtION of commercial property is implemented by means of business rates calculated with reference to the assessed rateable value. In order to ensure that the burden of taxation is equitably apportioned, periodic revaluations are undertaken to take account of market and regulatory changes. The expansion and growth of renewable technologies over the past decade has raised a number of anomalies from a property taxation perspective. The valuation of plant and machinery is assessed having regard to specific regulations. At the last review of the regulations the main electricity generators sought an exemption for their generating assets. They argued that as electricity production was their main business, taxing their ‘tools of the trade’ would be inequitable. Accordingly, the regulations excepted plant and machinery used for the generation, storage, transformation or transmission of power used wholly or mainly for distribution and sale to consumers. Having regard to renewable generation technologies, the Valuation for Rating (Plant & Machinery) (Scotland) Regulations 2000, specify easily identifiable assets such as aero generators, wind turbines, solar cells and solar panels as being specifically excluded from valuation for rating purposes. But, as a consequence of Government’s encouragement of the renewables industry, times have changed significantly since the start of the millennium when these
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regulations were drafted. Following the 2010 revaluation the hydro sector discovered that its technology had been treated unfavourably from a valuation perspective in comparison with wind and solar and vigorously challenged this situation through the appeal process and consultation with government. Anaerobic digestion (AD), another increasingly popular renewable-energy technology, is also finding itself facing a rates handicap. AD is the process where agricultural crops such as maize are mixed with animal waste and subjected to microbial activity to produce combustible gases. These are burned to power a turbine generating electricity and ancillary heat. As with other technologies such as wind, solar and hydro, AD attracts subsidy under the Government’s feed-in tariffs, aimed at reducing greenhouse gases and meeting its obligations on global warming controls. But like hydro, AD is not specifically identified as a machine attracting the ‘tools of the trade’ exemption, and is instead seen as a conglomeration of individual items of plant and machinery. Assessors in calculating rateable value have regarded virtually all the elements as rateable. So while AD plants generate electricity mainly or exclusively for distribution for sale to consumers, they miss out on exemptions granted to conventional generators and specified renewable technologies identified in 2000 when the regulations were reviewed.
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How tagging makes for a clearer picture Daniel Campanile explains the technology behind a useful record-of-condition tool. PrOvIdING an unambiguous visual report on the condition of a site at a particular time can be an important component of project work. Taking photographs is one method of achieving this by recording visually key features and issues at specific points within a site. However, photographs alone often do not communicate the full spectrum of information effectively, and it can be challenging for the client to understand where on the site a particular images was taken.
A photographic record of condition showing not only the photograph itself but also information on the location of the photo with brief notes outlining the particular issue the photograph is displaying has much greater value. The location a photo is taken at is most clearly shown on a small map beside each photo in a report, removing all doubt over which part of the site it depicts. Most modern digital photographic devices can record location information in a photo’s schema. With the appropriate expertise, this ‘geo-tagging’ can be exploited. At Galbraith, we use a combination of the latest mapping technologies in tandem with specific software to generate coherent, consistent reports showing not only the photographs themselves but also the location at which they were taken. Within the energy and utilities business streams these types of reports have been used to document the condition of fences, gates, field troughs, tracks, roads, burns and fields in advance of a scheme such as a utility connection being installed.
As noted, the hydro industry recognised the problem following a 2010 revaluation and has since pursued action through the valuation appeal courts. Meanwhile, the Scottish Government has recognised the issue and applied rates relief to create a more level playing field for hydro. For AD, the problem is especially challenging because while the raw materials for hydro, wind and solar are provided by nature and are therefore ‘free’, AD operators must grow or buy feedstock crops and pay for the handling of animal waste.
Comments: Photo of original fence taken on 12/07/2018
Such records can be invaluable for visually documenting the condition of these features at a specific point in time, helping to remove any doubt about the state of assets that subsequently get damaged or the quality of new features (such as fences) compared to the features they have replaced.
To date the appeals process following the 2017 revaluation has been dominated by big categories such as office, industrial and retail, and niche, complex valuation issues such as farmbased anaerobic digestion plants have yet to be considered. The lengthy and complex process pursued by the hydro industry to protect its interests over seven years suggests the AD sector will require political support and input.
Photographic records of condition with location information form part of a wider suite of useful GIS tools currently being used and developed within Galbraith’s energy business stream.
AD adopters are pioneers who are playing a small but important role in reducing greenhouse gases. Their efforts must be recognised with the implementation of a satisfactory resolution so that, on property taxes, anaerobic digestion benefits from a level playing field.
calum.innes@galbraithgroup.com 01738 456075
We also frequently prepare records of condition to document the condition of a property at the start of an agricultural tenancy or an area of land being temporarily occupied for use as a compound.
Comments: Photo of substandard replacement fence taken on 15/08/2018
daniel.campanile@galbraithgroup.com 01786 434 634
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Pioneering technology heats up renewables market As Scotland grows its renewable generating assets, thermal batteries offer a way of cutting the UK’s carbon footprint says Andrew Bissell.
wheN Scotland became the first country to offer government support for heat batteries it was a clear signal that the heat storage market is ripe for disruption. And not before time. Ancient Romans stored heat in bricks, Victorian engineers used hot water tanks and until now, little had changed. When the Scottish Government grasped the nettle and included heat batteries in their Home Energy Scotland Loan scheme to help homeowners make energy saving improvements, it was an acknowledgement that heat storage has as big a part to play in cutting our carbon footprint as other forms of energy storage. Indeed, since 81% of energy used in the home is for heating or cooling, surely being able to store energy converted to heat opens the way for the UK to get serious about its carbon goals. Homeowners and private landlords in Scotland can apply for an interest-free loan of up to £6,000 to install heat batteries, alongside a home renewable like solar PV or a heat pump, to help cut fuel costs and improve warmth and comfort in their homes. In time they are highly likely to make conventional hot water cylinders obsolete and could turn out to be one of the best investments householders can make, and not just because of the money saved on fuel bills. Sunamp technology is tried, tested and already keeping thousands of householders warm in homes across the UK. Now in its third generation, our UniQ range is just a third of the size of a conventional hot water cylinder, freeing up significant amounts of floor space, a bonus for housing developers.Heat batteries can capture heat in a variety of ways and deliver cascades of hot water and highly responsive space heating with proven savings of up to 75% on utility bills. They are compact, scalable, low maintenance, easy to install and competitively priced. What’s more, they are long lasting with a proven life of more than 40,000 cycles – equivalent to more than 50 years at two cycles per day. Other countries, serious about their green energy strategy, should sit up and take notice: by following Scotland’s lead, consumers and landlords everywhere can benefit from heat batteries to cut energy consumption.
Andrew Bissell is Chief Executive Officer of Sunamp www.sunamp.com
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A9 claims: don’t leave it too late The £3 billion upgrading of the A9 is a massive undertaking but owners and occupiers of land, however small, should ensure their voices are heard, says Mike Reid.
wIth a completion date of 2025 and a budget of £3 billion, Scotland’s largest transport infrastructure programme, which aims to upgrade 80 miles of single carriageway between Perth and Inverness, is now fully underway. The first section of dual carriageway between Kincraig and Dalraddy opened last September and construction of the next section north of Luncarty is due to start soon. However, there is still a long way to go with a further nine sections to be completed. Many owners and occupiers along the route will be affected by the scheme irrespective of whether they have land, or rights, acquired. It is important that they know if the design of the dual carriageway can be amended, what their rights are to object to the scheme and what rights they may have to receive compensation. Early consultation with Transport Scotland gives a greater opportunity to change the design of the scheme to mitigate the potential impact. Once draft Compulsory Purchase Orders are issued there is only a six-week period to issue written objections and the design is all but finalised at that stage.
Above and right: Sunamp’s uniQ range of heat batteries are manufactured in Scotland. left: R&D in partnership with edinburgh university produced patented and unrivalled thermal energy storage technology.
Any owner, or qualifying occupier, who has land acquired will have a right to claim compensation although the rules and procedures governing this are not straightforward. Compensation will include losses for: land taken: The market value of the land acquired. Severance: Transport Scotland can be compelled to purchase any land severed from your holding. Injurious affection: The effect of the scheme on property not acquired and still retained. Disturbance: Disruption caused by the scheme from crop loss or burst drains to the claimants’ time. It is very important for claimants to keep accurate diary records of all time incurred to substantiate any claim and, as time is easily forgotten, a diary helps ensure all time is recovered. Fees: Legal and surveyor’s fees are paid by Transport Scotland other than those objecting to the scheme. Instructing professional advice early in the process is often advantageous for any claimant. The A9 dual carriageway should deliver economic growth, but those affected along the route should ensure they take appropriate steps to protect their property interests.
mike.reid@galbraithgroup.com 01334 659 984
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The Galbraith tug-of-war team found success at the Scottish Game Fair.
Pulling together for fun at the shows It was another great year for shows. Toby Kirkwood reports. It’S been another busy year for Galbraith at both the royal highland Show and the Game and wildlife Conservation trust Scottish Game Fair. The fairs have been growing in numbers, and, as expected, the Galbraith marquees are beginning to burst at the seams. The Royal Highland Show was another great success with relationships formed and reaffirmed during the course of the four days, and staff continuing to maintain the firm’s ethos of being welcoming and professional at all times. As sponsors of Edinburgh Rugby, we were lucky enough to have club players Jason Baggot, Cammy Fenton, Nathan Fowles and George Taylor down to interact with show visitors. There were props for a photo booth, hula-hoops and the newly branded Edinburgh Rugby flags and lanyards. The Galbraith bugs returned to the show again this year and our forestry team ran a quiz giving away trees as prizes for correct answers.
edinburgh Rugby stars Cammy Fenton and Nathan Fowles join some of the Galbraith team – and the photo-booth props – at the Royal highland Show. Below: Nathan Fowles shows off his hula-hoop skills.
The crowds may have been a couple of busloads behind last year’s recordbreaking figure, but organisers of the Royal Highland Show, which finished its four-day run in sweltering temperatures, said the high levels of attendance reflected the growing appeal of Scotland’s biggest celebration of farming, food and rural life. The Game and Wildlife Conservation Trust Scottish Game Fair was also a great success. Again we had to compete with sweltering temperatures but the catering staff did a fantastic job making sure refreshments were in constant circulation around the marquee. Highlights on the stand included, the forestry species display, which created Page 22 | energy Matters | winter 2018/19 | galbraithgroup.com
much interest, and the diverse mix of staff present from across the firm’s business streams. For the third year in a row our tug of war team was put to the test. Following the disappointment of the last year’s defeat, the team managed to pull through and beat Savills in the final. By this point Galbraith had already beaten the groundsmen team in two straight pulls after they had already beaten Bell Ingram. Galbraith owes its success at the shows to the enthusiasm and energy of its staff who volunteer on each day. We’re already looking forward to doing it all again in 2019...
toby.kirkwood@galbraithgroup.com 01786 434635
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CURRENT RENEWABLE ENERGY SUBSIDIES
Feed-in Tariffs (FiT) Generation & Export Payment Rates 1/7/2018–31/12/2018
The renewable energy industry is undergoing a major shake-up as the Westminster Government reviews incentive entitlements across the board.
Hydro
≤100 >100≤500 >500≤2000 >2000
Solar**
≤10
The Galbraith energy team has researched the current subsidy regime to produce this reference guide for the most popular technologies.
Installed capacity kW
Subsidy levels are subject to change, so the figures given here are for guidance only. Current details of FIT rates, ROCs and CFDs can be found at www.ofgem.gov.uk/environmental-programmes.
>10≤50
>50≤250
Contracts for Difference (CFDs) Clearing prices as of 11/9/2017 (£/MWh, 2012 prices).
Banding
Tariff p/kWh 01/10/17 01/01/18 –31/12/17 –31/01/18
Higher Middle Lower Higher Middle Lower Higher Middle Lower
>250≤1000 >1000
8.06 6.48 6.48 4.73
8.04 6.46 6.46 4.73
3.93 3.54 0.25 4.17 3.75 0.25 1.79 1.61 0.25 1.43 0.25 0.12
3.86 3.47 0.20 4.11 3.70 0.20 1.75 1.58 0.20 1.38 0.20 0.10
Technology
2021–2022 2022–2023
Stand-alone solar PV**
Offshore wind
74.75
57.50
Wind
Advanced Conversion Technologies*
74.75
40.00
Dedicated biomass with CHP
74.75
n/a
≤50 >50≤100 >100≤1500 >1500
8.39 4.94 1.92 0.59
8.31 4.91 2.21 0.64
Anaerobic Digestion
≤250 >250≤500 >500
4.65 4.34 1.57
4.53 4.30 1.55
CHP
≤2kW
* (with or without CHP)
14.52
14.52
5.24
5.24
Export Tariff
Renewable Obligation Certificates (ROCs) For period 1/4/2016 to 31/3/2017*. Technology
ROCs/MWh
Anaerobic Digestion
1.8
Hydro
1.0
Offshore Wind
1.8
Onshore Wind
closed
Solar PV**
closed
Publication date: 6/7/2018 and are effective from 1/7/2018 to 31/3/2019. ** FIT payment for solar photovoltaic installations have been determined by the Gas and Electricity Markets Authority (Ofgem) under Article 13 of the Feed-in Tariffs order 2012, in accordance with Annex 3 to Schedule A to Licence Condition 33. PV tariff level is detailed as follows: Higher tariff rate will be applied if an EPC of level D or above is achieved before commissioning. Middle tariff rate will be applied if an EPC of level D or above has been achieved but the Generator owns 25 or more installations. Lower tariff rate will be applied if an EPC of level D or above is not achieved before commissioning.
Domestic Renewable Heat Incentive (RHI) Applications submitted for the period 1/10/2018 – 30/12/2018
* The buy-out price for the 2018-19 obligation period is £47.22 per Renewables Obligation Certificate (ROC). ** Small-scale Solar PV (<5MW) closed as of 01/04/2016 and to additional capacity added to existing accredited stations that does not take it above 5MW in total installed capacity from that date. The availability of grace periods in line with those provided for Solar PV projects above 5MW back in 2015, enabling projects to be accredited up to 31/03/2017 where preliminary accreditation or significant financial commitments have been made on or before 22/07/2015, and for projects affected by grid delay. Source: Scottish Government.
Technology
Tariff p/kWh
Biomass boilers and stoves
6.74
Air-source heat pumps
10.49
Ground-source heat pumps Solar thermal
20.46 20.66
Source: Ofgem.
Non-Domestic Renewable Heat Incentive (RHI) Tariff name
Eligible technology
Eligible sizes
Small commercial biomass
Solid biomass including solid biomass contained in waste
Tier 1 Tier 2 Tier 1 Tier 2 ≥1MWth All capacities Tier 1 Tier 2 All capacities <200 kWth <200 kWth ≥200 kWth ≤ 600 kWth
Medium commercial biomass Large commercial biomass Solid biomass CHP systems Water/ground-source heat pumps Air-source heat pumps All solar collectors Small biogas combustion Medium biogas combustion* Large biogas combustion*
Solid biomass CHP Ground-source & water-source heat pumps Air-source heat pumps Solar collectors Biogas combustion
≥ 600 kWth
Tariff p/kWh 3.05 2.14 3.05 2.14 3.05 4.42 9.36 2.79 2.69 10.75 4.64 3.64 1.36
Source: Ofgem. Tariff rates are in displayed in pence per kWth and for installations with an accreditation date on or after 22/5/2018. * Commissioned on or after 4/12/2013.
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OuR EXPERTISE l Valuations
l Investment in renewables/
financial incentives
l Planning
l land referencing l Telecoms l utilities
l Wind power l Biomass
l Solar energy
l hydro power
l Sales and purchases l Battery storage
OuR EXPERTS Our energy experts can be
INvERNESS
contacted in the following 8 of
dougal lindsay 01463 245380
our 11 offices:
dougal.lindsay@galbraithgroup.com
ABERDEEN tom Stewart
PERTH 01224 860714
tom.stewart@galbraithgroup.com AYR Bob Cherry
Calum Innes
01738 456075
calum.innes@galbraithgroup.com GALASHIELS
01292 292303
harry lukas
01896 662829
bob.cherry@galbraithgroup.com
harry.lukas@galbraithgroup.com
CuPAR Mike reid
STIRLING 01334 659984
toby Kirkwood 01786 434635
mike.reid@galbraithgroup.com
toby.kirkwood@galbraithgroup.com
EDINBuRGH richard higgins
For a full list of our energy 07717 581741
richard.higgins@galbraithgroup.com
experts, please visit galbraithgroup.com
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