Function
Development and consenting covers the work needed to secure consent and manage the development process through to financial close.
Who is involved
Development services are led by the developer’s special purpose vehicle (SPV), which manages the development process and subcontracts work to a range of specialist consultancies. The SPV is a legal entity, which invests in and owns the wind farm project.
Key facts
Developers typically set up a SPV for a wind farm. The SPV provides a structure to enable external investment, although this investment is most likely to take place at final investment decision (FID) or post construction. Should the project advance to construction, the SPV will continue to operate for the duration of the wind farm’s life. If the SPV is a joint venture between two or more developers, it is likely that the development team will be based in stand-alone offices to manage confidentiality.
Typically, an early formal step in the consenting process is the production of a scoping report. This report scopes the level of impact on various receptors to properly define the required assessment process and methodologies, and to ensure the Environmental Impact Assessment Report (EIAR) focuses on those impacts that may lead to substantial effects. It also provides an early opinion from the planning authorities to help shape and focus the development activity. Developers will aim to secure planning consent while retaining as much design flexibility as they can. A particular risk for developers is specifying a specific foundation solution or a maximum turbine size, which may prove to be restrictive at the point of procurement and require the developer to request variations to the consent order. The range of options included in the proposed design is known as the design envelope, which includes a clear upper and lower bound on the scale of the project, for example in terms of turbine tip height.
Developers need to undertake an EIAR, which describes the potential impacts with regards to a wide range of environmental factors. Most offshore wind developers have a predominantly in-house development management capability, with specialist work being outsourced. Specialist suppliers will often second employees into the developer’s team for the duration of the development phase.
Throughout the development process, developers are obliged to seek the views of statutory consultees. These include a wide range of government appointed consultees and authorities, affected local authorities and those that have an interest in the land affected. Developers will also seek the views of local communities including local marine users as part of this process and hold a series of public information and consultation events. Supporting the work will be a range of specialist consultants, covering engineering design, legal issues, land use, environmental and stakeholder relations.
Notable differences for floating
Floating offshore wind farms have a greater seabed footprint than fixed offshore wind farms, requiring multiple anchors for each turbine. They also have mooring lines and dynamic cables in the water column which fixed offshore wind farms do not. These factors require specific engagement and consultation with local communities and fisheries.