Power development – an untapped market for
land agents?
Power developers need land. And they’ll pay good money for it.
Some power developers keep land agents on retainer. And ALL of the developers we spoke to were open to approaches from agents.
(After all, it’s silly to turn down a perfect site).
And, best of all, it enhances your current work, rather than competing with it.
How power perfectly complements your existing work
When it comes to site sourcing, resi is still the king for value.
If you find a site that’s perfect for a housing project, no one would blame you for taking it to a resi developer (not even the power developers).
After all, power developers don’t want to sink time and money into a site, only to be pipped at the post by a resi developer with deeper pockets.
But the best power sites tend to be fundamentally different from resi/commercial.
Greenfield (even green belt) restrictions aren’t a huge issue
The easiest way to get permission for power sites is to aim for brownfield land. It’s an industrial use for industrial land, so from a planning perspective, it tends to be an easy win.
But greenfield, and even green belt, can work, too.
Let’s take a solar project as an example – it’s not the end of the world for many local authorities if a solar application is made on greenfield land.
Because of the project type, it’s often seen as a temporary loss of green land, but a net gain for the environment of the area, because:
In short, greenfield applications are by no means guaranteed, but they’re much more likely to get approval than a residential project.
We spoke to one developer who is waiting for approval on five applications. One is a
brownfield site, the other four are greenfield.
And they were pretty optimistic about all of them.
What makes a good power site?
1) Close to a substation
Physically connecting a power project to the grid is a big part of the cost and logistics of a power project. Generally speaking, the shorter the distance, the better.
As a rule of thumb, a good site is within 5km of a substation (but it can be more for the right project).
Generally, the more power the project generates, the further it can be from the substation and absorb the increased cost of connection.
2) Not too close to dwellings
Distance from houses is good (especially to avoid the wrath of the NIMBY crowd).
It’s generally easier to get approval, and the land tends to be cheaper too, so it’s win-win.
3) Good access
Access via public land and roads is incredibly useful.
There’s the access to set up, the regular maintenance visits, but also that connection again. If you can follow a public road straight to the substation, you’re fine, but if you have to cross five people’s land with cables, they’ll each want a piece of the action…
4) Geographical location
The weather and physical features of land can have a big impact on the power generated.
Solar, for instance, will tend to be further south and nearer the coast (where you’ll often get more sunshine), whereas for wind you might want to head north.
5) Land arrangement already in place
Knowing that the terms are already in place can be very reassuring for the developers.
Have the owners fully agreed to the timeframe, or are they still weighing options? Is it for exclusive access? Will there still be back-and-forth with lawyers?
6) Perhaps unlikely, but having a connection agreement already in place is huge
When applying for a power project, you first have to get a connection agreement – an approval process to essentially reserve your connection (and how much power you can generate).
Getting this takes around 5-15 weeks for a response, and requires a deposit.
If the project then falls through (say, if planning is rejected), you give that capacity back and get most of the deposit back in turn.
It’s very rare a landowner will have done this, but sometimes a land agent with a lot of faith in a site might. It shows that the site is viable, the project likely, and that the agent knows what they’re doing.
And that faith (along with the reduced timeframe) might mean they’re able to charge a premium.
You might find it’s more effort than it’s worth, but it’s something to consider.
Red flags for power projects
1) Substation capacity
Substations operate on a red/amber/green (or RAG) status. Red means they’re approaching capacity, green means they have lots spare, and amber is somewhere in the middle.
If your nearest substation is already at capacity, it won’t be able to handle more input, making the site a no-go for a new solar project, for instance.
2) Planning restrictions
While power might be easier to get approval for than resi in a lot of cases, you still need a realistic approach to the standard constraints.
An AONB, heritage land, conservation area and all the usual planning policies still need to be factored into your plans (and pitches).
3) Environmental studies
Certain wildlife habitats can cause headaches with a site.
That might be ponds with protected wildlife, badgers settled on the land, skylark nests or any number of other species which need careful assessment.
4) Visibility from local areas
While public opinion is shifting towards sustainable energy, people still prefer not to see the projects themselves.
Even if you aren’t close to local housing, visibility can still cause problems. If you can see the project for miles around, it’s not ideal (especially if it’s in the eyeline of a listed building).
Being in a hidden-away valley is great, or with some natural landscape causing a barrier – anything to help the locals forget it’s there.
How to win over power developers
1) Know the issues (if not the answers)
No power developer will expect you to know the answer to everything outlined above, but demonstrating you’re aware of all the issues can really help establish your credibility.
2) Discuss the negatives
No site is perfect, so being upfront and honest about the specific constraints for this site in as much as you can be (see above), goes a long way when you’re discussing the advantages.
“This is grade two agricultural land, but it’s right next to the substation so connection should be simple, and relatively cheap.”
3) Try to talk the talk (but don’t stress over it).
Using the right language for power projects can make things easier, but if you find yourself confusing wattage and voltage don’t fret too much.
None of the power developers we spoke to said they considered this a deterrent – after
all, it’s their job to know those details, so they won’t turn down a site over it.
“The local substation has a demand headroom of nearly 15 MVA, so it should be fine for
new projects”.
4) Want to really impress? Talk about upcoming impacts on substations
Showing yourself as understanding the nitty-gritty of substation capacity will stand you well apart from most other land agents.
What’s the current RAG status of the substation? Are any impending projects due to affect that?
“It’s currently RAG status green, but there’s a project due to complete in 2024 that’ll see that become amber. Still, that should leave more than enough capacity for your project.”
Power project land requirements
Obviously different developers and different projects have different requirements. But here are some ideas to get you started:
OK, great, so how do I find all of that information?
Luckily you can find everything you need to start working with power developers in LandInsight.
We’re trusted by power developers themselves for their site sourcing.
And we’re trusted by land agents too, for work even beyond Power projects.
With LandInsight, you get:
- Substation location and RAG status on an interactive map (with downloadable reports to provide even more detail)
- Planning policy, details on recent applications and even proactive alerts so you know if things change
- Detailed ownership information to know who to approach, and how
