Do you know how to procure a renewable energy plant and sell the renewable output?

Increasing renewable energy generation is one of the major targets of the government in its aim to combat global warming, reduce carbon emissions and ensure the country becomes more environmentally friendly. Renewable energy is safe to produce, won't run out (unlike oil, gas and coal) and is less polluting to the environment. Homes, schools, businesses and other public and private sector buildings can have an important part to play in tackling climate change by generating their own renewable energy.

Planning permissions for new property developments, both for commercial and residential use, are increasingly likely to be conditional upon the development using on site renewable energy for at least part of its energy requirements. To be successful when tendering, especially for government projects, property developers are more likely going to have to stipulate how they will source renewable energy to cover at least some of the development's energy needs.

Planning Policy Statements are prepared by the government to explain statutory provisions and provide guidance to local authorities and others on planning policy and the operation of the planning system. Local authorities must take their contents into account in preparing their development plans. The guidance may also be relevant to decisions on individual planning applications and appeals. A planning policy statement issued by the Department for Communities and Local Government on the 17 December 2007 entitled Planning and Climate Change states that all councils should require the provision of, and set targets for the use of, onsite renewable energy schemes and local community energy schemes to help reduce carbon emissions in new developments.

Becoming a renewable energy producer does not necessarily mean increased costs. Government support mechanisms mean that renewable energy can be a valuable commodity. You can choose to sell the energy generated by the project, or to sell the project itself.

Use of on site renewable energy technology is also a significant component for achieving zero carbon homes with potential stamp duty benefits for purchasers and can, therefore, be a powerful marketing advantage. The government has recently made it easier for householders to install equipment for microgeneration on their properties, including solar PV, heat pumps and biomass heating, This is likely to be followed with similar permitted development rights for wind energy and air source heat pumps, subject to clearance from the European Commissions. The government is also exploring legislation to extent similar PD rights to commercial and agricultural premises.

However, for many property developers, developing small scale renewable energy plants is a new challenge and may require some outside expertise, knowledge and assistance. This publication sets out the main alternative renewable energy options, provides a step-by-step guide to successfully delivering a renewable energy project and explains how Wragge & Co can help you should you need assistance.

Ways to generate green energy

Wind turbines

A single wind turbine installed at the development can be sufficient to provide all the energy requirements for a development. According to the British Wind Energy Association, the UK has the best wind resource in Europe, an asset which has the potential to provide a considerable proportion of the UK's energy needs in years to come. The Department for Business, Enterprise & Regulatory Reform estimates that by 2050, around 6% of UK's electricity generation could be produced from small wind energy generation.

Biomass plant

Biomass boilers can be used to provide heat and/or power. Natural materials such as trees, crops or animal dung are processed to create bio energy in the form of electricity, heat, steam and fuels. Unlike fossil fuels, which take millions of years to create, biomass can be replaced relatively quickly without permanently depleting the Earth's natural resources.

Solar

Solar power describes a number of methods of harnessing energy from the sun for heat or electricity. Solar power can be used to generate electricity through the use of solar photovoltaic (PV) panels, which turn light directly into electricity. Solar PV systems work even on cloudy days as energy comes from indirect sunlight. Even if solar radiation levels are low there is usually still enough solar heat and sunlight to generate hot water and some electricity for most of the year. Solar energy projects tend to be small-scale and are suitable for domestic and office buildings.

Hydroelectric

Hydroelectric power is generated from flowing water. Usually, the mass of water trapped behind a dam is passed through a turbine, generating electricity. It can be generated on a small scale as well. If water is taken down a pipe to a turbine it will push the turbine round as it flows through on its way. Mechanical power produced by water in the turbine is turned to electrical power by a generator.

Ground Source Heat Pumps

These pumps transfer heat from the ground into a building to provide space heating and, in some cases, to pre-heat domestic hot water or to drive turbines.