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The communities or private property owners capable of convert to farms also become beneficiaries of the wind investment. They receive an annual rent and, depending on the number of machines they accommodate, this rises if it is found that the area is used for other purposes.
Investor experience so far indicates that the proprietors of land destined for farms, depending on the area and the time, opt for sale or rent. The companies enter meeting all the possible prerequisites of the property - not withstanding that the predilection is not always legally possible. If for example, the farms are installed on mountains that are common land or in similar conditions, only rent and not sale is admissible. This explains how the leasing regime maintains an important relevancy for the land availability process.
Finally, there are other sectors of the local economy that also benefit from the works, such as the councils, which receive a Municipal Works Starting Licence of between 6,000-6,300 Euro, with an average per park of 6,141 Euro. Apart from this timely investment, the councils benefit from the recurring deposits obtained through taxes, such as the IAE (Tax on Economic Activities) (from 332,21 Euro per GWh-year) and the IBI (Real Estate Tax).
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Land returns in Galicia
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Wind farm rent
Common land
Woodland areas with high wind potential
Pasture
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90.000 €
18.000 €
4.500 €
6.000 € |
Land management is a crucial factor for wind farm development and its degree of social acceptance. If well distributed longitudinally, the wind farms occupy a reduced area. Due to the very common custom of parcelling land in Galicia numerous holdings are often affected, which fall under the same project.
Mill installation teams and other units work under a strictly controlled regime with specific when the blades are in action. It is estimated that the global machine coverage is approximately one hectare, taking into account access, etc.
The present trend to install machines with greater power has the effect of increasing the area per aerogenerator whilst reducing the area size per megawatt.
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Ecyr
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Land can be bought or rented by the landowner for which there are two classes of contractual relationship:
- A trade contract: The buyer acquires the property rights to the land corresponding to the farm, making a one-off payment.
- A leasing contract
- A limited contract equal to the lifespan of the farm.
- An annual payment by way of rent. This can be a fixed figure or linked to production.
Traditional land use in the areas of installation is free-range stock, pasture and forestry, the returns from which are usually low: Less than €250/hectare/year and less than €700 annually in the latter.
With wind farms, the land acquires a new use with a larger return and is compatible with existing uses: Annual payment is between 3,000 and 5,000 Euro per aerogenerator, whereas the return per hectare is approximately 3,500 Euro per annum.
The percentage of amicable agreements in farm development is high. As with electrical installations, the wind farms are declared public use. Expropriation allows the resolving of ownership problems (landowner unknown, contradictory deeds).
The present situation is that, from the beginning, the landowner views the wind farms as enhancing the land value, in a way that is compatible with prior uses. Misperceptions regarding the rental of wind farms have occasionally occurred, with disproportionate expectations. The payment policy for land use must be just, transparent and sustainable.
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