Acquisition of wind power generation rights

How many merger & acquisition deals are there in wind energy?

The number of merger and acquisition (M&A) deals increased considerably in the wind energy sector globally. On May 9, 2022, BP plc, an oil and gas company, planned the acquisition of a 30% stake in the Asian Renewable Energy Hub (AREH) project, from CWP Renewables, Intercontinental Energy, Vestas, and Macquarie Group for $36 billion.

Can a landowner retain rights to a wind energy facility?

If a landowner seeks simply to retain the rights to revenue from wind energy facilities on property to be transferred, the landowner should work closely with counsel to ensure that what they want to do is lawful, allowed under and consistent with their Wind Energy Land Agreement, and clearly documented on the record.

What is a wind energy land agreement?

The basic Wind Energy Land Agreement typically provides the developer with an initial period to investigate the underlying property and related parcels that it proposes to develop for its project. After the initial period, if the project goes forward, project construction and operation follows.

How can a landowner control a wind energy project?

An effective way to gain this control is to encumber enough property to construct, operate, and protect the project and its wind resource and to include noninterference covenants in the Wind Energy Land Agreement that limit the landowner’s right to interfere with the wind flow over the property.

Can a landowner harvest timber on a wind energy project?

Consequently, most Wind Energy Land Agreements provide that the landowner may continue to conduct its farming, ranching, or timber harvesting activities on the property outside the actual project facility footprint, provided that such activities do not and will not interfere with the construction and operation of the wind energy project.

Can irrigation water rights be used for wind projects?

For instance, an “irrigation” water right may not lawfully be used for non-irrigation wind project purposes. Aggregate, sand, and rock from an existing quarry or deposit on the project land can save a developer time and money and provide another revenue stream to the landowner. Pricing on such resources is a subject for negotiation by the parties.