Wind power leases
Finding suitable land for wind power is a major challenge as there are many competing interests in society. We must consider everything from roads and waterways to areas of high natural and cultural value, housing, defence interests, reindeer husbandry, other national interests, the potential to connect the facility to the electricity grid, wind conditions, and the buildability of the land.
Once we have identified an area of interest, our next step is to contact the landowners concerned to understand their views on a potential project at the site.
We then meet with landowners who have shown interest to discuss the potential project in more detail and to explain how a lease agreement is structured. It often takes several information meetings before a landowner is ready to enter into more concrete negotiations.
The landowner has a significant influence on how the agreement is structured.
Many information meetings may be necessary before landowners are ready to enter into more concrete negotiations regarding the agreement itself. We always offer landowners the opportunity to have the lease assessed by an external lawyer of their choice, at our expense. Landowners obviously have a major influence on how the agreement is drafted.
What type of land are we seeking?
Learn more about the land characteristics we look for when developing projects.
Lease period
Developing a wind farm is a lengthy process that can take between 4 and 10 years to secure all necessary permits, followed by additional time before the wind farm becomes operational.
Once operational, the wind farm typically generates electricity for over 30 years, after which it is decommissioned and the land is restored. For this reason, lease agreements usually span a total of 49 years.
Compensation
Lease compensation is based on a percentage of the wind farm’s revenue, which is distributed among the landowners within the project area. The distribution takes into account the size of each landowner’s property within the project boundaries. Typically, landowners hosting wind turbines on their land receive higher compensation than those who provide land for other uses, such as access roads. The lease payments are made annually and adjusted for inflation.
The amount a landowner earns from a wind farm depends on several factors, including the size of the installation, the number of landowners involved, the distance to the nearest grid connection point, and the type of land. More challenging terrain requires larger investments from us, which can affect lease compensation. Future electricity prices and the actual energy production also impact the final lease payments.
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Company information
We develop, build, and operate projects that promote the global transition to renewable energy.
