A History of Renewable Energy in the UK: + How Landowners Can Keep Up!

Did you know about the first solar energy system founded in 19th-century France? Or perhaps the impressive rise of wind turbines in the UK? Well, the history of renewable energy in the UK goes back further than you might think.

Today, the UK has become one of the largest global hubs for renewable energy.  But just how far have we come in our search for a sustainable and clean energy source in the UK?

Taking a step back in time is always fascinating. And as a result, you might be interested to find out just how relevant renewable energy is becoming.

The government has pledged to make 100 per cent of the UK’s electricity renewable by 2035. Plus, leasing your land for renewable energy projects can be an investment that benefits both the planet and your finances.

If you want to learn more about the history of renewable energy in the UK, read on for my take (and how landowners can keep up).

A Brief History of Renewable Energy

The birth of renewable energy – Middle Ages to 1878

Renewables weren’t a major source of energy in the UK until the mid-1990s. But we’ve been dabbling with wind power since the Middle Ages. From as early as 1185 in Weedly, Yorkshire, windmills were used to grind grain and pump water.

Fast-forward to 1878, where we see real progress with hydroelectric power.

The world’s first hydroelectric power scheme was created in Northumberland by William George Armstrong to power a single lamp. It was a revelation, but it didn’t really catch on. Even after this, coal still produced 88 per cent of electricity, while the other 11 per cent was all about oil.

Modern uses of renewable energy – 1970s to mid-1990s

Then came the coal mining strike of 1972 along with the rise of wind energy and environmentalism in the USA. Off the back of this, there was increasing pressure on the UK to invest in alternative energy sources.

The first major step forward came in 1987 when a 3.7 MW wind turbine on Orkney began supplying British homes with clean energy. Then, the first onshore wind farm was built in Cornwall in 1991. This structure allowed 10 turbines to supply energy to 2,700 homes.

With the help of an offshore wind farm in North Hoyle, the UK increased its electricity generation from renewables to 14.9 per cent in 2013.

Read on to find out:

• How exactly the government supported these pioneers
• What steps they took to achieve this
• How much energy diversification has changed since then

The importance of privatisation

After the oil crisis, the UK government privatised the UK’s energy sector in 1989. They meant for it to bring competition, reduce prices and encourage the growth of renewables.

As mentioned earlier, the first onshore wind farm was developed in Delabole in 1991. It was perfect for a large-scale wind farm, as it received over 40 per cent of the continent’s wind annually.

To encourage the rise of renewable energy, the government commissioned this wind farm and heavily subsidised it.

Getting landowners on board

With the success of the UK’s first wind farm came an influx of landowners wanting to get involved with the growth of the clean energy sector.

Landowners needed to supply the land that was suitable for producing wind energy. So, developers incentivised them with between 1 to 2.5 per cent of the total income that wind farms generated during the 1990s.

When it came to landfill sites, landowners could expect to receive around 15 per cent of the total income from their site.

But incomes can vary widely depending on how you negotiate the contract. So, transparency in the market is crucial for achieving the best percentage share possible.

If you’re looking to get the best terms for your wind farm extension, these power tools will help with your renegotiation process.

What Came Next?

After this huge step forward in the 1990s, the number of renewable energy sites in the UK has rapidly grown.

In 2020 alone, they represented 43.1 per cent of the electricity produced in the UK. This was up from 2 per cent in 1990 and 15 per cent in 2013.

The impact of subsidies is a challenge for landowners

Government subsidies have played a crucial role in expanding the number of energy projects on UK soil.

By 2010, offshore and onshore projects accounted for 40 per cent and 26 per cent of the UK’s renewable profile.

However, cuts to subsidies for these projects in recent years have hit hard. In fact, the government removed support funding for new wind farm extensions several years ago.

However, the government has begun to shift its stance. They introduced the Contracts for Difference scheme, which offers £285 million per year to support low-carbon technologies.

Although the removal of subsidies remains a challenge, new opportunities are emerging. For instance, with the relaxation of electricity supply licensing, there are currently options such as peer-to-peer or corporate power purchase agreements (CPPAs). These would enable a site to generate electricity and for developers to sell it directly to end consumers.

Other challenges landowners have faced

Landowners have had to overcome many obstacles over the years. From endless meetings and contract negotiations to securing planning permission, it’s never easy to get projects off the ground.

Plus, problems don’t necessarily stop once a project is up and running. Whether it’s a problem with late payments, disputes with neighbours or planning permission rules, it’s a tricky world to navigate.

Looking to the Future of Renewables

Renewable energy has come a long way since the days of the first windmill.

Recently, gas prices have skyrocketed as a result of the war in Ukraine and a global boycott of Russian resources. So, the government is constantly on the lookout for cheaper electricity alternatives.

By investing heavily in renewables, the UK will naturally become more self-sufficient through energy diversification.

Rishi Sunak and Liz Truss heavily criticised solar energy and onshore wind farms in the 2022 Conservative leadership race. But it quickly became clear that the general public was largely supportive of cleaner alternatives to traditional energy-sourcing methods.

The outlook is bright for renewables

Despite the turbulence of the UK government in recent years, landowners should be hopeful that clean energy remains the way forward and that net-zero limits will be reached by 2050.

This target will require far more onshore wind and solar projects to reach. So, there’s every reason to believe that renewables will become an even more crucial piece of the UK’s energy puzzle.

Before 2024, there had been a lot of talk about the possibility of loosening planning permission guidelines for new projects. The 2015 footnotes to the National Planning Policy Framework (NPPF) made planning permission incredibly difficult to get. But Labour has recently removed this de-facto ban. So landowners and developers should have a far easier time mounting new projects on their land.

And that’s largely because projects will no longer require unanimous approval from communities or local authorities. By bringing decisions on wind farms back to the national level, we’ll see an uptick in projects getting green-light.

As we look forward to the future, many are asking questions such as:

• How much do wind farms make?
• Will full subsidies return?
• Will the renewable project on my land fulfill its potential?
• Is the outlook still bright for renewables?

Impressive profits still to be made

If you’re worried about the future of renewables, I’m happy to say that I’m seeing landowners receive a share of up to 20 per cent of the total income generated by their wind farm extensions (which is huge).

Income is particularly impressive when the project has been operational for several years and the original investment has been paid off.

It’s also worth noting that sites with a grid connection have become scarce and highly valuable, giving landowners more options when their projects come to an end.

As wind farm projects reach the end of their life, site operators often opt to repower their sites. This essentially means replacing their original turbines with more powerful models.

Not only do these newly commissioned turbines use the latest technology and double their generation capacity, but you can use fewer of them to generate the same output.

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The Takeaway

Renewable energy has come a long way and the future looks bright for its future in the UK.

If you’re a landowner with a project on your land,  be proactive and work closely with your site operator. This will help you establish solid and positive future plans for your renewable energy projects.

This almost always ensures you won’t lose out financially. But it also means you can work alongside your project developer in supporting continued operation and repowering efforts.

With the right help, you can approach your project with greater insights and information than ever before.

By harnessing your newfound visibility and improving your contracts, you can make better long-term decisions about the renewable projects on your land

Over the years, we’ve learned new lessons and gained crucial insights into the renewables industry. Using these, we’ve used to modernise and move our clients’ projects forward. If you need help navigating your wind farm extension or re-powering, get in touch with us. Our expert team will guide you each step of the way to achieve the best possible outcome.