Kinnaird Hydro Scheme, Pitlochry

Negotiation is key to securing water rights and installations for a hydro scheme

Brief

Bell Ingram were instructed by a landowning client to assist in developing a 250kw hydro scheme on his estate. The hydro scheme, which would take water from Kinnaird Burn (located on the boundary of the estate), required the negotiation with adjoining estate owners over water rights and for the installation of an intake. In addition other parties had rights to water from the burn and their agreement was required for the abstraction of water from the burn.

Process

Initially a cashflow was prepared by Bell Ingram and the levels of rent to be offered to the third parties was agreed with the client. Negotiations were then held with the adjoining estate owners and their agents for the terms for the leases for both water rights and the installation of an intake. Negotiations were also held with two other interested parties over securing their agreement to grant rights to abstract water for the scheme. Having reached agreement on Heads of Terms with adjoining landowners, these were incorporated into draft leases which Bell Ingram assisted the client's lawyers in preparing and agreeing with all the interested parties.

Outcome

Assistance was also given to the client in the planning application and in negotiations with SEPA and with a number of other objectors to the scheme, which included the local Fisheries Board and Angling Club. The scheme was subsequently built in late 2008 and has been operational ever since, with leases and agreements in place with the adjoining landowners. Bell Ingram now manage the accounts for the hydro scheme, including sale of electricity and securing ROC and other payments.

Article posted on 01/01/2010

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