Abstract
- We have been instructed by the Offshore Wind Industry Council (OWIC), through their Strategic Compensation Studies (SCS) project, to advise on a proposed developer-led ornithological strategic compensation measure (SCM, or DL-SCM); namely a predator-reduction measure.
- OWIC have been considering options for DL-SCM in order to help address the challenges that Offshore Wind Farm (OWF) developers face in securing compensation for the predicted adverse impacts of their projects on ornithological receptors. We understand that OWIC has been progressing a specific predator-reduction DL-SCM, with a view to specific OWF projects being able to rely on the measure as part of their live consent applications.
- The OWIC instruction refers to three Phases of workstream. As agreed with OWIC, this Note addresses Phases 1 and 2, namely:
- Phase 1 - Whether a DL-SCM is lawful and practicable; and
- Phase 2 - Considering and recommending options for the possible approach, structure, functioning and delivery body of the predator-reduction DL-SCM.
- In terms of Phase 1, we conclude that developer-led strategic compensation is in principle a lawful approach to satisfying the legal requirements of the relevant legislation, guidance and policy. The question of legality for compensation is whether it is rational and reasonable for the decision-maker to conclude that the relevant DL-SCM will secure the overall coherence of the affected site. Subject to the relevant ecological and ornithological evidence regarding the strategic compensation measure, there is no in-principle hurdle posed by a developer-led strategic form of compensation that presents a barrier to satisfying that legal test. We also see no barrier posed by the existing policy or guidance.
- In terms of Phase 2 we have considered and provided advice on the various options that could be pursued to structure the proposed predator-reduction strategic compensation measure, including proposals for the delivery body and/or delivery mechanism. We have closely followed the scope provided by OWIC in addressing Phase 2, and have supported this analysis with structure charts, tables and diagrams to help present the advice with visual tools.
- Overall, in respect of Phase 2, we envisage that OWIC may wish to consider this Note in light of its interim capacity study and ongoing discussions with developers, following which it may be that some of the options currently set out in Phase 2 can be eliminated. The Phase 2 section will help inform future discussions with developers as well as the establishment of a pilot delivery model, which is the intention of Phase 3 of the OWIC scope.
- It is anticipated that the law and policy relevant to this Note will be updated in the near future, as Government introduces new legislation and guidance and as the offshore wind market adapts to that evolving landscape. Therefore, this Note captures the position as at the issuing date of this Note.
- We look forward to continuing our work with OWIC on the development of the predator-reduction DL-SCM.