Shares in Renewable Energy Generation (LON:WIND) edged up 1.5% to 48.5p this morning on news that that the UK renewable energy group had received planning permission for the construction of a 4MW wind farm at French Farm near Peterborough in Cambridgeshire. The planning approval allows REG to install two 2MW wind turbines on the greenfield site having successfully negotiated with the Ministry of Defence (MoD) following an objection regarding radar interference. Planning conditions were agreed by both parties in a form that allowed the MoD to withdraw its objection. Peterborough City Council was supportive of the application throughout the process but was unable to grant planning permission because of the MoD objection, which was only resolved during the planning appeal process.

The conditions accompanying the permission potentially require the approval of a scheme to mitigate the impact of the development on two nearby RAF bases. The development cannot be brought into operation until the earlier of approval of the mitigation or the expiry of four years from the date of the permission. Given the company's priority of focusing on projects that will generate near-term commercial benefit, REG is considering the best way to progress any mitigation scheme.

In the formal decision, the planning inspector commented: “There is a wide array of International, European, and UK laws and policies which are aimed at tackling climate change and securing increasing energy supplies from renewable sources. In my opinion, the limited adverse effects arising from the proposed development would not be sufficient to outweigh these very strong material considerations.”

Andrew Whalley, the chief executive of REG, said: “The planning permission granted today is the result of persistence and diligence on the part of our development team over a long period and underpins the value of our organic development activities.”

In the six months to December 31, 2009 (the first half of REG’s financial year), the company took the decision to focus on the UK market and concluded the sale of its Canadian operations for C$125m. During the period, turnover increased by 30% to £3.5m with net losses from continuing operations narrowing from £1.1m in the same period last year to £277,000. It ended the period with seven UK operational wind farms totalling 21.3MW.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here