Oireachtas Joint and Select Committees

Tuesday, 8 October 2013

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Location of Wind Turbines: Discussion

2:50 pm

Mr. Andrew Duncan:

I am a professionally qualified auctioneer, not a solicitor, as Mr. Kennedy referred to me.

Much of the empirical evidence on the impact of wind turbines on property values is based on large data pools, predominantly from the United States, covering a large area. The data include transactions up to ten miles from wind farms. When looking closely at the data and the areas 2 km from wind farms, even the reports from proponents of wind farm development indicate an average diminution figure of 25%. It is a consistent figure throughout the reports.

The Department for the Environment, Food and Rural Affairs in the United Kingdom has commissioned a report on the impact of renewable energy projects on the rural economy. It has been reported that the report has been suppressed by the Department of Energy and Climate Change because the impact of wind farm developments on nearby properties is so drastic that it may damage wind farm development proposals. We hope the report will be published to bring clarity to the matter.

The studies predominantly put forward as evidence from wind farm developers that there are no issues with the Lawrence Berkeley National Laboratory studies and they are flawed. They look for the problem ten miles away when the problem is within 2 km. The Danish experience involves a compensation scheme. The Royal Institute of Chartered Surveyors in England has carried out a survey of its membership and the consensus in the auctioneering profession is that there is an impact on property values. It is predominantly based on the overall size and dominating impact of the turbines and their proximity.

With regard to the question on spatial distribution asked by Deputy Catherine Murphy, we need only look at Ireland's spatial distribution to see the actual impact. In the case of one wind farm in Killucan, County Westmeath, we have analysed the figures for 200 homes within 2 km. Based on property tax estimates, the value of each home is €175,000. Using the figure of 25%, this amounts to average equity taken out of the homes of €8 million to €10 million. If we transpose this figure across the 100 proposed wind farms in the midlands, a serious problem is looming.

Article 3 of the environmental impact assessment relates to the Deputy Catherine Murphy's question. Ireland could very well find itself involved in a case for compensation payments. The planning authority directly responsible for carrying out the environmental impact assessment is An Bord Pleanála, which drags that body into proceedings. If there are consequences thereafter, the State may face compensation claims.