John Alexander

CRE Project Manager

Scottish Power

Cathcart Business Park

Spean Street

Glasgow

G44 4BE

25 June 2008

Dear Mr Alexander,

CONSENT AND DEEMED PLANNING PERMISSION BY THE SCOTTISH MINISTERS FOR THE CONSTRUCTION AND OPERATION OF THE ARECLEOCH WIND POWERED ELECTRICITY GENERATING STATION

1. It is recognised in this correspondence that CRE Energy Limited ("the Company") is the Section 36 applicant.

2. I am directed by the Scottish Ministers to refer to the application dated 27 March 2006, as amended by the supplementary environmental information submitted by the Company on 31 August 2007, under section 36 of the Electricity Act 1989 ("the Act") for the consent of the Scottish Ministers to construct and operate the Arecleoch wind powered electricity generating station in South Ayrshire and for their direction under section 57(2) of the Town and Country Planning (Scotland) Act 1997 that planning permission for the development be deemed to be granted.

3. The Scottish Ministers have considered the submissions prepared by the Company in support of the application, submissions prepared by those bodies approached as part of the formal consultation and all matters raised by other persons. For the reasons set out below, the Scottish Ministers have decided to consent to the application and have issued a direction that planning permission is deemed to be granted.

Description and background

4. The proposed wind farm comprises an array of 60 turbines arranged in an arc across the side slopes of Beneraird and Kilmoray and the summit of Strawerren Fell at the northern end of an extensive area of plateau moorland leading down to Barrhill, in South Ayrshire. Access to the site would be from the A714 at Wheeb Bridge and Bents Farm.

5. The site is covered by the Arecleoch Forest and an area of 573ha of this commercial forest would be cleared for the construction of the wind farm, with 400ha being replanted and the remainder left as open ground for the life of the wind farm.

Consultation

6. A number of relevant organisations and departments were consulted by the Scottish Ministers who have considered all recommendations and imposed a number of conditions as detailed in the consent and identified below.

Planning Policy and Advice

7. Conditions addressing the interests of South Ayrshire Council are detailed particularly in paragraph 6 of the consent (Planning Conditions).

8. There are a number of National Planning Policy Guidelines relevant to consideration of this proposal, including:

National Planning Policy Guideline on The Planning System

(SPP 1 November 2002)

SPP1 provides an overview of the land use planning system and promotes sustainable development by encouraging the use of natural resources, highlighting the Scottish Government's commitment to tackling climate change.

National Planning Policy Guideline on Archaeology and Planning

(NPPG 5)

Indicates that archaeological remains are non-renewable and should be regarded as part of the environment to be protected and managed. Archaeological remains should be preserved wherever feasible and where this is not possible, recorded before destruction.

(SPP 6 Renewable Energy)

SPP6 encourages the development of a diverse range of renewable energy technologies, community and stakeholder engagement, maximising economic and social benefits, guiding development to appropriate locations and providing clarity when assessing specific proposals.

National Planning Policy Guideline on Natural Heritage

(NPPG 14 - January 1999)

NPPG 14 encourages sustainable development in harmony with the natural environment including landscape, habitat and ecology, including those areas which may not form part of a formal designation.

National Planning Policy Guideline on Rural Development

(SPP 15 - February 2005)

SPP 15 encourages modernisation and diversification of the rural economy including renewable energy development.

National Planning Framework for Scotland

Sets out the renewable energy targets as a means to tackling climate change and promoting the Scottish economy.

Planning Advice Note 45 - Renewable Energy Technologies

Provides advice in respect of visual and landscape impact. Developers should seek to ensure that through good siting and design, landscape and visual impacts are limited and appropriate to the location.

The Structure Plan and relevant policies.

9. Scottish Natural Heritage (SNH) initially objected to the proposal on the grounds that there was insufficient information regarding the movements of birds to determine whether there were likely to be significant effects on the qualifying bird interests of the Glen App and Galloway Moors Special Protection Area (SPA). Similarly, it objected due to insufficient information regarding the distribution of birds on the development site. Consequently, an addendum was submitted by the Company in August 2007, that contained further planning and environmental information which sought to address the outstanding consultee issues. In response to this addendum SNH withdrew its objection subject to a number of conditions securing mitigation for protected species and birds, restricting deforestation during the breeding season, securing an onsite Ecological Clerk of Works, a restoration bond, decommissioning plan and ensuring that all work is carried out in accordance with the Environmental Statement and associated documents.

10. In view of the conservation objectives and qualifying interests of the SPA, Scottish Ministers as competent authority, undertook an Appropriate Assessment of the potential impacts of the proposal on the integrity of the SPA. The assessment concluded that the impacts of the proposal would not adversely affect the integrity of the SPA. The effectiveness of any further mitigation measures will be informed by a post-construction bird monitoring programme, which will be required and is secured by condition. SNH also recommended several other ecological conditions which are included in the consent.

11. The Scottish Environment Protection Agency (SEPA) considered the information provided in the Environmental Statement and the Addendum. Its principal concern was for water pollution during the construction phase and a condition requiring the preparation of a construction method statement has been included in the consent attached at Annex D in order to address their concerns.

12. Without prejudice to the determination process under the Water Environment (Controlled Activities) (Scotland) Regulations 2005, SEPA are content on the basis of current information that the proposal's details will be unlikely to cause a significant problem in the granting of authorisation. SEPA have assessed the development and allocated a Category 1 status which is defined as "the proposal accords with the Water Framework Directive" and is capable of being authorised.

13. The Ayrshire Rivers Trust and the Stinchar DSFB agreed with the choice of water culvert types for the crossing points identified and made recommendations on positioning, size, incline and monitoring of the proposed culverts. They raised concerns over the acidic effects at specific times of the year on the water courses and fish stocks of Sitka Spruce replanting, stating a preference for a higher percentage of broad leaf tree planting. They also had concerns over forestry removal techniques and the potential damage to the Water of Tig, Duisk and Stinchar River sub catchments from chipping and mulching operations. The Company must exercise caution and adopt best practice techniques when undertaking deforestation work, tree planting and excavation activities to prevent any pollution to local water courses.

14. The Galloway Fisheries Trust has worked closely with the Company over the last 3 years to assessment the potential water and fish impacts of the development. The Trust represent the views of Luce DSFB and Bladnoch DSFB which were concerned about the impact on nearby watercourses especially from siltation from work being carried out to upgrade access tracks. It is strongly recommended the Company works closely with the Planning Authority in consultation with other statutory consultees and Fisheries Trusts to develop an effective maintenance programme for road crossings, construction method statements and a monitoring programme for fish and habitats, prior to the commencement of construction work.

In order to safeguard the fish stocks in the relevant rivers and catchments, the Company should seek to establish hydrochemical, electrofishing and macro-invertebrate baseline data, identify suitable control sites away from the potential impacted areas and detail an action plan outlining what they intend to do in the event of a pollution problem. It is further recommended that the electrofishing monitoring programme should be undertaken at the end of the summer, macro-invertebrate surveys be carried out during spring and water quality analysis performed at a monthly basis as a minimum.

Baseline hydrochemical conditions should also be assessed under a range of flow conditions at appropriate spatial and temporal resolutions (fortnightly to monthly) and continuous stage data and turbidity data should be collected on potentially impacted tributaries and at a suitable control site.

15. The Royal Society for the Protection of Birds (RSPB) raised concerns over the potential impacts of the wind farm on breeding barn owls. They also raised concerns over the Glen App and Galloway Moors SPA qualifying Hen Harrier species. However they were satisfied the Environmental Statement thoroughly assessed the potential impacts on Hen Harrier and other species of conservation interest and given the survey data used, were satisfied with its conclusion that the development will not have an adverse impact on the integrity of the SPA. In their latest response, RSPB reiterated their position of not objecting to the proposals subject to specific mitigation measures being imposed as well as the monitoring and reporting of results through a Steering Group, which could consider and instruct further mitigation measures, if necessary.

16. Historic Scotland had concerns over the potential visual impacts on the archaeologically rich landscape to the south of the proposed wind farm. Following further assessment of these impacts they concluded that there would be no significant impact on any listed buildings, designated gardens or designed landscapes. An archaeologist should be given access to the site and consulted during the construction stages of the development when necessary.

The Applicant's Case

17. You have outlined the process which led to the selection of this site. A continual process of review and comparison against specific criteria formed the basis upon which potential sites were filtered through the selection process. At any point where such a site was shown to conflict with a criterion to the extent that there was unlikely to be a reasonable solution, the site would no longer be considered suitable for wind farm development and deleted from the search. This process of elimination led to the Arecleoch site being considered by you as suitable for development.

18. You have been aware throughout the process that the landscape and visual impacts of the wind farm are a key issue in the assessment process. You have set out comprehensive information on landscape character and landscape designation. The Environmental Statement assesses the impact of the wind farm and ancillary elements on landscape character, visual amenity, cumulative impact, and construction impacts.

The Scottish Ministers' Considerations

19. In assessing the ecological impacts of this proposal, the Scottish Ministers are of the opinion that the ecological effects of the wind farm are not likely to be significant and that, subject to conditions, there is no reason why this proposal should be rejected on ecological grounds. An Ecological Clerk of Works shall be appointed to monitor compliance with the ecological works which have been approved in the consent. The Ecological Clerk of Works shall also advise the Company on the conservation of nature, and advise on micro-siting of turbines and tracks. The ecological issues are addressed by conditions 6.50 - 6.56.

20. In assessing the ornithological impacts of this proposal the Scottish Ministers have determined that there is a need for a continuing programme of bird monitoring and mitigation is required to protect breeding barn owls, merlin and hen harrier. This has been secured by conditions 6.57 - 6.60.

21. In assessing the water environment impacts of the development, the Scottish Ministers consider it necessary to protect water quality and control pollution. SEPA have requested that rigorous environmental precautions and procedures are undertaken by you during construction. In this respect Scottish Ministers have applied water environment and pollution prevention conditions 6.6, 6.7 and 6.41 - 6.49 to address these important issues.

22. In considering the archaeological impacts of the development, the Scottish Ministers are content with the advice from Historic Scotland that the development will not impact on heritage interests. Nevertheless Ministers consider that in view of the risk of development unearthing previously unrecorded remains, an archaeological mitigation plan should be adhered to throughout the construction period. Archaeological interests are addressed by condition 6.12.

23. In assessing the transport, public access and noise impacts in respect of the proposals, Ministers consider it necessary to minimise disturbance of the community in the vicinity of the site during and after the construction stage. Ministers are content with the advice from the Council in respect of imposing detailed conditions to safeguard the public and limit the effects on local amenity. The road construction, micro-siting, traffic management, safety and public access issues have been addressed by conditions 6.13 - 6.24. The noise related issues are addressed by conditions 6.28 to 6.36.

24. The Environmental Statement and supporting technical information identified small pockets of peat within the site boundary. Following assessment, Scottish Ministers are satisfied the Company has taken into account suitable mitigation measures to manage the risk of peat landslide associated with the development, provided some minor typographical and reference errors are corrected in the submitted peat landslide report. Scottish Ministers also expect the proposed mitigation measures set out in tables 16 and 17 of your submitted assessment report are incorporated into the Geotechnical Risk Register for all moderate and high risk areas. It is also expected that the geotechnical risk management process is continued for the duration of the project. Conditions 6.37 and 6.39 are imposed to mitigate the risk of peat landslide.

25. The Environmental Statement and supplementary information submitted by the applicant was assessed in respect of national and local economic benefit. Scottish Ministers consider the development will make a valuable contribution towards achieving renewable energy targets which aim to combat the effects of climate change. It was also considered that the development accords with government policy to grow the Scottish economy and SPP6 planning guidance on renewable energy. The Environmental Statement and supporting information estimates 100 -150 construction jobs will be created during the 36 month construction period and an estimated £25 million will be spent on construction of civil and infrastructure works. Once the wind farm is operational, it is anticipated up to 5 -10 operational and maintenance jobs will be created, and further opportunities will exist for local businesses to provide services and materials related to the maintenance of the site. The Company is also committed to encourage local companies to tender for such work to help maximise benefit to the local community.

Scottish Ministers' Determination

26. In terms of Schedule 8 to the Act, if the planning authority makes a valid objection and does not withdraw it, the Scottish Ministers must convene a public local inquiry ("PLI") before determining the application. As South Ayrshire Council supported the application subject to conditions being imposed, in this instance, causing a PLI to be held for the Arecleoch wind farm proposal is not a statutory requirement.

27. Following consultation, Scottish Ministers received 20 representations pursuant to the Electricity (Application for Consent) Regulations 1990 ("the 1990 Regulations"), and these were taken into account as part of the determination process. The representations were duly considered and conditions have been included to mitigate concerns in respect of noise, ecology, visual amenity, transport and traffic. The Scottish Ministers are satisfied that whilst this development may have a temporary impact on the amenity of local residents, this is outweighed by the benefits of renewable generation.

28. The Electricity Works (Environmental Impact Assessment) (Scotland) Regulations 2000 ("the 2000 Regulations") prohibit the Scottish Ministers from granting consent unless they have fully considered the environmental information, as defined in those Regulations. The Scottish Ministers have considered the environmental information carefully; in addition to the Environmental Statement and supplementary Addendum, they have considered the submissions prepared by the planning authority, those designated as statutory consultees in terms of Regulation 6 of the 1990 Regulations and those of the consultative bodies in terms of the 2000 Regulations. They have also considered representations made by other persons about the likely environmental effects of the proposed development.

29. Scottish Ministers are content they have had access to sufficient information to allow them to make a determination on the application. Scottish Ministers have duly considered all material issues relating to the application. Following consultation, a number of additional generic conditions have been applied to the consent which reflect the evolving legislation and nature of wind farm development and seek to build on good practice.

30. Schedule 9 of the Act places a duty on the Company to have regard to the desirability of preserving the natural beauty of the countryside, of conserving flora, fauna, and geological and physiographical features of special interest and of protecting sites, buildings and objects of architectural, historic, or archaeological interest. It requires the Company to do what it reasonably can to mitigate the effects that the development would have on these features. Schedule 9 also requires the Scottish Ministers have regard to these features and the extent to which the Company has complied with this duty.

31. Scottish Ministers are satisfied that the Company has had due regard to these features and complied with this duty and consequently consent to this proposal and the mitigation measures to be implemented in terms of section 36 of the Electricity Act 1989, and issue a direction that planning permission be deemed to be granted in terms of section 57(2) of the Town and Country Planning (Scotland) Act 1997. The section 36 consent is subject to 7 conditions and the deemed planning permission is subject to 64 conditions. A copy of the consent is enclosed with this letter.

32. Copies of this letter and the consent have been sent to South Ayrshire Council as the Planning Authority, and to statutory consultees, Scottish Natural Heritage and the Scottish Environment Protection Agency. Both documents will also be made available on the Scottish Government website;

http://www.scotland.gov.uk/Topics/Business-Industry/Energy/Energy-Consents

33. Finally, within 2 months of the approval of the development (and within two months of the final commissioning if there has been any variation on the original approved plan), the Applicant shall provide to the Scottish Ministers a detailed plan showing the site boundary and all turbines, anemometer masts, access tracks and infrastructure in a format compatible with the Scottish Government's Spatial Data Management Environment (SDME), along with appropriate metadata. The SDME is based around Oracle RDBMS and ESRI ArcSDE and all incoming data should be supplied in ESRI shapefile format. The SDME also contains a metadata recording system based on the ISO template within ESRI ArcCatalog (agreed standard used by the Scottish Government) and all metadata should be provided in this format.

Yours sincerely

COLIN IMRIE

A member of the staff of the Scottish Ministers