Land Lease Agreements

Land Lease Agreements are used whenever the government owns the land of the site of a project and leases it to the operating company or concesionnaire for the period of the concession contract. In an independent power project, the Land Lease Agreement could be a stand-alone agreement, or its main provisions can also be included in the Power Purchase Agreement or Implementation Agreement.

Australia

Land Lease Agreement (Solar Farm) may also need to be negotiated with private land owners or even local community groups. In certain remote parts of Australia, a part of a project site might be held by a local indigenous community through a registered corporate entity (called indigenous corporation). This sample land lease agreement was entered into between a solar farm project company and an indigenous corporation (which owned part of the project site). In addition to standard land lease provisions, the agreement imposed an obligation on the solar farm project company to provide employment opportunities to members of the indigenous corporation.

This Wind Farm Guide for Host Landholders was produced by New South Wales Farmer’s Association in Australia. It sets out an overview of common legal issues and market practices in respect of the negotiation of land lease agreements for hosting renewable projects in Australia.

The following is a sample stand alone Land Lease Agreement created for an independent power project in South East Asia.