# Federal Court of Justice on Usage Agreements for Wind Turbines

Source: https://www.mtrlegal.com/en/federal-court-of-justice-on-usage-agreements-for-wind-turbines/ · Language: en · Updated: 2025-10-06

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## Judgment of the Federal Court of Justice dated 12.03.2025, Case No. XII ZR 76/24

With its judgment dated March 12, 2025, the Federal Court of Justice (BGH) has made a fundamental decision regarding the legal classification and terminability of user agreements for wind turbines (Case No. XII ZR 76/24).

Especially in connection with user agreements, legally secure contract drafting is of central importance, where particular attention must be paid to the formulation of a clear contractual clause in order to avoid later ambiguities and conflicts.

It is not uncommon for parties to a user agreement to tie the start of the contract term to an uncertain event, such as the commissioning of a wind turbine. When drafting such contracts, the risks and the importance of an unambiguous contractual clause should be taken into account. The BGH has now made it clear that the contract term begins only when the event occurs—i.e., for example, when the wind turbine is put into operation, explains the business law firm MTR Legal Rechtsanwälte, which, among other things, advises on energy law.

## Landowner terminates contract

The underlying case involved a user agreement between a landowner and a wind energy project developer. A central element of this contract was the usage fee, which governs the remuneration for granting the land to the project developer. Although the contract had already been concluded in 2017, no wind turbine had been constructed even by 2022. As a result, the landowner declared an ordinary termination of the contract. The BGH ruled: The termination is invalid.

At its core, the case questioned whether, and under what circumstances, a landowner can ordinarily terminate such a contract during the so-called pending phase—i.e., before a wind farm is actually built and put into operation. The contract provided for a duration of 20 years, but only from the year in which the last wind turbine of the planned wind farm is commissioned. It also contained certain provisions, such as a right of withdrawal for both parties if an emission control permit for the wind farm is not granted within five years. Careful structuring of termination and withdrawal rights in the contract is particularly important. The contract did not contain an explicit provision for ordinary termination. Only the right to extraordinary termination for good cause was stipulated.

Especially for projects in the field of renewable energies, long-term and legally secure land use is decisive for the success and feasibility of the project.

## Ordinary termination may be possible

The BGH classified this so-called land use agreement as a lease contract. This means that, in principle, an ordinary termination is possible unless it is expressly or implicitly excluded by the contract, whereby the legal framework of contract drafting for user agreements is decisive.

In the specific case, the BGH found that the agreed contract term of 20 years begins only when the last wind turbine is commissioned. The term is subject to a so-called suspensive condition. This means: The contract term only begins once a certain future event, whose occurrence is uncertain, takes place. Until that time, there is an unlimited lease contract, with the right of disposal over the area remaining with the owner during the pending phase. This contract is, in principle, terminable, but in this case, ordinary termination was implicitly excluded, according to the BGH.

## Ordinary termination implicitly excluded

In explaining its reasoning, the Karlsruhe judges stated that the contract explicitly only contained a provision for extraordinary termination, but not for ordinary termination. Furthermore, the contract provided a detailed right of withdrawal if, within five years, no permit for the wind farm was granted. From this, the BGH concluded that the parties understood this right of withdrawal as an exhaustive provision for dealing with delays or uncertainties during the approval phase. If ordinary termination were also possible, this contractual right of withdrawal would largely be rendered ineffective.

Within the framework of the user agreement, the right to use the land is granted to the developer, with the contractual clauses safeguarding the rights and duties of both parties throughout the entire duration of the agreement.

Another aspect was whether the exclusion of ordinary termination withstood a review under general terms and conditions law. The BGH answered this in the affirmative. The landowner is not unreasonably disadvantaged thereby. The owner still has the right to use the land for other purposes, such as agriculture, until actual construction begins. Additionally, under certain conditions, the owner can withdraw from the contract should the project not receive a permit.

## Technical aspects of wind turbines

Wind turbines are highly sophisticated technical systems that efficiently harness the power of the wind to generate electricity. At the center of a modern wind turbine is the rotor, whose large rotor blades capture the wind and convert it into rotational movement. This movement is transferred via the nacelle, which houses the generator, gearbox, and all control systems, and is converted into electrical energy. The generator is the core of the system, ensuring that the kinetic energy of the wind is transformed into usable electricity.

The rotor blades are usually made of glass fiber reinforced plastic or carbon fibers, which give them high stability and optimal efficiency. Through the continuous advancement of technology and the enlargement of the rotor area, the rated output of modern wind turbines has been significantly increased in recent years—today, individual turbines can achieve an output of up to 6 megawatts or more. The control system of the wind turbine ensures efficient and safe operation even under varying wind conditions. Performance increases are primarily achieved through innovative rotor blade designs and improved aerodynamic properties, enabling wind turbines to extract more and more energy from the wind.

## Environmental aspects of wind energy use

The use of wind energy brings numerous benefits for the environment and climate. Wind turbines enable sustainable electricity generation because they do not emit greenhouse gases and reduce dependence on fossil fuels. In this way, they make an important contribution to the energy transition and achieving climate targets in Germany.

At the same time, the construction and operation of wind turbines pose environmental challenges. For example, birds and bats can be endangered by collisions with rotor blades, and natural habitats in the vicinity of turbine sites can also be adversely affected. For this reason, careful planning and site selection for wind turbines is of great importance. In Germany, permitting procedures for wind energy projects are strictly regulated to minimize impacts on nature and the environment.

The federal government has set ambitious targets: By 2030, the share of wind energy in electricity generation should rise to 65 percent. Thus, wind energy will become a central pillar of energy supply and climate protection. Careful consideration of environmental aspects in the use and construction of wind turbines remains a key concern to ensure acceptance and the sustainable expansion of this technology.

## Ruling significant for the energy sector

The BGH’s decision is of great significance for the wind energy sector and comparable projects in the field of renewable energies. For wind farm operators, securing land use for the entire subsidy period is essential to ensure smooth operation of the installations. Through the judgment, project developers gain planning certainty. They can rely on the fact that user agreements, which under certain conditions only commence their full term years after the agreement is signed, cannot be unilaterally terminated by ordinary termination. At the same time, the BGH confirms that a well-considered contractual balance is possible and permissible as long as certain rights of the landowner are preserved.

For landowners, the judgment means that a mere lack of project progress is not usually sufficient to exit a long-term user agreement early, unless a corresponding right of withdrawal has been explicitly agreed upon in the contract. The course of the contract term and the importance of clear provisions for the dismantling of turbines after the funding period are thus particularly emphasized.

MTR Legal Rechtsanwälte advises on user agreements and related topics of [energy law](https://www.mtrlegal.com/offices/deutschland/energierecht/). The judgment also sets a precedent for future projects and strengthens the legally secure implementation of wind energy projects by clarifying the requirements for contract drafting and for carrying out the respective project.

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