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RESOLVED:  Cabinet to recommend to Council the allocation of
an initial capital budget of £1.272 million to allow the
progression of the project, focused on detailed environmental and
planning assessments of the sites as well as assessing those sites
considered suitable for solar battery storage.
 
REASONS RESOLVED:
1.    
To support achievement of the Council’s goal
of net zero carbon operations by 2030 and contribute to the goal of
net zero carbon West Northamptonshire by 2045.
2.    
To generate income and reduce costs.
3.    
To effectively manage the Council’s risk
exposure from existing energy sources and prices.
 
ALTERNATIVE OPTIONS:
·      
For the sites which are judged suitable the Council
has choices about whether to develop them itself – taking all
the risk and reward – or to work with a private sector
partner. A number of factors are likely to affect these decisions
including:

a)   
The scale of investment required, as higher
investment may generate higher rewards but also expose more of the
Council’s investment to risk.

b)   
Whether the Council is happy in each case to tie up
a site (typically for 40 years) and face either significant limits
or significant costs if it wishes to use it otherwise in that time.
This is likely to be a more important consideration where buildings
such as multi-storey car parks are considered, as the Council may
need to alter or remove them over such a period.

c)    
Whether there are any technical or other special
risk factors. Photovoltaics are now an established and mass
manufactured product, but in some cases more innovative approaches
might be called for.

d)   
Whether there are opportunities for allied
benefits.

e)   
If a partner is used, how to maximise the overall
benefits to the Council. Specifically, Clear Futures has advised
that the optimal return from a private sector partner comes when
the landowner puts in at least around 20% of the capital value as
an investment. This sharing of risk generates confidence in the
external investor and therefore helps reduce the cost of their
share of the capital.
 
·      
Given these factors, the recommended approach at
this stage is a split one. For ‘small’ sites such as
those on multi-storey car parks it is suggested the Council fully
funds and controls the schemes. This limits the Council’s
exposure to risk whilst retaining the ability to make changes
without the involvement of a third party. For larger schemes the
choice is a balance of risk and reward. 100% investment may be
justified, but this requires further work before a firm
recommendation can be made.

 
·      
There are also choices about ancillary technologies
and systems to deploy as part of schemes. As noted above,
consideration should be given to evaluate the benefits to install
battery storage so that the power generated can be used or sold at
times when the price of electricity is highest. Less likely but
possible is production of ‘green’ hydrogen for vehicle
use. In some cases, additional forms of renewable generation may
usefully work alongside photovoltaics. There are also potential
synergies with the Council’s work on a sustainable heat
network: this is expected to use large heat pumps, so powering
those by WNC controlled renewable energy would have
benefits.