Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: September 17, 2024

Purpose:

Content: 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.