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Agenda item
An Energy Transition for Hastings
(Cabinet Decision)
Minutes:
The Income Generation Manager presented a report which updated the council on income generation opportunities through the generation and supply of renewable energy. The report set out outcomes which may be achieved over the short, medium and long term and the levels of investment required to assess these opportunities further.
In summer 2017, the council commissioned an energy options study. The study recommended a number of efficiency measures which the council could implement on the buildings it owns to reduce energy consumption and associated costs. The recommendations will be implemented as part of the council’s renewals and maintenance plans.
The study also identified potential opportunities for the council to gain additional income by the generation and supply of renewable energy. These opportunities would require further investigation, and it was recommended that the council develop an energy strategy to co-ordinate and prioritise this work and provide a framework for joint working and exploring funding opportunities.
Members commented that many of the opportunities described in the report could provide economic, social and environmental benefits to the people and businesses of the borough, as well as generating additional income for the council.
Councillor Chowney proposed approval of the recommendations to the report, which was seconded by Councillor Beaney.
RESOLVED (unanimously):
1. To note the progress already made in achieving energy efficiencies.
2. To make provision within the Capital Programme of £1.76m for the purchase and installation of solar photovoltaic arrays.
3. That delegated authority be given to the Chief Financial Officer, in consultation with the Leader to authorise the procurement of design and installation of solar photovoltaic arrays as outlined at para. 19-23.
4. That a position of Project Support Officer is created for a fixed term until Mar 2019 (with an option to extend) to assist delivery. This position will be paid for through a bid to the Invest to Save Fund.
5. To continue work to develop plans to bring forward large scale wind generation for the Borough. This will include a review of gaps in planning policy and a bid to the Invest to Save fund to erect wind monitoring masts to check the national database wind assumptions; with a further report to follow in April 2018.
6. To continue work to develop plans to bring forward district heat networks for the Borough; including submitting a bid to the Heat Networks Delivery Unit for a grant funding to conduct feasibility studies, with match funding of up to 33%. A further report to follow in April 2018.
7. To continue work to develop plans to bring forward an alternative energy generation and supply model for Hastings; including submitting a declaration of interest to the European Regional Development Fund to trial a smart grid. A further report to follow in Apr 2018.
8. To enter into informal dialogue with energy supply licence holders about a potential partnership with Hastings Borough Council which could bring offer a tariff underpinned by local generation. A further report to follow in Apr 2018.
9. To develop an Energy Strategy for Hastings Borough, the first draft to be considered in April 2018.
The reason for this decision was:
Implementing the recommendations in this report will help the Council deliver its Corporate Priorities, as follows:
a. Economic and physical regeneration – generating and supplying energy locally keeps money in the local economy. Supporting local businesses by retaining them to deliver some of the recommendations in this report could help safeguard and create new skilled jobs.
b. A greener town – if they are all implemented following due diligence the measures in this report have the potential to contribute to the Councils climate change ambitions namely, to reduce emissions of greenhouse gases. We will establish an appropriate target to monitor the energy generated and the greenhouse gases saved through our planned activities. This will be established in the context of national carbon reduction targets as set by the Climate Change Act 2008 (to reduce emissions by at least 51% by 2025 and 80% by 2050 based on 1990 levels).
c. Intervention where it’s needed – the energy industry is in the throes of transition. There are various reasons for this but a major one is the increasing cost of distributing energy. It is for this reason that UK Power Networks, the District Network Operator for the area including Hastings has publically declared its move to a new model of doing business. The Council has a leadership role to play in this transition to ensure that the Borough derives maximum benefits as the transition rolls out.
d. Changingthe way we work – it is unlikely that all of the opportunities identified in this report can be brought forward. If, after due diligence they are all implemented they could generate an annual contribution of up to £1.156m for an investment of up to £9.98m; this represents a gross Return on Investment (ROI) of 11.57%. The Income Generation Strategy is far more cautious and, after discounting the more challenging aspects of the programme calls for a return of £630k for an investment of £6m, or a gross ROI of 10.6%.
Supporting documents:
- An Energy Transition for Hastings report for CMG v6 07112017, item 50. PDF 153 KB
- Appendix A - Individual site opportunities, item 50. PDF 50 KB
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