Agenda item

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Report of Chief Officer (Environment) – Report to Follow

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Chief Officers (Resources), (Environment) and (Health & Housing) which sought approval of the Energy Strategy. The report presented Cabinet with the results of a feasibility study into a municipal solar farm and sought permission to progress the project to the planning stage, updating Cabinet’s budget proposals accordingly.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Energy Strategy / Action Plan

Cabinet has already agreed these in principle. The current versions are presented in Appendix A1, A2 to the report. Cabinet is requested to approve these, as working documents to inform other corporate strategies, resource allocation and prioritisation.  They clearly define the scope of the Council’s activity in this area, within the context of the Council’s strategic, financial and operating capacity and set meaningful targets.

Update on Renewable Energy Projects- The action plan in Appendix A2 provides progress with these. However in summary-

·                    Biomass boilers- a strategic approach to energy management on the Council’s estate is being taken. Rather than just embark on a biomass boiler installation programme a detailed assessment of individual buildings and how energy can be best managed within in them has been commissioned (starting initially with Salt Ayre Sport Centre). The assessment will recommend what energy management measures will provide the best value for money and sustainability. The results of the Salt Ayre assessment are expected soon. This will then help inform how capital funding allocated to already identified property issues will be spent, and whether any further investment is required.

·                    Biomass Supply Chain- for this to progress collaboration with a number of other authorities / organisations (including the County Council) is required. Early discussions have taken place and there is some interest. However, at this point in time the priority for most Councils is dealing with the immediate impact of central Government funding reductions. It is expected that if feasibility can be demonstrated this will be a more medium-term aim.

·                    Wind Turbine at Middleton- since the previous report to Cabinet it has been established that as things stand the most immediately advantageous use of the land would be for the location of a solar farm. Perhaps in the future, a solar farm as described below would not necessarily preclude this option also, at least in simple site terms, although clearly this does not consider or address the operational, planning and financial and implications.

·                    Municipal Solar Farm on Council land at Middleton- a detailed feasibility study has been commissioned. This and further supporting information is provided in Appendix B1, B2, B3, B4 (All Exempt). The feasibility study demonstrates that the most advantageous route for the Council would be to develop a 5MW solar farm which would utilise approximately 15 hectares of the 40 hectare site that belongs to the Council. This would offer an indicative return of £4M in total over 20 years, from investment estimated at £5.2M.  In order to progress this, the next stage would be to commission the detailed work needed to submit a planning application. It is estimated the fees involved in this would cost £70-80K. The work is detailed in Appendix B4 but includes detailed topographical surveys, habitat studies, deposit for connection to grid by network operator etc. There are clearly risks attached to this stage and these include-

·         Planning permission may not be granted.

·         Detailed surveys may show there are issues that impact on the overall cost / viability of the project.

·         National / local government policies radically change after the elections.

However, without making a positive decision to embark on the next stage no further progress can be made on this project. Delaying this stage means that the FiT (feed in tariff) rate will have reduced further which then reduces the amount of income / rate of return for the project and conflicts with the Council’s agreed ethos and priorities.

  In parallel with this phase of the project, work would take place to appraise how construction of the solar farm is best financed and procured. Detailed work would also take place to provide detailed appraisal of the costs and income of the project over its 20 year lifecycle.

Option 1a- To approve the Energy Strategy / Action plan as a working document to inform other corporate strategies, resource allocation and prioritisation.

Option 1b- To not approve the Energy Strategy / Action Plan.

Option 2a- To agree in principle that the Council uses some of its land at Middleton to develop a 5MW solar farm and authorise Officers to progress the project up to planning application stage, and make appropriate provision within Cabinet’s budget proposals.  This is on the basis that Cabinet would take the final decision on the project, rather than it be a matter for full Council.  This is considered appropriate given the Council’s existing corporate priorities and timescales for the project (and in any event, call-in would apply to the final decision).

Option 2b- To not agree to the development of a solar farm.

The officer preferred options are 1a and 2a. 

Councillor Hamilton-Cox proposed, seconded by Councillor Barry:-

“That the recommendations, as set out in the report, be approved with the insertion of ‘and that it be managed in as wildlife friendly way as possible’ at the end of recommendation (2).”

Councillors then voted:-

Resolved unanimously:

(1)             That Cabinet approves the Energy Strategy / Action plan, recognising it as a working document to inform other corporate strategies and the allocation and prioritisation of resources.

(2)             That Cabinet agrees in principle to the development of a 5MW solar farm on its Middleton (former Shell/ICI) site and that it be managed in as wildlife friendly way as possible.

(3)             That in order to progress the above, Cabinet approves the use of the Invest to Save Reserve to fund the project to the point where it can be submitted as a planning application.

(4)             That Officers report back on the outcome of the further detailed appraisal of the project in order to inform Cabinet’s final decision.

(5)             That Cabinet’s budget proposals for 2015/16 onwards be updated to provide for the above.

Officers responsible for effecting the decision:

Chief Officer (Environment)

Chief Officer (Resources)

Reasons for making the decision:

The decision endorses a strategy and action plan for the delivery of a key element of the Council’s Corporate Plan priority: ‘Clean, Green and Safe Places’ including the outcome of minimising the Council’s impact on the environment and will provide a practical option for a flagship project that would help the financial sustainability of the Council’s Corporate Plan over the next 20 years.