Agenda item

Heat Networks Feasibility

(Cabinet Member with Special Responsibility Councillor Frea)

 

Report of Director for Communities & the Environment

Minutes:

(Cabinet Member with Special Responsibility Councillor Frea)

 

Cabinet received a report from the Director for Communities & the Environment to outline that heat networks can play a role in the route to heat decarbonisation and set out the potential for thermal energy networks in the District. The report also sought support for a funding bid to BEIS for the delivery of a detailed feasibility study and informed Cabinet that should a Heat Network prove to be feasible, further decisions may need to be made on how such a system is implemented i.e. direct delivery by the Council or through amendments to the Local Plan.

 

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

 

Option 1: To support the approach to undertake feasibility work

Advantages:

· It will allow the Council to explore the feasibility for heating networks with potential opportunities for the delivery of heat networks more widely in the District

· If feasible, there is potential for wider benefits as set out in this report in relation to addressing the Climate Emergency and fuel poverty.

· There is currently funding available from Government to support the feasibility work. · Can provide the groundwork for heat network development which would allow the Council to capitalise on an opportunity to address the Climate Emergency and lead to a potential saving of 100,000 tonnes of domestic CO2e emissions.

 

Disadvantages: None.

 

Risks:

· Financial. £40k ‘at risk’ if feasibility determines that no realistic or viability opportunities exist.

 Option 2: To delay a decision whether to take forward an application to future funding routes in 2022 or beyond.

 

Advantages: None apparent

 

Disadvantages:

· Deferring any decision of investigating heating networks delays our understanding over how and where networks could be established.

· Such delays may result in losing opportunities to implement projects in the future particularly in new developments.

 

Risks:

· The level of funding support available to the Council at present is significant. There are no assurances that in delaying such a decision that the same levels of funding support will be available in future years.

· As a result, a decision to defer may incur greater costs in the future should the Council wish to explore the feasibility of heat networks.

Option 3: To not carry forward any investigation into heating networks

 

Advantages: None apparent

 

Disadvantages:

· Fails to explore the opportunity for district heating networks closes the opportunity to secure more sustainable forms of heating for the district and would be a lost opportunity in seeking to tackle the Climate Emergency.

· The Council would fail to investigate opportunities to deliver greener, more sustainable forms of energy in the district and fail to capitalise on opportunity to address the Climate Emergency and a potential saving of 100,000 tonnes of domestic CO2e emissions.

 

Risks: · Longer-term funding opportunities are unknown.

 

The officer preferred option is Option 1: Carry out detailed techno-economic feasibility Initial feasibility provides an interesting insight as to what heat network clusters may be viable. Should some of the clusters prove feasible, this could provide opportunities to support the decarbonisation of the council's estate, as well as businesses and residents within the catchment areas. The study would support officers with strategic decisions around the council’s roadmap to 2030 of which heat decarbonisation plays a significant (and challenging) part. Revenue generating opportunities from the sale of low carbon heating may also exist. The potential funding opportunity from BEIS to explore Heat Networks greatly subsidises the costs of the study and there are no assurances over future levels of funding support available.

 

Councillor Frea proposed, seconded by Councillor Dowding:-

 

“That the recommendation, as set out in the report, be approved.”

 

Councillors then voted:-

 

Resolved unanimously:

 

(1)     That Cabinet recognise the value in exploring the opportunities for heating networks within the district and support the approach to submit a bid in order to undertake feasibility, whilst recognising that this may lead to future decisions around the instillation of heat networks across the district.

 

Officer responsible for effecting the decision:

 

Director for Communities & the Environment

 

Reasons for making the decision:

 

The decision is consistent with the Council’s Plan: Climate Emergency: To ensure that in the area of thermal energy delivery, the Council’s ambitions around Climate Change are delivered, greater cognisance with the actions of the Council’s Climate Emergency Declaration of January 2019 are provided and the Council’s Corporate Priorities are supported. Delivery of a feasibility study will help to strengthen the Council’s approach and strategic planning in a range of matters which will assist in it achieving its ambitions, for instance around supporting a green local economy, delivering sustainable energy, and addressing fuel poverty.   

 

Supporting documents: