Report of the Deputy Chief Executive and City Treasurer

The purpose of this report is to seek a decision to support the proposal to secure delegation from Executive for the Council to enter commercial negotiations to progress the purchase of a suitable solution with options being a solar asset and / or a Power Purchase Agreement (PPA).

The Committee considered the report of the Deputy Chief Executive and City Treasurer that sought the opinion to support the proposal to secure delegation from Executive for the Council to enter commercial negotiations to progress the purchase of a suitable solution with options being a solar asset and / or a Power Purchase Agreement (PPA).

The Committee had been invited to comment on the report prior to it being considered by the Executive.

Key points and themes in the report included:

·         Noting that the Committee had considered a report on this subject at their meeting of 14 October 2021;

·         Describing the Key findings of the Feasibility Study;

·         Updated Market Availability Assessment & Pricing, noting the Council was in the process of entering into Non-Disclosure Agreements with developers for two sites in order to progress discussions;

·         Council’s future energy needs considering a range of factors affecting future energy demand and the Council’s CO2 reduction needs;

·         Financing and the implications for both revenue and capital budgets;

·         Current Energy Purchasing Policy; and

·         Accounting for Emissions.

Some of the key points that arose from the Committee’s discussions were: -

·         Supporting the proposals and rationale described within the report and feasibility report;

·         In addition to the proposals presented all opportunities should be explored to maximise smaller scale production of solar energy, such as local reservoirs;

·         All avenues should be explored to influence to government to introduce grants for residents so that they can install solar panels onto their homes;

·         What would happen to the site following the anticipated life span of 35-40 years;

·         Clarification was sought in relation to schools and Bolton, noting that The Council’s Energy Management Unit also purchased energy for Bolton Council;

·         Employment and skills opportunities for Manchester residents should be maximised through this project; and

·         All learning from this project should be understood and applied to future schemes.

In response to the comments raised, Officers replied that they acknowledged and appreciated the views expressed. Clarification was provided that due to the complex commercial arrangements, both schools and Bolton Council were not included in the proposals, however energy purchased would continue to be supplied via a green tariff. Officers reported that a commercial and viability decision would be taken as to the future of the site in 35-40 years based on the circumstances at that time.  

Decision

The Committee endorse the recommendations that the Executive:

1. Note the options in Section 4 available to the Council.

2. Note that should the direct purchase of a solar asset be pursued this will be funded via borrowing and require Council approval.

3. Agree to grant delegation for the Deputy Chief Executive and City Treasurer, in consultation with the Leader, Executive Member for Finance and the Executive Member for Environment to negotiate for the purchase of a solar asset / PPA and any associated corporate documentation to establish a Special Purpose Vehicle if required, to meet the Council’s 2020-25 CO₂ emissions reduction target and contribute positively to our longer term zero carbon 2038 target through:

·           development / purchase of a suitable large-scale solar PV facility 

·           a suitable direct PPA of renewable energy