Issue - meetings

Report of Corporate Director for Communities, Environment and Resident Services

Reshma Michael, Senior Energy Projects Officer, presented together this report and the urgent item and stated the following:

a)  Harvey Hadden Sports Village is a very high user of energy and uses on average 2,960 units of electricity per day, imports approximately 1,080,566kWh of electricity per year. and accounts for 4.8% of the Council’s energy budget;

b)  by installing an additional 304.3KWp solar PV system into the building's design, the system is expected to generate 254,730kWh in year 1, contributing a 20.84% reduction in the building's current energy import;

c)  the utilisation of solar power will further help reduce greenhouse gas emissions associated with conventional energy sources and contribute to Nottingham City's commitment to net zero;

d)  the anticipated Return on Investment for the project is 12.5% over a 6-year period, meeting the criteria of the Salix fund. This alignment with the financial objectives of the project makes it a robust and viable investment;

e)  the positive carbon value of the initiative has significantly enhanced the overall net benefit, and the improvement is reflected in an increased NPV of £2,087,915 Internal Rate of Return of 24.6% and a reduced payback period of 3 years. The reduction of carbon emissions by 53.1 tons annually, coupled with an overall +10 score in the Carbon Impact Assessment, aligns positively with Nottingham’s Carbon Neutral Action Plan, and the favourable environmental impact positions the organisation as a frontrunner in sustainability.

Following a request from the Deputy S151 Officer, the urgent item being considered in conjunction with this report contained the following additional clarifying information:

f)  SALIX is a revolving Capital Fund whereby the Council is able to drawdown funding for energy improvement / efficiency projects. The funding drawn down has to be repaid interest free from the revenue savings generated from the project. Once the funding is repaid the Council keeps the ongoing savings;

g)  SALIX Funding is repayable funding and is in accordance with both the Capital and Treasury Strategy;

h)  the financial models assume that the repayments are made from the revenue energy savings generated from the solar panels and return a surplus to the Council over the life of the asset. The revenue impact of this scheme will be included within the 2025/26 budget process;

i)  if the savings, as set out in the body of the report and the exempt appendix, do not materialise as planned, this scheme could generate a revenue pressure if the actual savings are less than forecast. If this occurs, any pressure would need to be contained within Energy Services or, if this is not achievable, declared within the budget process as a growth item.

Resolved to

(1)   approve spend of up to £419,750 of Salix funds on solar PV at Harvey Hadden Sports Village;

(2)  approve seeking competitive tenders for a design and build contract, in conjunction with procurement colleagues for value for money and compliance with Contract Procedure Rules, and award the contract to the most economically advantageous tender received;

(3)  delegate authority to the  ...  view the full minutes text for item 39