Agenda item

Received a report from the Cabinet Member for Environment on the proposal to install electricity-generating solar photovoltaic panels to initially up to 1,000 Council houses and buildings within the corporate estate, including up to 55 of the borough’s schools, through the Government-backed Feed-in Tariff (FIT) scheme. 

The proposal would involve the procurement of a private sector partner to supply, install, maintain, insure and finance the panels.  The private sector partner would benefit from preferential generation and export rates under the FIT scheme while residents and occupiers have the opportunity to benefit from reduced energy bills.  The Council would also benefit from the scheme by saving over 1,165 tonnes of carbon each year and receiving rental income from the private sector partner for the roof space.

The Cabinet Member advised that the proposal to initially limit the number of Council houses within the scheme to 1,000 and 50% of potential roof space for schools enables the Council to explore other renewable energy initiatives such as the Renewable Heat Incentive (RHI) which comes in to effect from April 2011.  The contract would, however, be framed in such a way to give the Council the future option to expand the contract beyond these initial targets.

In noting the proposed procurement of the private sector partner via the Official Journal of the European Union (OJEU) Restricted Procedure, the Cabinet Member for Regeneration expressed his frustration at the constraints that EU contracting legislation places on local authorities letting medium / large contracts, as this typically prevents small local businesses that employ local people from successfully bidding for works.  The Corporate Director of Finance and Resources advised that due to the value of the contract, procurement through the OJEU procedure is a legal requirement.  She added that all the Council’s major contracts include relevant clauses encouraging the use of local suppliers and employment of local residents but she confirmed that the legislation prohibits the Council from being more specific in its requirements or to break up contracts to make them more accessible to small local businesses.  The Cabinet Member of Regeneration was encouraged to take up these concerns with the Secretary of State.

Agreed, in order to support the Community Priorities “Clean”, “Prosperous” and “Inspired and Successful”, to:-

(i)  Authorise the Corporate Director of Finance and Resources to procure and award a contract for a private sector partner to supply, install, maintain, insure and finance solar photovoltaic panels to Council properties and buildings within the corporate estate, including schools, on the terms detailed in the report;

(ii)  The housing project being restricted to between 500 - 1000 Council properties in the first instance;

(iii)  The school project initially being restricted to up to 50% of the potential roof space;

(iv)  The contract specification providing the Council with an option at a later date to expand the scheme beyond the initial targets in (ii) and (iii) above; and

(v)  The terms of the contract being designed to ensure that the investment is directed to areas within the Borough with particularly high levels of deprivation and fuel poverty.