PLANS to provide Solihull with a low carbon energy network have been handed funds to turn the project into reality.
Solihull Council says the project will provide low carbon heating, hot water and power (electricity) to a range of town centre buildings, help reduce fuel bills and future-proof against changes in customer energy needs.
It has secured a £9.6million loan from the National Wealth Fund (NWF) through its Local Authority function.
The authority says the low-cost long-term financing option will enable it and delivery partners to complete installation of the pipework for the first phase of the project.
The first phase of the network in Solihull will provide heat and power to public and private sector customers, including Council-owned buildings and education campuses.
It is intended that future phases will then connect other buildings in the town centre and link to planned commercial or residential developments in line with the Council’s Town Centre Masterplan.
The project is being delivered by Vital Energi who will design, build, operate and maintain the new network.
The initial funding required to get this carbon saving scheme off the ground was provided by the Government’s Heat Networks Investment Project (HNIP) and West Midlands Combined Authority.
Minister for Energy Consumers Miatta Fahnbulleh said: “Heat networks like this one, which will provide buildings in the heart of Solihull with low-carbon, affordable heat and electricity, will play an essential role in the clean power transition.
“By helping homes and businesses in Solihull to stay warm in a cheaper and more efficient way, this investment will help more people feel the benefits of our drive towards clean power as part of the Plan for Change.”
The project aligns with the NFW’s clean energy mandate and supports Government ambitions to increase the use of low carbon heat networks to 20 per cent by 2050, up from three per cent today.
This drive is intended to help decarbonise the UK’s building stock, which is currently the second largest contributor to carbon emissions after transport.
Councillor Andy Mackiewicz, cabinet member for Climate Change and Planning said: “A town centre energy network enables existing buildings and new developments to benefit from centrally based low carbon heat generation with minimal disruption and in a cost-effective manner benefitting from economies of scale.
“It also provides opportunities to install rooftop solar panels that can supply the energy network customers, utilising roof space and ultimately protecting the green belt.
“The real beauty of this scheme is that it can expand through subsequent phases to meet growing demand and link into new buildings and developments. As we progress with the scheme, we anticipate signing up many more customers who will be able to see the obvious benefit it can provide.
“Before embarking on this exciting scheme, we undertook detailed financial modelling as part of the business case, the favourable loan we have been able to secure from the NWF improves the financial case for the scheme which will recover all of its capital investment costs over its lifetime.”
