Agenda item

Delivery of low carbon infrastructure in the Borough

Minutes:

Consideration was given to a report which provided an update on funding arrangements for activities in the Oldham Green New Deal (OGND) delivery programme which were unfunded at the time of the OGND report to the Committee in June 2021. The report set out the potential opportunities for a strategic collaboration with the private sector to help Oldham meet the carbon neutrality targets set out in the OGND Strategy.

 

The OGND Strategy set a number of objectives and pledges for delivery on environmental issues which broadly fit into three over-arching pillars, which were as followed:

·         Growing the green economy

·         Low carbon infrastructure and a Local Energy Market

·         Northern Roots

 

The OGND Strategy also set two carbon neutrality targets:

·         For Council Buildings and Street Lighting by 2025

·         For the borough by 2030

 

Oldham’s Green New Deal programme included a number of community energy initiatives which supported residents to build their knowledge and skills base with a view to gaining training and employment in this key growth sector. However, this support needed to be matched by large-scale inward investment into the borough to create those jobs, training and business opportunities. Members were provided with a breakdown of the estimated 2173 number of jobs that could be created as part of the OGND.

 

Members were informed that private sector energy infrastructure companies were recognising the potential and need to diversify their business models and portfolios by investing in low carbon infrastructure schemes. Examples of such low carbon infrastructure schemes were:

·         Solar farms and industrial rooftop arrays

·         Wind farms

·         Hydroelectric plants

·         Energy storage facilities

·         District Heat Networks

·         Air and Ground Source Heat Pumps

·         Electric Vehicle charging facilities

 

Members were provided with a summary of the resources, benefits and risks of potential Council and Private Sector partnerships. A partnership arrangement could include the setting up of a Joint Venture / Special Purpose Vehicle to deliver and operate the low carbon infrastructure schemes. This could serve to mitigate some of the risks associated with relying on a single external provider and could give the Council more long-term control over some of the infrastructure in the borough. Other anchor organisations in the Oldham Partnership could also be interested in such a co-produced and co-owned approach to infrastructure.

 

It was noted that the structure of a contract for a strategic partnership could be split into three phases which were as followed:

·         Phase 1 – Pilot Scheme / scoping phase - 12-month contract with two objectives:

o   A renewable energy scheme on privately owned land / property with a PPA to the Council.

o   Production of outline programme for Phases 2 and 3.

·         Phase 2 – 2-year programme (2025 target) - 2-year contract to follow on from Phase 1:

o   Identification and / or development of renewable energy generation in the borough to contribute to the 2025 Council carbon neutrality target via PPAs with generators and renewable heat infrastructure.

o   Delivery of low carbon schemes which support the Creating A Better Place programme, e.g. Town Centre District Heat Network, rooftop solar PV and Electric Vehicle charging points.

o   Set up a Joint Venture / Special Purpose Vehicle between the Council and the provider to set up and operate low carbon infrastructure schemes e.g. those mentioned above.

o   Support for community energy initiatives in the borough e.g. Oldham Community Power, Oldham Energy Futures.

o   Development of a Green Business Park / Centre, potentially either aligned with the Mills Strategy or GM Mayoral Enterprise Zone commitment at Stakehill.

o   Production of detailed programme for Phase 3.

·         Phase 3 – 5-year programme (2030 target) - 5-year contract to follow on from Phase 2:

o   Net zero decarbonisation strategy for all ‘anchor’ strategic partners, as demonstrated by the Council by 2025 (Phase 2).

o   A net zero offer for homes and businesses, as part of the Warm Homes Oldham / Oldham Enterprise Trust / Oldham in Place offers.

o   Borough-wide net zero transport decarbonisation strategy (EV charging network), working with TfGM, GMCA etc.

 

Any low carbon infrastructure partnership contract should maximise the social value to Oldham. Oldham’s social value portal used the Themes, Outcomes and Measures (TOMs) approach which covered the following areas:

·         Carbon emissions

·         Air quality

·         Natural environment

·         Resource efficiency / circular economy

·         Sustainable procurement

·         Social innovation

Additionally, there were 20 TOMs under the “Inclusive Economy” theme which could also be used for these contracts.

 

RESOLVED that:

1.    the progress in securing funding for some of the Council’s previously unfunded projects and programmes, and the forward planning to progress others be noted.

2.    the contribution from GMCA-level decarbonisation initiatives and programmes to Oldham’s Green New Deal programme.

3.    the proposed approach to engaging the private sector in Oldham’s Green New Deal programme for more detailed consideration by senior officers and Cabinet members be endorsed.

Supporting documents: