To consider any recommendations to Cabinet from other committees.
Climate Emergency Advisory Committee – 14 September 2020
Power purchase agreements
The Climate Emergency Advisory Committee discussed a report on power purchase agreements. The report suggested that officers should join discussions with other Oxfordshire councils and commercial partners to identify the feasibility of entering into a power purchase agreement. The committee made the following recommendation.
Recommended: to Cabinet that officers join discussions with other Oxfordshire councils and commercial partners to identify the feasibility of entering into a power purchase agreement.
However, the committee wish to understand what flexibility would be allowed in such a contract. There was concern that the council would have to commit to a fixed amount of electricity purchase, when the council’s aim is to reduce use. The committee also wished to understand the contractual arrangements pending any local government reorganisation in Oxfordshire.
Minutes:
Cabinet considered recommendations from other committees
Climate Emergency Advisory Committee on 14 September 2020
Power Purchase Agreement
Cabinet noted the recommendation from the Climate Emergency Advisory Committee (CEAC) that officers join discussions with other Oxfordshire councils and commercial partners to identify the feasibility of entering into a power purchase agreement.
Cabinet had been advised by CEAC that the committee wished to understand what flexibility would be allowed in such a contract. There was concern that the council would have to commit to a fixed amount of electricity purchase, when the council’s aim was to reduce use. The committee also wished to understand the contractual arrangements pending any local government reorganisation in Oxfordshire.
Cabinet also noted the committee’s intention to review the opportunity to enter into negotiations with the Low Carbon Hub and other Oxfordshire Councils on a potential Power Purchase Agreement (PPA). The Chair of CEAC, Councillor Sue Roberts, advised Cabinet on progress, informing the meeting that no recommendations had been made at this time as discussions on the possible agreement were still proceeding.
The Chair of CEAC also reported that the Vice Chair of CEAC, Councillor Sam Casey-Rerhaye, who had also been working closely with officers of the council, had been liaising with the five other Oxfordshire councils. Progress had been slowed by the Covid 19 situation, which had introduced an element of uncertainty into the councils. However, the negotiations themselves were extremely complex, involving multiple intermediaries. At the present time, working with a given provider, rather than entering into a full PPA, seemed attractive, particularly as most PPAs were of 15 years’ duration and difficult to withdraw from during the term. Councillor Roberts hoped that the forthcoming appointment of a council environment officer could assist in clarifying issues and progressing matters.
The view was expressed that moving the council offices to a new site would also have implications for energy purchase and consumption. Therefore, it might be sensible not to conclude a new approach to energy consumption until the full implications of new accommodation and any agreement became clearer.
This delay and uncertainty offered the council the opportunity to undertake innovative energy saving work at the council’s leisure facilities, which consumed the largest proportion of all council energy needs. This could involve ground-breaking approaches to direct energy generation, such as overnight usage and the installation of state-of-the-art technology and equipment.
Councillor Roberts advised Cabinet that, typically, the negotiation process for PPAs lasted a year, so any delay might be to the council’s advantage in this uncertain era.
Cabinet concurred that in view of the negotiation timeframe, and issues of new council office accommodation, the urgency of this issue had been reduced and that therefore CEAC should continue to consider the matter with a moderated sense of urgency.
RESOLVED: to refer the proposal that officers join discussions with other Oxfordshire councils and commercial partners, to identify the feasibility of entering into a power purchase agreement, back to the Climate Emergency Advisory Committee for further consideration.
Councillor Roberts reported on an energy-related topic of great interest to her committee; the Flexible Home Improvement Loan. The scheme assisted in retro-fitting home insulation, which could incorporate council loans for this work. Officers supporting CEAC had been asked to undertake research work into this area. She emphasised the importance of climate and environment to the corporate plan, which contained metrics on this subject.