Solihull Council has embarked on a scheme to deliver an alternative source of affordable low carbon energy to the town centre. The network will distribute low carbon heat and power from a single energy centre directly into town centre buildings. The energy centre at the heart of this network will provide a range of renewable and low carbon energy solutions including air source heat pumps and gas combined heat and power.
The challenge
In Solihull, 47 per cent (2023 DESNZ) of our greenhouse gas emissions come from the energy we use in our buildings. If we are going to achieve our ambitious borough-wide net zero emissions target, addressing this has to be one of our priorities.
We know that heat pump technology will have a major role to play in our journey to net zero, however, the cost of applying it at an individual building level can often mean it is prohibitively expensive.
The solution
This council led scheme will significantly reduce building energy emissions and pave the way for additional building connections in the town centre, helping Solihull in our drive towards net zero carbon emissions by 2041.
Distributing low carbon heat to customers from a centrally managed energy centre offers customers an affordable way to connect and utilise heat pump technology in their buildings. It means Solihull has more flexibility to further increase the use of renewable and low carbon energy for these buildings as energy generation technologies improve in the future.
Solihull Council has been the project sponsor from early mapping and master planning through the commercialisation and now installation phase. It has project managed each stage of project development and has invested and owns the network through an Energy Services Company. The ESCo has responsibility for network expansion in support of our Net Zero commitments and town centre masterplan investment.
The impact
The project will deliver carbon savings in support of Solihull Council’s ambitious climate change commitments by reducing the Borough’s greenhouse gas emissions and increasing the amount of renewable and low carbon energy used to heat and power buildings within the town centre.
The tables below are taken from our Cabinet Report 2020 and present carbon savings and Social IRR. The Social IRR is a measure of societal/environmental costs and benefits.
The economics and CO2e savings delivered by Phase 1 of the proposed scheme are summarised below:
| Phase 1 only | 25 years | 40 years |
|---|---|---|
| Carbon savings, tonnes CO2e | 34,115 | 47,833 |
| Social internal rate of return | 3.8% | 4.7% |
| Phases 1, 2 and 3 | 25 years | 40 years |
|---|---|---|
| Carbon savings, tonnes CO2e | 152,317 | 243,108 |
| Social internal rate of return | 9.8% | 10.1% |
How is the new approach being sustained?
Funding for this carbon saving scheme has been provided by the Government’s Heat Networks Investment Programme (HNIP) and Green Heat Network Fund, as well as the West Midlands Combined Authority and the National Wealth Fund through a loan.
We procured Vital Energi to design, build, operate and maintain the network; Phase 1 of which is due to be in operation by Summer 2026.
Lessons learned
- An energy infrastructure project of this nature is complex and requires cross-departmental engagement and support. The Steering Group of key council officers from across multiple directorates has been essential for building knowledge, support and momentum as the project has developed.
- Engagement and clear communications with external stakeholders and members of the public is vital throughout the project development process to slowly build local support and awareness of the key project benefits – we have held educational events, public drop ins and engaged members of the press at key points in the project. The Energy Centre and network cross sensitive public areas and the design features of the building seek to blend with its environment but received very positive feedback during public consultation.
- It takes time – to refine the opportunity, to build internal understanding, follow good governance processes and secure customer buy in. Ensure you have appropriate internal resource and strategic and political buy in at each stage of the process and be realistic about your timescales.
Links to relevant resources
View further information
Solihull Town Centre Energy Network | Solihull Metropolitan Borough Council