Issue - meetings

 The purpose of the report is to update the revisions to the proposed project list for the Utilities Management Capital Programme and update on project progress.

(TAKE IN INFORMATION ONLY REPORT)

Mark Tutton, Building Services and Support Manager, introduced the report which was to update the Cabinet Member on the revisions to the proposed project list for the Utilities Management Capital Programme.

He advised that in view of recent changes in Government policy to cut the feed-in tariff rates for photovoltaic solar systems from January 2016, the Utilities Management capital programme has been restructured to accelerate spend on PV to maximise returns..

As a result, he advised that the Mountbatten Centre CHP project had been delayed and was now included in the Capital bids for 2016/17.

The report listed the current status of projects funded from the revised Utilities Management Capital Programme that are in the process of being prepared or that are underway.

The report also listed additional projects that had been added owing to favourable tenders received for projects already approved.

During discussion, the following matters were clarified

·         the photovoltaic solar systems are expected to produce a  return of around 20% and this is likely to increase as the feed in tariff increases in line with inflation and is guaranteed for 25 years.  After around 20 years, the system may become less effective but the drop in efficiency is likely to be small.

·         the installation costs would be paid for from the return from the tariffs

·         the system worked on cloudy days and even generated power at night if there was a full moon.

·         it was confirmed that there was still some work to do before the tariff rates reduced.in January

Mr Tutton agreed to bring a report back to the Resources portfolio once the system was up and running but said that experience gained in the housing department showed there would be efficiencies..  He would keep the Cabinet Member, Councillor Lee Mason informed of progress.