Council set to earn money from renewable energy

Shropshire Council could earn substantial income in the next 25 years through generating electricity and heat.

The Government has recently overturned an Act of Parliament, paving the way for local councils to earn income from the generation of electricity and heat.

Cabinet members will next week (Wednesday 11 May 2011) be asked to approve a £5.2m investment in up to 400 solar photovoltaic (PV) installations, each of which would produce 3,600 to 3,800 kilowatt hours of electricity each year, and generate total income in excess of £700,000 a year by 2018 under the ‘feed-in tariff’ (FIT) scheme.

Installations qualifying for the FIT need to be in place by March 2012 to benefit from the higher level payments for the next 25 years.

Cabinet will also be asked to approve the principle of investing in wind turbines, which could generate income of more than £40,000 a year by 2018, and to allow officers to investigate council-owned sites that may be suitable for wind turbine installations.

The report to Cabinet also says that a potential hydro generation scheme at the weir in Shrewsbury could generate power for eight to nine months a year and complement the other forms of renewable energy.  Council officers are due to progress a hydro project for the weir, which it is estimated could generate approximately £229,000 of income by 2018.

Councillor Ann Hartley, Shropshire Council’s Cabinet member for energy efficiency and carbon reduction, said:

“The UK has a target that by 2020, 15% of our total energy demand should come from renewable sources and all sectors of the economy are expected to contribute to this.  By investing in renewable energy generation, on an invest-to-save basis, we can help to meet this target, but also generate a substantial revenue stream for the council over the next 20 to 25 years.”