HEREFORDSHIRE Council has taken a shine to a showcase solar power project in the county pitched as the first of its kind in the UK.

The council has offered “support in principle” to a feasibility study into the potential for a solar farm at Stretton Sugwas landfill site.

If the study says the project is worthwhile, the council will negotiate a 25 year site lease with county based eco-co-operative New Leaf which is behind the bid.

New Leaf is already heavily involved with the council over options for the future management of Queenswood and Bodenham Lake.

Earlier this month, the Hereford Times reported that New Leaf wanted “community investment” in the Stretton Sugwas project which would be the first in the UK on a closed landfill site following a successful bid.

New Leaf pitches the  project as providing “all round” benefits on the basis of a fair return to investors, productive use of marginal land and carbon reduction.

With the first 'Pioneer' funding stage of the project now live, £60,000 is needed from a community share offer to cover the cost of planning permission and Environment Agency Licences.

Signed off at senior officer level, the council’s offer of support extends to the feasibility study and future lease negotiations – subject to the council’s requirements for the project being met.

The site currently costs around £60,000 a year to run, including around £10,000 for electricity used on site – costs that would continue for the foreseeable future.

Though the council calls the site an asset, it is of limited use as contaminated land.

The council, then, says not proceeding with the project would prevent potential income generation and reduced carbon emissions.

A private investor could develop project, and this option has also been considered.

The council could offer the opportunity to private investors in return for an annual  rent or reduced cost electricity onsite.

Here, an estimated rent has been put at around £6,000 a year - based on the current market rate for solar farms. 

Alternatively, there is a saving of £5,000 a year on energy costs – assuming a 50 per cent reduction.

Whilst this option offers a potential income, it does not offer the community engagement the council is keen on.

The council has already worked with two smaller community solar power projects at  Leominster’s Bridge Street sports centre and new primary school – both of which were fully funded by a community share offer.

BACKGROUND – THE FUTURE FOR STRETTON SUGWAS LANDFILL SITE

Herefordshire Council owns what is a closed landfill site classed under the 1990 Environmental Protection Act as contaminated land with limited use owing to “offsite gas migration”.

There is a gas and leachate extraction system on the site that will need to be maintained.

Subject to relevant regulation, the site  is categorised as a “workplace”  and any additional installations will need to ensure continuing compliance with regulation and not adversely affect the health and safety of employees – with the potential effect of Electro Magnetic Radiation a specific concern.

The council’s environmental health team  has identified a number of technical issues that New Leaf and its project partner Sharenergy needs to address.

These are being brought together in a risk register and will be assessed through the feasibility study.

Any renewable energy installation will be subject to planning process and a successful application will need to prove itself financially viable and self-sufficient.

PROGRESS TO DATE

Expressions of interest were issued to four companies, groups and cooperatives for a party to help undertake the feasibility study.

A joint submission from New Leaf and Sharenergy was selected.

Sharenergy is the co-operative that led the development of two community solar projects in Leominster.

 New Leaf and Sharenergy are now in project talks with the council’s environmental health and environmental management teams.

The proposal meets with the council’s contract procedure rules, New Leaf will be responsible for appointing the installers of renewable energy applications.

Should the project prove feasible, the council will negotiate a 25 year lease on the site.

 

FINANCIAL IMPLICATIONS

The project is pitched as offering the council an income from rent of around £6,000 a year - without the need for capital investment.

Enabling investment from the local community is a key consideration.

The two previous projects in Leominster offered showed a strong financial performance of 6.2 per cent internal rate of return (IRR) and 10.4 per cent IRR to investors given the project’s qualification for the national Seed Enterprise Investment Scheme which enhances and protects investments in community co-operatives.

Investors would all be owners of the installation, with each investor being a member on a “one member, one vote” basis.

Allowing the community to  invest and part own the project is seen as providing a much greater level of community engagement – which would help in the determination of planning permission.

New Leaf have already undertaken an initial outline feasibility study which identifies potential at the site.

This now needs to be developed into a more detailed study.