The economics of energy projects for local authorities

Energy as a topic is unusual across local givernment in that for some councils it is ingrained as a core element of business, an area of investment and source of financial and community benefit. Some have investigated it and started to take the agenda forward whilst for others, it is a topic which has not yet been addressed. Nor is there universal agreement on the benefits which can be gained.

What can be agreed on is that there are successful civic projects across the sector.

Significant problems remain which need to be addressed which are linked to the energy agenda. Examples include fuel poverty, air quality, energy supply, infrastructure investment and the obvious longer term problem of increasing cost. In our view energy is without doubt an area for substantial future growth for those local authorities who are confident enough to embrace it.

Energy is a theme which touches all areas of the local authority and being of importance to many, it often requires a corporate approach in order to co-ordinate action, investment and engagement.

As such it is vital that a comprehensive business case is made to ensure agreement moving forward, to follow good investment and project planning practice and to make the most of scarce resources. Officers need to be able to describe the analysis they have undertaken to justify their advice with regard to energy projects and the spending needed.

This publication will look at some of the issues related to the economics of energy projects within local authorities such as the value of CO2, allocating a worth to non-financial benefits and how consumers can benefit from going green.

‘The economics of energy projects for local authorities’ will focus attention on the importance of compiling an accurate and appropriate business case, reducing the number of stalled or failed projects and hopefully help local authorities fill the funding gap which will lead to greater investment in energy.

The vision of APSE Energy is the municipalisation of energy and a greater role for local authorities in the local energy market. We are able to help our members through generic and specific support aimed at making the most of existing assets and understanding by adding capacity where needed and sharing learning across the sector. This publication is part of that support and we hope it will generate conversation and action to further the municipalisation of energy.

This publication will be available to all APSE Energy members without charge and a link will be sent separately. Non APSE Energy members may purchase the document. For further information contact Phil Brennan, Head of APSE Energy on 0161 772 1810 or at [email protected].