Decision details

Bath Community Energy Cooperation Agreement

Decision Maker: Cabinet

Decision status: Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

BCE is a community enterprise which develops renewable energy and energy efficiency projects. Their local ownership model and community fund enable energy revenues to stay local and be recycled into future energy projects. The Cooperation Agreement is a framework for us to work with BCE to help deliver our carbon reduction targets

Decision:

(1)  To AGREE that the Council should enter into a Cooperation agreement with Bath Community Energy.

(2) The proposed agreement be amended at paragraph 6.6 to include the words: ‘The intention of the Parties is that Community Fund revenues accrued from Projects within the District will be reinvested only in other projects within the District.’

Reasons for the decision:

This Cooperation Agreement enables the Council and BCE to work together to help:

a) B&NES deliver its Sustainable Community Strategy’s aim of providing the leadership to enable a 45% cut in district wide CO2 emissions;

b) maximise the proportion of the District’s 2020 renewable energy target in the draft Core Strategy that will be delivered using a strong community model. This will in turn, help achieve the Sustainable Community Strategy’s aim to enable the development of clean, local sustainable energy sources; 

c) build community resilience, for example, by alleviating the impact of rising fossil-fuelled energy prices, and retaining economic benefit locally;

d) establish a significant fund for re-investing in local energy projects in the area;

e) BCE to become a financially self-sustaining Community Enterprise.

Alternative options considered:

Working with commercial companies to deliver similar projects: Some other local authorities have various procurement arrangements with for-profit companies. However, in this case the profits from energy projects are not reinvested locally, representing less value for the area. The social benefits of local ownership of energy, community involvement in projects and the development of a local low carbon supply chain would also not be as fully realised.

Working with organisations that are similar to BCE: We have not found any other local organisations who can provide the same benefits as BCE.

The Cooperation Agreement is not an exclusive agreement, and the Council can choose to pursue other options should it be in its interested to do so and would positively consider any other organisation’s proposals that achieved the same aims.

Report author: Sara Grimes

Publication date: 12/10/2011

Date of decision: 12/10/2011

Decided at meeting: 12/10/2011 - Cabinet

Effective from: 20/10/2011

Accompanying Documents: