Solihull Energy Ltd, a limited company, is set up and owned by Solihull Council. This independent energy services company (ESCo) will be responsible for managing individual contracts and customer agreements associated with the town centre energy network.
The company is overseen by a Board of Directors, made up of senior council officers, and reports to a Shareholder Panel comprised of elected Councillors.
Following a competitive tendering process, Vital Energi Ltd has been selected as the contractor who will take this exciting project forward – building, operating, and maintaining the new network. Vital Energi is a leading national player in the heat network and low carbon energy sector and has successfully delivered a range of exemplar, high-profile networks, including Leeds PIPES and Mersey Heat.
Ener-Vate is a commercial support in the development and expansion of the district heating network, as independent, commercial advisory experts in all aspects of low-carbon heating developments.
For individual buildings, decarbonising heat is expensive and often disruptive to occupants. A town centre energy network enables existing buildings and new developments to benefit from centrally based low carbon heat generation with minimal disruption in a cost-effective manner that benefits from economies of scale.
The Energy Centre is currently being built on land next to Tudor Grange leisure centre. The site selected is critical to a successful energy network since it needs to be large enough to house all the equipment needed, whilst also being as close to all potential customers as possible, to minimise the length of pipework required to connect each building.
Phase 1 alone is expected to save 22,633 tCO2e over 40 years. That’s the equivalent to burning over 50,000 barrels of crude oil. As the scheme expands, so too does the potential for carbon savings to be made.
The total project costs for the construction of Phase 1 are £18.680m. A total of £9.091m has been awarded from externally sourced project-specific grant funding. This has come from the Government’s Heat Network Investment Project (HNIP) and Heat Networks Delivery Unit (HNDU), as well as from the West Midlands Combined Authority (WMCA).
The remaining funds have been secured in the form of a 40-year annuity loan supplied by the National Wealth Fund.
Underpinned by detailed financial modelling, the FBC forecasts that the project will be able to repay this borrowing over the lifetime of the scheme. With more customers expected to sign up as additional connection phases of the project are rolled out (each subject to further business case assessment), the rate of return is expected to further improve over time.
Under the approved business case, there is no direct cost associated with the project to local taxpayers. The costs of repaying the National Wealth Fund loan are forecast to be met from the net revenues generated by the project.
Solihull businesses and public buildings: By connecting to the network, buildings can significantly lower their operational costs and carbon emissions.
Solihull residents: The network aims to connect to high-density new residential developments in the town centre, providing access to more sustainable and often more affordable heating solutions.
Local community: These networks contribute to local air quality improvements and support community-wide sustainability goals. As part of the project, Vital Energi is delivering a range of local social value initiatives alongside educational and training opportunities in partnership with local schools and colleges.
Solihull Council: As part of Solihull’s broader efforts to achieve net-zero carbon emissions by 2041, with a specific target for Council buildings and operations by 2030, the energy network is expected to deliver substantial carbon savings.
