Alliance Rates Submission for Strategic Finance Committee for years 2024 to 2030
Alliance Rates Submission for Strategic Finance Committee for years 2024 to 2030.
Newry Mourne and Down District Council
Our submission this year is based on our submissions since 2019 when Council first unanimously passed a motion on ‘Climate Emergency’.
Since 2019, Alliance have put forward a dozen proposals aimed at improving the finances of Council, focussing on cost saving or revenue-generating aspects of the Green Economy as part of our campaign to improve the financial situation of our ratepayers and help the Council transition to the ‘Green Economy’.
Our research across Irish Councils suggests that it is now common for 20% of Councils’ budget to be directly funded by the ‘Electrified Green Economy’ and related projects. Many Councils in England and Scotland are also making remarkable progress. We are sharing our research in this submission.
Based on the work reflected in this submission, it would appear to us that a Council with the size and location of Newry Mourne and Down District Council should be expecting 10% of its overall revenues from these sources. And aspiring towards 20% like many Councils in the Republic. We are currently sitting at less than 1.6% and most of this is from rates from the National Energy Grids with no input or action on Council’s part. In reality, we are languishing at about 0.03%.
BUDGET: Setting a budget in Council for revenues and savings from Green Economy first popped up as an Alliance motion in the financial year 2021/2022. It was referred to the Strategic Finance Committee where it was favourably received by all parties. A second motion the following year was supported by Sinn Féin and it was agreed that a numerical time-bound ‘indicative budget’ be set for the SMT – see following page.
Councillor Cadogan Enright FCCA, Dip EBE, BComm
On behalf of Mourne and Down District Council Alliance Team September 2024
Background to Alliance Rates Submission.
Setting a budget in Council for revenues and savings from Green Economy was first proposed in the financial year 2021/2022. It was referred to the Strategic Finance Committee where it was favourably received by all parties.
Nov 2021
Councillor Enright – ‘Making Council Finances Fit to Tackle Climate Change’
Council notes the supporting table (see page 14) is based on a Freedom of Information reply from the Department of Finance, supplemented by FoI’s from each of the 11 Councils. Council notes that our District is running in a poor last place in terms of revenue despite having the best potential renewable resources in the North of Ireland outside Donegal. Were it not for the £100,000+pa benefit of our old abandoned energy efficiency campaign, Newry Mourne and Down District Council’s position would be worse.
Council formally adopts revenue targets from renewables as follows;
2022 - £1 million per annum
2025 - £5 million per annum
2030 - £10 million per annum
Council directs management that these targets can be met by rates from renewables projects, income from Council's own renewables projects and from a revitalised energy savings programme.
Referred to SPR Committee
What Happened?
Following lack of action in identifying budget Items, amounts and delivery dates, a second motion was put in the 2022/23 financial year by Alliance, seconded by the chair of the Strategic Finance Committee at the time, the NM&D leader of SF Oonagh Hanlon and referred to Strategic Finance Committee. Here it was agreed by management that they would accept these targets as ‘Indicative targets’.
Dec 2022
Councillor Enright – Broadening Rates Base, Increasing
Direct
Income and Reducing Costs
“Council notes that a Notice of Motion was passed by Council last year, requiring Management to report back to the Strategic Policy and Resources Committee by April 2022 on delivery dates and detailed plans for Council to glean the benefits of the ‘Green Electrified Economy’.
The purpose of the motion was to help tackle our budget shortfall. So far, no plans have been presented to meet these targets.
The detail of the original motion is; “Council formally adopts indicative revenue targets from renewables as follows; 2022 - £1 million per annum, 2025 - £5 million per annum, 2030 - £10 million per annum. Council directs that these targets can be met by rates from renewables projects, income from councils own renewables and from a revitalised energy savings programme.”
Council thus resolves that Council Management are required to create an inter-departmental team to report by 31st January 2023 with detailed plans to fulfil these indicative targets so they can be included in the rates estimate looking forward. Council notes that this motion is primarily aimed at improving Council’s financial position, but it will also have the effect of delivering on Councils “Climate Change Emergency” policy as well.”
Referred to Strategic Finance Working Group and indicative targets agreeded by management.
DUP - We also want to thank the DUP’s Glyn Hanna & Henry Reilly, who have pointed out that whatever ones position on climate change, if something saves money for the council or makes a lot of money for the council, we should be doing it.
To date there has been no coherent paper brought forward on these targets, despite several significant cost-saving and revenue-earning opportunities being identified by Council. Hence this document.
Introduction to Alliance rates submission 2024
Over the last 5 years Alliance Councillors have made submissions to the Strategic Finance Working Group in Newry Mourne and Down District Council citing examples of where the Green Economy could boost Council finances.
Most of these submissions have found cross-party support. However, for the greatest part, they have not translated into action resulting in financial benefit to Council.
In repeating our previous proposals this year, we are concerned that the slow pace of uptake by the Council in realising the financial benefits of the Green Economy to Council finances may be accounted for by lack of awareness, education and training by the relevant officers and a lack of appreciation about the scale of the financial opportunities on offer.
So, this year, we have fleshed out each of our submissions over the last 5 years with clear examples of how other Councils are handling these areas and the benefits those Councils are realising from the policy changes and investment opportunities that Local Government can achieve in each of these areas. We are aware that other opportunities exist, but for the sake of brevity have limited ourselves to these 11 areas.
Summary;
1. DIRECT INCOME TO COUNCIL (Suggested Budget - £2M rising to £5M PA)
Project areas 1 to 4 plus 6, 7 and 9 would all bring considerable additional revenue to Council.
We have given real-life examples of how Councils across these islands are already realising millions of pounds in income from thee areas and have even appended business cases in QR codes where these Councils have been kind enough to share them with us.
2. SIGNIFICANT SAVINGS TO COUNCIL (Suggested Budget - £1/2M rising to £2M PA)
Projects areas 2 to 4 plus 9 and 10 would bring significant savings to Council. For instance, our annual bills for both electricity for our buildings and Diesel for our fleets exceed £1 million. These wasted expenditures could be largely saved though investment in capital assets with short pay-back times to drive a ‘Climate Change Transformation’ in our Council
3. LARGE EXPANSION OF RATES BASE (Suggested Budget - £2M rising to £10M PA)
Effective policy change and follow-through in Project areas 5, 6 and 8 would realize a broadening of the rates base to at least 10% of our current rates income. Based on our research across the Island of Ireland, the Green Economy now contributes over 20% to the gross revenues of many Councils whose natural assets are but a fraction of what we have in Newry Mourne and Down District Council.
Conclusion
These proposals will put flesh on the bones of historic cross-party consensus. on these proposals.
Council can start to translate these projects into action to the benefit of the ratepayer while creating 1000’s of well-paid jobs in the Green Economy in our District.
You can access the online version of all documents here by scanning the QR Code.
#1 | CONVERT UNDERUTILISED & WASTECOUNCIL
EXAMPLE 1: WEST SUFFOLK - 10 YEARS EXPERIENCE
At Newry Mourne and Down District Council’s Council’s Climate Change Symposium in March 2020 we had an impressive presentation from West Suffolk’s Energy & Environment team leader Andrew Oswald, sharing data on their renewable investments.
Their Community Energy Plan was aimed at giving West Suffolk an income independent of central government through renewable energy to achieve the following outcomes; BUSINESS CASE FOR TOGGAM SOLAR FARM
1. A long term, sustainable source of revenue for the Council.
2. Support homes, businesses and communities to be less reliant on fossil-based energy.
3. Locally-owned renewable energy generation to the benefit of the local ratepayer with dozens of projects across their District making Council millions of pounds pa.
WHAT OUR COUNCIL HAS DONE
Following on from the presentation from West Suffolk, Downpatrick Councillor Cadogan Enright made a formal proposal to Newry Mourne and Down Council’s Strategic Finance Committee for waste land and old municipal dumps to be used for renewable energy.
In 2024, Newry Mourne and Down District Council commissioned the above Independent report to confirm viability of PV farms at two of our old municipal dumps. These already have planning permission for wind-power too. Renewables will turn them from cost-centres into profit-centres. The PV farms can expect a cash surplus of £552,766pa is expected in Year 1, rising to £726,227pa when the capital cost of the project is paid off.
Our Council has several similar sites including Croreagh, Newtownhamilton and Courtney Hill. We also have access to other sites operated by our partners like Inch Abbey in Downpatrick. Our council could also consider renting suitable land, like West Suffolk from local farmers to increase our revenue potential.
We have proposed that Council develop all these sites with a view to a cash-flow surplus exceeding £1 million pounds per annum.
WASTECOUNCIL LAND TO PV FARMS
EXAMPLE 2: WARRINGTON COUNCIL GRIDSERVE
In 2022, Labour-led Warrington Borough Council became the first local authority to produce all it’s own electricity from green energy, owning three giant solar farms in Hull and Yorkshire.
These renewable projects are not even based in Warrington’s own Council area. Generating millions of pounds in profit for 30 years. Warrington’s latest scheme is backed up by large scale batteries providing power 24 hours a day and 365 days a year, allowing the Council to make additional profits from servicing the National Grid.
EXAMPLE 3: SWINDON COUNCIL
In 2020, Conservative-run Swindon launched a solar offset scheme with its Chapel and Common solar farms. The council already has a number of solar farms across it’s district putting it on course for meeting Swindon’s target of renewables powering 80% of homes in it’s area.
The council’s Power Purchase agreement with Total Gas and Power means that any surplus power will be sold off to them - raising revenue for the council & reducing rates for residents.
STATUS
Council has accepted these projects in principle but no time lines or budgets are available.
#2 | SAVE £1MILLION pa ON ELECTRICITY
WHAT OUR COUNCIL CAN DO - THE BUSINESS CASE
Our Council could create a positive cash flow of up to £738,136pa by replacing £1 Million pa mains electricity with our own renewable energy systems.
Even where there is insufficient roof-space or open ground, all of our energy-hungry buildings sit beside council car parks that can be converted to produce the energy our buildings require.
WHY ARE ALL OUR NEW BUILDINGS NOT ZERO-ENERGY?
20 years ago renewable energy systems became cheaper than fossil fuel systems in new-builds. Our recent new builds should have followed the NZEB building code and used renewables as primary energy systems, with fossil fuel only as secondary back-up if at all. These now need retrofitted.
USING CAR PARKS TO SLASH ENERGY COSTS
To help fund an energy retrofit, our council could get a 10 year payback based on its average electricity cost of 14p per kWh. But during daylight hours energy costs are normally higher so the payback would be more like 7/8 years. South-facing awnings over footpaths are even cheaper.
Two independent suppliers estimated the cost of turning Downpatrick and Newry Leisure Centre car parks into Solar Carports, generating, as seen in these two quotes:
WHAT NEWRY LEISURE CENTRE COULD LOOK LIKE
Conservative-led Northumberland Council’s car-park solar PV array will generate approximately 40% of County Hall’s usage requirements. When combined with the roof-based solar PV, it is estimated that 50% of County Hall’s energy needs will be met by renewables. From this retrofit, £150,000 per annum is anticipated to be saved on energy costs, which can be invested in Council services.
Councillor Glen Sanderson, Council Leader and Cabinet member for Climate Change said:
“It’s great to see this initiative finally come to fruition which will save a massive amount on Council energy supply spending and will also reduce the need for us to rely on fossil fuels to power our main building.”
NORTHUMBERLAND COUNCIL HQ WITH CAR-PARK AND ROOF-BASED PV PANELS
AVIVA INSURANCE HQ
#3 | SLASH FUEL COSTS TO FUND NEW COUNCIL
Newry Mourne & Down Council’s total annual diesel fuel bill is £1.087 million per annum including our heavier vehicle fleets. If we convert this ‘revenue cost’ figure to a ‘capital funding cost’ using Council’s “cost of borrowing per ‘000” we get a possible capital investment figure of £21 million to fund the new depots and fleets of vehicles our Council needs by not buying diesel fuel.
3.1 COUNCIL DEPOTS OF THE FUTURE
The council fleet depot of the future will feature renewable energy which is sufficient to provide free power to the entire fleet, saving ratepayers millions annually.
Westminster council’s 80-strong vehicle electricrefuse fleet is fuelled by electricity generated from the waste they collect.
Durham Council’s low cost fleet depot has an on-site solar farm to power vehicles and the depot.
DEPOTS AND VEHICLE FLEETS
CORK, IRELAND
The Council has replaced its diesel and petrol vans and cars with a fleet of 76 new electric vehicles.
The switch to renewables will see the council save over €700,000 across the next five years.
NOTTINGHAM, ENGLAND
Nottingham’s depot is home to a fleet of 250 electric vehicles, including 6 bin lorries.
Over half of the council’s vehicles are EVs. Much of their power is from council’s own PV panels.
STATUS
Council is currently doing the bare minimum required by law. No plans to drive down costs though electrification exist. Heavy vehicles need addressed.
DUNDEE, SCOTLAND
Dundee council is the most impressive for its integrated approach to new depots, fleet electrification, council owned EV charging network as a revenue stream and electrification of public transport.
“Wearelessreliantonenergyfromthenationalgridto powerourEVs,helpingussavemoney,savecarbonand worktowardscarbonneutrality.”
Wayne Buxton, Nottingham City Council Environment and Sustainability Director.
UK GOVERNMENT POLICY ON FLEET REPLACEMENT
For about ten years now, the EV versions of many classes of vehicles have been cheaper when ‘Life Time Costs’ are taken into consideration.
Between 2019 and 2021, we persuaded our Council to adopt a policy of ‘lifetime costs’ as a basis for assessing electric vehicle fleets v’s diesel to accelerate EV adoption.
As of 7th May 2024, this is now required UK Government policy for all Local Authorities.
Central Government has committed to 100% of UK government cars and vans will be fully zero emission by 2027, which is about 40,000 vehicles.
Most councils in Northern Ireland are not currently operating to this policy. For more information visit www.enright.ie/climateincouncils
#4.1 | ENERGY STORAGE AS A NEW SOURCE
Local authorities can use energy storage facilities to increase their non-rates income. Additionally, batteries can make Council’s PV solar farms more valuable by being able to dispatch their energy at peak times, when prices are highest. This also allows councils to stabilise local grids and avoid local power outages
EXAMPLE 1: WARRINGTON GRIDSERVE BESS (BATTERY ENERGY STORAGE SITE)
Warrington has two major solar farms across Yorkshire and Hull. To maximise profits it has large scale batteries storing up the energy, until peak hours, meaning they can sell back power at higher prices, generating more nonrates income.
This helps provide power 24/7, 365 days a year,allowing the Council to make additional profits from servicing the grid and ensuring local energy stability.
SITES ALREADY IDENTIFIED IN OUR COUNCIL
In display #1 we can see that Newry Mourne and Down Council identified sites it already owns at Aughnagun, Drumnakelly, Croreagh, Newtownhamilton and Courtney Hill with a view to Council-owned PV farms. Council can make millions for ratepayers by not only building PV farms on these redundant lands, but including a Battery Energy Storage facility on each of these sites to make them more valuable. Currently, our council has a 5-year payback on it’s identified sites, sending energy to the grid at around 6p/KWH. On site batteries would increase this to 20p+/KWH.
EXAMPLE 2: KEMSLEY BESS, SWALE BOROUGH COUNCIL
In Kemsley, Swale Council are building a 50MW battery storage facility connected to the high voltage transmission network to add to Council’s own sources of income.
The battery will provide essential flexibility to future-proof electricity system, support more intermittent generation and the local grid by responding in milliseconds to fluctuations in local electricity supply and demand, charging or discharging to keep the system stable.
SOURCE OF REVENUE
EXAMPLE 3: BATH & NORTH EAST SOMERSET COUNCIL
Somerset Council’s Battery Energy Storage Site(BESS) has a capacity of 30MW. This facility stores power from the grid when it is not needed and can be sold back for a profit at peak times.
The batteries, which incorporate Tesla mega packs, would be capable of powering 15,000 homes for up to two hours when demand is highest, typically between 5pm and 7.30pm, providing grid stability services to the National grid, and Western Power Distribution.
STATUS
Council has accepted these projects in principle but no time lines or budgets are available.
“We are very pleased to be playing host to this significant new battery storage facility from Conrad Energy and applaud the role it will play in creating the smarterandmoreflexibleenergysystemweneedtogetustonet zero 2030.”
Councillor Sarah Warren, deputy leader and cabinet member for Climate and Sustainable Travel
REGIONAL SCALE STORAGEPOSSIBLE PARTNERS
The lack of energy storage in Northern Ireland is an issue for the Strategic Investment Board. As without energy storage the transition to 100% renewables is very difficult.
In 2021, NIE Networks in their “Energy Storage Solutions” programme consulted widely in NI on energy storage solutions. Following this, SONI are now implementing changes to their venue rules to allow NI battery farms to participate in energy market trading (Arbritage), in line with GB and ROI.
There are other NI Councils already seeking to partner with energy companies on storage and other projects – especially Antrim which has a lot to lose when Kilroot power station closes. The press releases below envisage a £600 million storage project for Antrim and a likely large tail of commercial rates flowing from any such project.
For more information visit www.enright.ie/climateincouncils
#4.2 | PUMPED STORAGE AS A NEW SOURCE
Dispatchable power is the most prized and economically valuable. Providing instant on-demand energy used to balance or modulate power on the all-Island grid.
Until the advent of Tesla-stye battery farms as in display #4.1, this type of energy is overwhelmingly provided by pumped storage from mountainous areas
EXAMPLE 1: WICKLOW COUNTY COUNCIL
€1.75m pa in rates
A real-world example of this opportunity for our Council is the €1.75 million pa in rates received by Wicklow County Council for the Turlough Hill energy storage facility.
Historically, Turlough used cheap-rate night time power to pump water up the hill and then release it at peak times energy demand. Its capacity is 292 Megawatts. With the advent of renewables, Turlough now mostly stores wind power when there is too much wind for the grid to handle.
EXAMPLE 2: NEWRY MOURNE AND DOWN COUNCIL
The only other Council in Ireland with a facility on Turlough Hill’s scale is in Newry Mourne and Down District Council. Councillors are generally unaware that our Council owns an energy storage facility approximately the size of Turlough Hill which has substantial infrastructure already built that could realise up to ~£5 million pa+ in rent and rates. If completed, this project could have provided storage of more than 200 megawatt hours of electricity for the NI Grid.
This huge underground facility is on the shore of Camlough lake with a one kilometre long tunnel drilled though the granite towards lower slopes of Slieve Gullion accessed from Hall Rd. This pumped hydro storage system was to have been a giant battery ready to release instant power to the NI grid. The giant turbines were bought and installed but never commissioned as the project was abandoned with the start of the troubles. 20 years later the turbines were sold.
In 2021, senior management at the Strategic Investment Board (SIB) asked Councillor Cadogan Enright to arrange a meeting with NM&D council management team to see if the Camlough project could be advanced. No report has so far come back to council as of August 2024.
SOURCE OF REVENUE
HOW TO MONETISE THIS OPPORTUNITY FOR OUR COUNCIL
STATUS
Strategic Investment Board is now meeting elected representatives in South Armagh area.
A fully planning consented project of this size with nothing built out has a capital value of £20 to £30 million to NMND Council with further revenue opportunities. For instance, a substantial rent plus a revenue-sharing agreement would be expected based on recent examples across the UK.
Rates for the recent Coire Glas scheme in the Scottish Highlands are estimated at £15 to £20 million pa which suggests that up to £5 million pa might be possible in Camlough. A revived planning permission would trigger a ~£500 million underground building project in the Camlough area with 75% of the value staying in the area as it would be a civil engineering project.
It would normal for the operator to pay a ‘community dividend’ to community organisations in the South Armagh DEA. Turlough Hill is a big tourism attraction in Wicklow and employs many well-paid engineers. The same would be likely in South Armagh.
This facility can be operated without disrupting local fishing or boating interests. The Lake’s surface would slowly and almost imperceptibly rise and fall by ~ one meter as the system charged and discharged over the course of 24 hours.
STUDY ON CAMLOUGH PHES BY ENGINEERS
In 2021, a Pre-Feasibility Report on the Camlough PHES (Pumped Hydro ElectricStorage) site was conducted by ESB engineers Peter Duffy and Frank Burke for the Camlough Community Association, based on this partly constructed underground facility
They estimated needing 8 years to build and go live for a normal facility like this, but it could be much quicker based on the work already done in the 1960’s and 1970’s. Providing 230MW generating an annual revenue of €18 million pa. For more information visit www.enright.ie/climateincouncils
#5 | RATES FROM RENEWABLES 2021 - COUNCIL
RATES FROM RENEWABLES IN NORTHERN IRELAND
Rates from renewable energy as a whole in Northern Ireland will grow to between £100 Million and £200 million over the next decade. That is potentially more than £10million annually for each Council if they are prepared. Fermanagh and Omagh District Council is well past 50% of this figure. For context, NMD Council’s annual rates support grant is only ~£8 million per annum.
You can see each council’s income above, or scan the QR code.
RATES FROM RENEWABLES IN THE REPUBLIC
In 2024, projected rates from wind farms alone in the Republic of Ireland are estimated to reach €82,790,840.13c. Here are a few highlights:
AMENDING CURRENT DEVELOPMENT PLANS -CLIMATE EMERGENCY PLANNING STATEMENT
At NM&D’s Council meeting to consider the Hilltown Windfarm which would have realised £1.5 million pa in rates, councillors were told by our head of Planning that our Climate Change Policy could not be taken into consideration as we had not amended the development plan. 3 years later, our current Area Plan does not mention ‘climate emergency’.
In 2019, like our council, many English Councils adopted Climate Emergency Motions. But GB Councils then went and did something about it. Examples are legion but Plymouth and Devon are similar, in that they adopted their development plan in 2019, but then adopted an update to it in 2020 to take into account their Council’s declaration of the Climate Change emergency.
COUNCIL NEEDS A TARGET
STATUS
Council management suggested we do not have the powers like the UK to modify development plans. Councillors have referred management to Section 14(1) of the planning act which states clearly that we do have these powers.
This means that when renewable energy or other proposals come before planners – they are obliged to take climate change into account. For example in Plymouth and South West Devon Council. GB Councils contain quantified, strategic carbon reduction targets to support their Council’s 2030 net-zero commitments, that planners need to consider.
INTERIM PLANNING STATEMENT - CLIMATE EMERGENCY
South Lakelands Council and many other Councils have produced “Interim Planning Statements” to add Climate Change Emergency provisions to their current Development plans while they develop their new Area Plans. Other Councils like Cornwall have added an ‘Emergency Climate Policy’ to their existing recently adopted Development plans.
Lancaster City Council adopted an Area Plan in July 2020 which was already too far advanced to reflect the council’s declared climate emergency. Their plan lacked a carbon reduction strategy for their district. But they embarked on a Climate Emergency review of their Area Plan in 2021.
Lancaster City’s revised plan includes a whole new policy (CC1) on responding to climate change, which seems to reflect good practice. Meanwhile, Newry Mourne and Down Council is saying it will address climate in its next Development plan that could be years away before it is adopted. This is at odds with both the 2 climate emergency motions passed by our Council in 2019.
HOW DO WE FIX THE SITUATION WE ARE IN? WHAT IS THE LAW IN NORTHERN IRELAND?
The Law in Northern Ireland is very clear. The easiest way to press for a short-term revision is to focus on the ‘plan strategy’. Section 14 of the Planning Act states:14(1) “ The council may at any time prepare a revision of (a)its plan strategy; or (b)its local policies plan”
Cross-party support is needed for a third motion on climate change for a binding motion on Council to implement an Interim or Emergency update to the existing Development plan.
Also this motion would need to address the proposed development plan which is extremely weak on all the issues highlighted in this document.
For more information visit www.enright.ie/climateincouncils
#6 | DELIVERING SUSTAINABLE DEVELOPMENT AT
Following the reform of local government in NI (RPA), section 76 of the Planning Act 2011 gave Councils in Northern Ireland power to levy developers’ contributions toward local infrastructure.
In Britain and RoI these powers are used for the sustainable development of an area. Typically, they fund the provision of public goods, including affordable housing, community infrastructure. Some N.I. councils have implemented 76-style agreements in councils like Ards & North Down and Lisburn, delivering everything from distributor roads to play parks E.G. Planning Reference LA06/2020/0097/F.
HOW THIS WORKS IN G.B. AND R.O.I.
The principle that development value or ‘unearned planning gains’ should be subject to a charge or levy has been an aspect of planning law in Britain and Ireland for decades.
ENGLAND
Local Planning Authorities’ (LPAs) ability to negotiate obligatory contributions is provided under section 106 of the 1990 Town and Country Planning Act. These negotiated agreements are known by the vernacular, ‘section 106 agreements’. Levies can be created for affordable housing, roads and public art.
SCOTLAND
The Scottish equivalent is a ‘Section 75 planning obligation’ under the Town and Country Planning (Scotland) Act 1997. Can include financial contributions towards schools, roads, transport, public realm and affordable housing.
REPUBLIC OF IRELAND
Development contributions are dealt with under Sections 48 and 49 of Part III of the Planning and Development Act 2000.
Levy contributions to ‘public goods’ are extensive in the Republic, where developer levies are higher and cover a wider scope than in the UK.
NO COST TO RATEPAYERS
REAL WORLD EXAMPLE IN DOWNPATRICK
STATUS
Council has passed a motion to create a Section 76 Order in Downpatrick in respect of the Eastern Distributor Road as suggested by the Permanent Secretary at DfI. Action by management is awaited since 2018.
On 9th March 2018 DfI Permanent Secretary Peter May presented a report on Downpatrick’s ‘Distributor Road’ ring-road which according to the current Ards and Down Area Plan is supposed to connect the Downe hospital and Council Campus to the Belfast Road. This road would also support ~ 3200 housing unit equivalents. These, when fully built out, will gross over £6 million pa in additional rates.
At the following council meeting, chaired by SF’s Willie Clarke a resolution was passed requiring management to bring back a S.76 proposal for the Eastern Distributor Rd.
COST OF NOT ACTING IN DOWNPATRICK
Six years later no Section 76 Order has been brought forward. Between 2018 and 2021, 412 units of housing received planning in the geographic area of the proposed Section 76 Order.
At an average levy of £4000 per unit, Council lost the opportunity to gain £1,648,000 for a hypothecated fund for the new road. This loss is higher if developments to 2024 are added in.
LATEST SITUATION ON THE GROUND
A new planning application has now been submitted for a large 1,100 unit development along the line of the new Distributor Road in Downpatrick. The developer proposes to build ~50% of the new road to serve the development. This proposal reflects the need for the road per the Area Development Plan. When completed, this development is likely to deliver a boost to rates of £2.2 million per annum.
Had the Section 76 Order ‘hypothecated fund’ been in place, Council would already have the resources to build a link from this road to the existing section of the Distributor Road outside the Downe Hospital and the Councils Headquarters on the Downshire Public Sector Campus.
There is currently no legal obstacle to having a series of Section 76 Orders to deliver key projects in all 7 DEAs in Newry Mourne and Down.
These vital additional funds can tackle climate change and sustainability issues. E.G. In Downpatrick, the intense pollution and congestion in the towns old medieval town centre could be alleviated by not having through traffic.
For more information visit www.enright.ie/climateincouncils
#7 | £65 M pa LOOKING FOR A SUPPLIER
Stormont’s research department estimated in 2020 that 5% of UK Households’ average weekly expenditure was spent on motor fuels in 2019 averaging £21.60pw.
For Newry Mourne and Down District this totals £68.5 Million pa for domestic consumption plus £31.7 million pa for commercial vehicles. Almost exactly £100,000,000pa fuel spending, 98% of which leaves our District.
Within 10 years in NMD Council, this £100Mpa of transport fossil fuel will be converted to sales of £65Mpa of electricity based on today’s prices and the average price efficiency ratio of electric vehicles. Council must take advantage of generous funding initiatives to convert its ERT car-parks to PV. Giving NM&D a giant slice of the projected £65 million in our area.
DUNDEE - ATTRACTING CAPITAL AND LONG-TERM INCOME
At the Newry, Mourne and Down Climate Change Symposium in 2021, Dundee City Council’s Fraser Crichton explained how Dundee’s Council had made a strategic decision to place Dundee at the heart of the ‘New Circular Economy’, and how this applied to carparks owned by council.
7.1 - MANAGING CAR PARKS TO PREPARE FOR THE NEW CIRCULAR ECONOMY
Our Enterprise Regeneration & Tourism Department runs 51 town-centre carparks with 4000 parking bays across our District. Council has a total of 181 car parks and over 10,000 parking spaces.
Our carparks are ‘dead costs’ losing us money overall annually. Dundee Council are leveraging their ownership of carparks around their Council area to attract investment from the EU, Westminster and the Scottish Government. By March 2020, they had won ten grants worth over £11,000,000 worth of charging infrastructure across their council. This will provide a growing income to the council going forward.
Many charging locations are integrated with PV panels and batteries, with up to 20 charging points each.
51% of the population of the Dundee Council area lives in multi-unit buildings.
Thus the Council enables not just well-off people in large houses with their own garden carparks switch to EV’s as in N.I., but the whole population plus visitors.
Councils will lose up to £1/2million pa in rates from filling stations as they close.
7.2 - CONSULTING RESIDENTS ON EV CHARGING LOCATIONS
The location of charging points had been consulted upon widely in Dundee City. The taxi trade had been involved too and suggested locations outside the council’s area such as the local airport or on land belonging to hospitals to ensure that any typical journey could be served by EV’s in the area.
The consultation of residents and taxis can be attributed to the success of the scheme. By 2020 there were 225 electric taxis in the city and this number was rapidly growing and is helping make EVs more visible around the city.
Council has passed a motion to implement this proposal. The factual financial basis for this proposal has been confirmed by the recent Interreg Program. Management needs to respond to Councillors’ motion with a plan.
WHAT OUR COUNCIL CAN DO
NMD Council’s 51 strategically situated town-centre ERT carparks are not ‘dead assets’ requiring maintenance and insurance. They are potentially both sources of free grant capital and annual cash revenue.
Our EV-enabled car parks will be part of our Tourism package and our Enterprise package securing our place in the New Circular Economy. These ‘dead assets’ can make Newry Mourne and Down District Council one of the most attractive places to be in a more progressive New Economy Northern Ireland, and make us money.
They can be part of our social responsibility giving all ratepayers have access to affordable transport. Ensuring that not just the well-off that benefit from the low running and maintenance costs of EV’s.
If Council is proactive and works with local businesses – all £65million pa of transport fuel expenditure can stay in Newry Mourne and Down District by 2030 and not simply flow out to Saudi Arabia or Westminster in taxes.
#8 | UPGRADING THE GRID TO SERVE THE NEEDS
The grid will be the basis of the new electrified economy, and local businesses should have the same access to the all-Island grid network as they have in the Republic so they can transition to green energy, save money and produce renewables for the grid.
The NI Executive’s new Energy Strategy ‘Path to Net Zero and the Climate Change Act (NI) 2022’ has prompted a review of the local grid to see if the legislative and regulatory framework for connecting to the grid, and the grid itself, will meet the needs of our local population on the path to a new green economy. See consultations in these QR codes.
<< I was pleased that our Council recently adopted my submissions on the grid in NM&D District.
LOCAL INDUSTRIES - LACK OF ACCESS TO GRID
Lack of capacity and grid access for both consumption and production in the Newry Mourne and Down district has created a situation where most of our most significant employers must have large diesel electric generators on-site in dedicated generator rooms, such as BE Aerospace, Ardglass Sea Products or Warrenpoint Harbour.
This has particularly affected the farming and fishing industries. Two of Northern Ireland’s three biggest fishing ports are based in our district. The lack of grid capacity has forced fish processing factories to create micro-grids with both renewable and diesel generation, but while they are not allowed to export surplus renewable energy to the grid - but the grid will call on their diesel generators to prop up supply on the local grid.
Proposals from large local companies seeking large PV arrays on their south facing roofs to export to the grid that could generate 500kwh per day, making them more cost competitive, have been denied for 10 years based on lack of capacity on the grid in our district.
Meanwhile, Stormont is wasting £56 million pounds extending to the Gas Network, thus continuing to subsidise the fossil fuel industry in Northern Ireland.
NEEDS OF COUNCILS ACROSS N.I.
NORTH/SOUTH GRID ACCESS AND COST DISPARITY
The NI Energy Strategy notes the importance of getting connected quickly, easily and at a fair price. But connection charges for NI farms and businesses switching to renewables commonly run into the 100’s of 1000’s of pounds. Whereas their competitors in the Republic are often grant-aided to move to cheaper renewables.
As NI continues to be part of the Single European Market and part of the All-Island energy market, having a regime that makes our rural businesses less competitive with their peers in the Republic damages our competitive cost base for both consumption and production of renewable energy. The continuation of the NI ‘deep charging regime’ would put NI businesses, farms and consumers on a more unfavourable basis than the Republic.
THE GRID IN NEWRY MOURNE AND DOWN DISTRICT
Current plans have no proposals to remediate the National Grid in the Southern Region of Northern Ireland. The transmission grid as currently configured ends at Ballynahinch and 5km north of Newry. There are very few 33kv lines in our District. Most of our 11kv network is operating with 25mil conductors rather than the modern 100mil norm.
This leaves our District as the biggest geographical area in NI without the infrastructure needed to fully support the energy transition.
TWO KEY ACTIONS FOR COUNCIL
COUNCIL’S SUBMISSION TO UREG
Based on the lack of capacity in the national grid in the NMD district affecting local businesses, our council has two key tasks:
1. Write to NIE seeking upgrades to the local grid like (see QR code):
• Upgrading of the 11kw network from 25 mil
• A network of 33kv transmission lines
• Upgrading all substations to allow local farms and businesses to export
2. Update the 2030 Development Plan to build in deliverables from NIE and SONI to enable our council to make the transition to the electrified economy as required by UK Government Policy.
FUTURE FOR UK ENERGY - IMPACT ON COUNCILS
The UK Government’s Department for Energy Security and Net Zero projects that the current situation whereby renewables are cheaper than all forms of fossil fuels will continue to accelerate. As renewable energy projects proliferate over the next 10 years, those Councils able to respond can expect rates income over £10 million pa if they are prepared.
For more information visit www.enright.ie/climateincouncils
STATUS
Council has submitted an excellent submission to DfE on the inadequacy of the grid in our District and how it damages businesses, farms and fishing. This needs to be followed up with a meeting with SONI/NIE to press them to deliver a grid to support the districts energy transition. The new draft Area Plan has also failed to address this crucial enabler for future economic development.
#9 | SAVING MILLIONS WITH NEARLY
In 2010 the Energy Performance of Buildings Directive (EPBD) came into force for all European member states, including the UK. The Directive has also been dubbed “The European Directive for Slow Learners”, as no rational well-informed public body would refuse to spend 5-10% additional capital on new buildings if the prize was a building that required little or no energy cost.
EXAMPLE: DOWNPATRICK & NEWRY NEW LEISURE CENTRES
Leisure Centres are ideal for NZEB design. They are built beside green fields where ground source heat pumps can be installed. They have large car parks, roofs and acres of green verges and footpaths suitable for covering with PV panels to ensure that the reduced energy demand from a NZEB design can be wholly met from renewables with no resulting energy bill.
In response to a vote by Downpatrick DEA Councillors that the new Leisure Centre should be a ‘green building powered by renewables’, management commissioned an ‘independent report’ showing how the Leisure Centre would have a much better payback if heated and powered by fossil fuels. This is not technically nor financially possible. This report suggested the payback on solar PV was 42 years. The report effectively cost Council in excess of £20 million.
Only cheaper renewables can have a ‘payback’ as they deliver energy without having to buy in fuel. Council had already done 2 dozen retrofits across its properties in every DEA with solar PV panels showing an average 7 year payback. In truth, a new build with PVs at the Leisure Centre would payback in 4 or 5 years.
NM&D COUNCIL IS PLANNING TO REPEAT THESE ERRORS
The UK Government defines Net or Nearly Zero Energy Buildings (NZEB) as follows; “a building that has a very high energy performance, where the very low amount of energy that is required is covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby.”
Note that the assumption here is that renewables are the primary energy systems and that fossil fuel and mains power are considered secondary support systems, if they exist at all.
The project manager for the proposed new Newry Civic Centre has informed us that the project team has not considered ‘secondary’ renewable systems but only primary fossil fuel and mains electricity. No lifetime cost had been computed for this proposed centre as is required by law.
ZERO-ENERGY BUILDINGS
UK LAW - PLAN FOR ‘NEARLY ZERO ENERGY BUILDINGS’
Since 31st December 2020 every new public building in England and Wales was required to be NZEB. Public Bodies like Councils in NI should be NZEB with a computation of ‘lifetime cost’ This has not been happening, costing N.I. billions of pounds over the next 30 years. See evidence QR code for FoI Requests.
The Building (Amendment) Regulations (Northern Ireland) 2014 states in section 43B that public building must be nearly zero energy from 1st January 2019.
WHAT IS HAPPENING IN THE REPUBLIC OF IRELAND?
In 2019 the Republic upgraded NZEB legislation to cover all new buildings, not just public buildings. New homes have Building Energy Ratings (BER) ofA2+.
A new 3-bed semi in the Republic is ~£1,500 a year cheaper to heat than a similar house in NI. Large retrofit grants are available in the 26 counties for energy efficiency + renewable energy to achieve a BER of B2 or equivalent.
STATUS
Council’s proposed new building projects are continuing to defy UK Government policy. The NCCR program features fossil fuel instead of renewables as the basis for the development and has not embraced the NZEB UK building standard.
For more information visit
#10 | HUMAN & FINANCIAL INFRASTRUCTURE IN COUNCILS
10.1 REACTIVATING ENERGY EFFICIENCY CAMPAIGNS
Despite organisational and structural limitations severely handicapping the effective functioning of this role, Newry, Mourne & Down’s outstanding energy officer delivered dozens of energy and water retrofit projects which built up his savings to an annual payback of £102,812 per annum and he was promoted in 2019 to a different role - however the energy office position has not been filled since.
Council needs a senior management resource to deliver the both the savings and additional income available.
This role needs to have power to enforce a “Nearly Zero Energy” building code on all new buildings, inline with the law and in pursuit of value for money for the ratepayer.
Many Irish councils have ongoing successful energy efficiency campaigns, see the following QR codes for different counties.
Cavan (321,265.21 pa)
ENERGY OFFICER’S FINAL REPORT
€369,722 pa)
10.2 GREEN ECONOMY SUSTAINABILITY MANAGERS
English Councils have mostly followed up on ‘Climate Emergency Motions’ and hired teams of people to deliver the savings and additional revenues available from the Green Economy as seen in this series of displays, The norm appears to be between 4 and 10 people. Not always in one team. With some embedded in other departments like project managers embedded in Finance as in Warrington or in the case of Dundee below, an energy officer embedded in the Fleet and Transport Management team. A few examples are;
West Suffolk (#1) has a Senior Assistant Director, and a team of four, looking after numerous projects with a multi-million annual revenue.
Northumberland (#2) has a ten person team dealing with a wide variety of actions and projects. Good contacts and information sharing with the UK Infrastructure Bank is maintained to ease funding for future projects. Completed projects are handed over to a technical services department.
Warrington (#3) has a finance-orientated and qualified team looking after projects with revenues in excess of £10 million per annum.
COUNCILS FOR THE GREEN ECONOMY
10.3 TRANSPORT AND THE GREEN TRANSITION
Dundee Council are a model for how an existing Fleet Management team can embrace the energy transition. With only one additional ‘Low Carbon Manager’ plus a few temporary consultants on the team, Dundee have addressed:
¾ the electrification of their fleet
¾ the creation of new modern depots with renewable energy and battery energy stores to power their fleet
¾ the electrification of public transport in taxis and buses in Dundee
¾ the creation of a socially-owned EV charging network using Government incentives to create an EV charging network that reflects a ‘just transition’ to the new electrified economy with some of the revenues accruing to Council.
FUNDING SOURCES
Councils in Northern Ireland have access to capital funding at less expensive rates than the private sector. This means that Green Economy initiatives would normally have a better payback in Local Government than in the commercial world.
Other sources of funding are used in Britain in addition to Council’s own Captal Investment Budget. Examples include;
STATUS
Council management has supported this proposal for over 5 years, but we still don’t have a team in post.
At the council meeting on 4th November 2024 a document was expected to be ratified to allow the recruitment of personnel to tackle these areas.
UK Infrastructure Bank Local Authority Services
Wealth Fund and British Business Bank Local Authority Guide for Crowdfunding or Municpal Bonds See also 1 Trillion Euro fund for cross-boarder projects
more information visit www.enright.ie/climateincouncils