Issue - meetings

To approve an interim three year investment plan whilst the options for funding the modernisation of Southwark’s heat network are fully explored.

RESOLVED:

1.  That it be noted that 17,000 council properties rely on district heating systems that are in need of capital investment and modernisation. There is not the funding in the current plans and models to upgrade the systems to a modern standard.

2.  That the interim three year investment plan be approved, whilst the options for funding the modernisation of Southwark’s heat network are fully explored, including bringing the Cossall estate district heating works forward from 2020-21 to 2017-18 to address the overheating issues experienced by residents.

3.  That it be noted that a recent study into costs of modernising the borough’s district heating concluded that in most cases that the current district heating systems should be retained and modernised. There is an estimated £44m shortfall in prioritised investment funding over the next 10 years and £350m capital investment required over the next 40 years.

4.  That the development of decentralised energy schemes and heat networks are embedded in the London Plan and in the preferred option for the Southwark Plan be noted. These networks are seen as essential in reducing CO₂ emissions. Nearly half the UK’s energy use is for heating and creating a low carbon source of heating homes is essential to meet climate change ambitions. Developing and modernising Southwark’s networks can contribute to these aims as well as deliver a cost effective and effective solution for residents.

5.  That it be noted that to fully explore the scheme viabilities and develop a funded strategic investment plan is expected to take approximately 3 years. Officers will provide an interim update in a year on the progress made exploring options and any earlier opportunities that are being progressed. The options will aim to deliver the modernisation of Southwark’s heat network in a way that will deliver for customers and the environment, as well as levering in funding and expertise to enable this step change to be realised.