Norfolk County Council could set up a wholly-owned but independent energy company to provide renewable power to its buildings and raise revenue.
An innovative private company could be set up to harness the potential of the growing renewable energy sector in Norfolk, according to a report to members of Norfolk County Council's Cabinet.

The report suggests solar panels could be installed on schools, libraries, fire stations and other County Council owned buildings to reduce energy bills and generate additional revenue, should members approve proposals to set up an energy company.

The Energy Services Company (ESCo) would be wholly owned by Norfolk County Council but would operate as an independent company.

By operating as a standalone business, it could tap into Government initiatives, such as the Feed in Tariff, and additional funding streams as well as explore the potential to reduce energy poverty in Norfolk with innovative partnerships with businesses, and communities and partners in the public sector.

Cabinet members will be discussing the potential for setting up an energy company to increase value for money for council taxpayers by maximising the County Council's assets with council owned property and land used to generate energy.

The Council's Cabinet will consider installing solar panels on schools, libraries, fire stations and other buildings owned by the authority. Any surplus energy will be sold to the National Grid to generate revenue to be passed on to the council to support its activities.

The proposals include that the future ESCo will focus initially on internally focused projects such as the installation of solar panels on buildings and the installation of biomass boilers, but will also be looking to develop its involvement more widely to support inward investment into Norfolk, including joint ventures and community interest companies.

The report also suggests that the launch of an ESCo should provide greater energy security for business and communities in Norfolk, and attract further investment into Norfolk in the fast-growing energy industry.

The ESCo proposal follows collaborative working by Conservative and Green councillors at the County Council via the Leader's Transformation Consultative Group.

Derrick Murphy, Leader of Norfolk County Council, said: 'This is a whole new era for local government; I have said that we need to be even more creative with how we generate revenue and deliver better value for money for our residents and I believe this is one way of doing just that.'

Phil Hardy, Leader of the Green Party group at Norfolk County Council, said: 'By working together on this initiative, not only will we reduce the council's energy costs whilst creating an income stream, but we will leave a legacy for future generations. The ECSo will help kick start the low carbon economy in our county, giving us more energy security, lower carbon emissions and a new revenue stream for the Council. This is an example of putting the people of Norfolk first, ahead of party political point scoring.'

The report claims that the initial cost of setting up an ESCo could be met by transferring uncommitted funds from the council's Carbon and Energy Reduction Fund. These will be repaid by funds from the rolling capital programme. Additional funds could come from the authority's Annual Capital programme and external funding streams.

Startup costs would be kept to a minimum by using the existing CERP board to manage the project. The report also outlines proposals for the ESCo to recruit three members of staff in due course.