Agenda item

Report of the Director of Innovation and the Director of Regeneration and Economy

The Committee received a presentation and considered a joint report of the Director of Innovation and Director of Regeneration and Economy, which provided a performance update and set out the high-level vision and strategic theme for the Strategic Energy Partnership (SEP) for the first five years (2024-2029) as per the agreed governance process. 

Coventry SEP is a contractual joint venture between the Council and E.ON UK plc (E.ON) and was formed in September 2023 following a competitive dialogue procurement process. The initial term of the partnership is 15-years.

Tackling the causes and consequences of climate change is a key corporate priority as set out in the One Coventry Plan. The rationale for the partnership was the recognition that whilst the Council has a critical role to play in tackling climate change, it does not have sufficient expertise and access to the required capital to deliver its net zero ambitions. As such it was recognised that a strategic long-term partnership with industry was required, enabling a strategic partner to work together with the Council to develop strategies, business models and plans that will drive the city towards net zero and then have the capabilities to deliver these plans.

The use of a five-year Strategic Business Plan complemented by specific actions in an Annual Business Plan, plus a social value action plan, sets out the ambitions of the SEP and ensures a strategic and holistic approach to decarbonisation. 

The Committee noted that the Strategic Business Plan and Annual Business Plan are required to be approved by the SEP Contractual Joint Venture Board, which comprises senior Council and E.ON representatives and Coventry Shareholder Committee.  This is in line with the governance process approved by Cabinet and Full Council in September 2023.

Project progress (the gateway process) is approved by the SEP Contractual Joint Venture Board, provided it meets requirements set out in the approved Annual Business Plan.  Any deviation from the Annual Business Plan is to be approved by the Contractual Joint Venture Board and Coventry Shareholder Committee (e.g., greater draw on funds than anticipated).  Any Council capital investment (equity or loan) requirements would require Cabinet approval as per corporate governance, which would be required at final business case stage, and factored into the Council’s Medium Term Financial Strategy as necessary.

Since the partnership commenced, teams have been focused on setting up the governance and organisational structures to enable an aligned, collaborative approach to the selection of projects and activities.  The report submitted provided key highlights which included:

•  Strategic Energy Partnership Contractual Joint Venture Board established with monthly meetings.

•  Alignment of the Council and E.ON teams to co-ordinate work, including co-location of the Strategic Energy Partnership Programme Team in Friargate.

•  Commencement of new projects following approval through approved Gateway process:

o  Home Upgrade Grant (domestic energy efficiency scheme) – with additional added value brought by not needing an additional procurement process.

o  New EV chargers installed at Coventry train station - which support new tenants in Friargate 2.

o  Energy supply contract with more energy sourced from renewables.

•  A further 13 projects in the pipeline.

•  Development of Strategic Themes to underpin the partnership approach, as set out in the Strategic Business Plan:

o  Clean Local Energy;

o  Jobs and Skills;

o  Innovation and Scale; and

o  Community Benefit.

•  Social Value is a very important aspect of the partnership, with E.ON allocating a fund to initiatives that generate a community benefit as well as it being a key consideration as part of technical projects that come through the ‘gateway’ process. Some of the initial initiatives that are being developed include an engagement programme for schools, development of a community champions’ programme, a programme to support Care Leavers into work placements and the partnership is exploring projects to boost biodiversity in the city.

•  Additional workstreams established include Innovation and Propositions and Communications and Engagement.

A corresponding private report detailing confidential financial matters was also submitted for consideration (minute 24 below refers).

RESOLVED that, the Coventry Shareholder Committee approve the Strategic Business Plan and the Annual Business Plan, as per the agreed governance process which is set out in the Strategic Energy Partnership Joint Venture Contract.