Dundee City Council has committed itself to trying to find a replacement for its collapsed solar power project.
It has told its officers to explore fresh possibilities for using council properties in the generation of renewable energy, in the hope this can help tackle the widespread problem of fuel poverty among tenants.
Up to 1,000 homes and dozens of other council buildings were in line to be fitted with solar panels, but all the companies interested in the project withdrew their tenders after the UK Government made financial changes.
Councillor Ken Guild, leader of the SNP administration, told a special meeting of the policy and resources committee that the companies felt the scheme was no longer commercially viable.
”It is a very frustrating situation we find ourselves in,” he said.
Housing convener Jimmy Black said tenants could have saved between £100 and £200 a year on their energy bills if the scheme had gone ahead. Businesses would also have benefited from the work.
It was difficult to make some council houses energy efficient because of the way they had been built and solar panels would have been a solution.
He said the blame for the scheme’s demise lay at the door of the coalition Government in Westminster.
Richard McCready, Labour group environment spokesman, proposed that council officers be instructed to keep looking for renewable energy projects that could make use of council properties. This was agreed to by the administration.
Councillor McCready said: ”I supported the proposals when they were first brought forward and I am very disappointed that the UK Government has made this pre-emptive strike against the scheme.
”The council is right to make its voice heard to the UK Government calling for a rethink of the policy.
”I accept that changes made by the Conservative-led UK Government make it difficult for this scheme to continue.’Late in the game”’However, we have missed out by being slightly late in the game and we need to ensure that this does not happen in the future. We need to look for new ways to maximise green renewable energy generation in Dundee.
”We should not just sit back and heckle from the sidelines though we should be calling on officers to continue to look for innovative, cost-effective schemes which would encourage renewable electricity generation in our city.
”This would be for the benefit of all the people of Dundee, as it could deal with fuel poverty and cutting the city’s carbon footprint.”
The solar power scheme was derailed by a reduction in the feed-in tariff, the amount that those who produce power from their homes and sell it back to the national grid would receive from the state in exchange for their electricity.
The tariff has been cut from 43p per kiloWatt hour, to 21p per kWh.
A report to the committee explained: ”The opportunity to assist families directly affected by fuel poverty has been lost. Up to 1000 of the city’s most affected families could have had the direct benefit from reduced energy bills and free issue of electricity generation.Fuel poverty”As an urban local authority, we have an exceptionally high level of families living within the fuel poverty definition.
”Many small and medium-scale businesses have been established both locally and elsewhere to help deliver on the original initiative.
”The real concern is that with the proposed extreme reduction in tariff that has now been seen, the market collapse will threaten and most likely extinguish many of these businesses.”
Council chief executive David Dorward told the committee the capital funding earmarked for the scheme has been reallocated to improvements to multi-storey flats.
The council would await the outcome of the consultation on the feed-in tariff changes before looking at options for the future.
Dundee West Labour MP Jim McGovern has written to energy minister Gregory Barker asking him to look into the impact on Dundee of the reduction in the feed-in tariff.
He said: ”If businesses are being damaged because of this change then the Government must look to alleviate that. In these current economic difficulties we cannot afford to damage the prospects of local companies.
”It also seems entirely counter-productive to the Government’s own aim of increasing the amount of electricity produced by renewable sources to make a decision that sees less green energy come into effect.
”It is important that we make sure the future of renewable energy is secure, and if indeed the Government’s decision to reduce feed-in tariffs has damaged that then it must be opposed, and an alternative approach found.”