Purpose

Recommended sales strategy for the sale of renewable electricity from the Integrated Waste Management Contract EfW for 2027/28.

Decision

RESOLVED that Cabinet:-

(a)      authorise the Council’s Waste PFI Contractor (Suez) to enter online energy auction and offer the sale of electricity generated at the Line 3 (EfW) during 2027/28 for a one-year fixed price, the first available date to do so being 14th October 2026 with subsequent dates being 18th November 2026 and 20th January 2027; and

(b)      delegate authority to the Executive Director of Place and Regeneration in Consultation with the Cabinet Member Environment, Rural and Farming to set the reserve price (as detailed in the attached confidential appendix to the report), and to amend the reserve price based on latest market analysis advice received up to the auction date and, should the reserve not be met, to consider whether to negotiate with the highest bidder to achieve the best possible financial outcome for NCC given the market conditions at that time or to reject bids and re-auction the electricity at the next available on-line auction. The aim being to maximise the income secured by NCC and ideally deliver at least a breakeven position in terms of the expected income levels to be built into the Council’s MTFP. This stance will be subject to ongoing market analysis.