Purpose

Cabinet will consider the Outline Business
Case for the Pimlico District Heat Undertaking.

Decision

Cabinet approved the
following recommendations:

·      
Approved the proposed shortlist, comprising the four best-scoring
options and the best performing Direct Electric option, for
progression to Full OBC. The recommended shortlist consists of:
o  
Do minimum - pipework replacement
o  
Centralised River Source Heat Pump (RSHP) and Gas Boiler (GB), as
top up and back up, in Churchill Gardens (CG)
o  
Centralised River Source Heat Pump (RSHP) and Electric Boiler (EB),
as top up and back up, in Churchill Gardens (CG)
o  
Cory Mobile Heat Batteries (MHB)
o  
Direct Electric (DE) Variation 3: Storage Heaters and Direct
Cylinders1

·      
Noted that a further report will be brought back to Cabinet seeking
approval of the OBC, the recommended single preferred option, and
any additional funding which may be needed to progress to Full
Business Case.
 
 
Reasons for Decision: There is a strong
strategic case for renewal or replacement of PDHU. The recommended
options are the four highest scoring across a range of Critical
Success Factors, balancing affordability, disruption,
deliverability and wider strategic objectives. Cabinet Members have
also requested to advance the best performing Direct Electric
option to ensure a non-network option is explored further. Approval
of the shortlist of options will allow the programme team to focus
resources on the most viable solutions, progress technical,
commercial and financial analysis, and prepare the Outline Business
Case for Cabinet consideration.