Council officials have acknowledged that 'mistakes' were made when establishing Manchester's £24m green energy network. The Manchester Energy Network, which uses a large boiler on Lower Mosley Street to generate power, vents excess heat to major city centre buildings such as Manchester Art Gallery, the Bridgewater Hall and Manchester Central.
However, the council-owned network has suffered losses exceeding £1m since it began operations in 2022. Despite being promoted as an eco-friendly solution for the city's power needs when approved by town hall chiefs in 2018, it has not contributed towards meeting net zero targets as monitored by the Tyndall Centre's climate scientists.
This is due to the network's reliance on gas generated from biomass, which is then certified as environmentally-friendly with Renewable Gas Guarantees of Origin (RGGOs). However, the government began questioning the 'credentials' of RGGOs in 2021 - prior to the network's launch.
It was disclosed earlier this year that despite these concerns, bosses continued to use RGGOs as they had 'sought advice, but not from the Tyndall Centre'. Consequently, the £24m project has not aided in achieving Manchester's net zero targets, although it has replaced outdated infrastructure, making 'customer' buildings more efficient.
Sarah Narici, the council boss brought in to rectify the situation, has conceded that 'mistakes were made' during the system's set-up, reports .
During a resources and governance scrutiny committee meeting on Thursday (November 7), Ms Narici confirmed that Renewable Gas Guarantees of Origin (RGGOs) would be phased out, stating: "The arrangements have been made and continue to be there to exit from the RGGOs. These cannot contribute to our zero-carbon pathway."
She reassured the committee, "Please be assured the pathway put forward... will fully comply with Tyndall Centre recommendations."
Despite this positive step towards a greener network, financial challenges loom, with the council's special purpose vehicle company reporting a loss of £1,324,202 over its first two years. A further loss is anticipated for the third year ending in April 2024, according to a March council report, with the final accounts expected in December.
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