PLANS to establish an innovative heat network in Bridgend town centre have taken a step forward.
Bridgend Council has approved the formation of a subsidiary company to allow the project to progress and has agreed to include a budget of £3.4m in the capital programme for phase one of the network.
The first phase of the Bridgend Town Heat Network plans to use excess heat from a combined plant and thermal storage facility based at the Bridgend Life Centre to heat the centre, as well as the Bowls Hall and Civic Centre offices. It will also provide electricity to those buildings.
The scheme forms a key part of the council’s commitment to reduce carbon emissions.
In order to access funding from the UK Government for the scheme, the council is required to set up a subsidiary company that will be 100% owned by the local authority to deliver the project. Any profits made will be re-invested in developing the heat network.
The council will provide a loan to the company which will be called Bridgend Heat & Power Ltd for £1.8m. This forms part of the £3.4m capital budget, with the remaining balance of funding being provided by a £1m grant from the UK Government, as well as connection charges and share capital.
Councillor Richard Young, Cabinet Member for Communities said:
The Bridgend Town Heat Network is a major part of the council’s 2030 decarbonisation strategy and will allow us to lead the way in reducing energy consumption.
The delivery of the network ultimately depends on the capital cost for the project is affordable and this will be determined by a procurement exercise.
As we take the plans forward, Bridgend will be a frontrunner in developing a heat network using this tried and tested technology in Wales.