Coventry Strategic Energy Partnership 

The Strategic Energy Partnership is a 15-year contractual joint venture between Coventry City Council and E.ON which will focus on innovative decarbonisation solutions. 

Challenge 

The partnership’s aim is to create a greener and healthier Coventry, with a focus on energy sustainability supporting a thriving green economy and providing a better quality of life for all. Four strategic themes will drive the partnership forward and help to deliver the mission: clean local energy, jobs and skills, innovation and scale, and community benefit. 

By enabling long term and sustainable infrastructure planning we are investing in and supporting the city’s route to net zero which, in turn, will provide environmental, economic and social benefits. 

No other city in the country is doing this. The partnership approach brings finance from the private sector, allowing Coventry to move quickly on a range of projects that the city would not have been able to achieve on its own. 

The Coventry SEP is not about designing a new vision for the future, it’s about delivery – making improvements across the city such as better insulation for homes, more energy efficient public buildings, shifting from fossil fuels to locally-produced renewable energy and creating thousands of good jobs along the way. 

Approach 

The partnership will deliver various energy infrastructure and social value projects, drawing on innovative approaches and solutions throughout. Delivery activity has been grouped into nine programmes within which the various projects sit. These include solar across the city, decarbonisation of buildings, electric vehicle charging, energy security, domestic energy efficiency and community benefit. These will range from those with very public, wide-ranging community benefit, all the way through to those that only directly benefit a single business or household. 

Projects from these programmes will be developed and joined up to maximise the value of the delivery approach. The Strategic Energy Partnership has been established in a way that allows flexibility in how projects are funded and enables various financing options. Funding is expected to include government grants, investment from partnership, public and private sector payments, revenue from electricity sold to other local buildings or to the grid. What is important is that the funding strategy is optimised with a mix of public and private funding which creates a viable and sustainable business model for the partnership. There could also be opportunities to work with additional partners or investors on schemes. As this is a 15-year partnership, opportunities will naturally be designed to deliver long term benefits.  

The types of business models appropriate for each project are expected to be broad and will be determined on a project-by-project basis to best suit the project’s needs and facilitate the best outcome for Coventry and the stakeholders impacted by the project. 

Examples of initial smaller scale projects currently being progressed supported by different funding streams include: 

Project	Funding Source	Scale
Domestic Energy Efficiency	HUG 2	£1-£5m
EV Charging	LEVI	£1-£5m
Solar in Schools	PSDS	£1-£5m

Our master planning activity will provide a prioritised view of larger scale infrastructure to be developed which will require a range of funding and investment approaches. 

Beneficiaries 

The public sector will benefit from a more resilient and sustainable energy supply, as well as from community developments. 

Local businesses will benefit both from increased opportunities flowing directly from the projects and from the results of the partnership with increased control and predictability over their energy supply and consumption.  

Students and local academic institutions will benefit from educational opportunities and resources in the form of apprenticeships and research cooperation.  

Local communities and homeowners will benefit from sustainable solutions, improved infrastructure and services. Opportunities for community ownership and/or involvement will also be created. 

NEETs (not in education, employment, or training) will benefit from the additional avenues for skill development and potential work placements. 

Replicability 

The central proposition of a long-term partnership of this nature is to provide certainty in local energy policy and in turn, create a fundable platform whereby investment can be undertaken based on clear long-term goals and objectives, with the community at its heart.   

A contractual joint venture, procured by a city or local authority, can be formed to develop sustainable energy solutions and projects under a business plan. A successful outcome means: 

• Alignment on purpose and objectives – utilising low carbon infrastructure investment to drive economic growth and create social value 
• Prioritising areas where citizen need is greatest – through working in partnership 
• Choosing the right model and structure – with appropriate governance & transparency 
• Innovating, collaborating and engaging with the community 

Key facts 

Planning Status: All projects are at different stages of the planning process 

Scale/Value: £2bn+ 

Timeline: 15+ years 

Lead: Public/Private: A Contractual Joint Venture Partnership – Coventry City Council and E.ON 

Contact: Please contact Phil McDermott, City Energy Transformation Lead at E.ON 

Phil.mcdermott@eonenergy.com 

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