Pan-London framework would lower financial risk to councils
Plans for London green deal model
The mayor of London is mulling funding a green deal body that will enable councils to roll out the government’s flagship retrofit scheme across the capital.
Boris Johnson has instructed the Greater London Authority to explore creating a pan-London green deal procurement framework and promotion and referrals organisation which councils could use to deliver energy saving measures across their housing stock.
The GLA aims to retrofit 2.4 million homes in London by 2020 at a potential cost of £10 billion.
Under the green deal, households can receive energy efficiency works at no upfront cost, and then repay the cost of the works using the resulting energy savings. The works will be carried out by accredited green deal providers - a role the government is keen social landlords take on.
It is understood the GLA is considering funding a London green deal producer that would promote the scheme and provide referrals of work to green deal providers, as well as a pan-London procurement framework that would work with green deal providers selected by councils.
It will target boroughs that want to be involved in the green deal without taking the risk of investing their own cash raised cheaply from prudential borrowing.
Richard Blakeway, London deputy mayor for housing, land and property, said: ‘The mayor has tasked City Hall officers to scope out a range of proposals for how we can make the government’s green deal work best for the capital.
‘No final approach has been decided, but we want to maximise the value of the green deal for Londoners by presenting the most powerful case for funds and to reverse the historic poor uptake of predecessor schemes in London, such as the carbon emissions reductions target.’
Seperately, several London councils are drawing up plans to become self-funded green deal providers.Islington and Haringey are working in partnership examining the possibility of replicating the model deployed by Birmingham and Newcastle which are in the process of procuring green deal frameworks.
The two boroughs are considering a plan which could see them retrofit 15,000 homes in the first three years of the green deal. However, to make it work, they are likely to need three more boroughs on board.