Proposals for Renewable Energy Supply at Blencathra Centre

Lake District National Park Authority Agenda Item: 10
Authority: 15 December 2010 Page 1
PROPOSAL FOR RENEWABLE ENERGY SUPPLY AT THE BLENCATHRA CENTRE,
THRELKELD
1 SUMMARY
1.1 Our tenants, the Field Studies Council (FSC), wish to install renewable energy
technologies at the Blencathra Field Study Centre. This paper sets out the
implications for the Authority as owners of the site and suggests we support the
proposals.
Recommendation that: a
b
c
Members agree to give landlord’s consent to the
installation of a combined system of renewable energy
technologies at the Blencathra Centre, Threlkeld, as
described in this report;
We contribute to the project as summarised in paragraph
8.1; and
Members delegate authority to the Head of Property
Services to agree detailed terms for reducing potential
compensation on the basis of the options described in
paragraph 10.5.
2 BACKGROUND
2.1 The Blencathra Centre is located 6 miles east of Keswick to the north of Threlkeld
village (see map attached, Annex 1). We acquired the site and buildings in 1976 and
since 1991 we have worked with the Field Studies Council (FSC) to develop it as a
residential study centre. It is now one of the FSC’s top performing national centres,
which is clearly of benefit to the Lake District National Park.
2.2 Our relationship with the FSC is fundamentally one of landlord and tenant, but in
partnership. The current lease of the property runs until 31 st December 2024 and the
partnership relationship is reflected through a Joint Management Advisory Group
(JMAG) which includes Members and Officers from both organisations. Further
details of these arrangements are in Annex 2.
3 THE BLENCATHRA CENTRE RENEWABLE ENERGY PROJECT
3.1 With JMAG’s endorsement the FSC has explored the possibility of financial support
for renewable energy from the Rural Carbon Challenge Fund (RCCF - see Annex 3).
An application package totalling £781,000 was successful and £500,000 of grant
funding has been offered.
3.2 In summary the project aims to reduce the carbon footprint of the Blencathra
Centre's buildings by 80% and achieve significant revenue cost savings. It also
provides an opportunity for the Centre to become a model of best practice within the
Lake District National Park. A key feature of the scheme is the expansion of
education and awareness programmes to demonstrate renewable energy issues to
8000 residential students annually and to a wider business audience in the rural
environment and economy.
3.3 The project will purchase four different renewable energy technologies:
• A 50kW high-head hydro scheme on the site of an original early 20 th century
scheme;
• A 9kW ground-mounted photovoltaic system;

Lake District National Park Authority Agenda Item: 10
Authority: 15 December 2010 Page 2
• A 150 kW biomass boiler and associated district heating system linking a range
of buildings on the site; and
• Two combined solar thermal systems to supply hot water for showers, kitchen
and other domestic uses
3.4 In addition to the £500,000 grant, the FSC will contribute £191,000. We have offered
our support to find a further £90,000 of match-funding spread over the three years of
the project and proposals for how we can meet that pledge are contained in
Paragraph 8.1. In order to secure the grant of £500,000, the FSC have guaranteed
to underwrite any match-funding gap.
4 POLICY CONTEXT
4.1 Links to Vision and/or Management Plan:
The Partnership Plan explicitly supports the development of renewable energy
schemes: (Prosperous Economy, Strategic Activity 5).
4.2 Links to the Business Plan (2010-2013):
Contributing to a Prosperous Economy: PE5/6 – working with partners to reduce
CO2 emissions across Cumbria / Supporting and encouraging appropriate energy
generation schemes. The proposal considered planning implications and the FSC
has engaged with our planners through a pre-application enquiry. The policy
framework of the Core Strategy supports these technologies in principle.
4.2 Links to Other Strategic Plans:
The North West Regional Implementation Plan identifies the need to move to a lowcarbon
and well adapted region.
Measure 331 of the Rural Development Programme for England supports training and
information for economic actors in the field of micro-renewable technologies.
5 OPTIONS
5.1 Members can give landlord’s consent to the installation of a combined system of
renewable energy technologies in order to secure £500,000 of external funding for this
sustainable development project. This will require a commitment to help secure
match-funding outlined in paragraph 3.4 and described in more detail in paragraph
8.1.
5.2 Members can refuse landlord’s consent and the project will not proceed.
6 PROPOSALS
6.1 Members are asked to support this project by:
i. giving landlord’s consent; and
ii. supporting match-funding up to the commitment outlined in paragraph 3.4.
6.2 The JMAG has considered the options and supports the proposal. The full RCCF
application is available as a background paper.
7 BEST VALUE IMPLICATIONS
7.1 The Best Value implications are:
a) Challenge – The proposal has been rigorously scrutinised by the RCCF in
awarding £500,00 grant funding
b) Compare – We have supported renewable energy schemes in other locations

Lake District National Park Authority Agenda Item: 10
Authority: 15 December 2010 Page 3
within the Park
c) Consult – the proposal has received widespread support from a range of
community and public agencies
d) Compete – not relevant at this stage.
8 FINANCE CONSIDERATIONS
8.1 The estimated cost of the scheme is £781,000 (see Annex 4) and a funding
breakdown is described below:
Source Amount £K Aggregated Totals
RCCF 500 500
FSC match-funding 191 691
Other match-funding 90 781
We have offered support in finding the £90,000:
i. We can identify £64,000 from planned maintenance work over 3 years identified
by condition survey as qualifying expenditure in relation to infrastructure
improvements;
ii. We have submitted a bid in the sum of £45,000 to the Sustainable Development
Fund; and
iii. We can identify up to £23,000 staff time over 3 years relating to project
management advice and support.
This will be more than adequate to meet the match-funding requirement if the bid to
the SDF is successful, but in order to secure the grant of £500,000, the FSC have
guaranteed to underwrite any match-funding gap.
8.2 The other significant financial implication is a potential increase in our 50% share of
the annual net operating surplus as a result of reduced energy bills, though it is too
early to make a reliable prediction of the anticipated saving.
8.3 We have also confirmed that any clawback provisions imposed by the RCCF or its
successors will apply only against the FSC as the applicants and only within a 5-year
period from the completion of the project i.e. not beyond 2018.
9 RISK
Id Risk Consequence Controls required
R1 As landowners, LDNPA
are implicated in any
contractual breakdown
between RCCF and FSC
Possible financial
penalties and loss of
management time
LDNPA are not party to
the contract with the
RCCF
R2
R3
FSC include project as
part of tenants
improvements
Lack of adequate project
management
10 LEGAL CONSIDERATIONS
Compensation becomes
payable
Project fails
Compensation is limited
to added value and may
be reduced through
agreement
LDNPA satisfied with
provisions for project
management
10.1 Under the provisions of Part 1 of Landlord and Tenant Act 1927 section 1, a tenant is
entitled at the termination of the tenancy to be paid compensation for improvements

Lake District National Park Authority Agenda Item: 10
Authority: 15 December 2010 Page 4
which, at the termination of the tenancy, add to the letting value. Compensation would
not exceed:
a. the net addition to the value of the holding as a whole which is the direct result of
the improvement; or
b. the reasonable cost of carrying out the improvement at the termination of the
tenancy, subject to a deduction of an amount equal to the cost (if any) of putting
those works into a reasonable state of repair.
10.2 In determining the amount of compensation, the intended use of the premises would
be considered. If the intention is to demolish or alter the premises or change its use,
the compensation would be adjusted accordingly.
10.3 Part of the Landlord and Tenant Act 1927, section 2, allows the landlord to offer to the
tenant a further lease instead of compensation. The terms of such a lease would be
agreed or decided by a tribunal upon termination of the tenancy.
10. 4 Section 9 of the Act prohibits contracting out of this provision. But our liability is limited
to the additional value of the property as described in 10.1a above (less the value of
any contribution we make to the scheme) and so will be recouped if the lease is
terminated and the property is sold.
10.5 There are also ways that we can reduce our liability for paying compensation:
a. Upon termination of the lease, we could require the property be re-instated to the
condition it would have been in at the commencement of the lease (had the
renewable energy works have been carried out). Requiring the property to be
reinstated would remove the risk of having to pay compensation, however this
would (if invoked) negate all the benefits of carbon reduction which are central to
our support for this initiative.
b. We could be prepared to offer a further lease in accordance with the provisions of
Part 1 of the Landlord and Tenant Act 1927, section 2, should a claim for
compensation be made. This option would require no compensation to the tenant
but may commit us to a further lease with the tenant or the tenant’s assignees in
the future. This may reduce flexibility in managing the site but would ensure a
future rental income. We would not have to pay compensation if we offered a new
lease to the tenant who then decided not to accept it.
c. We could reach an agreement with the tenants that the compensation payable be
written down to a much reduced amount by the end of the lease. We are
discussing this and other issues relating to terms and conditions with the tenants.
11 HUMAN RESOURCES
11.1 Time inputs from our staff have been agreed. There are no exceptional staff
implications.
12 DIVERSITY IMPLICATIONS
12.1 This item is of low relevance to diversity issues.

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13 SUSTAINABILITY
13.1 With an estimated 2.3 million tonnes of carbon emissions from residents and visitors
each year, tackling climate change is of central importance to the Lake District
National Park which is already being affected by changes to the climate.
13.2 The Renewable Energy – Low Carbon Vision Project creates a real opportunity for
the Blencathra Centre to become a leader in multiple renewable technologies,
reducing the carbon footprint of the centre and to become a model of best practice
within the Lake District National Park. The local area can make a significant
contribution to reducing the problem and this project is a truly inspirational example
of sustainable development in action which lies at the heart of the Park Vision,
creating benefits for the rural economy and local communities.
Background Papers Minutes of JMAG, 1 April 2010
Bid to Rural Carbon Challenge Fund, 31 August 2010
Case File
Author/Post
Martin Curry, Head of Property Services
Date Written 29 November 2010 – V.4

Lake District National Park Authority Agenda Item: 10
Authority: 15 December 2010 Annex 1 Page 1

Lake District National Park Authority Agenda Item: 10
Authority: 17 December 2010 Annex 2 Page 1
ANNEX 2: LEASE AND PARTNERSHIP ARRANGEMENTS
2.1
a) We have owned the Blencathra centre since 1976. In 1991 we contracted the
Field Studies Council (FSC) to manage it on our behalf as a residential study
centre. On 1 st January 1999 we entered a full lease and Joint Venture Agreement
(JVA) with them which run until 31 st December 2024.
b) The terms and conditions include provision for:
i. A base rent of £1 p.a. and a variable annual rent calculated according to
an agreed formula relating to the declared operational surplus
ii. Retention of part of the property as office accommodation for our
northern-based staff.
c) Blencathra is run as a mainstream FSC residential field study centre independent
of any other contractual arrangement we may have with them and whilst the
relationship is fundamentally one of landlord and tenant, it is also one of
partnership. Blencathra is thriving as one of FSCs top performing national
centres and is in good physical condition.
d) The partnership takes the form of a Joint Management Advisory Group consisting
of Members and Officers from both organisations who meet twice yearly under
the following terms of reference:
To advise Authority and FSC on:
i. The management of Blencathra for the provision of courses of study
(pursuant to the powers of the Authority) under the Countryside Act 1968;
ii. The provision of accommodation (under the National Parks and Access to
the Countryside Act 1949); and
iii. The fulfilment through the provision of courses of study of the Authority’s
duty to promote opportunities for the understanding and enjoyment of the
special qualities of the National Park.
Any issues not dealt with at officer level are addressed by the Joint Management
Advisory Group.

Lake District National Park Authority Agenda Item: 10
Authority: 17 December 2010 Annex 3 Page 1
ANNEX 3:
THE RURAL CARBON CHALLENGE FUND
What is the Rural Carbon
Challenge Fund?
Who is it delivered by?
In March 2010 the Rural Carbon Challenge
Fund (RCCF) opened its doors to applications.
It is a £4 million programme which will help
rural communities make their renewable
energy projects become a reality. These
projects will demonstrate to other aspiring
communities what can be done at a local level,
highlighting that renewable energy can create
jobs, encourage training and information
sharing and reduce reliance on fossil fuels
such as coal, oil and gas.
The RCCF was open to organisations across
the North West of England, in particular aimed
at small businesses (microenterprises), social
enterprises, cooperatives, charities and
community groups, with grants between
£200,000 and £500,000 available.
The RCCF is being delivered in
partnership by Envirolink Northwest and
the Energy Saving Trust on behalf of
the Northwest Regional Development
Agency (NWDA).
How did organisations find out about
the Fund?
Even before the fund officially opened
towards the end of March, enquiries
were regularly being made, asking for
more information and to hear about the
support on offer.
To ensure the target audience had been
reached, the RCCF team commissioned
a media marketing campaign that
identified and approached media with a
strong rural reach. A second phase was
subsequently undertaken to ensure that
a spread of applications were received
from across the North West.
RCCF stages were as follows:
Activity Date
• June 2010 - Expressions of interest submitted
• June 2010 - Expressions of interest scored and a selection of projects asked to
submit a full application form
• August 2010 - Full application form submitted
• September 2010 - Decision made on who will be awarded the grants
• December 2010 - Projects commence
• Projects fully operational March 2013
For more information see: www.envirolinknorthwest.co.uk
The full bid document submitted by the FSC is available on request.

Lake District National Park Authority Agenda Item: 10
Authority: 17 December 2010 Annex 4 Page 1
ANNEX 4:
Project Costs
Estimated costs are:
Component
Hydro scheme £260,000
Solar PV £ 40,000
Biomass boiler and distribution system £155,000
Solar thermal £ 41,000
Project Management £ 30,000
Match Funding
Training programme provision
Additional staffing
Infrastructure improvement
Installed Cost
£ 25,000
£ 50,000
£180,000
Total £781,000