A planned renewable power site approved at a former landfill could be built in phases to reduce risks and bring in returns sooner under proposals set for discussion by councillors.
A strategic outline business case for the York Green Energy Park proposes two initial phases that would generate six megawatts of electricity.
The rest would be delivered at a later stage, until it produces 16.5MW.
City of York Council estimates put the potential earnings from the project at between £7 million and £17 million over 30 years, depending on how much of it is delivered and when.
A report on the proposal stated a phased approach would realise the benefits of the project earlier and reduce the risks associated with proceeding with one large scheme.
The site would generate enough electricity to power around 11,000 homes if it is able to produce 16.5MW as planned.
It would also allow the council to offset the council’s annual electricity consumption, potentially saving £195,000-a-year if it is built in full.
It follows the approval of a planning application for the site, at the former Harewood Whin landfill in Tinker Lane, Rufforth, in April.
The site is set to feature ground mounted solar panels and energy storage infrastructure across an area of 16ha.
The approved plans were scaled back from initial ones drawn up in 2021 which proposed a site generating up to 28MW following objections from the nearby Rufforth East Airfield.
Proposals drawn up since plans were approved, which are set to go before the council’s Corporate Scrutiny Committee on Monday (7 July), include a first phase generating 1MW.
That section of the site would provide power for Yorwaste, the current leaseholders of the former landfill and it would be installed in 2027 under the business case’s proposed timetable.
The installation of the first phase would depend on the outcome of talks with Yorwaste about its lease.
It would be followed by a second phase generating 5MW for the council.
That phase would be connected to the grid in 2028, depending on the details of the project’s financing.
A further third phase generating up to 10MW would be connected in 2029, subject to later council decisions about the project.
The current planning approval for the project expires in April 2028.
The business case stated the 5MW phase of the site could save at least half of the £195,000-a-year cost to the council for its Green Energy Tariff through offsetting.
It added the total cost would be covered with the 10MW phase.
The business case also proposes a potential fourth phase to generate 12MW and bring the site back up to the 28MW initially planned.
That would require the approval of a new planning application.
A net zero grant worth £243,000 from the York and North Yorkshire Combined Authority has funded the drawning up of initial business cases for the project.
They are set to go before the council’s executive in September when a decision will be made on whether to progress with the project.
Proposals stated the initial phases would be funded through borrowing, with loans repaid from the money made at the site once it is operational.
The business case stated that delivering the project in phases would mean that borrowing costs could be kept at £5m initially before further parts of the scheme are done.
But it added risks remained including from cashflow projections being based on the current state of the energy market.