Bosses admit 'mistakes' in Manchester's £24m green energy network that doesn't contribute to net zero

Bosses have admitted ‘mistakes were made’ when setting up Manchester’s £24m green energy network.

The Manchester Energy Network uses a huge boiler on Lower Mosley Street to generate power, with excess heat from the system vented to major buildings in the city centre like Manchester Art Gallery, the Bridgewater Hall and Manchester Central to keep them warm.

But the council-owned network has lost more than £1m since being powered up in 2022. It was also billed as a greener way for the city to keep the lights on when town hall chiefs approved construction in 2018, but so far it has not helped meet net zero targets monitored by climate scientists at the Tyndall Centre.

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That’s because it’s fuelled by gas generated from biomass, which is then certified as environmentally-friendly with Renewable Gas Guarantees of Origin (RGGOs). But the ‘credentials’ of RGGOs began to be questioned by the government in 2021 — before the network even opened.

It was revealed earlier this year bosses ploughed on with using RGGOs because they 'sought advice, but not from the Tyndall Centre'.

That meant the £24m project could not help meet Manchester’s net zero targets, but it has replaced ageing infrastructure making ‘customer’ buildings more efficient.

Now, Sarah Narici, the council boss brought in to steady the ship, has admitted ‘mistakes were made’ in the set-up of the system.

Appearing before a resources and governance scrutiny committee on Thursday (November 7), Ms Narici also confirmed RGGOs would no longer be used in the future. She said: “The arrangements have been made and continue to be there to exit from the RGGOs. These cannot contribute to our zero-carbon pathway.

“Please be assured the pathway put forward… will fully comply with Tyndall Centre recommendations.”

While the move will satisfy some of the concerns over the network, more financial woes are expected to be reported at the end of the year. Thus far, the council-owned special purpose vehicle company has made a £1,324,202 loss in its first two years of operation.

Another loss is ‘likely’ for its third financial year which ended in April 2024, a council report from March said, with final accounts published in December.