Launceston Leisure and Aquatic Centre's energy system is unlikely to provide any positive financial returns beyond this year.
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In a bid to address this, the City of Launceston council has reviewed its current system and is proposing to change from gas operation to a combination of solar and electric.
Engineering and financial modeling completed by the council last year showed the introduction of a heat pump and solar system was a "financially attractive" opportunity and would reduce the centre's energy expenditure.
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The total cost would be about $1.77 million and is forecast to reduce the centre's annual operating costs by $413,000 in year one to $502,000 by year five.
The aquatic centre uses more energy than any other council sites, including QVMAG and Aurora Stadium, combined.
The council said there are financial, and environmental benefits to the proposed changes, but it would also have some risks if electricity prices rise.
"Switching from non-renewable gas-powered heat generation to electric generation will take advantage of Launceston's environmentally friendly renewable energy sources and reduce the organisation's greenhouse gas emissions," the council said.
The council is recommended to approve the proposal at its meeting on Thursday. If the recommendation to install the new energy system is approved, a budget amendment for the 2019/2020 year will be presented at the next council meeting so the project can proceed.
"The council's Financial Strategy prioritises projects that deliver cost savings with favourable payback periods and this project has a payback of approximately four years," the council said.
Conversion of the centre's existing Co-Gen system to the new proposal would be the "greatest single emission-reduction opportunity" the council could make as part of its declaration of a climate emergency.
The centre was built in 2008 and attracts more than 420,000 visitations per year.
The council meeting will be held at 1pm at the Town Hall.
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