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Public Sector Energy Efficiency Finance
- 1. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Securing funding to deliver cost-saving energy efficient technologies Thursday 25th October 2018 Liam Gillard, Salix Finance Richard Hilson, Frimley Health NHS Foundation Trust
- 2. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Overview of Salix Finance Independent, not-for-profit company working in partnership with the Public Sector since 2004 Salix provides interest-free funding to accelerate investment in energy efficient technologies National profile working in England, Scotland and Wales Funded by the Department for Business, Energy and Industrial Strategy (BEIS), the Department of Education, the Welsh Government and the Scottish Government
- 3. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Salix focus
- 4. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Funding model
- 5. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Our achievements *calculated using emissions factors published by government for carbon foot printing client pilot schemes Salix funding allocated £930,000 energy saving per annum 6,000* tonnes CO2 per annum £3.4m19 500 client projects committed tCO2e* annual saving Salix funded projects energy saving per annum client projects committed Clients supported 2004 2018
- 6. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Technologies supported Salix funding can support over 100 energy efficiency technologies Boiler replacements Building energy management systems Combined heat and power Heat recovery Heat networks Heating and hot water upgrades Building fabric insulation LED lighting upgrades Street lighting Solar PV
- 7. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Salix Finance and the NHS Funding criteria – 5 year loan payback, costs less than £172 to save tCO2e over lifetime of the project Funding can be used to improve existing equipment or to install equipment to achieve higher standards in new build developments Funding can be secured over multiple years to support Sustainable Development Management Plans and long term estate strategies (including EPCs) NHSI approve of Salix’s Invest to Save model
- 8. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR £70.5m 100,000 £19.5m 63 236 £567.5m Salix working within the NHS *Calculated using emission factors published by government for carbon footprinting 63 232 TOTAL TRUST ENERGY SPEND 2017/18 £567.5m TOTAL SALIX LOAN VALUE ESTIMATED ANNUAL tCO2e* TOTAL ANNUAL SAVINGS £70.5m 100,000 £19.5m
- 9. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Top Salix NHS clients Imperial College Healthcare NHS Trust Wrightington, Wigan and Leigh NHS Foundation Trust Frimley Health NHS Foundation Trust George Eliot Hospital NHS Trust Northern Devon Healthcare NHS Trust University Hospitals of Morecambe Bay NHS Foundation Trust Lewisham and Greenwich NHS Trust North West Anglia NHS Foundation Trust
- 10. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust 3 main hospitals: Frimley Park, nr Camberley Wexham Park, nr Slough Heatherwood, Ascot
- 11. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Estate : +/- 170,000 m2 FPH 80,000m² WPH 66,600m² HWH 23,600m² Type Annual kWH Budget Electricity 20,500,000 £2.5m Gas 60,500,000 £1.6m Energy:
- 12. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Development: Frimley Park Hospital – Diagnostics building - 1,500m² 6,000m² FBC / Formal Planning 42 In-patient beds 4 x MRI Scanning Suites 3 x CT Scanning Suites Consultation Rooms 2 x Mammography Suites • 2 Ultrasound Suites
- 13. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Development: Wexham Park Hospital - ED 9,300 m2 30 single 'majors' rooms, eight resus rooms & 10 assessment rooms 84 short-stay beds, 34-bed acute assessment, 20-cubicle ambulatory emergency care unit , 36-bed short- stay medical unit & 16-bed short- stay surgical unit. +10-15% energy use
- 14. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Development: Heatherwood Hospital – New Hospital! 2021 opening £90m project GP hub & outpatients Day case and endoscopy Elective surgery Diagnostics centre 40 beds + private
- 15. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Salix Recycling Fund Set up in 2007 Utilised a total of £350k and have completed 14 projects Annual Savings of £120k and 765 tCO2e
- 16. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Salix Energy Efficiency Loans Scheme Utilised a total of £995k and have completed 15 projects Annual savings of £258k and 1624 tCO2e Currently completing 2 more energy efficiency projects: £235k LED lighting upgrade – annual savings of £43k and 135 tCO2e £4.65m energy centre and heat network – annual savings £866k and 1621 tCO2e
- 17. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Example Project – Lighting - OPD Wexham Park Hospital Often worth doing the design Old infrastructure – flexibility Controls don’t have to be state of the art QTY Total Energy Load (W) kWh Consumption Cost per kWh CRC per kWh Cost per annum QTY Total Energy Load (W) kWh Consumption Cost per annum (inc CRC) 195 20,278 105,476 £12,868 165 4,319 22,186 £3,088 £9,780 Wexham OPD Corridors & Consultation Rooms Dimmable Existing New
- 18. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Frimley Health NHS Foundation Trust Salix Benefits No interest loan Expertise Robust evaluation Independent Collaborative Expertise Trusted internally Lessons Learnt Project lead-in time Engage early Publicise internally Broaden scope Future Plans New build (s) BMS controllers FPH solar WPH lighting FPH energy strategy
- 19. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Salix project knowledge slides Sharing of knowledge between clients Before and after project delivery Supporting comments Lessons learnt Supplier information Contact details NHS knowledge slides Gaining internal approval
- 20. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Salix case studies
- 21. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Salix application process 1. Visit our website at www.salixfinance.co.uk 2. Simple online application: Complete a project compliance tool and attach supporting documents For projects over £100,000 – complete business case template 3. Public sector body or supporting body submits application 4. An automated email is generated and sent to the authorised official which they need to reply to confirming their approval 5. Application assessed and decision made typically within two weeks 1 2 3 4 5
- 22. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Supporting project delivery Feasibility Internal Consultation Procurement Mobilisation Installation Business case checks Meet with finance department Offer reservation of funding for Trust Board Workshops and calls with other Trusts for advice Interim Payments Phase works over financial years
- 23. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Summary 100% interest free funding available for NHS Trusts and Foundation Trusts – no maximum loan amount Cost neutral - loan repaid through savings Supporting long-term funding plans, Sustainable Development Management Plans and estates strategies Helping the NHS achieve energy and carbon reduction targets Reduce energy bills at your Trust
- 24. SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Thank you liam.gillard@salixfinance.co.uk 0203 714 5655
Editor's Notes
- Introduction to Salix and our funding model Working within the NHS Knowledge sharing and case studies Application process Summary and questions
- Salix’s work is focused exclusively on the public sector where lack of capital has prevented the modernisation of buildings and infrastructure Aim to develop a strong, long term and positive relationship with public sector clients Salix is a well trusted, successful company that is growing Salix must ensure effective stewardship of public funds
- Need to think holistically about energy. Important to also consider behaviour change. Salix recently moved into renewables – Solar PV
- So how does our model work? A Trust or FT would come to Salix with a proposed project and the estimated savings, once we’ve assessed the project, Salix provide you with the upfront-capital that is often not available to invest in energy efficient technologies that will reduce energy bills. The savings in the energy bills are then used to repay the interest-free loan making it a cost neutral approach and Salix then re-invest the repayments in to further projects in the public sector.
- Part funded and assessed on a case by case basis if over funding criteria CRL is adjustable for Salix financing – important to get in contact with NHSI regional lead
- Frimley Park – new diagnostics building (2019) Wexham Park – new 10,000 m2 ED full occupancy March 2019 Heatherwood – Building new £95m hospital
- Frimley Park – new diagnostics building (2019) Wexham Park – new 10,000 m2 ED full occupancy March 2019 Heatherwood – Building new £95m hospital
- Frimley Park – new diagnostics building (2019) Wexham Park – new 10,000 m2 ED full occupancy March 2019 Heatherwood – Building new £95m hospital
- Over 200 PKS (project knowledge slides)
- Our application process is all online, you can register for access to our knowledge sharing area as well as when you’re ready to apply. We have a key application document called the Compliance Tool which is where you enter the project details including savings and this tool will automatically calculate whether it is compliant within the 5 year payback and value for money criteria. Once an application has been submitted we aim to assess the project within 2 weeks dependent on the level of supporting information provided. Once we’ve committed the funding you’re free to go ahead with install and repayments begin a few months after completion of the project.
- Salix tend to get involved in projects once an organisation knows which technologies they want to implement and have an idea on costs and savings. We are happy to look over your Business case – gives you confidence in your savings and payback figures At the stage of getting approval – happy to meet with finance departments to run through the Salix offer. Salix can provide a reservation of funding once we have seen calculations if this would help you with board approval and we can put you in touch with other Trusts that have done similar projects or faced similar barriers to you to help overcome issues. Throughout installation we can pay out funds in instalments as you progress the project – eg. First interim for when you raise the order making it easier to pay contractors, with last payment being on completion of the project.