Vital Energi claims the energy performance contracts it has in place across 14 hospitals will cut their energy bills by £300m over the life of the agreements.
The firm has contracts with seven NHS Trusts. Across the 14 hospitals, most contracts run for 15 years, with a couple of 18 and 25 year terms.
Vital Energi claims those deals also guarantee carbon savings of 1 million tonnes through a combination of energy efficiency measures, such as lighting and building controls, combined heat and power (CHP) and biomass installations and by crunching through maintenance backlogs.
“The fact that just 14 hospitals can generate over £300million in savings and 1 million tonnes of carbon reduction is a great indicator of how much potential there is in the NHS, with regards to revolutionising the way it generates and uses its energy,” said project development director, Ashley Malin.
While the NHS is under severe financial stress, energy performance contracts allow organisations that do not have the capital, or do not wish to spend cash reserves on energy, to effectively take a loan on energy improvements, with repayments made from the bill savings those improvements deliver. While some energy managers argue they dilute savings due to the margin paid over the contract lifetime, EPCs are popular with public sector organisations.
Meanwhile, The Energyst’s reader surveys suggest that finance remains a key barrier to energy efficiency investment to small and medium sized firms as well as the public sector.
See Vital Energi’s NHS case studies here.
Download Energyst Media’s Financing Energy Efficiency guide, with views from the Green Investment Bank, energy financiers and energy managers, here.