ENERGY


EPCs – EnERgy EffIcIEncy ImPRoVEmEnTS WITHoUT THE UPfRonT InVESTmEnT.


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hen it comes to carbon targets 2020 looms ever closer. and for those charged with finding ways to achieve


genuine financial savings for a business or organisation, the energy efficiency of buildings, facilities and equipment should now be at the top of the priority list. the nHs and many other public bodies face a huge challenge to meet Government-mandated carbon reduction targets. meeting that challenge will be immensely difficult, especially in straitened financial times. energy efficiency in buildings is an area of significant innovation – both in terms of the inherent technology, advanced control processes and investment support mechanisms enabling its uptake. of course, there is no such thing as a ‘typical’ business or organisation (or hospital for that matter) when it comes to energy consumption, and size will never automatically dictate consumption or efficiency – there needs to be help available right across the board: from simple yet effective advice for small operations to stringent investment plans and guaranteed savings from new technology for larger organisations. an energy Performance contract


(ePc) is a partnership between a customer, or client, and an energy services company (esco), designed to save energy for as long as possible. based around an alternative means of facilitating investment in relevant and proven technologies, it allows an organisation to implement the key changes needed to improve the energy efficiency of its buildings or facilities without having to raise the required capital. a combination of the best energy conservation methods is designed to suit the specific circumstances of the client; these are then installed, commissioned and potentially even funded by the ePc provider, such as e.on. the client need not make any capital investment, but instead pay a monthly service fee to the esco with the contract entirely guaranteeing a level of energy savings sufficient to more than cover the fees charged. there is no pay-back period


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to consider, as zero capital has been spent by the client, meaning they are cash positive in the first year. the ePc provider brings extensive energy saving expertise, accredited technologies and saving guarantees – and can act as an investor if the client chooses not to invest directly itself. by combining multiple technologies and an on-going optimisation service, the returns for a client choosing to invest its own capital can be very attractive. Where capital is tight and the ePc provider invests, the savings guarantee


ensures the client is cash positive from year one, entirely removing any nagging doubt that the technology may not deliver the savings the manufacturer promised. the ePc delivers the peace of mind that the savings will be achieved or the provider will otherwise be liable to invest further in order to close the gap. as well as helping businesses, local authorities, and other organisations to improve building performance, meet environmental obligations and achieve lower maintenance costs through investment in modern building services, the client will


QUEEN’S MEDICAL CENTRE (QMC)


nHs trust (nuH) are working together on a 15-year agreement to update and manage the Queen’s medical centre’s (Qmc) on-site power plant as well as introduce an energy efficiency programme that will guarantee dramatic reductions in energy use. e.on will upgrade Qmc’s campus combined heat and power plant – continuing a relationship that has been in place for the past 15 years – as well as installing energy saving measures including boiler optimisation technology, low energy leD lighting and building energy management controls. the measures, tendered through the


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carbon and energy Fund procurement framework, are expected to deliver carbon reduction of 16,000 tonnes and cost savings of £2.8m per annum across the trust, based on current pricing levels. nottingham university Hospitals


nHs trust (nuH) assistant Head of estates andrew camina said “at nuH we are committed to doing all we can to save energy and reduce our carbon emissions. We are delighted to be working with e.on and interserve to do what we can to reduce energy costs and emissions and look at more innovative ways of reducing energy use. Paul baan, Head of energy efficiency


Public sector sustainability • Volume 4 issue 1


at e.on connecting energies, said: “Winning this large and complex contract means that we will not only be able to update e.on’s long-standing involvement with nuH but we’ll also be installing new technologies to dramatically reduce energy costs and carbon emissions for the Qmc “no two hospital buildings are the same and the savings on offer will vary across different nHs operations but ePcs effectively offer a ‘no-win, no-fee’ energy efficiency service which guarantees savings and a return on investment to trusts across the country.”


sing an energy Performance contract, e.on, interserve and nottingham university Hospitals


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