carbon reduction


A funding lifeline for energy reduction


Energy Performance Contacts are helping NHS trusts to reduce their carbon footprint without major upfront costs


E


nergy Performance Contracts (EPCs) are continuing to provide much-needed support for cash-strapped healthcare trusts


looking to touch carbon and energy reduction targets. With mounting public pressure and increasing


legislation placed on hospitals and health centres to reduce their carbon footprints, EPCs are fast gaining traction as a viable financial instrument to fund and fast-track large-scale energy improvement projects. Speaking to hdm, Mark McLoughlin, account


manager for energy finance at Siemens Financial Services (SFS), said: “Ageing buildings, which the health sector has a large number of, either through fabric or design, waste significant amounts of money. “Typically, 46% of operating costs is spent on


energy and utilities, with approximately 33% of that expended on wasted energy.” EPCs are appealing as they are sold on the


premise of zero upfront costs and the savings made on energy consumption can be offset by the cost of installing any conservation measures. “Limited access to funds or expertise, which


most hospitals have, can often stifle projects at an early stage and any mechanism that unlocks the cash reserves to help organisations meet their efficiency, sustainability and infrastructure targets is massively welcome,” said McLoughlin. “Energy costs are also forecast to rise over the


coming years and anything healthcare organisations can do to reduce usage will have a positive impact on finances. “EPCs are an efficient capital and cashflow


tool; preserving valuable capital for core business assets and other priorities.” As part of the contract a comprehensive audit


of an organisation’s power consumption is undertaken to provide insight which will help develop, design, build and, if necessary, finance modernisation projects. Analytics help to develop a robust business


case for the EPC, outlining the conservation measures, costs and quantifiable savings and energy consumption expected. Siemens has helped a number of hospitals to


reduce their carbon emissions through EPCs, with improvements including the introduction of HVAC and lighting management, renewable or storage energy opportunities, retrofit and upgrade/replacement, smart IoT deployments to


energy purchasing strategies, and water efficiency measures. “The UK is already legally bound by the


Climate Change Act to reduce emissions 80% by 2050 and large UK organisations like the NHS bear a responsibility to meet some of that ambition,” said McLoughlin. “EPCs will help the environment and deliver


world-class sustainable environments built for future generations.”


www.siemens.com


The benefits of EPCs


• Guaranteed energy savings through the life of the contract


• A reduction in backlog maintenance levels, maintenance costs, and other running costs


• A reduction in CRC Scheme costs, creating the opportunity for renewable energy generation and income from the Feed-In-Tariff and Renewable Heat Incentive schemes


• A reduction in the impact of future energy price rises by significantly reducing energy use


• Delivering CO2 reductions and helping to achieve government energy targets


• Improving the built environment and comfort for occupants through upgraded and more-efficient heating and cooling systems, with research showing this can help to enhance productivity and reduce absenteeism


• A safer environment through improved lighting, reduced equipment failures, and better building management systems to help identify issues


• Investment in buildings and green technologies to help generate local jobs and improve local skills


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