20/ 03/ 2018 Salix Finance Interest free finance for energy efficiency projects in the public sector Wednesday 21 st M arch 2018 Hayley Veenhoven Today’s Aims Introduction to Salix How the funding works Funding across the public sector How Salix has worked with Parishes to date Sharing knowledge Summary and questions S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR 1
20/ 03/ 2018 Who We Are Worked in partnership with the Public Sector for 14 years Our M ission is to reduce Public Sector carbon emissions through energy efficiency investment using interest-free funding Funded by the Department for Business, Energy and Industrial Strategy (BEIS), the Department of Education, the Welsh Government and the Scottish Government National spread across England, Wales, Scotland and N. Ireland Wealth of knowledge and case study material to support public sector organisations S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR Drivers for investment in energy/carbon saving UK carbon reduction targets UK Government Drivers 57% by 2010 on 1990 levels Public sector budgets under pressure Cost of maintaining services Economic & Technological Scrutiny of services to provide value for money Drivers Fuel Prices T echnology improvements Reduced cost of LED lanterns S OLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC S ECTOR 2
20/ 03/ 2018 Salix Website: Knowledge Sharing Freely Available Information: Case studies Application documents Blog Social media Webinars Short information films Support and guidelines for the private sector Recent articles: Energy in Buildings and Industry Public Sector Only: The Energyst HefmA Pulse 300 + Project Knowledge Slides (PKS) Health Estate Journal Best practice and client support material Chartered Institution of Highways & Regional meeting material and presentations Transportation FundEd Magazine M aking a difference 2004 to 2018 19 £3.4m £930k 6,000 500 Pilot client Salix Annual tCO 2 e* Projects 2004 schemes funding energy annual committed allocated saving saving 1,900 £563m £137m 694k 15,500 2017 Clients Salix funding Annual tCO 2 e* Projects supported allocated energy saving annual saving committed Figures accurate as of M arch 2017 * calculated using emissions factors published by government for carbon foot printing purposes 3
20/ 03/ 2018 T op technologies by number of projects Key LED lighting Boiler replacement Insulation - building fabric Street lighting Glazing Building management systems Insulation – pipework Combined Measures Heating – controls Ventilation and cooling Heating and hot water VSDs/ Motor Controls Combined Heat and Power Other SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Data for all England Loans and Recycling Funds from J une 2016 to J une 2017 T op technologies type by loan value Key Street lighting LED lighting Combined Heat and Power Combined Measures Boiler replacement Heat recovery Chiller replacement Heating and hot water Insulation - building fabric Building management systems Glazing Insulation - pipework Boiler controls SOLVING ENERGY EFFICIENCY FINANCE IN THE PUBLIC SECTOR Data for all England Loans and Recycling Funds from J une 2016 to J une 2017 4
20/ 03/ 2018 Salix project value by client sector Key Local Authority National Health Service Academy School Higher Education Institute M aintained School Further Education College Emergency Other Data for all England Loans and Recycling Funds from J une 2016 to J une 2017 Local authorities in England Significant growth in the last 3 financial years Increased interest in large scale retrofits Security of funding for multiple phase/ year projects Reservation of funding prior to procurement and final approvals Payback criteria: 5 year payback £120/ tonne CO 2 e Other areas of interest: Parish Councils & Emergency Services 5
20/ 03/ 2018 Local Authorities: Energy Saving Potential To save 10% on total energy spend (£750m/ yr) - £319.6m investment needed To save 10% on total carbon (242,218tCO2e) – £632.5m based on historic projects or up to £370m depending on grid changes Street lighting financed by Salix in England 53 principal local authorities have completed street lighting projects with the support of Salix funds Projects are often split into phases/ years given their size Projects can be part funded from other sources if they exceed the Salix compliancy criteria Salix can engage with key decision makers A variety of street lighting technologies are eligible 6
20/ 03/ 2018 M aking the internal business case and challenges Replace some or all existing traditional luminaires with LED A column replacement programme Introducing adaptive controls (CM S or part-night lighting) Combination of the above Finance Previous infrastructure and investment plans Political will and organisation leadership PFI contracts or current contractor Public opinion Working in partnership on completed street lighting projects 7
20/ 03/ 2018 Kent County Council – Street Lighting Project overview Kent County Council are undertaking a 3 year programme to convert 120,000 lanterns to LED with Central M anagement S ystem (CM S). Salix funding was instrumental to the project happening. Existing recycling fund client since 2004 The pre-consumption kWh made up half of the council’s carbon footprint £39m total project cost, Salix funding £27m of overall project up to 5yr payback Project started M arch 2016 , with residential followed by traffic routes Most ambitious individual LED conversion undertaken in Europe 18 crews working on installation – average over last 3 months (Dec – Feb 6300 lanterns per month ) Using several lighting suppliers to promote competition and efficiencies Predicting 65.7% kWh saving and £5m annual savings over the lifetime of the technology Grendon Parish Council Project overview Grendon Parish Council in Northamptonshire applied to Salix for an interest-free loan to part finance the replacement of the council’s street lighting stock. Grendon had the aim of modernising the council’s street lighting lanterns to light emitting diodes (LED), which would reduce the council’s energy consumption and greenhouse gas emissions . The council used an interest-free loan of £4,800 to part finance a £9,500 programme to upgrade 34 street lights with energy efficient LED lanterns. Grendon now benefits from a 9,431 kWh reduction in its annual electricity usage, saving the council £970 and 4.24 tonnes of CO2 e* per annum. “ I would urge any other parish councils who are looking into financing the upgrading of street lighting to certainly consider Salix Finance as a source of appropriate funding.” Ian Denton, Chairman of Grendon Parish Council 8
20/ 03/ 2018 Working with other public sector bodies Schools in England Funding streams available Condition Improvement Salix Energy Efficiency Salix Energy Efficiency Fund (CIF) Loan Scheme (SEELS) Fund (SEEF) (Academies and 6 th Form Colleges) (Maintained Schools and 6 th Form Colleges) 9
20/ 03/ 2018 New DfE £25million fund In partnership with the Department of Education A long term £25 million fund Opportunity for local authorities to reach CO 2 e targets Significant financial and carbon savings Payback criteria: 8 year payback £200/ tonne CO 2 e NHS in England Funding available for NHS Trusts & Foundation Trusts. NHS Improvement fully approved Support for Sustainable Development M anagement Plans/ Carbon Reduction M anagement Plans Funding secured over multiple years to support long term estates strategies (including EPCs) T op technologies in NHS – CHP , LED lighting, heat recovery, boiler replacement and BM S Payback criteria: Unable to fund Clinical Commissioning Groups (CCG’s) & doctor 5 year payback surgeries (GP’s) £120/ tonne CO 2 e 10
20/ 03/ 2018 Higher and Further Education in England Funding available for Universities and Colleges Building long term relationships to support carbon reduction targets Rounds of funding for both Higher Education Institutions and the Salix College Energy Fund now open Dedicated HE/ FE team available to provide support in developing applications and projects Payback criteria: 5 year payback £120/ tonne CO 2 e Recycling Fund Salix Ring-fenced client Financing sustainability Partner fund Financing Energy efficiency projects Additional partner Energy savings top-up kWh = £ & CO 2 e 11
20/ 03/ 2018 How the loan works Application in 5 simple steps 1. Visit our website at www.salixfinance.co.uk 2. Simple on-line application process. Download project compliance tool For projects valued over £100,000 – business case template Attach supporting information 3. Public Sector Body or supporting body submits application. 4. An automatic email is sent to the authorising official. 5. Application assessed and decision made typically within two weeks. 12
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