New £50 million partnership to fund UK energy efficiency projects
- 03 March 2014
LONDON: The UK Green Investment Bank (GIB) and Societe Generale Equipment Finance (SGEF) have formed a new £50 million (US$83.7 million) partnership to fund non-residential energy efficiency projects.
The collaboration, which was announced last week, will enable organizations to introduce energy efficient measures without having to cover the upfront installation cost.
The GIB and SGEF partnership will facilitate the adaption of a number of energy-saving techniques such as combined heat and power systems, efficient boilers, building retrofits and new lighting technologies.
Organizations and companies that take part in the project will repay their loans through the energy bill savings that result from the implementation of the new techniques.
Shaun Kingsbury, Chief Executive, UK Green Investment Bank, said: "Many organizations understand that energy efficiency measures make good commercial sense but, with few financiers in this space, they simply cannot afford the initial investment. Our partnership with one of the industry leaders allows these organizations to realize cost savings from day one without having to fund the capital upfront."
Rampton Hospital in Nottinghamshire, UK will be the first to benefit from the alliance, with the £5 million (US$8.4 million) investment earmarked for a combined heat and power plant, dual fuel boilers, biomass boilers and an effluent treatment plant. With these changes the hospital stands to save £1.7 million (US$2.8 million). In addition, over the lifespan of the project, the hospital will reduce CO2 emissions by 88,000, which is the equivalent to taking around 2,500 cars off the road.
UK Health Minister Norman Lamb is enthusiastic about the collaboration, stating: "It is great to see the Green Investment Bank helping the NHS to save money and reduce emissions. I want all parts of the NHS look at how they can reduce their energy consumption, and I hope to see more hospitals across the UK benefit from the scheme announced today.”
Future of UK street lighting
The news of this collaboration coincides with the publication of the green bank’s report on UK LED street lighting. The GIB highlights that well designed LEDs have a lifespan of 100,000 hours compared to the 15,000 hours a standard street light provides. Furthermore, 50% to 80% of energy costs could be saved by switching to low energy street lighting.
The Bank has developed a Green Loan for Local Authorities to facilitate the further expansion of LEDs nationwide. The Bank provides a starter loan to assist with the transition to LEDs, and local authorities are not required to invest any of their own capital.
In a separate collaboration, last month lighting and technology leaders Philips and Ericsson joined forces to provide burgeoning cities with better mobile broadband connectivity and brighter streets, through smart street lighting. The innovative program aims to solve the dual city issues of better public lighting and network performance in densely populated areas.
Infographics courtesy of GIB
By Alana Ryan