For public-sector organisations, identifying energy efficiency initiatives that make financial sense is an important consideration as they look to improve their achieve cost savings.
There are a number of possible ways to finance such activities and one successful option is to work with Salix finance, an independent, government-funded organisation which provides interest-free finance to the public sector to increase energy efficiency.
An effective funding model in the public sector is Salix’s “Recycling Fund” - a ring fenced fund of interest-free capital provided by Salix and matched by the partner organisation to be invested in energy saving projects. The fund helps clients take a long-term view by providing a sustainable funding platform. Gateshead Council have worked in partnership with Salix for over 8 years on delivering projects through their Recycling Fund. The Recycling Fund is supporting the Councils to meet their carbon reduction targets and, in doing so, is supporting the public sector to help Government meet their overall carbon reduction targets.
Gateshead Council has been utilising their fund since 2009 and has currently recycled the fund an impressive 3.3 times.
One excellent example is where the council delivered an innovative LED lighting upgrade to the iconic Gateshead Millennium Bridge - which was designed with feature lighting to highlight the bridge’s position as a local, national and international visitor attraction.
By replacing existing lighting at the bridge with more efficient LED fittings, the project is set to reduce the local authority’s electricity consumption, for these light fittings, and is projected to save over 80%. The project costed £34,000 and is projected to save Gateshead council £243,000 over the lifetime of the lighting upgrade, thanks to lower energy bills.
Derek Luke, Senior Mechanical Engineer at Gateshead Council said: “Thanks to Salix’s help, we have been able to turn this project around quickly and effectively, avoiding wasting valuable resources on a temporary fix. The project was installed seamlessly, maintaining access to the bridge throughout, and it is now shining as brightly as the day it was when it first opened.”
Salix currently partners with 111 Recycling Funds clients. With a cumulative fund size approaching £60 million, this allowed more than 10,000 projects to be undertaken totalling £148 million of spend. Project lifetime savings are projected to exceed £584.5 million.
To see how you can benefit from a partnership with Salix, get in touch with us. www.salixfinance.co.uk/recycling-fund