Local Government FM Network Environment and Sustainability Workshop Tuesday 15 July 2008 Kevin McDonald Our mission is to work with the public sector to reduce carbon emissions through investment in energy efficiency and renewable technologies.

Setting Up an Invest To Save Loan - The Main Considerations Is there organisational commitment in place ? - Cabinet Level Support Will this be part of an overall Carbon Management Strategy ? - Are targets in place

More Considerations Resourcing –Energy Management Team –A Fund Manager Utility Consumption and Cost Monitoring -Is there software in place -Is there a metering strategy Project Identification Capabilities Project Implementation Capabilities

More Considerations Marketing of the Fund -The wider opportunity for cultural and behavioural change Managing the Financial Flows - Will the budget be top sliced ? - Securing the budget holder repayment commitment

Salix Finance – who are we? Independent not-for-profit company Set up by the Carbon Trust in 2004 Work only with public sector bodies To reduce energy costs and carbon emissions Show leadership in tackling climate change

Salix Finance – what do we do? Stimulate investment Using ring-fenced funds Recycle all projected savings Focus on cost-effective projects with high CO 2 reduction impact Match funding – typically £250K Initial fund spent over 2 years Reduce energy bills Make capital go twice as far

Salix Finance - types of technology The following lists the main types of technology in the fund –BEMS –Boiler replacements and controls –Cooling and heating projects including controls –Insulation Building Fabric –Lighting upgrades and controls –Motors and motor controls –Office equipment improvements and network PC management –Renewables –Swimming pool covers and controls –Ventilation –Voltage reduction

Salix Finance – All Clients projects breakdown

Salix Finance - project criteria Projects must deliver both CO 2 & revenue benefits Two project compliance criteria –5 year payback period and £100/tCO 2 –7.5 year payback period and £50/tCO 2 Energy efficiency projects –As documented in the Salix Project tool –Or approval through suitable demonstration project

Why Should you Apply for A Salix Fund ? The policy environment is changing Local Area Agreements – 185 and 186 are asking LAA’s to commit to reduction targets Display Energy Certificates – mean all buildings have to be energy rated The Carbon Reduction Commitment (CRC) – which will start at a Baseline of 6,000MWh but will quickly be ratcheted down

A Salix Fund Delivers Against Carbon Reduction Targets Operating a Salix Fund Makes sense from a financial, energy saving and carbon reduction perspective It simultaneously lowers your energy bill and carbon footprint while delivering technology and efficiency upgrades to your whole estate Provides a focus for education and cultural change especially among employees in maintenance, building services and procurement

Salix Finance Bristol City Council - A Client’s perspective

Bristol City Council In 2006/07 the city council produced around 56,000 tonnes of CO 2 from its building and street lighting infrastructure Owned operated or leased over 1200 sites 3% Reduction year on year to 2020

Bristol CC Salix Fund Joined the scheme in 2005 as part of the LA Pilot £400k Fund delivered in £100k tranches The Council allocated £500k into the ring-fenced fund Process EMU Identifies high consumption from billing data or surveys

Bristol CC Salix Fund Joined the scheme in 2005 as part of the LA Pilot £400k Fund delivered in £100k tranches The Council allocated £500k into the ring-fenced fund At the time of writing, 86 completed projects bring about annual savings of (£170,000) and 1125 tonnes of CO 2. These figures are constantly rising as more projects are completed.

Bristol CC – Example Project Trenchard Street Multi-Storey Car Park 1500 T5 fluorescent lamp conversion kits over 11 decks of a 24 hour multi-storey Lighting controls were also fitted: photocells switch off lamps on the outer decks when natural light levels are high enough and PIR movement sensors control approximately half the light fittings

Bristol CC Salix Fund

Salix Finance Questions?

25 Southampton Buildings, London WC2A 1AL t: f: