Capital Insight Pty Limited ABN Berry Street North Sydney NSW 2060 t f Energy Performance Management Strategy Business case for the NSW health sector Implementation strategies for two LHDs Colin Davies

Context NSW Government Energy Efficiency Action Plan – greenhouse gas emissions from public buildings to 2000 levels by 2020 NSW Health emits more than half of all greenhouse gases – opted for 5% less than 2000 levels by 2020 Cabinet paper into contestability in non-clinical health services NSW Audit Office report into energy management in the public health system – could do better audit made numerous recommendations; most accepted report to Public Accounts Committee by June 2014 several approaches to MoH – independent monitoring – outsourced model over 15-plus years – energy performance contracts (existing mechanisms but small projects)

Context (continued) strategic commissioning paper identified private sector service delivery efficiency as 20 greater than public sector – what services could be market tested (energy was one of several)? – review local and overseas markets – take local energy efficiency market sounding – envision the ideal commissioning system 10 years hence – how to grow/develop market towards maturity – explore strategic, contracting and other risks CI’s engagement involved – stakeholder consultation/researcjmarket testing – business caseimplementation plan extended to implementation strategies for MLHD and SWSLHD

Technologies behavioural change/demand managementsub-metering building management controls/tuningheat recovery fuel switching (e.g. LPG to natural gas)on-site generation solar photovoltaicssolar thermal systems water collection/recycling/re-use

Benefits and opportunities benefits to Districts – meeting government targets – access to low interest loans (budget unaffected) – assistance and support centrally – ongoing savings available to LHD once loan repaid – incidental benefits – unfunded renewals and backlog maintenance opportunities for Capital Insight – use knowledge gained from EPMS engagement as a value-add for other engagements e.g. ASPs, POEs – new outlet for existing services e.g. verification audits – possibility of supporting the MoH Sustainability Unit – new service streams as project managers and advisors supporting Districts to plan, implement and administer energy efficiency contracts