1. Capital Insight Pty Limited ABN 76 056 297 100 77 Berry Street North Sydney NSW 2060 t02 9955 2300 f02 9955 5574 www.capitalinsight.com.au Energy Performance Management Strategy Business case for the NSW health sector Implementation strategies for two LHDs Colin Davies

2. 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)

3. 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

4. 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

5. 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