WIREDGOV

41 higher education institutions are set to drastically reduce energy bills after successfully bidding for the Salix Finance and Higher Education Funding Council for England’s Revolving Green Fund Four.

The £29 million of funding will be used for investment in energy efficiency projects, which will reduce energy bills by more than £5 million and carbon emissions by over 25 tonnes each year.

Salix Finance Chief Executive, Annie Shepperd, said:

'We are proud to be involved in this world class initiative to make our universities more energy efficient and contribute to our nation’s carbon reduction plan. We need our universities to lead the way and influence others. Students are looking to be educated in institutions which act as exemplars in terms of sustainability. This matters for our future.'

HEFCE Chief Executive, Madeleine Atkins, said:

'As well as reducing carbon use, the Revolving Green Fund allows universities to obtain some very significant financial paybacks. I am pleased that the fund continues to encourage projects that save money and reduce carbon emissions.'

The intention of the fund is to encourage innovative projects that significantly reduce energy use and therefore carbon emissions. A condition of the funding is that learning is shared amongst the higher education sector to promote good practice in terms of creating sustainable buildings and inspiring learning environments

Applications for the fourth round of the RGF indicate that energy efficiency is a priority on the agenda: with applications from universities totalling over £38 million.

The £29 million match-funded loans programme was designed to accelerate investment in energy efficient technologies, creating long-term carbon and financial savings in the higher education sector. The RGF supports the carbon targets that the sector established in 2010. The targets are for a 34 per cent reduction by 2020 and 80 per cent by 2050 against a 1990 baseline, the latter in line with the Climate Change Act 2008.

Review of RGF rounds 1 to 3

Revolving Green Fund 4, launched in 2014, builds on the successes of rounds 1 to 3.

The 2014 evaluation by Blue Alumni showed that RGF funded projects are expected to reduce CO2 emissions by just under 12 per cent of the sector's 2020 reduction target, deliver annual savings of nearly £19 million and lever in a further £23.9 million from other sources. The report also found that HEIs applying for or receiving RGF funding have reduced emissions by 7 to 10 per cent more than HEIs which did not apply for or receive RGF funding.

Notes

1. See a list of RGF4 funded institutions and projects.

2. Salix Finance Limited is an independent, publicly funded company, set up in 2004 to accelerate public sector investment in energy efficiency technologies through invest-to-save schemes. The company has public funding from the Department of Energy and Climate Change and the Welsh and Scottish Governments and is working across the public sector with Central Government, Local Authorities, NHS Foundation and Non-Foundation Trusts, the UK Emergency Services, Higher and Further Education Institutions, Schools and Academies. The company provides funding to support the installation of energy saving equipment and, as a result, it gives public sector organisations the opportunity not only to reduce energy costs, but also to show leadership in the public sector in tackling climate change.

3. Carbon and financial energy savings are based on current energy prices.

4. Lifetime financial savings calculated using independently verified project lives specific to each principal technology type. Lifetime savings are calculated using technology specific ‘Persistence Factors’ derived using the methodology established by the Carbon Trust.

5. Read the Blue Alumni evaluation of RGF 1-3