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The latest Public Sector Decarbonisation Scheme round has been unveiled, bringing more than £530 million in funding to enhance energy efficiency across public buildings and industrial facilities. This initiative, led by the Department for Energy Security and Net Zero, aims to significantly reduce energy costs by implementing various clean technologies.
222 projects have been selected to receive a portion of the funding, marking a significant milestone as over 1,000 public buildings have benefited from this scheme since its inception in 2020. These new projects are projected to generate annual savings for approximately £650 million taxpayers through 2037, thereby aiding the UK's ambition to achieve net zero emissions.
The investments will facilitate the adoption of diverse technologies such as heat pumps, solar panels, insulation, and energy-efficient lighting, which are expected to reduce reliance on fossil fuels and lower energy expenditures in numerous public sector locations, including schools, hospitals, and libraries.
Among the notable recipients of this funding are the Royal United Hospitals Bath NHS Foundation Trust, which has secured over £21 million for the installation of new heat pumps, insulation, double glazing, and LED lighting in three of its buildings, and Loughborough University, which has received more than £2 million to retrofit its Olympic-sized swimming pool by replacing outdated gas-fired boilers with more efficient heat pumps.
Surrey County Council has also been granted over £5 million to diminish carbon emissions across 19 sites. These sites include six libraries, four nursing homes, two community centers, Guildford Fire Station, five schools, and the council's headquarters in Reigate.
"From school corridors to the businesses that power up our economy, we want to make sure buildings of all shapes and sizes are supported to deliver net zero," said Minister for Energy Efficiency and Green Finance Lord Callanan. "By allocating over £557m today, we are standing steadfast behind our public sector and local businesses, providing the help they need to make the switch to cleaner, homegrown energy. This will not only help cut bills in the long term but ensure we keep reducing our emissions - having already led the world by halving them since 1990."
Emma Clancy, chief executive at Salix, the investment firm which manages the Public Sector Decarbonisation Scheme, said the funding was helping to transform the UK's public buildings.
"These are the sites we use every day; our schools, universities, leisure centres and others will become more energy efficient as well as being comfortable places to use thanks to this funding," she said. "Every day, our teams at Salix work with the public sector to achieve ambitious net zero goals, and we're looking forward to working with the latest successful Public Sector Decarbonisation Scheme grant recipients."
The announcement coincides with the government's confirmation that 19 businesses will share £27.5 million from the Industrial Energy Transformation Fund. This strategic funding is set to catalyze an additional £69.7 million in private-sector match funding, reinforcing the commitment to energy transformation in key industrial sectors.
Pilkington UK emerges as one of the significant beneficiaries, receiving funds to consolidate its glass production lines. This strategic move will see its manufacturing process centralized at a single facility in St Helens. This move will enhance efficiency by operating one modernized furnace instead of two, thus substantially reducing carbon emissions.
In a similar vein, Sofidel is set to upgrade its operations with the funding received, enabling the replacement of a conventional natural gas steam boiler with a pioneering green hydrogen boiler at its Leicester paper mill. This switch underscores Sofidel's dedication to sustainable practices and exemplifies the broader industry shift towards greener energy solutions.
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