The PSDS funding is administered by Salix Finance on behalf of the Government’s Department for Business Energy and Industrial Strategy (BEIS), who have just announced that £553m has been made available through Phase 3a of PSDS to 160 public sector organisations across the country. This funding is the first part of an overall £1.425bn due to be allocated through Phase 3 over next three years until 2025.
Working closely with their clients to navigate them through the PSDS 3 application process, helping secure 13% of the total funding amount for nine projects across a range of public sector organisations, including NHS trusts and law courts.
Heat pumps and solar
Ashley Malin, managing director of Vital Energi (solutions), said: “PSDS is a great opportunity for public sector organisations to make significant strides on their decarbonisation journeys, and we’re delighted to have helped secure a significant amount of funding on behalf of our clients. We’ll be installing a range of energy conservation measures from insulation and BMS upgrades, to LED lighting, and renewable technologies such as heat pumps and solar.
“Not only will the implementation of renewable energy schemes deliver a significant reduction in carbon, they will also deliver substantial financial savings – the money saved on energy bills can be reinjected, to enhance the patient experience within hospitals, for example.”
Business and energy minister, Lord Callanan, said: “Using cleaner technology to heat our civic buildings is helping to shield public sector organisations from costly fossil fuels, especially at a time of high global prices. This funding will bring significant savings for taxpayers of well over half a billion pounds each year by making public buildings cheaper to run, heat and cool, whilst supporting economic growth and jobs across the country.”
£200m of carbon reduction projects
The next round of applications to the scheme – Phase 3b – are expected to open in September this year.
Vital Energi has a proven track record securing PSDS funding for new and existing public sector clients and is engaged in the delivery of over £200m of carbon reduction projects in the public sector through the support of the PSDS funding initiative.
“Early engagement from an energy services specialist like Vital to develop a range of projects suitable for funding under this kind of initiative, and being in a position to make a successful application at the earliest opportunity, is very important,” said Ashley Malin.
“Having a delivery partner is an essential factor in the evaluation carried out by Salix Finance. From the projects we’ve been involved in, public bodies who can demonstrate that their projects are well developed and they have a partner in place to deliver the project on time and within budget, with a recognised route through procurement, are more likely to be successful in securing PSDS funding.”