The NHS is obliged to contribute to the sector carbon reduction target of 10% by 2015, as advocated in the NHS Carbon Strategy for England, “Saving Carbon”. The Royal Marsden NHS Foundation Trust’s (TRM) Carbon Management Plan aims to reduce the hospital’s emissions by 26% by 2015/6 largely through energy efficiency projects.
The Department of Health announced in 2013 that they were providing an opportunity for NHS hospitals to gain access to funding for energy efficiency projects to help them achive carbon reduction targets. It was clear that the two stage bid process would be extremely competitive, therefore it was important to submit a high quality application that would stand out.
The Royal Marsden NHS Foundation Trust asked Carbon Credentials to support them in the development of a business case and documentation required for the bidding process for an LED lighting project.
With the support and technical guidance of Carbon Credentials, TRM were able to submit high quality applications to the Department of Health for both stages of the funding process.
Stage 1 Application
Carbon Credentials conducted an initial site survey and built the business case around it to include all savings, energy inflation and capital costs. This required measuring and reporting energy savings, financial appraisal of simple payback and net present value (NPV), and a sensitivity analysis to understand risks.
Stage 2 Application
This stage required an in depth investment grade lighting survey, with the results used to carry out further analysis to build the business case.
Producing a strong application
In order to make the application as compelling as possible, we included:
- A breakdown of the financial, sustainability and healthcare benefits
- How we would ensure sustainable procurement and sustainable disposal of existing fittings
- An implementation plan, including monitoring, verification, reporting and an energy diary
- An explanation of how the strategic aims of the hospital aligned to the project
- Proposals for dissemination of the project results, including case studies and the sharing of results with the industry
- A detailed project plan from tender to implementation, monitoring, and verification
- Risk analysis of the whole project
The strength of our application enabled successful access to the Department of Health funding. Out of the 365 applications submitted from 190 Trusts, only 19% were successful.
Our success meant that the LED lighting project is now going ahead, with substantial carbon savings expected, contributing to the achievement of TRM and NHS targets.
The project delivered:
- Reduced financial pressure on cash flow due to a DoH investment of £171,000
- An in-depth project tender and implementation plan reducing financial risk
- Predicted cost savings of £54,000 per year
Lighting across the hospital is now being replaced with high efficiency LED alternatives, which will provide an improved environment and annual cost savings of £54,000