Scottish Green Public Sector Estate Decarbonisation Scheme: information note - June 2021

Background

In October 2021, we published our heat in buildings strategy, outlining a commitment to invest £1.8 billion in capital funding over the next five years for energy efficiency and zero carbon heating in Scotland’s buildings. The Scottish Green Public Sector Estate Decarbonisation Scheme launched in June 2021 and acts as the main government-led capital funding mechanism to support leadership for decarbonisation of public buildings.

The Programme for Government 2021-2022 commits to providing a minimum of £200 million of capital support over the next five-year period to aid the decarbonisation of Scotland’s public sector estates and to contribute effectively towards wider climate change and net-zero targets. The support offered will aid public bodies in fulfilling their duties under the Climate Change (Scotland) Act 2009, whereby public bodies must ensure the delivery of their functions is undertaken in the best calculated way to contribute towards meeting Scotland’s climate change targets.

A minimum of £5 million capital funding will be made available in 2022/23.
Scheme scope

The Scottish Green Public Sector Estate Decarbonisation Scheme consists of three components:

• Scottish Public Sector Energy Efficiency Loan Scheme

• Scottish Central Government Energy Efficiency Grant Fund
• Scottish Public Sector Non-Domestic Energy Efficiency Frameworks (NDEEF) and Project Support Unit (PSU)

For financial year 2021 to 2022, we have allocated an additional £14 million capital and £1 million resource to public sector building energy efficiency projects.

Loan Scheme	£10 million capital
Capital Grant Fund	£3 million as above + additional £4 million
Pre-Capital Grant Fund	£1 million resource

Scottish public sector energy efficiency loan scheme

This scheme was established in 2008 and is delivered by Salix Finance. The scheme is continuing to be delivered across the public sector in Scotland, with local authorities, Arms- Length External Organisations (ALEOs) and universities eligible to apply. Over 950 projects have been supported to date with total capital value of over £70 million. These projects have resulted in £11 million annual savings and 46,000 tonnes annual carbon savings for public bodies.

In 2021 to 2022, an additional £10 million capital will be available to eligible public bodies with increased maximum 75% intervention rate offered along with increased pay back criteria. This loan scheme offers zero interest loans to the public sector to enable them to undertake spend to save retrofit energy efficiency improvement projects to help them towards achieving net zero carbon in their estates.

Further information on the loan scheme can be found here.

Public sector non-domestic energy efficiency frameworks (NDEEF) and project support unit (PSU)

We have developed two National Procurement Framework Agreements for the provision of Non Domestic Energy Efficiency (NDEE) capital installations for public and third sector projects under £1 million capital and projects over £1 million capital for the Scottish public sector.

There are a number of pre- approved suppliers for retrofit of public sector and third sector buildings with energy efficiency assets using Energy Performance Contracts to guarantee carbon and costs savings.

The Project Support Unit (PSU), currently run by Mott MacDonald, supports users of the NDEE frameworks to develop documentation and issue tenders for available services and supports Framework public bodies through the implementation of their retrofit projects. The PSU provides specialist project management, procurement and technical advisors across a range of services, including energy efficiency services, technical and energy and buildings related services and related procurement support. Funding support of up to £50,000 per project is available from Scottish Government for PSU services. The NDEEF and PSU is available for both Central Government, Local Government, Arms- Length External Organisations and Universities.

Further information on NDEEF and PSU can be found here.

Central government energy efficiency grant fund

This is a new scheme which provides grant support for Scottish public bodies classified as central government to improve the energy efficiency of their buildings and install low and zero carbon heat systems in buildings. In 2021 to 2022, this fund will be delivered by our Heat Networks and Investment Unit.

Funding is available for pre-capital and capital support.

• June 2021 – call for applications for £1 million resource fund for pre-capital support with outputs to be delivered by 31 March 2022. Supported project are expected to apply for available capital support between 2022 and 2026
• June 2021 – call for applications for £7 million capital fund for projects that can be delivered by 31 March 2022
• late 2021 – call for applications for projects, including multi- year projects that can complete installation between 1 April 2022 and 31 March 2026

Please contact gpseds@gov.scot for further information on Central Government Energy Efficiency Grant Fund.