- New energy efficient lighting to be installed in 149 locations in 2014
- First transport infrastructure project to qualify for Government’s UK Guarantee
- Project expected to save 11,000 tonnes of CO2e per annum
Future Energy Solutions (FES) will be undertaking a retrofit of NCP car parks across the UK with new energy efficient lighting systems in up to 149 locations over the coming year following a £10 million deal announced today by The UK Energy Efficiency Investments Fund (“The Fund”), in partnership with FES. The Fund is managed by Sustainable Development Capital (“SDCL”) and funded by the UK Green Investment Bank. A UK Guarantee will underpin the investment.
Switching to LEDs will deliver a high quality lighting solution that delivers a better customer experience whilst at the same time significantly reducing energy demand, maintenance costs and greenhouse gas emissions. The project is expected to save over 11,000 tonnes of CO2e per annum and generate energy savings of over 65 per cent in the car parks that are being retrofitted.
The investment enables the project to be delivered for NCP at no up-front cost, with the project being financed by energy cost savings over time.
Lighting specialist, FES, has developed the project and entered into a supply & services agreement with NCP to deliver the solution.
The UK Guarantee was key to the financing. The scheme was launched by the government last year to provide up to £40 billion of support to help important infrastructure projects raise finance. This is the first transport infrastructure project to have qualified for a UK Guarantee and demonstrates the flexibility of this unique scheme.
Chief Secretary to the Treasury, Danny Alexander said:
“I am delighted that we have been able to support this innovative investment which improves car park facilities in 149 locations, making it easier for firms and families to access business opportunities in our city centres, and supporting growth across the UK.
“It demonstrates the flexibility of the UK Guarantees scheme, and shows we are using the strength of our balance sheet to support important projects that affect day to day lives of people in the UK.
“The project shows that being energy efficient is common sense, saving money and reducing emissions at the same time. I hope it encourages other infrastructure projects to come forward to see how a guarantee might be able to help them.”
CEO of Sustainable Development Capital, Jonathan Maxwell, said:
“This is an important investment for our fund and a first of a kind in many respects, from the sheer scale of the energy efficiency work that Future Energy Solutions will be doing to
retrofit NCP sites right across the country, to the structuring and innovation involved in providing financing to it to deliver the service at no up front cost to NCP.”
Chief Executive of the UK Green Investment Bank, Shaun Kingsbury, said:
“This project is important because it offers a demonstration, to all businesses, that energy efficiency is, first and foremost, good business sense. NCP will see the cost of the entire retrofit project more than covered by the savings and it will help them manage risk and improve the experience of their customers. We’re delighted to support NCP and encourage other companies with high energy costs to speak to us about how energy efficiency measures can strengthen their business.”
Chairman of Future Energy Solutions, Anthony Lyons said:
“There are huge wins on a multitude of levels in this project. The deal has enabled Future Energy Solutions to deliver a lighting replacement across a sizeable potion of NCP’s portfolio, delivering significant savings in energy and monetary terms for the client of around
70%. The portfolio with efficient lighting technology installed, will have no maintenance costs for NCP moving forwards. Most important of all the new LED lighting will enhance the environment of the car parks, improve safety and security for all users, making the environment within the car parks more inviting.”
CEO of NCP, Jo Cooper said:
“NCP has been seeking a partner in the energy contracting market to support and deliver a wholesale upgrade of our lighting systems across the Multi-Story Car Park portfolio. Future Energy Solutions and its funding partners have tailored a deal for us which is off-balance sheet, requires no up-front investment, dramatically reduces our operational costs for an extended period of time, and reduces our energy use substantially. This has a big impact operationally and financially. Most importantly of all the car parks will be well fully lit and energy efficient, improving the sites for all our customers and helping us achieve our environmental goals. We look forward to addressing other energy efficiency areas where there are tangible wins for NCP moving forwards.”
Jonathan Maxwell / Gil Levy CEO Partner SDCL EE Co (UK) LLP
Tel: +44 207 287 7700
Chief Operating Officer
Future Energy Solutions Limited
+44 207 908 3929
Justine McIlroy / Oliver Hughes
Tel: +44 207 404 5959
For further information, please contact:
Notes for Editors
- In July 2012, the government announced the UK Guarantees Scheme to avoid delays to investment in major UK infrastructure projects that may have stalled because of adverse credit conditions. The legislation underpinning the Guarantee Scheme (the Infrastructure (Financial Assistance) Act 2012) received Royal Assent on 31 October 2012. Guarantees for up to £40 billion in aggregate can be offered.
- The UK Energy Efficiency Investments Fund forms part of GIB’s allocation of investment into energy efficiency, one of its priority sectors. GIB awarded the competitive mandate to SCDL to invest £50 million to drive investment in small – scale low carbon infrastructure.
About the UK Energy Efficiency Investments Fund
The UK Energy Efficiency Investments Fund is UK Energy Efficiency Investments 1, LP and parallel partnerships co-investing alongside it. It has been launched with a £50m cornerstone investment from the UK Green Investment Bank and is managed by SDCL EE Co (UK) LLP, the dedicated UK energy efficiency investment arm of Sustainable Development Capital.
About Sustainable Development Capital (SDCL)
SDCL is a specialist financial and investment advisory firm, headquartered in London and with offices in New York and Hong Kong. It was established in 2007 to help governments, financial institutions and companies finance and invest in environmental and social infrastructure assets and services. SDCL’s advisory business is focused on facilitating the supply of clean infrastructure. Its investment business is focused on reducing demand for resources through energy efficiency.
About UK Green Investment Bank (GIB)
The UK Green Investment Bank was launched in November 2012. It has £3.8 billion of funding from the UK government. It is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of government.