Greener Government Buildings
Greener Government Buildings (GGB) is a program that improves the energy efficiency of existing government buildings to reduce operating costs and greenhouse gas (GHG) emissions. Energy is saved through a combination of:
- lighting upgrades (e.g. LED)
- heating, ventilation and cooling upgrades (HVAC)
- solar panels
- building automation and controls
GGB latest news
As part of 2017/18 budget, the Victorian Government announced it will invest $20 million in the GGB program to target a number of government buildings and infrastructure. This is in addition to the $33 million the Government invested last year.
The Government will use Energy Performance Contracts (EPC) to ensure the best and most efficient solutions are identified, and savings are guaranteed, measured and verified.
In addition to the above, Public Non-Financial Corporations (PNFCs) that have the power to borrow may access loans directly through the Treasury Corporation of Victoria (TCV) for GGB projects. These loans will be made available at the bond rate, excluding the Financial Accommodation Levy (FAL) that is typically applied to their borrowings.
What is an EPC?
An EPC is a process where a contractor is engaged to design, implement, verify and guarantee the savings from an energy efficiency project. This method of delivering energy efficiency upgrades to buildings is considered low risk and is widely accepted around the world.
Under the GGB program, the EPC aims to achieve a 5-year simple payback period for all projects, i.e. projects must pay for themselves with the savings achieved over 5 years. However, EPCs are not suitable for all facilities and are typically only used for large and/or complex buildings, e.g. hospitals, TAFEs, large office buildings, sporting complexes, etc. For smaller sites such as schools, alternative approaches may be preferable.
Alternatives to EPC
In instances where department or agency’s total energy consumption is too small to attract the market to deliver an EPC (usually less than 1 GWh annual electricity consumption), or the building services are relatively simple, an alternative project delivery method to EPC may be considered. In these instances, departments/agencies should contact DTF for further advice.
The EPC process under EGB consists of 7 stages as outlined below.
Current and past projects
Since its establishment in 2009, EGB has invested $134 million in upgrades to 389 government buildings. Over 15 years, these projects are estimated to achieve cost savings of $335 million, resulting in a positive net present value of $107 million and the annual avoidance of 134,000 tonnes of greenhouse gas (GHG) emissions (a 5.1 percent saving on total government building emissions). Past and current projects include:
|Treasury Office Buildings||Johnson Controls||Guarantee Period||29%|
|State-wide LED Traffic Lighting Upgrade||Various (not EPC)||Complete||70%|
|Melbourne Sports and Aquatic Centre||Total Energy Solutions||Guarantee Period||29%|
|South West TAFE Institute||Total Energy Solutions||Guarantee Period||30%|
|Kangan TAFE Institute||A.G. Coombs||Guarantee Period||15%|
|Federation Square||Siemens||Guarantee Period||55%|
|Grampians Wimmera Mallee Water||CarbonetiX||Guarantee Period||9%|
|City of Yarra||Ecosave||Guarantee Period||N/A|
|Melbourne Cricket Ground||Siemens||Guarantee Period||19%|
|Sunraysia TAFE||Schneider||Guarantee Period||23%|
|RMIT Bundoora & Brunswick Campuses||Honeywell||Installing||52%|
|RMIT City Campus||Siemens||Installing||34%|
|East Gippsland Water||Ecosave||Installing||41%|
|Public Housing (high-rise)||Total Energy Solutions||Installing||58%|
|Metropolitan Fire Brigade||Ecosave||Guarantee Period||13%|
|Chisholm Institute||Ecosave||Guarantee Period||29%|
|West Gippsland Health||Schneider||Installing||59%|
|Holmesglen Institute|| |
Total Energy Solutions
|Melbourne Polytechnic||A.G. Coombs||Guarantee Period||40%|
|Peninsula Health||FG Advisory||Installing|
|Gordon Institute of TAFE||FG Advisory||Installing||34%|
|Freeway LED Lighting Renewal||Various (not EPC)||Installing|
National Gallery Victoria
Detailed Facility Study
|Northern Health||FG Advisory||Detailed Facility Study|
|Primary and Secondary Schools||Various Contractors||Stage 1 Installations||N/A|
Lead agency: Department of Treasury and Finance
Conditions of use: Non-mandatory
Reference number: GGB-01
Arrangement: Open panel
Start date: 01/09/2010
End date: 30/06/2021
Reviewed 24 July 2019