The end of PSDS
With Net Zero targets looming, the ending of the Public Sector Decarbonisation Scheme (PSDS) can feel like you’re missing out on crucial sustainability funding. Veolia’s expertise in efficient energy management and decarbonisation will ensure you are supported in reaching your carbon emissions targets.
The UK Government’s Announcement
Following a recent government spending review, which outlined capital and funding for government departments over the next three years, the Department for Energy Security and Net Zero (DESNZ) announced that there would be no further funding for the Public Sector Decarbonisation Scheme.
Phase 3c and 4 of PSDS funding is currently being delivered, with the following deadlines for each phase:
- Phase 3c will continue until 31 March 2026
- Phase 4 will continue until 31 March 2028
With no further funding being allocated, many public sector organisations may be asking themselves what to do next in order to meet Net Zero.
How Veolia have helped the public sector decarbonise
The Public Sector Decarbonisation Scheme was launched in 2020 to support organisations in England to decarbonise their estates. The funding delivered through grants was instrumental in promoting a greener, more sustainable future by utilising heat decarbonisation and energy efficiency measures. The Public Sector Decarbonisation Scheme made thousands of Net Zero projects possible, helping to unlock significant energy savings for many public sector organisations.
At Veolia, we have used our extensive expertise in sustainable energy management to work in partnership with organisations across the public sector to transform their operations towards a clean energy future. Our work, particularly in the healthcare sector, has pushed innovation to build a sustainable estate that not only delivers a reduction in carbon emissions but also makes operations more efficient and cost-effective. Through this, we have delivered a total of £250 million worth of carbon-reducing energy projects at 17 major hospitals through the Public Sector Decarbonisation Scheme.
University Hospitals Birmingham NHS Foundation Trust
Our work with University Hospitals Birmingham NHS Foundation Trust, one of the largest teaching hospital trusts in England, highlights how decarbonisation can be taken to the next level.
Using a £22 million investment from the Salix Public Sector Decarbonisation Scheme Phase 3a, and additional Trust funding, Good Hope Hospital and Queen Elizabeth Hospital Birmingham have benefited from a range of energy upgrades that will significantly cut carbon emissions.
Veolia is delivering the work through an Energy Performance Contract awarded through the Carbon Energy Fund framework.
By adopting a whole-building approach, Veolia will help the Trust achieve the NHS Net Zero goal by reducing CO2 emissions by 3,847 tonnes annually.
The works will involve de-steaming their distribution system and replacing boilers with a multi-stage heat pump system. To continue to improve efficiency, a new system of roof insulation will be installed and the control systems optimised. A solar array will continue to decarbonise the electricity supply, along with fitting LED luminaires in the buildings.
By using innovative carbon management strategies, we have positioned ourselves at the forefront for delivering significant cost and emissions reductions, using proven technology that optimises the services delivered.
So What’s Next?
We understand that trying to reach Net Zero can feel overwhelming. The PSDS funding supported public sector organisations and accelerated decarbonisation. Without this crucial funding, you may be wondering how to reach your sustainability targets.
Currently, the UK government has not announced a replacement for the funding but there are still many other funding options available for public sector organisations to utilise, including private funding initiatives.
If you are feeling unsure on how to move forward with decarbonising your operations or want to know more about other funding options, then Veolia is here to help.