Efficient Government Buildings

Overview

The Efficient Government Buildings (EGB) program is a Victorian Government program that reduces operating costs to Government by implementing energy efficiency retrofits of existing government buildings.


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). The majority of these savings have been achieved through a process known as Energy Performance Contracting (EPC).

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 EGB program, the EPC aims to achieve a 7-year simple payback period for all projects, i.e. projects must pay for themselves with the savings achieved over 7 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.

More Information

For more information including guidelines, standard contracts/templates, and a list of our current and past projects, please visit Energy Performance Contracting external site icon