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

$33 million will be invested across a number of government buildings and infrastructure. The Government will use Energy Performance Contracts to ensure the best and most efficient solutions are identified, and savings are guaranteed, measured and verified. 

Projects will include: 

  • Peninsula Health facilities including Frankston Hospital 
  • Gordon TAFE in Geelong 
  • Victorian freeways LED lighting 
  • Primary and secondary schools 
  • Regional health facilities

What is an Energy Performance Contract?

An Energy Performance Contract (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.

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