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

Since its establishment in 2009, GGB has facilitated $188 million in energy efficiency upgrades and renewables across 30 projects. Over 15 years, these projects are estimated to achieve cost savings of $388 million, resulting in a positive net present value of $100 million and abate 686,000 tonnes of GHG per year.

Projects to date

  • Austin Central Gippsland and West Gippsland Health facilities
  • Chilsholm, South West, Kangan, Holmesglen, Melbourne Polytechnic, RMIT and Sunraysia TAFE
  • Museums Victoria
  • Melbourne Cricket Ground
  • Federation Square
  • Melbourne Sports and Aquatic Centre
  • Government office buildings
  • Grampians Wimmera Mallee and East Gippsland Water Authorities
  • Metro Fire Brigade
  • VicRoads Freeway Lighting
  • State-wide traffic lighting

Projects in planning

  • Peninsula and Northern Health facilities
  • Gordon TAFE
  • Solar power to approximately 100 primary and secondary schools
  • Energy efficiency and solar in 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.

More information

The Victorian Government Purchasing Board’s energy performance contracting website provides more information, including guidelines, standard contracts/templates, and a list of current and past projects.

Reviewed 20/09/2019
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