Aviva in £15.4m healthcare energy efficiency deal

The insurer’s asset manager is helping a Scottish healthcare system cut energy costs by 10%.

Aviva Investors, the investment arm of the UK insurance company Aviva, has committed £15.4 million ($23.3 million; €21.2 million) towards an energy efficiency project at one of Scotland’s healthcare centres.

The investment is from the asset manager’s REaLM infrastructure fund and is on behalf of Aviva’s clients, including the UK’s Green Investment Bank (GIB), who indirectly invested £7.7 million toward the project. The funding will help construct an energy centre at NHS Tayside, which serves around 410,000 people in eastern Scotland. It will also install LED lighting and insulation at Perth Royal Infirmary and Stracathro Hospital.

The energy centre is expected to cut costs for NHS Tayside by 10 percent and provide 90 percent of the power and 100 percent of heating for a medical school and Ninewells Hospital, which houses Tayside Children’s Hospital and Maggie’s Cancer Centre Dundee.

Aviva has been an active clean energy investor and in September pledged to measure the carbon footprint of its portfolio and publicly disclose the results.

It also invested in a similar energy efficiency deal in 2013, at a healthcare center, again with the support of GIB. Aviva’s £18 million investment, along with GIB’s £18 million, helped build a centre at Addenbrooke’s Hospital in Cambridge, England that houses a combined heat and power unit, biomass boiler, efficient dual-fuel boilers and heat recovery from medical incineration.

This article was first published on Low Carbon Energy Investor, Infrastructure Investor’s sister publication focused on global energy transition markets.