beyond the Public Sector Decarbonisation Scheme: Decarbonising public buildings
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Public buildings are central to the UK's journey to net zero. They provide scale, stability and visibility, making them ideal places to trial low carbon technologies and innovative commercial models that can be replicated across communities.
Beyond their own footprint, they act as anchor loads for local energy systems and heating networks – enabling scalable low-carbon heat solutions and extending decarbonisation benefits to surrounding neighbourhoods. In this way, the public sector is both a leader and an enabler of wider community decarbonisation.
Equans has been at the forefront of this transition, supporting public sector organisations reduce carbon emissions and improve energy efficiency. Through the Public Sector Decarbonisation Scheme (PSDS), we have delivered more than £135 million of low carbon retrofit and decarbonisation works, supporting over 30 public sector partners – including local authorities, hospitals, universities, and community organisations
Our expertise spans the entire lifecycle of a project. From feasibility studies and net zero roadmaps, through to technical design, project management, delivery, and ongoing maintenance, we combine consultancy, engineering, and operational capabilities to deliver measurable energy and carbon savings.
Across PSDS projects, we have implemented large-scale measures such as heat decarbonisation, energy efficiency upgrades, and integration of renewable technologies – directly reducing carbon emissions, lowering energy costs, and enabling the public sector to progress towards net zero with confidence.
THE FUTURE OF the Public Sector Decarbonisation Scheme
Earlier this year, Salix Finance, announced that there will be no further investment into the Public Sector Decarbonisation Scheme (PSDS) beyond projects already awarded.
Administered on behalf of the Department for Energy Security & Net Zero (DESNZ), Salix also confirmed that while no new PSDS funding rounds will open, all projects that have already been granted support remain fully funded.
Delivery of Phase 3c and Phase 4 is currently underway, with support for these projects continuing until they are complete and operational. Grant funding is available until 31 March 2026 for Phase 3c and 31 March 2028 for Phase 4.
BEYOND PSDS: OUR ONGOING SUPPORT FOR DECARBONISING THE PUBLIC SECTOR
While PSDS funding is coming to an end, the need to decarbonise the UK’s public estate is greater than ever. At Equans, we continue to partner with organisations across the sector to deliver sustainable, and energy efficient buildings that are resilient, cost effective, and future-ready.
As a leading delivery partner across all previous phases of PSDS, we have developed proven methodologies for designing, delivering, and maintaining large scale decarbonisation programmes. decarbonisation programmes at scale. Our integrated approach ensures meaningful carbon reduction and high-quality, measurable outcomes
We support our clients in:
- Feasibility studies and energy audits: identifying priority opportunities.
- Tailored net zero roadmaps: aligned to each organisation’s goals.
- Heat decarbonisation: from electrification of heating systems to low-carbon energy solutions.
- Energy efficiency: delivering upgrades including solar PV, LED lighting, and smart innovations that reduce consumption and costs.
- End-to-end project delivery: consultancy, technical design, project execution, and ongoing long-term operation and maintenance.
- Sector-wide delivery: experience across healthcare, education, local government, and a wide range of other public sector organisations.
Blended finance and commercial models
With PSDS funding coming to a close, new delivery models are emerging. Equans helps clients navigate this evolving funding landscape by providing the expertise and strategic guidance needed to unlock investment and move projects forward.
We support organisations in exploring alternative funding routes and blended finance approaches, including ones that combine public grants, private investment and stakeholder capital. We also advise on commercial models that deliver long term savings and carbon reduction, without the need for capital expenditure – making decarbonisation both viable and scalable in the absence of dedicated grant funding. By combining our technical expertise with deep knowledge of the public sector, we help clients build robust business cases, access finance, and deliver low carbon programmes that achieve sustainability targets with confidence.
Partnering for net zero
The journey to net zero can be challenging, but our track record across PSDS and wider decarbonisation programmes makes Equans a trusted partner. We design and deliver smart, sustainable and cost efficient solutions that combine technical expertise with financial value and measurable outcomes - helping the public sector cut carbon emissions, reduce costs and build climate resilience.
