The NHS could potentially slash its energy bills by up to 20% every year by investing in efficiency measures, a new report claims.

That means savings of up to £150 million annually on energy costs while also cutting greenhouse gas emissions by 25%.

According to the report published by the Green Investment Bank (GIB), the NHS currently spends more than £750 million on energy every year and a further £100 million on waste disposal. It generates 400,000 tonnes of waste and recyclable material annually – and accounts for one in every 100 tonnes of non-domestic waste in the UK.

The GIB suggests installing energy efficiency measures such as combined heat and power (CHP) systems, LED lighting, heating, ventilation and control systems and biomass boilers as well as implementing waste management measures to help cut costs.

It said: “Energy costs are expected to increase at a rate above inflation. So energy costs will demand an increasing share of NHS budgets… Investment in energy efficiency will deliver more reliable and resilient energy systems on NHS sites, reducing costs and operating risks of these facilities.”

The GIB has so far helped finance energy efficiency projects in four NHS hospitals.