The centre will provide 90 per cent of the power and 100 per cent of the heat for Ninewells, which also houses Tayside Children’s Hospital and Maggie’s Cancer Centre Dundee.

Aviva Investors is to provide funding for the energy efficiency programme through its REaLM infrastructure funds on behalf of clients including the UK Green Investment Bank plc (GIB), which is indirectly investing £7.7m in the project.

LED lighting and insulation will be installed at Perth Royal Infirmary and Stracathro Hospital near Brechin as part of the project.

The programme, which is due for completion in December 2016, is expected to cut energy costs at NHS Tayside by 10 per cent.

NHS Tayside, one of the 14 regions of NHS Scotland, provides health services for a population of approximately 410,000 people in the local government areas of Dundee, Angus, and Perth & Kinross.

A 25-year performance contract has been signed with Vital Energi, which was procured under the Carbon Energy Fund (CEF) framework. Vital will be responsible for the design, construction, installation and on-going operation and maintenance of the technology for the duration of that agreement.

Scotland Office minister Andrew Dunlop said he believed the initiative would be a boost for Taysiders.

He said: “This is an extremely welcome announcement as it combines enlightened investment with energy efficiency and the best of Scottish innovation.

“This centre will make a real difference to the costs of providing energy to hospitals in Tayside and is another example of UK institutional investors supporting infrastructure projects which will be of benefit to the wider public.”

NHS Tayside head of property Mark Anderson said: “This project is designed to make our hospital sites more energy efficient and enhance the service and environment for the patients and staff of NHS Tayside.

“It fits clearly with our strategic theme of delivering high-quality care in the right place through safer, effective, resilient and sustainable services.”

Ashley Malin, project development director with Vital Energi, added: “This project is exceptionally exciting for us as it shows that financial savings and carbon reduction can be achieved by the public sector working in collaboration with the private sector on these innovative energy projects.”