Keeping the Lights on at Hospitals:

Combined Heat and Power Provides

Resilience and Saves Money Memphis Sustainability Summit

Jennifer Kefer 202-365-2194

jennifer@dgardiner.com

http://www.dgardiner.com/alliance.htm

@AllIndEff

Conventional Power Generation

Reliability

• Mississippi Baptist

Medical Center

(Jackson, MS) –

Hurricane Katrina

• Danbury Hospital

(Danbury, CT) –

Superstorm Sandy

Economic Benefits – TECO

(Houston) • 48 MW natural gas

system

• Combustion turbines

• Installed 1980, updated 2010

• 1,000 jobs in recent construction

• $200 million savings/

15 years

Current CHP Projects

Current CHP Projects

CHP in Tennessee (500 MW)

Tennessee CHP Potential (2,886 MW)

0

100

200

300

400

500

600

Cap

acit

y (M

W)

CHP Potential by Application

Tennessee CHP Potential

National CHP Potential

Remaining Potential for CHP (National)

CHP Capacity - Hospitals

• Among most energy-

intensive buildings in U.S.

• Consumes > 8% of total

energy used in U.S.

commercial buildings

• Spends more than $5-billion

annually on energy

Energy Use in Healthcare

Source: 2012 Annual Report, Hospital Energy Alliance, US DOE EERE

Factors to Consider

• Economic benefits of CHP

• Energy efficiency competes with clinical equipment for capital

• Electric reliability needs

• Oversized emergency generator sets

• Environmental goals

Danbury Hospital (Connecticut)

Typical Hospital CHP System

Configurations • Small to mid-size

• Typically fueled by natural gas

• Sized for thermal load

• Do not replace emergency generators to meet “life critical loads”

Gundersen-Lutheran Hospital

Emergency Generators

• Sized to meet “life

critical loads”

• Used during emergency

events

• Diesel fuel

• Financial payback only

in times of emergency

Emergency Generators vs.

CHP Systems

CHP Systems

• Sized to meet thermal

or electric loads

• Continuous operation

• Natural gas

• Good financial return

Why More Hospitals Do Not Invest in CHP • Economics not right

• Competing for capital and attention

• Competing for space

• Lack of knowledge

• Utility barriers

• Permitting

University Medical Center (Princeton, NJ)

Policy Priorities

• Financing

• Markets

• Education

Policies

Keeping the Lights on at Hospitals:

Combined Heat and Power Provides

Resilience and Saves Money Memphis Sustainability Summit

Questions?

Jennifer Kefer 202-365-2194

jennifer@dgardiner.com http://www.dgardiner.com/alliance.htm

@AllIndEff

• Southeastern Clean Energy Application Center (ipanzarella@ncsu.edu)

• DOE – Better Building Alliance (http://www4.eere.energy.gov/alliance/about)

• CHP Resource Guide for Hospital Applications (2007) (http://1.usa.gov/190F2YQ)

• CHP Case Studies (http://1.usa.gov/11ZweNt)

Additional Slides & Resources