How energy efficiency ensures financial health for hospitals schneider electric slideshare

Energy EfficiencyHow Energy Efficiency Ensures Financial Health for Hospitals

Michael Sullivan

Healthcare Solutions Vice President

Schneider Electric

Schneider Electric 2- Healthcare Solutions February 2013

1 2009 Electric Market Forecasting Conference, Dr Stephan Sharma2 Energy Intensity: Energy Information Administration3 National Energy Forecasting, Australia 2012

0.05

0

0.15

.01

0.2

.25

1995 1997 1999 2001 2003 2005 2007 2015 2025Year

Pri

ce

%

Energy price, pence/kWhProfits margin, %Energy intensity, use/sq.m

100

200

300

400

KW

h/s

q.m

Energy trends in healthcare

Energy costs are projected to grow 10% in the next 5 years + 10% increase based on carbon tax.

Energy use in healthcare has increased 36% since 1995 due to more technology, patients and data centers.

Profit margins in healthcare have eroded from 6.5% to 5.2%. A 25% decrease in 10 years.


Impact of energy cost increases

Impact of carbon tax (+10%) 1,2

5-year impact

New South Wales $27 million $135 million

Victoria $13.6 million $68 million

Added cost for average hospital

$120,000 $600,000

Note: Figures represented are in Australian Dollars.

1 Premier of Victoria, ‘Julia Gillard’s carbon tax power price increases to hurt Victorian country hospitals’, Media release, 21 July 2011; Steve Lewis, Matt Johnston, ‘Hospitals face $170m hit from sick carbon tax’, Herald Sun, 9 March 2012.

2 The Hon Mike Baird MP, NSW Treasurer, ‘Cost of Carbon Tax on NSW Schools and Hospitals’,Media release, 29 April 2012.


$2.6 billionResearchers estimate thatcoal-fired power generation inAustralia carries a human healthcost—from associated respiratory,cardiovascular, and nervous systemdiseases—of AUD $2.6 billion annually.


How am Iperforming?

What is mystrategy?

How do I buy?

How do Icontrol?

How do Ioptimize?

Energymanagement

life cycle

Comprehensive approach to energy management


EMS life cycle value proposition

2%

5%

3%

17%

2%

Typical Savings

Typical Savings

Typical Savings

Typical Savings

Typical Savings

A$3.3M

A$8.3M

A$5.0M

A$28.2M

A$5.0M

Your Savings

Your Savings

Your Savings

Your Savings

Your Savings


Our experts can help you prepare a strategic plan and align your business goals.

•Strategic Energy Planning•Sustainability Roadmaps•Green Star Assessments•Energy Market Intelligence•Energy Rebates & Incentive Support

What is mystrategy?

Energymanagement

life cycle



We can help you negotiate the best terms with energy suppliers to optimize return on investment and minimize risk.

•Energy Sourcing•Renewable Asset Management•Rate & Tariff Analysis•Demand Response•Energy Risk Management

What is mystrategy?

How do I buy?

Energymanagement

life cycle



Optimize your energy procurement policy

● Get exclusive recommendations from our specialists

● Identify the best suppliers and the best tariff

● Manage the risk and detect opportunities


Demand management

Investment Required for Implementation

Val

ue

to U

tili

ty &

En

d C

ust

om

ers

Low High

Low

Hig

h

Capacity Only

● Predominant form of DR in place today● Building agrees to shed load at peak times in

exchange for payment● Called only on peak usage days (<10 X p.a.)

Day Ahead

● Day ahead signal from utility allows building to shift loads to non-peak hours

Dynamic Pricing

● Building infrastructure allows it to react in 5 mins to utility signals

● Through trading partners, allows arbitrage of real time pricing markets


Our experienced specialists can help you monitor and control your energy, thanks to our software and personalized applications.

•Metering Design & Commissioning•Third-party Systems Integration•Remote Energy Monitoring•Emergency Power Supply Systems•Power System Control

What is mystrategy?

How do I buy?

How do Icontrol?

Energymanagement

life cycle



Energy dashboard

Schneider Electric 13- Healthcare Solutions February 2013 13

Energy performance benchmarking


Our experts deliver a broad offer of energy efficiency services and help implement the right solutions for your business.

•Design/Build Energy Projects•Performance Contracting•Mechanical & HVAC Retrofits•Renewable Energy Solutions•Systems Automation & Integration

What is mystrategy?

How do I buy?

How do Icontrol?

How do Ioptimize?

Energymanagement

life cycle



500+ energy conservation measures

●Plant optimization (chiller/hot water and condenser resets and sequencing)

●Active scheduling●Setpoint refinement●Resets●Variable frequency drives●Lighting retrofit and relamping●Lighting control●Outside air control●Night setup / setback●Heating / cooling lockout●Power factor correction●Pump replacement/control


Operating theatre optimization

● Air change rate should be 20/hour (not more)● Occupied / Unoccupied air change rates

● Occupied: 20 air changes/hr.● Unoccupied: 8 air changes/hr.● BMS links to occupancy sensors and operating

theatre scheduling software● Limit thermostat setpoints

Annual Energy

Energy conservation measure (ECM)

Cost / Savings per operating theater ($/year)

Baseline energy cost $28,500

Reduce air changes to 20/hour $9,875

Air changes dependent upon occupancy

$8,950

Thermostat setpoint limits $2,000

Total cost per year with ECMs $20,825

Total savings per year with ECMs $7,675


Good flow design has more impact than air change rates on infection.

Memarzadah, Farad and Weiran Xu, U.S. Department of Health and Human Services, USA National Institute of Health“Role of Air Changes Per Hour (ACH) in possible transmission of airborne infections” 3 November 2011.


HVAC and lighting control is moved to “occupied” state.

Patient is pending admission..

Discharge / Transfer:HVAC/lighting turned to “available” state.

Spores reproduce in filter, cooling

coil and drip pan reducing coil

efficiency

DamperFilter Cooling coil UVC

Clean air supplied to

building

Outside air contains viruses, bacteria, mold spores, and VOCs

UVC Emitters destroy mold, bacteria, viruses, and VOCs preventing them from the airflow

and increases coil efficiency

TM

Reduce airborne infections

99% Kill rate of airborne pathogens

20% Reduction in Cooling Coil Energy

Consumption


Electrochromic glazing

Reduces energy costs

Integrated with building automation and lighting control.


ICT load management● Facilities, enterprises, and data centres are energy-intensive domains.

● There has been no integrated way to measure, report or control IT energy

use “outside of the Data Centre” across the corporate infrastructure.

Source: Alliance to Save Energy PC Energy Report 2009

IT Equipment

Heating, Coolingand Ventilation

LightingOther

50% of PCs left on overnight wasting $2.8bn

Energy use

IT Electricity Use

Outside theData

Center

Data Center Electricity

Use

Source: Forrester, Enterprise And SMB Hardware Survey, North America And Europe, Q3 2008Source: Forrester, Enterprise And SMB Hardware Survey, North America And Europe, Q3 2008


Other

The opportunity: Optimize IT energy spend

Sources•EnergyStar: “Fast Facts on Energy Use”•Gartner DataQuest: Forecast of IT hardware energy consumption, worldwide, 2005-2012

IT = $90b

$28b(31%)

$18b(20%)

$14b(16%)

$13b(15%)

Total = $360b

$209b(58%)

$90b(25%)

$40b(11%)

HVAC

IT

LightingOther Plug

Loads

PCs, Laptops, Monitors

Network

Telecom

Servers

Printers

$16b(~18%)


Reduce data center energy waste by 30%

Heat recovery In row cooling

Reduced floor area


Reduce PC and IT device waste by 40%+

IT end-point devices

EnergyWise network unifies device coverage

● EnergyWise enables energy management of the entire IP/IT infrastructure

● Cisco switches, routers and phones

● partner IT management applications

● partner IT endpoint devices

● a growing ecosystem of providers

Devices are on 8000+ hrs. annually, but only used 40-45% of the time.


With our global services offer you will be able to track energy consumption and all the energy management initiatives.

•Performance Monitoring•Energy & Carbon Reporting•Operations & Maintenance Support•Sequence of Events Reporting•Energy Data Analysis

How am Iperforming?

What is mystrategy?

How do I buy?

How do Icontrol?

How do Ioptimize?

Energymanagement

life cycle



Sustaining savings


Sustained savings

●Reporting● Do stakeholders have access to right information?

● Daily, weekly, monthly reporting

● Visualization inspires behavior


Consistent with the actual

activity

Identify opportunities to optimize

Correlation with outdoor

temperature and gradual heating

Correlation with indoor

temperature


Diagnostics results

BLDG

BLDG

BLDG

BLDG

BLDG

BLDG

Prioritize repairs and control adjustments based on diagnostic results.


Carbon emission tracking


Projects: scenario planningTracking of energy efficiency projects with “go/no-go” simulations


Get everyone involved

Management Synthesis dashboardMonitoring of energy efficiency measures

Energy Portal

Facilities Process management

QualityBuilding

management

Data acquisition systems

Daily energy monitoring

Steering and energy measurement system

Educational dashboardsAwareness of energy efficiency measures

Sustainability Portal

Caregivers

Other systems


“The Trust will spend the £7.2m anyway – shall we spend it on buying utilities, or on developing our

estate?”

Largest hospital in Somerset• 700 beds and 15 operating theatres• 86,500 m2

• Energy spend ~£1.8m/year

Challenges• Facing significant budget cuts• Old buildings with backlog maintenance

UK: Taunton & Somerset NHS Trust


Backlog maintenance addressed

A$3.7 M

Annual energy savings

A$1.1 M

Carbon reduction43% carbon saving

Annual savings on reactive maintenance

A$108k/year

Simple return on investment

6 years

Net cash surplus 20 yrs

A$26.3 M

UK: Taunton & Somerset NHS Trust


Kristianstad

120,479 m2

Lund

191,296 m2

Helsingborg

131,970 m2

Challenges

• Budget cuts•Resource shortages•Ageing equipment•Deferred maintenance

• Aggressive carbon targets

• Increased energy costs

Sweden: Region Skåne Hospitals


Facility upgrades A$8.0 M

Annual energy savings

A$1.24 M

Energy savings %Heating: 28%Electricity: 8%

Carbon reduction 32%

Water savings 56,000 m3/year

Simple return on investment

9.5 years

Net cash surplus 20 yrs

A$20.8 M

Sweden: Region Skåne Hospitals

Kristianstad

120,479 m2

Lund

191,296 m2

Helsingborg

131,970 m2


Australia Hospital EPC Experience

Many hospitals and medical facilities

• Royal Brisbane• Ipswich• Nambour• Caboolture• Royal Children’s• Eventide• Gladstone• Mater• Scientific Services


How am Iperforming?

What is mystrategy?

How do I buy?

How do Icontrol?

How do Ioptimize?

Energymanagement

life cycle

Comprehensive approach to energy management

Energy EfficiencyHow Energy Efficiency Ensures Financial Health for Hospitals

Michael Sullivan

Healthcare Solutions Vice President

Schneider Electric

How energy efficiency ensures financial health for hospitals schneider electric slideshare

Technology

Transcript of How energy efficiency ensures financial health for hospitals schneider electric slideshare