Did you miss Michael Sullivan’s presentation on how energy efficiency ensure hospital financial health at Australian Healthcare Week? Download his presentation!
Exploring the Future Potential of AI-Enabled Smartphone Processors
How energy efficiency ensures financial health for hospitals schneider electric slideshare
1. Energy Efficiency
How Energy Efficiency Ensures Financial Health for Hospitals
Michael Sullivan
Healthcare Solutions Vice President
Schneider Electric
2. Energy trends in healthcare
Energy use in
Energy price, pence/kWh healthcare has
.25 Profits margin, % 400 increased 36%
since 1995 due to
Energy intensity, use/sq.m more technology,
0.2 patients and data
300 centers.
0.15
200 Energy costs are
%ec r P
K
projected to grow
mqs h W
.01
i
10% in the next 5
. /
years + 10%
increase based on
0.05 100 carbon tax.
0
Profit margins in
1995 1997 1999 2001 2003 2005 2007 2015 2025 healthcare have
Year eroded from 6.5%
to 5.2%. A 25%
1
2009 Electric Market Forecasting Conference, Dr Stephan Sharma decrease in 10
2
Energy Intensity: Energy Information Administration
3 National Energy Forecasting, Australia 2012 years.
Schneider Electric - Healthcare Solutions February 2013 2
3. Impact of energy cost increases
Impact of carbon tax 5-year impact
(+10%) 1,2
New South Wales $27 million $135 million
Victoria $13.6 million $68 million
Added cost for average $120,000 $600,000
hospital
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.
Schneider Electric - Healthcare Solutions February 2013 3
4. $2.6 billion
Researchers estimate that
coal-fired power generation in
Australia carries a human health
cost—from associated respiratory,
cardiovascular, and nervous system
diseases—of AUD $2.6 billion annually.
Schneider Electric - Healthcare Solutions February 2013 4
5. Comprehensive approach to energy
management
How am I
What is my
performing?
strategy?
Energy
management
How do I life cycle How do I
optimize? buy?
How do I
control?
Schneider Electric - Healthcare Solutions February 2013 5
6. EMS life cycle value proposition
2% Typical Savings A$3.3M Your Savings
5% Typical Savings A$8.3M Your Savings
3% Typical Savings
A$5.0M Your Savings
17% Typical Savings A$28.2M Your Savings
2% Typical Savings A$5.0M Your Savings
Schneider Electric - Healthcare Solutions February 2013 6
7. EMS life cycle value proposition
Our experts can help you
prepare a strategic plan and
align your business goals.
What is my
strategy? •Strategic Energy Planning
•Sustainability Roadmaps
•Green Star Assessments
•Energy Market Intelligence
Energy
management •Energy Rebates & Incentive Support
life cycle
Schneider Electric - Healthcare Solutions February 2013 7
8. EMS life cycle value proposition
We can help you negotiate
the best terms with energy
suppliers to optimize return
What is my on investment and
strategy? minimize risk.
•Energy Sourcing
Energy •Renewable Asset Management
management
life cycle
•Rate & Tariff Analysis
•Demand Response
How do I •Energy Risk Management
buy?
Schneider Electric - Healthcare Solutions February 2013 8
9. 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
Schneider Electric - Healthcare Solutions February 2013 9
10. Demand management
Dynamic Pricing
● Building infrastructure allows it to
react in 5 mins to utility signals
Value to Utility & End Customers
H gh
● Through trading partners, allows
arbitrage of real time pricing
i
markets
Day Ahead
● Day ahead signal from utility
allows building to shift loads to
non-peak hours
Capacity Only
● Predominant form of DR in place today
● Building agrees to shed load at peak times in
Low
exchange for payment
● Called only on peak usage days (<10 X p.a.)
Low H gh
i
Investment Required for Implementation
Schneider Electric - Healthcare Solutions February 2013 10
11. EMS life cycle value proposition
Our experienced specialists
can help you monitor and
control your energy, thanks
What is my to our software and
strategy? personalized applications.
•Metering Design & Commissioning
Energy •Third-party Systems Integration
management
life cycle
•Remote Energy Monitoring
•Emergency Power Supply Systems
How do I •Power System Control
buy?
How do I
control?
Schneider Electric - Healthcare Solutions February 2013 11
14. EMS life cycle value proposition
Our experts deliver a
broad offer of energy
efficiency services and
What is my help implement the right
strategy? solutions for your
business.
Energy
management
•Design/Build Energy Projects
life cycle •Performance Contracting
How do I •Mechanical & HVAC Retrofits
optimize? How do I
buy? •Renewable Energy Solutions
•Systems Automation & Integration
How do I
control?
Schneider Electric - Healthcare Solutions February 2013 14
15. 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
Schneider Electric - Healthcare Solutions February 2013 15
16. 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
Energy conservation measure Cost / Savings per
(ECM) operating theater ($/year)
Baseline energy cost $28,500
Reduce air changes to 20/hour $9,875
Air changes dependent upon $8,950
occupancy Annual Energy
Thermostat setpoint limits $2,000
Total cost per year with ECMs $20,825
Total savings per year with ECMs $7,675
Schneider Electric - Healthcare Solutions February 2013 16
17. 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.
Schneider Electric - Healthcare Solutions February 2013 17
18. Discharge / Transfer:
HVAC/lighting turned
to “available” state.
HVAC and lighting
control is moved to
“occupied” state.
Patient is pending
admission.
.
Schneider Electric - Healthcare Solutions February 2013 18
19. Reduce airborne infections
Damper
Filter Cooling coil UVC
Outside air
contains
viruses,
bacteria, mold
spores, and
VOCs
Spores UVC Emitters destroy Clean air
TM
reproduce in mold, bacteria, viruses, supplied to
filter, cooling and VOCs preventing building
coil and drip pan them from the airflow
reducing coil and increases coil
efficiency efficiency
20% Reduction in
99% Kill rate of
Cooling Coil Energy
airborne pathogens
Consumption
20. Electrochromic glazing
Reduces energy costs
Integrated with building automation
and lighting control.
Schneider Electric - Healthcare Solutions February 2013 20
21. 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.
50% of PCs left on
overnight wasting $2.8bn
IT
Equipment
Lighting IT
Electricity Data
Other Center
Use
Outside the Electricity
Data Use
Heating, Cooling Center
and Ventilation
Energy use Source: Forrester, Enterprise And SMB Hardware
Survey, North America And Europe, Q3 2008
Source: Alliance to Save Energy PC Energy Report 2009
Schneider Electric - Healthcare Solutions February 2013 21
22. The opportunity: Optimize IT energy spend
Total = $360b IT = $90b
PCs, Laptops, $28b
Monitors (31%)
$209b HVAC
(58%)
Network $18b
(20%)
Servers $14b
(16%)
$90b IT
(25%) Printers $13b
(15%)
Telecom
Lighting $16b
$40b Other Plug (~18%)
(11%)
Other Loads
Sources
•EnergyStar: “Fast Facts on Energy Use”
•Gartner DataQuest: Forecast of IT hardware
energy consumption, worldwide, 2005-2012
Schneider Electric - Healthcare Solutions February 2013 22
23. Reduce data center energy waste by 30%
Heat recovery In row cooling
Reduced floor area
Schneider Electric - Healthcare Solutions February 2013 23
24. Reduce PC and IT device waste by 40%+
EnergyWise network unifies
device coverage
Devices are on 8000+ hrs. annually,
but only used 40-45% of the time.
● 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
IT end-point devices
Schneider Electric - Healthcare Solutions February 2013 24
25. EMS life cycle value proposition
With our global services
offer you will be able to
track energy consumption
How am I
performing?
What is my and all the energy
strategy? management initiatives.
•Performance Monitoring
Energy •Energy & Carbon Reporting
management
life cycle
•Operations & Maintenance Support
How do I •Sequence of Events Reporting
optimize? How do I •Energy Data Analysis
buy?
How do I
control?
Schneider Electric - Healthcare Solutions February 2013 25
27. Sustained savings
● Reporting
● Do stakeholders have access to right information?
● Daily, weekly, monthly reporting
● Visualization inspires behavior
Schneider Electric - Healthcare Solutions February 2013 27
28. Identify opportunities to optimize
Correlation with
indoor
temperature
Correlation with
Consistent with outdoor
the actual temperature and
activity
Schneider Electric - Healthcare Solutions February 2013
gradual heating 28
31. Projects: scenario planning
Tracking of energy efficiency projects with “go/no-go” simulations
Schneider Electric - Healthcare Solutions February 2013 31
32. Get everyone involved
Sustainability Portal
Caregivers Educational dashboards
Awareness of energy efficiency measures
Energy Portal
Management Synthesis dashboard
Monitoring of energy efficiency measures
Steering and energy measurement system
Daily energy monitoring
Data acquisition systems
Facilities Process Building
Quality
management management
Other systems
Schneider Electric - Healthcare Solutions February 2013 32
33. UK: Taunton & Somerset NHS Trust
“The Trus t w l l s pend t he £7. 2m anyw
i ay – s hal l
w s pend i t on buyi ng ut i l i t i es , or on
e
devel opi ng our es t at e?”
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
Schneider Electric - Healthcare Solutions February 2013 33
34. UK: Taunton & Somerset NHS Trust
Backlog
maintenance A$3.7 M
addressed
Annual energy A$1.1 M
savings
43% carbon
Carbon reduction
saving
Annual savings on
reactive A$108k/year
maintenance
Simple return on
6 years
investment
Net cash surplus
A$26.3 M
20 yrs
Schneider Electric - Healthcare Solutions February 2013 34
35. Sweden: Region Skåne Hospitals
Challenges
• Budget cuts
•Resource shortages
•Ageing equipment
•Deferred maintenance
• Aggressive carbon targets Kristianstad Lund Helsingborg
120,479 m2 191,296 m2 131,970 m2
• Increased energy costs
Schneider Electric - Healthcare Solutions February 2013 35
36. Sweden: Region Skåne Hospitals
Facility upgrades A$8.0 M
Annual energy A$1.24 M
savings
Heating: 28%
Energy savings %
Electricity: 8%
Carbon reduction 32%
Water savings 56,000 m3/year
Kristianstad Lund Helsingborg
Simple return on 120,479 m2 191,296 m2 131,970 m2
9.5 years
investment
Net cash
A$20.8 M
surplus 20 yrs
Schneider Electric - Healthcare Solutions February 2013 36
37. Australia Hospital EPC Experience
Many hospitals and
medical facilities
• Royal Brisbane
• Ipswich
• Nambour
• Caboolture
• Royal Children’s
• Eventide
• Gladstone
• Mater
• Scientific Services
Schneider Electric - Healthcare Solutions February 2013 37
38. Comprehensive approach to energy
management
How am I
What is my
performing?
strategy?
Energy
management
How do I life cycle How do I
optimize? buy?
How do I
control?
Schneider Electric - Healthcare Solutions February 2013 38
39. Energy Efficiency
How Energy Efficiency Ensures Financial Health for Hospitals
Michael Sullivan
Healthcare Solutions Vice President
Schneider Electric
Notas do Editor
TRENDS – EUROPE According to Australia Energy Market Operator (2012) National Electricity Forecasting, energy prices will increase 10%+ this year because of the carbon tax and network infrastructure costs. Then another 10% over the next five years with a strong economy economic forecast. (business prices based on New South Wales) Hospital energy intensity is increasing: New medical equipment, expansions in IT, and higher levels of patient comfort are increasing the amount of energy that hospitals use. Hospital margins are decreasing: In Australia, most not-for-profit hospitals have about 2% margins http://www.abs.gov.au/ausstats/abs@.nsf/Products/8106.0~2006-07+(Re-Issue)~Main+Features~Hospitals?OpenDocument
Energy prices have increased 25% in Australia over the last 5 years before the carbon tax, although hospital energy efficiency only improved 5% in Victoria. Treasury estimates that the cost of electricity could go up 10% as a result of the carbon tax. This will have a big impact on utilities in Australia.
Because 80% of Australia’s electricity is reliant on coal, it has direct and immediate consequences on human health. Researchers from the Australia Academy of Technological Sciences and Engineering estimate that coal-fired power generation carries a human health cost of $2.6 billion/year – from respitory, cardiovascular, and nervous system diseases. The Australia Public Library Sciences of Medicine says climate change could cause a health crisis at least as big as tobacco. The Lancet calls global climate the biggest Health crisis of this century. The public is increasingly aware of this crisis and there is increasing political pressure for hospitals to do their part to deal with this public health issue. Although energy efficiency is much more integrated into new hospitals, not enough is being done to make existing facilities more efficient. 25. Kjellstrom, T., et al. Air pollution and its health impacts: the changing panorama, Medical Journal of Australia, 2002, 177, pp. 604-608. 26. Biegler, T. The hidden costs of electricity: Externalities of power generation in Australia, Report for the Australian Academy of Technological Sciences and Engineering (ATSE), 2009. Available online: http://www.atse.org.au/resource-centre/ func-startdown/63 Lancet: “biggest global Health threat of the 21 st century” (2009) Public Library Science of Medicine: Climate change could cause a health crisis at least as big a tobacco. Australia: University of Western Sydney and Australia National University Centre for Epidemilogy and Public Health -by 2100 1.8 million working days lost from gastroenteritis. 36,000 days lost from increased incidences of dengue fever. – billions of dollars of impact over the next 50-100 years.
Rueil-Malmaison (France), January 25, 2013 – Schneider Electric is part of the Global 100 Most Sustainable Corporations in the World’, for the second year in a row, ranking at the 13th place, gaining 13 ranks compared to last year. The Global 100 consists of the 100 top-performing stocks worldwide on a range of sector-specific ‘sustainability’ metrics. Data are collected for the project primarily from Bloomberg and through direct engagement with the 350 companies that made the project’s shortlist, selected from all global mid and large cap stocks (approximately 4,000). This ranking has been established by Corporate Knights, a Canadian media and investment research company for clean capitalism. It is announced each year at the World Economic Forum in Davos. Doug Morrow, the VP Research at Corporate Knights, declared, ”we feel that the sustainability data that flows into our Global 100 research model, once properly cleansed, can contain hidden and statistically robust signals about companies’ future financial performance ”. In the 2013 list, Schneider Electric ranks second among the nine French companies and third out of ten in its sector (Industrial – Capital Goods). For Gilles Vermot Desroches, Sustainability Senior Vice-President at Schneider Electric: ‘‘Schneider Electric’s inclusion and progression in the Global 100 list for the second year in a row validates the company’s strategy and commitment to sustainable development, guided by our Planet & Society Barometer” . Since 2005, the company releases every quarter key progress through its award-winning sustainability dashboard: The Planet & Society Barometer. Based on 14 indicators covering the three pillars of sustainability (people, planet, profit), it is the flagship of Schneider Electric performance in this domain. Schneider Electric is also part of major rankings and indexes such as the Carbon Disclosure Performance Leadership Index and the Dow Jones Sustainability World and Europe Indexes.
Notes: Strategy: Energy Market Intelligence, Assistance to be certified, Consultancy SE set out a Long term Strategy that saved 2% of energy cost savings. SE set out with the goal to certify 20 Schneider Electric facilities with ISO 500001 certification. Additionally we plan to ensure new buildings will consume less than 50 kWh/m2 per year. Set Targeted Reduction Goals of 30% reduction goals for electricity, natural gas and greenhouse gases all through the use of Schneider Electric products.
Notes: How do I buy: Optimizing the energy cost at company / site levels Focusing our energy procurement efforts in three major categories Year on Year Savings - 545k€ Strategic Sourcing Achieved significant savings through monitoring market dynamics to identify the best time to initiate an energy supply purchase and reduce unwanted exposure to price volatility Cost Avoidance – 323k € - Risk Management Developing risk management strategies and provided customized recommendations to guide purchasing decisions, we have avoided future energy costs. Negotiated Savings - Total: 11k€ - Rate & Tariff Analysis recommend the best tariff rate based on usage patterns, operational needs and objectives
How do I control? Compare bills and actual metering, sub-metering We know we can achieve savings through the use of efficient devices and automation. However, as more time goes by, the importance of monitoring and maintenance becomes increasingly important
Notes: How do I optimize? = how can you optimize existing services? Through the installation and efficiency improvement of lighting, motors and renewables, Schneider Electric has saved 19% of its annual energy spend.
The results of this study show that the most contributing factor to contaminant transmission in enclosed and mechanically ventilated environment is the path between contaminant source and the exhaust, not the ACH. When this path is interrupted by air streams, the contaminant is most likely to migrate to other places in the room. If the path is kept intact from an intersecting air stream, then the contaminant is unlikely to migrate. With a “poor” ventillation design, increasing ACH from 4 to 12 has little impact on infection risk. With a good ventillation design, increasing the ACH does improve infection risk.
Looking in more detail at how these measures work: Hospital case studies showed UV kills up to 99% of pathogens in the air supply and improves coil efficiency by 20% because it prevents the build up of microbial film on the fins of the coil. Tests were carried out with 15-30% energy savings at Prince Charles hospital in Queensland and at Whangarie hospital in Northland NZ.
Campuses are energy intensive but often organizational structures inhibit ability to report across layers of IT. For example, Office IT and the Data Center or networking and server environments within the data center Significant cost being spent on disparate attempts to measure and control energy use Campus IT Energy Use Source: UK Energy Efficiency Best Practice Program; Energy Consumption Guide 19: Energy Use in Offices Data Center Energy Use Source: The Green Grid
Roughly 25% of commercial energy consumption is attributable to IT, second only to HVAC.
How Am I performing? The online reporting software gives company stakeholders visibility into facility-level and enterprise-wide information. So the results shown below are accurate, auditable and verified
Energy costs are usually a small part of the operational costs (1-5%), so as first step we have to make visible the invisible. As Healthcare facilities are risk-averse, a selling point is that as Schneider Electric we integrate the Energy management system with the Electrical Distribution installed base. So there is no risk on existing installations and the activity can continue
