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Healthcare Management

Following a detailed energy audit

in 2010, a refurbishment programme has been developed in close consul- tation with the Hospital Estates Department. It incorporates around 180 individual measures across the site, and the benefits are huge. Over £2.5 million of estate backlog mainte- nance is being tackled, thereby mini- mising significant operational and financial risks. Carbon emissions will be reduced by 43 per cent – putting the Trust at the forefront of the UK public sector carbon management. This project is the first of its kind

in the Healthcare Sector and Schnei- der Electric believes it will mark the beginning of a radical change in the way the NHS Trusts improve, maintain and formulate energy savings in their building stock. The Trust is not required to pay

for any of the work upfront; the capi- tal is provided by Schneider Electric and the project will be largely self- financed by the energy savings that will be achieved. The project is expected to take two

years to be implemented, but once completed, Schneider Electric will remain involved for 10 years. There is a performance guarantee in place, based on a percentage decrease in energy units (MWh) against fixed targets. Above all, the project will be cash-flow positive in every year of

Michael Sullivan, Global Healthcare Solution Vice President for Schneider Electric, sums up the benefits with his statement: "Schneider Electric's energy solutions will not only help the NHS reduce costs during a time of budget reductions, but will also reduce CO2 emissions, improve the hospital’s infrastructure to create a safe and reliable environment for patients and staff, and help create jobs to execute the work."

By using innovative solutions, the NHS infrastructure can be revitalised and huge financial and energy savings can be achieved, it could result in energy savings of over £200 million a year.

its 20-year life span, being largely funded by guaranteed energy savings – estimated to be over £750,000 per annum (rising with utility inflation). So, by creating more efficient and greener energy, Schneider Electric will help the hospital to improve its financial performance. The project is expected to gener-

ate a net operating cash surplus of £17 million over 20 years, and to free up £2.5 million of budgeted capital expenditure to spend on other Trust priorities, such as further improve- ments to the patient environment and new medical technologies. In a project of such nature, Schnei-

der Electric would work closely with the Estates Department to devise an

improvement programme that deliv- ers the best value for money and maximum efficiency. Initially, an in-depth analysis

of the equipment on-site would be carried out. If the existing equip- ment was found to be ageing, inef- ficient or in need of replacement, Schneider Electric would opt for the most efficient approach, which could be a combination of tradi- tional equipment and renewable, low-carbon products such as Photo- voltaic (PV) solar power, solar ther- mal hot water and CHP (Combined Heat and Power). By using innovative solutions, the

NHS infrastructure can be revitalised and huge financial and energy savings can be achieved, while making the environment more comfortable and safe for patients. Schneider Electric estimates that if similar measures to those discussed in this article were replicated across the entire NHS estate, it could result in energy savings of over £200 million a year. Delay in taking action brings no benefits – the NHS would incur more expenditure. 13

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