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ENERGY MANAGEMENT


Scott Wells – Energy & Operations Manager, Metro North Hospital and Health Services


EPC: opportunities in healthcare


Legislation is the driver that has provided the catalyst for institutions to develop action plans to reduce energy and to meet mandatory energy and greenhouse gas (GHG) emission targets. This paper shows what has been achieved by Metro North Hospital and Health Services (MNHHS) in Queensland, Australia.


Global and local experience in Australia shows that governments need a clear, whole- of-government process to make substantial improvements in energy efficiency. These programs also need to be measurable and achievable and to remain within budget. In 2005, the Queensland Health


Government (QHG), in conjunction with the Carbon Management Unit (CMU), through government strategies, embarked on an ambitious program of Energy Performance Contracts (EPC) throughout the regions 17 health districts, utilising funding from Queensland Treasury equity loans. The basis of EPC was to achieve mandated


energy and GHG targets that made savings in energy and costs from the energy projects. From the energy savings the facility was able to repay the loan. To ensure that milestones where achieved, timely return on investment was set at a minimum of 15% or maximum time of approximately seven years. The principles required for the successful


programs to drive energy efficiency in government operations for Queensland Health (QH) has been achieved throughout the state. This program was administered through the CMU for a period between 2005 and 2010 – a five-year term, costing over A$200 million.


The process In general, the principle of EPC management is the process which begins with a feasibility report that outlines key performance factors. A feasibility report would include details of the energy audit, implementation and action plan, estimated savings in energy, GHG emissions reductions and payback. Further details of the energy conservation


measures (ECM) implemented are clarified in the feasibility report, displaying individual


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energy savings, costs per ECM. The complex task is to maintain patient


care as the EPC works are being implemented, which is core to the EPC being proven as successful. The local support of the facility engineering and operations team is congruent between accredited ESCO and the hospital achieving the objectives with the energy projects.


Facility energy audit There are two types of energy audit. The ‘historical’ energy audit collects data from facility utility accounts on systems which identify what form of energy are used in individual plants. The data collected consists of identifying quantity and costs, energy consumption at the process level and related energy input to production output. A ‘diagnostic’ energy audit relies on historical information from systems plus further technical analysis on individual equipment. Methodologies are used to identify plant processes and the performance of the plant. The objectives to minimise energy wastage in the plant is the last point to identify old technology or out dated processes. New technology has the advantage of being energy efficient, has fiscal savings as well as minimising environmental emissions and impact on global climate change.


Meeting legislation requirements Governments in Australia recognise the community expectations and deliver programs that are sustainable for meeting energy targets: • Deliver programs that are green and reduce carbon emissions.


• Reduce energy intensity in government buildings.


• Governance of public spending on energy programs.


• Sustainability and environmental projects that improve operations and mitigate against energy price increases.


• Energy performance contracts are monitored for validation and to meet government KPI targets.


• Improved energy security and reliability of plant


‘Local experience in Australia shows that governments need a clear, whole-of-government process to make substantial improvements in energy efficiency.’


Government key targets set: • Energy consumption reduction by 5% by 2010 and 20% by 2015 – based on 2005/06 figures.


• Gas fired electricity generation increase to 18% by 2020.


• ESD for new buildings to be 5-8% of the capital budget.


• Greenhouse gas emissions reduction to 60% by 2020 based on 2005/06 figures.


• Queensland Health adapts and extends sustainable practices in its culture, its strategy and practices.


Managing the energy needs of Australia’s fastest growing, most decentralised and energy-intensive state at a time of increasing international competition and concerns over climate change represents a significant combined challenge for government, business and the community.


Scott Wells


Scott Wells has provided engineering management expertise in healthcare facilities for over 30 years for Queensland Health and NSW Health Facility Services. With a degree in Electrical Engineering, and a Graduate Certificate in Health Management, he has worked in the biomedical engineering field throughout Queensland, and has over 15 years’ service as energy and operations manager at the Royal Brisbane Women’s Hospital. An Executive Committee member of the Institute of Hospital Engineering Australia, he continues to have a supportive role on the IHEA board for sub-committees.


IFHE DIGEST 2014


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