ENERGY AND CARBON REDUCTION
Finding smarter ways to manage energy sustainably
Many NHS Trusts have taken advantage of distributed energy technologies to reduce energy costs, improve sustainability, and improve resilience. Few, however, are making the most of newer opportunities to fully optimise their energy. Tony Orton, head of Healthcare Business Development at Centrica Business Solutions, advises on how to identify and use energy flexibility to achieve cost and carbon savings.
The Energy Centre designed, built, and operated, by Centrica Business Solutions at St George’s Hospital in Tooting, South London.
Reflecting the position of large energy users across the UK and globally. Centrica Business Solutions’ latest energy optimisation research1
showed that
although seven out of 10 of the 1,500 organisations we surveyed said they recognised the need to be more flexible in how energy is generated and used, only 30 per cent of those generating energy onsite are selling power back to the grid. It is essential that the NHS finds ever smarter ways of managing energy sustainably and more cost-effectively. The health and care system in England is responsible for an estimated 4-5 per cent of the country’s carbon footprint. In addition, healthcare estates managers are under constant pressure to make financial savings to help their Trusts keep up with growing demand for patient services, and be able to reinvest such savings in optimised patient care. The NHS has already cut its carbon emissions by almost one fifth over the past decade, but health chiefs are scaling up climate action. NHS England has announced that it is aiming to reach net zero carbon emissions before 2050, which will require a radical new approach to energy management.
From expense into asset Energy optimisation enables healthcare facilities to gain financial advantage from their distributed energy by converting it
68 Health Estate Journal August 2020 ‘‘
NHS England has announced that it is aiming to reach net zero carbon emissions before 2050, which will require a radical approach to energy management
from an expense to an asset. Increasing numbers of NHS Trusts are selling surplus self-generated power back to the grid, but more sophisticated options are now available. With a growth in battery storage and new digitised energy management solutions, hospitals can monetise their energy estate. This means they can protect operational resilience, while unlocking previously unavailable revenue streams.
The electricity grid is fast evolving. The old system of centralised fossil fuel power plants pushing energy to consumers in a one-way direction is being replaced by lower carbon, decentralised generation and storage, that are radically changing the shape of energy systems in the UK and globally.
The replacement of grid-stabilising traditional power stations with intermittent renewable power is one of the key contributors to increasing volatility of electricity grids. Network operators are addressing these operational challenges and power resilience issues by incentivising flexibility among larger consumers, thus opening up fast-growing demand for energy optimisation.
Storing onsite energy
The NHS has led the way in combining energy and building efficiency measures with onsite generation, especially with combined heat and power (CHP), which is highly suitable for energy-intense hospitals. More and more Trusts are now turning to battery storage to store excess power generated by CHP or solar PV. This can provide a lucrative revenue source, as well as providing secure back-up power in the event of power supply disruption. Advancements in these distributed energy technologies and innovation in demand flexibility software are now enabling organisations to use this self- generated and stored energy even more effectively – helping to control costs, and improve both environmental performance and energy security.
Three energy optimisation opportunities
The three key energy optimisation opportunities are Demand Side Management, Demand Side Response, and Virtual Power Plant/Supply Optimisation Platforms. Let us consider each in turn.
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