ENERGY EFFICENCY IN MEDICAL & HEALTHCARE
the Public Sector Decarbonisation Scheme (PSDS). The closure will leave many Trusts looking at alternative funding models, including exploration of private sector financing options. At Centrica Business Solutions, we believe that
The UK and Ireland’s healthcare energy crisis isn’t just
a sustainability challenge, it’s is also a patient safety issue. Phil Bryant, head of International Business Development at Centrica Business Solutions, explores how NHS Trusts can balance the urgent need for net zero progress with the critical requirement to safeguard energy resilience
ENERGY: THE HIDDEN BACKBONE OF PATIENT CARE
W
hen we talk about patient safety, energy isn’t usually the first thing that comes to mind.
Yet, without it, modern healthcare would grind to a halt. From ventilators to surgical lighting and electronic patient records, reliable power is fundamental to safe, effective care. However, research from Centrica Business
Solutions’ ‘Navigating the Energy Labyrinth – How healthcare providers can find the way to net zero’ reveals a stark shift in priorities, as 44% of healthcare providers now rank energy security as an equal threat to financial risk. It’s a warning sign that the conversation about energy is no longer just about cutting carbon – it’s about hospitals taking control of their own energy usage and becoming less reliant on the grid.
A PERFECT STORM OF PRESSURES The NHS’s target to reach net zero by 2040 is one of the most ambitious decarbonisation commitments in the public sector. The goal for healthcare providers to reach net zero is clear, yet the path to achieving it is becoming increasingly complex. Our data shows that 34% of healthcare
providers in the UK and Ireland are likely to miss their 2030 emissions targets. Our report also shows that healthcare leaders now face twin pressures: the need to cut emissions and the need to protect against volatile energy costs. Financial strain, coupled with growing demand and an ageing estate, means many Trusts are struggling to take meaningful action. The NHS’s total backlog maintenance bill for 2024/25 is now nearing £16 billion, further compounding the challenge of modernising outdated infrastructure; while a staggering 37% of healthcare providers report that it is difficult to make the business case for new energy technology despite recognising its operational and safety benefits. This paradox therefore leaves the sector stuck
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the answer lies in long-term partnerships that remove the capital barrier. NHS Trusts can still decarbonise effectively, without needing to fund projects entirely from their own budgets.
RETHINKING THE FUNDING MODEL The NHS’s traditional funding framework often forces a choice between front-line services and long-term investment. Energy upgrades, which don’t always deliver an immediate clinical benefit, can struggle to compete for capital. That’s why smarter financing across the sector is key. Models such as Energy Performance Contracts
(EPCs), Power Purchase Agreements (PPAs) and Heat-as-a-Service solutions can remove capital barriers through funded solutions. By treating energy efficiency as critical infrastructure, not an optional upgrade, Trusts can strengthen resilience and reduce risk. A glimpse of what’s possible comes from Solihull
Hospital, part of University Hospitals Birmingham NHS Foundation Trust. Centrica Business Solutions has partnered with the Trust to deliver a landmark energy project that demonstrates how sustainability and clinical resilience can align. The scheme, due to complete in spring 2026,
includes a new 2MW cascade heat-pump system that will meet more than 75% of the hospital’s heating demand and cut carbon emissions by 1,185 tonnes each year. This follows a decade of partnership between the Trust and Centrica, including the installation of LED lighting, improved insulation and upgraded building management systems – measures that together will save £62,000 per year and reduce emissions by a further 1,812 tonnes annually.
between knowing what needs to be done and lacking the means to do it. It’s tempting to view energy as an operational overhead to be managed quietly in the background. But the consequences of under-investment are critical. Power failures disrupt elective procedures; outdated systems risk infection control lapses; and overheated wards in summer compromise recovery rates and staff wellbeing. Energy resilience is inseparable from patient safety. Without the right investment, the NHS risks compromising both.
TRUSTS MAKING CHANGES The good news is that awareness is growing. According to Centrica Business Solutions’ research, 85% of healthcare providers plan to introduce energy-efficiency training for staff – a clear sign that energy literacy is becoming part of healthcare culture. However, from outdated boilers to inefficient
lighting and ventilation systems, many hospitals are locked into high-carbon, high-cost operations. Funding constraints and short-term capital models continue to delay upgrades that could dramatically reduce risk, cost and emissions. Adding to the challenge in the NHS, the UK government recently announced the withdrawal of
FROM COMPLIANCE TO CULTURE To meet net zero targets without compromising patient care, energy management must move from the plant room to the boardroom. That means embedding energy performance into governance, risk assessments and regulatory frameworks. It also means recognising that sustainability, safety and financial resilience are not competing priorities – they’re interdependent. As Trusts like Solihull have proven, when energy is treated as part of the clinical ecosystem, the benefits are tangible: lower costs, greater resilience, and safer patient environments. Our research at Centrica paints a clear picture:
energy security now ranks alongside financial stability as the NHS’s greatest operational risk. This is not just about meeting carbon targets:
it’s about safeguarding the essential systems that keep patients safe. By embracing smarter financing, innovative partnerships and a culture that values energy resilience, the healthcare sector can navigate the energy labyrinth, ensuring the lights stay on, the costs come down, and the NHS remains on course for a net zero future.
Centrica Business Solutions
www.centricabusinesssolutions.com
ENERGY & SUSTAINABILITY SOLUTIONS - Winter 2025 11
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