Powering the future of healthcare

Transcription

1 Powering the future of healthcare How better energy procurement and new energy technologies can help the NHS reduce costs, build resilience and cut carbon

2 04 December 2018

3 He was so learned, he could name a horse in 9 languages; so stupid, he bought a donkey to ride upon Chinese proverb 3

4 logorrhoea 4

5 The healthcare sector is facing intense pressures Rapidly growing demand for services Funding shortfalls and increasing costs Pressure on performance targets Ageing equipment and infrastructure Demand for 24/7 access Staff shortages and skills gaps Move to digital healthcare 5

6 Leading to unique energy challenges Power outages can have a catastrophic impact on care, productivity and staff safety Regulations and funding issues driving need to improve energy efficiency and resilience Environmentallyconscious patients demanding energy sustainability 77% of healthcare respondents agreed the cost of being resilient is far less than the impact of an energy failure Ageing and inefficient estates leading to waste and risk Skills gaps making it harder to maintain existing energy assets 58% of healthcare/medical respondents agreed that we do not have enough internal expertise to monitor and implement efficiency improvements 6

7 The energy landscape is evolving STORAGE DISTRIBUTED GENERATION MICROGRIDS Centralised energy supply is giving way to distributed technology, providing Trusts with smart, secure and affordable solutions to the energy challenges they face. Powering business advantage RENEWABLES DEMAND SIDE RESPONSE CENTRALISED ENERGY 7

8 has been created to develop new thinking, new technologies and new ways of working to help our healthcare customers 1bn >2k 2022 annual revenue target Enterprise customers 700m Investment to 2020 We assist hospitals to improve their operational efficiency, ensure site resilience and unlock new sources of value with energy insight, optimisation and technical solutions. Energy supply Wholesale energy Energy insight Energy optimisation Energy solutions 8

9 There are three key areas where energy can support healthcare's strategic objectives Maximising operational efficiency to invest in patient outcomes Ensuring the resilience of critical health services to protect patient care Harnessing the potential of energy for a sustainable future 9

10 Maximise operational efficiency to enable investment in improving patient outcomes FOCUS Improve energy and asset efficiency to free up opex/capex and meet regulations Enhance energy management to overcome constraints and free up resources OPPORTUNITIES Insight & analytic solutions to identify efficiency opportunities On-site generation and Energy efficiency solutions to reduce consumption and costs Flexible funding models to overcome capital constraints Fully managed service options to free up resources 35% of healthcare respondents listed managing cost and providing comfortable care as the number one challenge facing healthcare professionals over the next 12 months healthcare respondents have stated that they do not 58%Of have enough internal expertise to monitor and implement energy efficient solutions 10

11 Ensure the resilience of critical health services to protect patient care FOCUS Ensure security of energy supply to avoid serious outages Effectively maintain energy estates to prolong equipment life and avoid compliance breaches Replace outdated infrastructure to improve resilience and efficiency OPPORTUNITIES On-site generation and storage to reduce exposure to grid failures Sensor solutions to enable early detection of equipment failure Full operations & maintenance to maximise reliability Expert advice and Energy Management Systems to ensure safe and compliant environments Resilience-as-a-Service to overcome resource/ capex constraints 77% of healthcare/medical respondents agreed that the cost of being energy resilient is far less than the impact of an energy failure 66% of healthcare/medical respondents thought that sources of back-up supply in the event of a power outage were very important 11

12 Harness the potential of energy to build a more sustainable healthcare future FOCUS Improve energy sustainability to meet regulator and patient demands Generate new revenue streams from underutilised assets Transition to a flexible energy platform to support diversification and digital healthcare OPPORTUNITIES Demand Side Response and energy trading solutions to deliver new income streams Low-carbon generation to reduce environmental impact Insight and analytics solutions to identify efficiency opportunities Expert advice to develop a sustainable energy strategy Flexible funding models to enable deployment of new technologies 90% of Healthcare sector respondents agreed that there were opportunities for energy strategies to help enable a sustainable business model 2,000 tonnes The annual reduction in CO2 emissions by Shrewsbury and Telford NHS Trust by installing a CHP unit 12

13 We can help drive energy efficiency to enable the future of the healthcare sector Powering Performance Drive down energy costs and improve patient outcomes Powering Resilience Ensure the resilience of critical health services Powering the Future Build a sustainable modern healthcare sector 13

14 Powering a sustainable future for the healthcare sector Our customers UK hospitals A UK hospital has embarked on a 6.7m project to improve the energy efficiency of its buildings. To achieve this target, the hospital is utilising a number of solutions from installing over 3,000 LED lights, to fitting a CHP unit, 4MW of boiler upgrades and a 1.8MVA generator. Italian hospital An Italian hospital and centre for neuroscience research, has installed a MW ENER-G CHP unit, allowing the hospital to produce its own electricity, thermal energy and refrigeration. The trigenerations unit is set to reduce energy costs by 40%. US healthcare system One of New Jersey s largest healthcare systems has saved 35% annually on its electricity costs after implementing a trigeneration unit. The hospital now generates 60% of its energy on-site and can reinvest the cost savings in improving patient care. Hungarian hospital A hospital in Hungary has installed an ENER-G CHP unit, saving 149 tonnes of carbon emissions annually. also provides maintenance of the unit, ensuring the hospital does not need to worry about issues with its vital energy supply. UK NHS Trust A London-based NHS Trust has implemented an energy efficiency strategy, incorporating a new energy centre, CHP unit, efficient lighting, and a building management system. The project is set to save over 1m over the 15 year contract. University hospital in Ireland An ENER-G CHP unit is saving a university hospital in Ireland more than 80 tonnes per year in carbon emissions. The associated cost savings will help the hospital invest further in patient care. UK hospital When a UK hospital was tasked with reducing its carbon emissions, it decided to replace its ageing coal-fired boilers with a purpose-built energy centre, The centre houses an ENER-G CHP unit, steam-raising boilers and an absorption cooling system. The hospital is now saving 532k per year. 10

15 University Hospitals of the North Midlands (UHNM) 500K 2, CHP unit saves 500,000 annually Carbon emissions cut by 2,000 tonnes Efficiencies equal hiring 20 nurses CHP helps hospital cut carbon emissions to the equivalent of removing 1,000 cars Customer objective Offer healthcare services for three million Make cost effective energy decisions Produce sustainable energy The solution installed a brand new Combined Heat & Power (CHP) unit that: Reduced electricity consumption Cut energy spending Slashed energy-related concerns Created healthcare investment opportunities We chose because their product offered the best fit for our needs. It offered the best savings in consumption, cost and carbon over the 15 year life of the installation. I would definitely recommend them for CHP installation and maintenance. Charlie Cox Energy Manager University Hospitals of the North Midlands, NHS Trust 15

16 Our key solutions for the healthcare sector Combined Heat & Power (CHP) generation Renewable generation (incl. Solar) & storage Panoramic Power sensors and analytics Flexible funding models Demand Side Response End-to-end delivery & energy management

17 There are three key areas where energy can support healthcare's strategic objectives Maximising operational efficiency to invest in patient outcomes Ensuring the resilience of critical health services to protect patient care Harnessing the potential of energy for a sustainable future 17

18 Powering the healthcare market Maximise operational efficiency to enable investment in improving patient outcomes Ensure the resilience of critical health services to protect patient care Harness the potential of energy to build a more sustainable healthcare future Powering Performance Powering Resilience Powering the Future Insight & analytic solutions to identify efficiency opportunities On-site generation and Energy efficiency solutions to reduce consumption and costs Flexible funding models to overcome capital constraints Fully managed service options to free up resources 4 billion The additional funding needed in 2018/2019 to prevent deterioration in patient care On-site generation and storage to reduce exposure to grid failures Sensor solutions to enable early detection of equipment failure Full Operations & Maintenance to maximise reliability Energy Management Systems to ensure safe and compliant environments Resilience-as-a-Service to overcome resource/ capex constraints 71% of healthcare respondents who do not have back up/standby capability implemented at most of or all of their sites Low-carbon generation to reduce your environmental impact Demand Side Response and energy trading solutions to deliver new income streams Insight and analytics solutions to identify efficiency opportunities Expert advice to develop a sustainable strategy Flexible funding models to enable deployment of new technologies 54% Of healthcare respondents who felt that the link between sustainable energy use and company value was very important

19 Optimising the value of onsite generation Connection and supply e.g. Bord Gáis, British Gas and Direct Energy Energy efficiency e.g. solar panels, LED lighting, heating, ventilation and air-conditioning (HVAC) Automated Demand Side Response Wholesale market trading Energy insight Power generation e.g. back up-generator Combined heat and power (CHP) Battery storage Operations and maintenance 19

20 What's more important? Market reflective procurement vs. long term budget certainty Powering business advantage 20

21 The rising cost of non-commodity charges Supplier costs Debt costs, operating expenses and profit. 2% 14% Distribution network charges Paid to regional networks to cover the cost of transporting energy from National Grid to customer meters. 8% Transmission network charges Paid to National Grid to cover build and maintenance costs of Britain s high voltage network. Wholesale energy costs Energy purchased on the wholesale market plus the cost of any imbalance caused by changes to our forecast consumption. 42% 2% Balancing Services Charge Paid to National Grid for their work ensuring supply and demand are always equal. Feed-in tariffs A subsidy for small scale renewable generators, e.g. solar panels. 5% 19% Renewables obligation Subsidies for large scale low carbon generators, e.g. wind farms. Contract for difference Subsidies for large scale low carbon generators, to replace the closing renewables obligation. 4% 3% Capacity market subsidy A subsidy to encourage flexible generation to meet peak demand. Note: British Gas forecast 2018 costs for sample customer 21

22 Tracking the continuing rise of non-commodity costs in the UK 31% 57% 64% Non-Commodity cost as % of total Environmental Levies Balancing Services Transmission Network Charges Distribution Network Charges Wholesale Energy Costs 22

23 Power Purchase Agreements

24 Corporate PPA s Centrica have written many Corporate PPAs over the years across a range of technologies and contract structures. Corporate PPAs allow Customers to Access green energy and use resulting certificates (REGOs) in their carbon reporting Achieve certainty as to their energy costs Corporate PPAs allow generators to achieve certainty over the value of all or part of their generation acquire project finance for their development in a subsidy free market. Centrica write Balancing PPAs to allow the PPA to be portable if a customer moves Suppliers. 24

25 Customer Generator PPA Setup Fixed price energy CUSTOMER Management fee Flex supply contract Intermittent power Centrica Energy Marketing & Trading British Gas Trading Ltd Takes Balancing and Profile Risk* on intermittent power Volumes booked against customer profile *Profile risk subject to periodic price review 25

26 Supplier Generator PPA Setup CUSTOMER Commodity + Management fee Flex supply contract Intermittent power Centrica Energy Marketing & Trading British Gas Trading Ltd Takes Balancing and Profile Risk on intermittent power AND credit risk on generators Volumes booked against customer profile *Profile risk subject to periodic price review 26

27 An illustrative Distributed Energy strategy Combined Heat and Power Solar PV Battery storage charge Battery storage discharge Grid import 27

28 Delivering an integrated approach Energy Insights Device level visibility and energy insights 14bn global data points across 53k sensors and in 30 countries Integrated Solutions Platform Demand Side Response Additional revenues from existing assets Europe s #1 Demand Side Response provider with c. 5GW under management globally Battery Storage Additional revenue Patented battery optimisation driving industry leading returns Roosecote 49MW and Gateshead 3MW battery developed, 18MW battery live this week in Belgium Solar 100% renewable generation 150MW of solar power managed globally with 6.5k solar panels in the UK Combined Heat and Power 25% increase in energy efficiency UK s largest CHP provider, with over 3k units in market 28

29 Why is Centrica the right partner for healthcare organisations? Reduced costs Improved patient outcomes Innovative and flexible energy solutions Proven track record in the healthcare sector More resilient patient care A more sustainable future

30 Thank you If you have any questions please contact us: Andrew Donald Public Sector Lead Mobile: Phil Bryant Corporate Sales Manager Mobile: Website: 24