News & Insights

Salas O’Brien is helping our clients create a future where healthcare facilities are not only cost-effective and resilient, but also environmentally friendly.

By transitioning to all-electric systems these facilities can save money on operations, bounce back from power outages, and reduce their carbon footprint. This article explores the current drivers in consumption, popular strategies for electrification, and possibilities of the transition.

 

Current energy patterns and drivers of consumption in healthcare facilities

Healthcare facilities—especially hospitals—require large inputs of energy to operate. Because they run on a 24-hour cycle, every day of the year, these facilities were early adopters of energy-saving technologies, such as LED lighting, high-efficiency HVAC systems, and building energy management systems (BEMS).

Regardless, the demand for energy continues to grow.

According to the U.S. Department of Energy’s Energy Information Administration, hospitals account for approximately 5% of total energy consumption in the U.S. and the American Society for Healthcare Engineering (ASHE) projects that the energy consumption of healthcare facilities will increase by over 50% in the next decade, largely due to the advanced use of medical equipment and the rising demand for air conditioning and heating.

One way hospitals generate heat for their facilities is by burning fossil fuels through on-site combustion, which brings the unwanted result of releasing carbon dioxide.  Many healthcare systems are now committing to decarbonization targets through initiatives such as the U.S. Department of Health and Human Services Health Sector Climate Pledge, which calls for a 50% reduction in greenhouse gas emissions by 20230 and net zero emissions by 2050. Hospitals and healthcare systems are also developing decarbonization roadmaps following state or local building performance standards to guide energy transitions.

This move to decrease GHG emissions paired with a need to control rising energy costs is prompting many healthcare facilities to explore electrification as a sustainable solution.

 

What is electrification?

Electrification involves powering end uses with electricity instead of fossil fuels and is applied as part of an integrated decarbonization strategy that results in increased energy efficiency, decreased carbon emissions, and lower life cycle operations costs. This shift provides options for accessing energy from clean, renewable sources like the sun and wind, as well as ultra-safe nuclear energy with micro modular reactors (UMMRs).

Electrification isn’t just more sustainable and cost-effective across its lifecycle, it can also provide resilience against infrastructure failures with investment and design care.

 

From traditional to electrified healthcare infrastructure

 

Benefits driving the trend to electrification of healthcare facilities

Electrification has multifaceted benefits, including:

Operational cost savings

About half the site energy in a typical North American hospital comes from burning natural gas, which is used to preheat fresh air, humidify, sterilize, and power kitchens and food prep facilities. But fossil fuels like natural gas are subject to price volatility and supply disruptions.  Electrification strategies can lower the cost of the energy and can help manage peak loads. If using battery energy storage systems, it can also decrease the overbuilding of required generator assets to cover non-code required loads.

Generally throughout the U.S. the electrification systems needs to be ~2.7x more efficient than the fossil fuel (NG) alternative to be break-even from a cost perspective.

Resilience

Increasing infrastructure failures across North America are prompting healthcare facilities to seek new solutions to build resilience beyond standard generators. Healthcare facilities can benefit from strategies such as photovoltaics, battery energy storage systems, and microgrids, each of which can support the continuity of operations during emergencies and natural disasters.

Sustainability

Moving away from emitting sources can help to reduce the carbon footprint of healthcare facilities and promote sustainability. When electricity is generated from renewable energy sources such as wind, solar, and future UMMR, GHG emissions are reduced. This not only contributes to a more sustainable future, but also positively impacts the healthcare system’s reputation in the marketplace and supports achievement of climate-related pledges and goals.

 

Popular electrification strategies for healthcare facilities

Photovoltaic (PV) systems

Photovoltaic systems, also known as solar panels, convert sunlight into electricity. While healthcare facilities can’t depend exclusively on PV systems, they can be an effective part of the mix to lower energy costs and reduce a facility’s carbon footprint.

Parking structures can create prime opportunities for integration of PV systems. Salas O’Brien worked with the West Los Angeles Veterans Administration Medical Center, providing civil, electrical, and structural engineering to optimize their existing PV system through relocation and reinstallation across canopy carport structures.

New PV systems require photovoltaic arrays, inverter equipment, power/control cabling, and “net”-metering switchgear. Our team supports integration in a code-compliant and architecturally-coordinated manner.  We also assist healthcare facilities in realizing the benefits of incentive programs for solar energy.

Battery energy storage systems (BESS)

Energy storage systems allow healthcare facilities to store electricity generated from renewable sources, such as PV systems, for use when it is needed. This can help provide a reliable and stable source of energy, even during periods of low renewable energy generation, and can also help to reduce the facility’s dependence on the grid.

While a BESS won’t currently replace the need for an emergency generator in a hospital, it can potentially reduce the size of the generator.

Microgrids

Microgrids are small-scale, localized power systems that can operate independently or in conjunction with the larger electrical grid. During power outages and other disruptions to the main electrical grid, they can be operated in “island” mode independent of the serving utility’s grid.  Microgrids can also provide a more cost-effective and sustainable energy solution, as they can be designed to use a mix of energy sources, including renewable energy, storage systems, and on-site generation.

Microgrids can supplement normal power for different types of healthcare facilities in the following ways:

• Skilled Nursing Facilities (SNF)
  • 100% back-up of normal approach
• Medical Office Buildings (MOB)
  • 100% back-up of normal approach
  • Battery backup systems
• Hospitals
  • Reconfigure existing distributed energy resources (DER’s) as part of a new microgrid (normal power)
  • Reduces the size of the generator and uses more green sources of energy
  • Follow code updates for microgrid as energy point score (EPS)

Electric vehicles (EVs) charging infrastructure

Healthcare facilities can encourage staff, patients, and visitors to switch to EVs by installing charging stations on-site. Doing so not only reduces the organization’s scope 3 emissions, but also generates additional revenue for the organization and improves its reputation as a green and sustainable entity.

At Salas O’Brien, we have extensive experience in EV infrastructure. In California, Title 24 requires EV charging stations for all new construction projects, including healthcare facilities. Most projects open with a designated number of charging stations while including provisions for additional stations to be added in the future. Fast EV charging stations have become increasingly common, providing high-power charging in a short amount of time.

In addition to providing a sustainable and revenue-generating solution for facilities, EV charging stations can also play a role in supporting the electricity grid. Some EV charging stations are served as a virtual power plant (VPP).  EV charging stations equipped with bidirectional charging capabilities can be used to discharge electricity from EV batteries back to the grid during peak demand periods, supporting grid stability.

 

Barriers to electrification in healthcare facilities

Despite the benefits of electrification, there are some barriers to making the change that facilities should be aware of before moving forward:

Initial costs

For existing facilities, transitioning to new energy systems may require significant investment. Healthcare facilities can have complex and interdependent energy systems, and integrating new energy technologies with these systems may require upgrades to the existing electrical infrastructure to support compatibility with new technologies and to accommodate increased demand.

Regulatory environment

There are a variety of local, state, and federal regulations that govern the use and generation of energy in healthcare facilities. These regulations can vary widely from region to region. Navigating these regulations can be difficult, particularly for healthcare facilities that are new to energy generation and management.

Equipment manufacturers

Equipment utilized in hospitals across some states requires seismic certification, which may involve shake table testing — a process that evaluates the resistance of non-structural components to earthquake events. This certification verifies the equipment’s capability to remain operational after a seismic event. States such as California and Oregon regulate the seismic resistance of items critical to the operations of healthcare facilities, with California’s HCAI/OSHPD serving as a key regulatory body.

 

Making decisions for the future

Interested in exploring electrification as a strategy to support your facility’s goals for cost savings, power resilience, and sustainability?

Salas O’Brien has a deep track record in working with healthcare systems on long-term transition plans for their infrastructure. We help you communicate your plans with trustees, administration, providers, and the community, highlighting the financial and sustainability benefits while explaining implementation.

Want to talk further? Contact us or reach out to [email protected].

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