Cost of hospital’s upgrades met by energy savings in four years
Dunedin Hospital has saved more than NZ$2 million in energy costs since 2009 and expects to double savings by 2016.
An energy upgrade project for Dunedin Hospital, designed to save the hospital money by reducing overall energy consumption and improving efficiency, has achieved more than NZ$2 million in energy savings less than four years into a seven-year energy performance contract (EPC) with Honeywell Building Solutions (HBS) and put the hospital on a track to double those savings by 2016.
The hospital signed the NZ$1.6 million energy retrofit project with HBS in 2008. Under the performance contract, Honeywell guaranteed that energy savings from improvements would meet the NZ$1.6 million cost of the upgrades over the seven-year term of the performance agreement. Actual energy savings have already exceeded the cost guarantee, and the hospital now expects total energy savings of NZ$4 million by 2016, when the performance term ends. It is expected that the hospital will continue to benefit from those reduced energy costs beyond the term of the contract.
“Honeywell was able to identify key areas where we could significantly reduce our energy usage without compromising the hospital’s operations – a key factor for us,” Warren Taylor, facilities and site development manager at the Southern District Health Board, states. “The company helped us increase our energy expertise and better understand the impact that small differences can make over a longer period of time.”
As part of the project, Honeywell completed an assessment of the existing hospital infrastructure and technology and identified specific energy conservation measures to promote improved efficiency and reduced energy and operational costs. Working closely with the Southern District Health Board, which received a grant from the Energy Efficiency and Conservation Authority (EECA), Honeywell implemented energy-saving solutions for the hospital that included power factor correction, heating, plumbing and lighting modifications, and changes to the hospital’s building management system.
“The hospital’s experience demonstrates how energy performance contracts can produce major energy efficiency improvements without a significant capital investment,” Mike Plows, projects leader for HBS in New Zealand, comments. “Hospitals and other public entities typically have limited capital funds to invest in upgrades of this sort. Performance contracts give them a way to make needed improvements, and to pay for those improvements with future energy savings.”
Dunedin Hospital’s success highlights the potential savings that can be made as a result of taking a more sustainable approach to building operations, whether in the healthcare, energy or manufacturing sectors.