Case Study: Wellington Hospital Energy Centre
Wellington Hospital
Delivered Energy, Facility Management and Optimisation
Over the 6 years 2002 – 2008 Wellington Hospital saved millions of dollars in reduced energy costs following its decision to outsource the management and operation of its energy plant and utilities.
The energy management outsourcing contract was a highly satisfactory solution that enabled the Capital & Coast District Health Board to progress energy efficiency products and relieved them of the complexities of operating and maintaining resource intensive hospital energy centre.
The successful leasing of parts of the 10MW energy centre to an energy management provider, EFI, meant that responsibility for the energy management and contract supply of the hospital’s steam, hot and chilled water and natural gas became EFI’s business. A major aspect of this type of outsourcing was the incentive for both parties to explore energy efficiency opportunities and to share any resulting financial savings.
It was a win-win solution which generated significant savings over the term of the contract and allowed the hospital to channel funds into other areas of their business.
When compared to benchmark consumption in the late 1990’s, Wellington Hospital cut its energy costs by 30% during the contract period. This was despite significant new building projects underway on the hospital site at the time, and which greatly intensified the use of some hospital facilities being supplied with energy.
Considered by the customer as an “excellent partner”, EFI was able to work quickly on providing energy savings and actively supported and facilitated energy efficiency work and providing technical expertise and contributing to the capital costs of efficiency work.
At the time Capital and Coast Health first considered the outsourcing of its energy management in the late 1990’s it was facing severe financial constraints. The hospital had an aging energy plant and no access to additional funds. Needing to divest its energy centre to mitigate future capital expenditure and maintenance risk the hospital had a proven partner in EFI who were able to provide permanent energy efficiency improvements to the hospital that went beyond the tenure of the contract and provide the hospital with long-term financial benefits.
The outsourcing contract with Capital and Coast District Health Board expired in late 2008 and our understanding is that the Board are reviewing their energy options while integrating the newly built hospital.
