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TRENDS – EUROPE According to Australia Energy Market Operator (2012) National Electricity Forecasting, energy prices will increase 10%+ this year because of the carbon tax and network infrastructure costs. Then another 10% over the next five years with a strong economy economic forecast. (business prices based on New South Wales) Hospital energy intensity is increasing: New medical equipment, expansions in IT, and higher levels of patient comfort are increasing the amount of energy that hospitals use. Hospital margins are decreasing: In Australia, most not-for-profit hospitals have about 2% margins http://www.abs.gov.au/ausstats/abs@.nsf/Products/8106.0~2006-07+(Re-Issue)~Main+Features~Hospitals?OpenDocument
Energy prices have increased 25% in Australia over the last 5 years before the carbon tax, although hospital energy efficiency only improved 5% in Victoria. Treasury estimates that the cost of electricity could go up 10% as a result of the carbon tax. This will have a big impact on utilities in Australia.
Because 80% of Australia’s electricity is reliant on coal, it has direct and immediate consequences on human health. Researchers from the Australia Academy of Technological Sciences and Engineering estimate that coal-fired power generation carries a human health cost of $2.6 billion/year – from respitory, cardiovascular, and nervous system diseases. The Australia Public Library Sciences of Medicine says climate change could cause a health crisis at least as big as tobacco. The Lancet calls global climate the biggest Health crisis of this century. The public is increasingly aware of this crisis and there is increasing political pressure for hospitals to do their part to deal with this public health issue. Although energy efficiency is much more integrated into new hospitals, not enough is being done to make existing facilities more efficient. 25. Kjellstrom, T., et al. Air pollution and its health impacts: the changing panorama, Medical Journal of Australia, 2002, 177, pp. 604-608. 26. Biegler, T. The hidden costs of electricity: Externalities of power generation in Australia, Report for the Australian Academy of Technological Sciences and Engineering (ATSE), 2009. Available online: http://www.atse.org.au/resource-centre/ func-startdown/63 Lancet: “biggest global Health threat of the 21 st century” (2009) Public Library Science of Medicine: Climate change could cause a health crisis at least as big a tobacco. Australia: University of Western Sydney and Australia National University Centre for Epidemilogy and Public Health -by 2100 1.8 million working days lost from gastroenteritis. 36,000 days lost from increased incidences of dengue fever. – billions of dollars of impact over the next 50-100 years.
Rueil-Malmaison (France), January 25, 2013 – Schneider Electric is part of the Global 100 Most Sustainable Corporations in the World’, for the second year in a row, ranking at the 13th place, gaining 13 ranks compared to last year. The Global 100 consists of the 100 top-performing stocks worldwide on a range of sector-specific ‘sustainability’ metrics. Data are collected for the project primarily from Bloomberg and through direct engagement with the 350 companies that made the project’s shortlist, selected from all global mid and large cap stocks (approximately 4,000). This ranking has been established by Corporate Knights, a Canadian media and investment research company for clean capitalism. It is announced each year at the World Economic Forum in Davos. Doug Morrow, the VP Research at Corporate Knights, declared, ”we feel that the sustainability data that flows into our Global 100 research model, once properly cleansed, can contain hidden and statistically robust signals about companies’ future financial performance ”. In the 2013 list, Schneider Electric ranks second among the nine French companies and third out of ten in its sector (Industrial – Capital Goods). For Gilles Vermot Desroches, Sustainability Senior Vice-President at Schneider Electric: ‘‘Schneider Electric’s inclusion and progression in the Global 100 list for the second year in a row validates the company’s strategy and commitment to sustainable development, guided by our Planet & Society Barometer” . Since 2005, the company releases every quarter key progress through its award-winning sustainability dashboard: The Planet & Society Barometer. Based on 14 indicators covering the three pillars of sustainability (people, planet, profit), it is the flagship of Schneider Electric performance in this domain. Schneider Electric is also part of major rankings and indexes such as the Carbon Disclosure Performance Leadership Index and the Dow Jones Sustainability World and Europe Indexes.
Notes: Strategy: Energy Market Intelligence, Assistance to be certified, Consultancy SE set out a Long term Strategy that saved 2% of energy cost savings. SE set out with the goal to certify 20 Schneider Electric facilities with ISO 500001 certification. Additionally we plan to ensure new buildings will consume less than 50 kWh/m2 per year. Set Targeted Reduction Goals of 30% reduction goals for electricity, natural gas and greenhouse gases all through the use of Schneider Electric products.
Notes: How do I buy: Optimizing the energy cost at company / site levels Focusing our energy procurement efforts in three major categories Year on Year Savings - 545k€ Strategic Sourcing Achieved significant savings through monitoring market dynamics to identify the best time to initiate an energy supply purchase and reduce unwanted exposure to price volatility Cost Avoidance – 323k € - Risk Management Developing risk management strategies and provided customized recommendations to guide purchasing decisions, we have avoided future energy costs. Negotiated Savings - Total: 11k€ - Rate & Tariff Analysis recommend the best tariff rate based on usage patterns, operational needs and objectives
How do I control? Compare bills and actual metering, sub-metering We know we can achieve savings through the use of efficient devices and automation. However, as more time goes by, the importance of monitoring and maintenance becomes increasingly important
Notes: How do I optimize? = how can you optimize existing services? Through the installation and efficiency improvement of lighting, motors and renewables, Schneider Electric has saved 19% of its annual energy spend.
The results of this study show that the most contributing factor to contaminant transmission in enclosed and mechanically ventilated environment is the path between contaminant source and the exhaust, not the ACH. When this path is interrupted by air streams, the contaminant is most likely to migrate to other places in the room. If the path is kept intact from an intersecting air stream, then the contaminant is unlikely to migrate. With a “poor” ventillation design, increasing ACH from 4 to 12 has little impact on infection risk. With a good ventillation design, increasing the ACH does improve infection risk.
Looking in more detail at how these measures work: Hospital case studies showed UV kills up to 99% of pathogens in the air supply and improves coil efficiency by 20% because it prevents the build up of microbial film on the fins of the coil. Tests were carried out with 15-30% energy savings at Prince Charles hospital in Queensland and at Whangarie hospital in Northland NZ.
Campuses are energy intensive but often organizational structures inhibit ability to report across layers of IT. For example, Office IT and the Data Center or networking and server environments within the data center Significant cost being spent on disparate attempts to measure and control energy use Campus IT Energy Use Source: UK Energy Efficiency Best Practice Program; Energy Consumption Guide 19: Energy Use in Offices Data Center Energy Use Source: The Green Grid
Roughly 25% of commercial energy consumption is attributable to IT, second only to HVAC.
How Am I performing? The online reporting software gives company stakeholders visibility into facility-level and enterprise-wide information. So the results shown below are accurate, auditable and verified
Energy costs are usually a small part of the operational costs (1-5%), so as first step we have to make visible the invisible. As Healthcare facilities are risk-averse, a selling point is that as Schneider Electric we integrate the Energy management system with the Electrical Distribution installed base. So there is no risk on existing installations and the activity can continue
How energy efficiency ensures financial health for hospitals schneider electric slideshare
Energy EfficiencyHow Energy Efficiency Ensures Financial Health for HospitalsMichael SullivanHealthcare Solutions Vice PresidentSchneider Electric
Energy trends in healthcare Energy use in Energy price, pence/kWh healthcare has .25 Profits margin, % 400 increased 36% since 1995 due to Energy intensity, use/sq.m more technology, 0.2 patients and data 300 centers. 0.15 200 Energy costs are%ec r P K projected to grow mqs h W .01 i 10% in the next 5 . / years + 10% increase based on 0.05 100 carbon tax. 0 Profit margins in 1995 1997 1999 2001 2003 2005 2007 2015 2025 healthcare have Year eroded from 6.5% to 5.2%. A 25% 1 2009 Electric Market Forecasting Conference, Dr Stephan Sharma decrease in 10 2 Energy Intensity: Energy Information Administration 3 National Energy Forecasting, Australia 2012 years. Schneider Electric - Healthcare Solutions February 2013 2
Impact of energy cost increases Impact of carbon tax 5-year impact (+10%) 1,2 New South Wales $27 million $135 million Victoria $13.6 million $68 million Added cost for average $120,000 $600,000 hospitalNote: Figures represented are in Australian Dollars.1 Premier of Victoria, ‘Julia Gillard’s carbon tax power price increases to hurt Victorian country hospitals’, Media release, 21 July 2011; Steve Lewis, Matt Johnston,‘Hospitals face $170m hit from sick carbon tax’, Herald Sun, 9 March 2012.2 The Hon Mike Baird MP, NSW Treasurer, ‘Cost of Carbon Tax on NSW Schools and Hospitals’,Media release, 29 April 2012. Schneider Electric - Healthcare Solutions February 2013 3
$2.6 billionResearchers estimate thatcoal-fired power generation inAustralia carries a human healthcost—from associated respiratory,cardiovascular, and nervous systemdiseases—of AUD $2.6 billion annually.Schneider Electric - Healthcare Solutions February 2013 4
Comprehensive approach to energymanagement How am I What is my performing? strategy? Energy management How do I life cycle How do I optimize? buy? How do I control?Schneider Electric - Healthcare Solutions February 2013 5
EMS life cycle value proposition 2% Typical Savings A$3.3M Your Savings 5% Typical Savings A$8.3M Your Savings 3% Typical Savings A$5.0M Your Savings 17% Typical Savings A$28.2M Your Savings 2% Typical Savings A$5.0M Your SavingsSchneider Electric - Healthcare Solutions February 2013 6
EMS life cycle value proposition Our experts can help you prepare a strategic plan and align your business goals. What is my strategy? •Strategic Energy Planning •Sustainability Roadmaps •Green Star Assessments •Energy Market Intelligence Energy management •Energy Rebates & Incentive Support life cycleSchneider Electric - Healthcare Solutions February 2013 7
EMS life cycle value proposition We can help you negotiate the best terms with energy suppliers to optimize return What is my on investment and strategy? minimize risk. •Energy Sourcing Energy •Renewable Asset Management management life cycle •Rate & Tariff Analysis •Demand Response How do I •Energy Risk Management buy?Schneider Electric - Healthcare Solutions February 2013 8
Optimize your energy procurement policy● Get exclusive recommendations from our specialists● Identify the best suppliers and the best tariff● Manage the risk and detect opportunities Schneider Electric - Healthcare Solutions February 2013 9
Demand management Dynamic Pricing ● Building infrastructure allows it to react in 5 mins to utility signalsValue to Utility & End Customers H gh ● Through trading partners, allows arbitrage of real time pricing i markets Day Ahead ● Day ahead signal from utility allows building to shift loads to non-peak hours Capacity Only ● Predominant form of DR in place today ● Building agrees to shed load at peak times in Low exchange for payment ● Called only on peak usage days (<10 X p.a.) Low H gh i Investment Required for Implementation Schneider Electric - Healthcare Solutions February 2013 10
EMS life cycle value proposition Our experienced specialists can help you monitor and control your energy, thanks What is my to our software and strategy? personalized applications. •Metering Design & Commissioning Energy •Third-party Systems Integration management life cycle •Remote Energy Monitoring •Emergency Power Supply Systems How do I •Power System Control buy? How do I control?Schneider Electric - Healthcare Solutions February 2013 11
Energy dashboardSchneider Electric - Healthcare Solutions February 2013 12
Energy performance benchmarking 13Schneider Electric - Healthcare Solutions February 2013 13
EMS life cycle value proposition Our experts deliver a broad offer of energy efficiency services and What is my help implement the right strategy? solutions for your business. Energy management •Design/Build Energy Projects life cycle •Performance Contracting How do I •Mechanical & HVAC Retrofits optimize? How do I buy? •Renewable Energy Solutions •Systems Automation & Integration How do I control?Schneider Electric - Healthcare Solutions February 2013 14
500+ energy conservation measures● Plant optimization (chiller/hot water and condenser resets and sequencing)● Active scheduling● Setpoint refinement● Resets● Variable frequency drives● Lighting retrofit and relamping● Lighting control● Outside air control● Night setup / setback● Heating / cooling lockout● Power factor correction● Pump replacement/controlSchneider Electric - Healthcare Solutions February 2013 15
Operating theatre optimization● Air change rate should be 20/hour (not more)● Occupied / Unoccupied air change rates ● Occupied: 20 air changes/hr. ● Unoccupied: 8 air changes/hr. ● BMS links to occupancy sensors and operating theatre scheduling software● Limit thermostat setpointsEnergy conservation measure Cost / Savings per(ECM) operating theater ($/year)Baseline energy cost $28,500Reduce air changes to 20/hour $9,875Air changes dependent upon $8,950occupancy Annual EnergyThermostat setpoint limits $2,000Total cost per year with ECMs $20,825Total savings per year with ECMs $7,675Schneider Electric - Healthcare Solutions February 2013 16
Good flow design has more impact thanair change rates on infection. Memarzadah, Farad and Weiran Xu, U.S. Department of Health and Human Services, USA National Institute of Health “Role of Air Changes Per Hour (ACH) in possible transmission of airborne infections” 3 November 2011.Schneider Electric - Healthcare Solutions February 2013 17
Discharge / Transfer: HVAC/lighting turned to “available” state. HVAC and lighting control is moved to “occupied” state. Patient is pending admission. .Schneider Electric - Healthcare Solutions February 2013 18
Reduce airborne infections Damper Filter Cooling coil UVC Outside air contains viruses, bacteria, mold spores, and VOCs Spores UVC Emitters destroy Clean air TM reproduce in mold, bacteria, viruses, supplied to filter, cooling and VOCs preventing building coil and drip pan them from the airflow reducing coil and increases coil efficiency efficiency 20% Reduction in 99% Kill rate of Cooling Coil Energy airborne pathogens Consumption
Electrochromic glazing Reduces energy costs Integrated with building automation and lighting control.Schneider Electric - Healthcare Solutions February 2013 20
ICT load management● Facilities, enterprises, and data centres are energy-intensive domains.● There has been no integrated way to measure, report or control IT energy use “outside of the Data Centre” across the corporate infrastructure. 50% of PCs left on overnight wasting $2.8bn IT Equipment Lighting IT Electricity Data Other Center Use Outside the Electricity Data Use Heating, Cooling Center and Ventilation Energy use Source: Forrester, Enterprise And SMB Hardware Survey, North America And Europe, Q3 2008 Source: Alliance to Save Energy PC Energy Report 2009Schneider Electric - Healthcare Solutions February 2013 21
The opportunity: Optimize IT energy spend Total = $360b IT = $90b PCs, Laptops, $28b Monitors (31%) $209b HVAC (58%) Network $18b (20%) Servers $14b (16%) $90b IT (25%) Printers $13b (15%) Telecom Lighting $16b $40b Other Plug (~18%) (11%) Other LoadsSources•EnergyStar: “Fast Facts on Energy Use”•Gartner DataQuest: Forecast of IT hardwareenergy consumption, worldwide, 2005-2012 Schneider Electric - Healthcare Solutions February 2013 22
Reduce data center energy waste by 30% Heat recovery In row coolingReduced floor area Schneider Electric - Healthcare Solutions February 2013 23
Reduce PC and IT device waste by 40%+ EnergyWise network unifies device coverageDevices are on 8000+ hrs. annually,but only used 40-45% of the time.● EnergyWise enables energy management of the entire IP/IT infrastructure ● Cisco switches, routers and phones ● partner IT management applications ● partner IT endpoint devices ● a growing ecosystem of providers IT end-point devices Schneider Electric - Healthcare Solutions February 2013 24
EMS life cycle value proposition With our global services offer you will be able to track energy consumption How am I performing? What is my and all the energy strategy? management initiatives. •Performance Monitoring Energy •Energy & Carbon Reporting management life cycle •Operations & Maintenance Support How do I •Sequence of Events Reporting optimize? How do I •Energy Data Analysis buy? How do I control?Schneider Electric - Healthcare Solutions February 2013 25
Sustaining savingsSchneider Electric - Healthcare Solutions February 2013 26
Sustained savings● Reporting ● Do stakeholders have access to right information? ● Daily, weekly, monthly reporting ● Visualization inspires behaviorSchneider Electric - Healthcare Solutions February 2013 27
Identify opportunities to optimize Correlation with indoor temperature Correlation withConsistent with outdoor the actual temperature and activity Schneider Electric - Healthcare Solutions February 2013 gradual heating 28
Diagnostics resultsBLDGBLDGBLDGBLDGBLDGBLDG Prioritize repairs and control adjustments based on diagnostic results.Schneider Electric - Healthcare Solutions February 2013 29
Carbon emission trackingSchneider Electric - Healthcare Solutions February 2013 30
Projects: scenario planningTracking of energy efficiency projects with “go/no-go” simulationsSchneider Electric - Healthcare Solutions February 2013 31
Get everyone involved Sustainability Portal Caregivers Educational dashboards Awareness of energy efficiency measures Energy Portal Management Synthesis dashboard Monitoring of energy efficiency measures Steering and energy measurement system Daily energy monitoring Data acquisition systems Facilities Process Building Quality management management Other systemsSchneider Electric - Healthcare Solutions February 2013 32
UK: Taunton & Somerset NHS Trust “The Trus t w l l s pend t he £7. 2m anyw i ay – s hal l w s pend i t on buyi ng ut i l i t i es , or on e devel opi ng our es t at e?” Largest hospital in Somerset • 700 beds and 15 operating theatres • 86,500 m2 • Energy spend ~£1.8m/year Challenges • Facing significant budget cuts • Old buildings with backlog maintenanceSchneider Electric - Healthcare Solutions February 2013 33
UK: Taunton & Somerset NHS TrustBacklogmaintenance A$3.7 MaddressedAnnual energy A$1.1 Msavings 43% carbonCarbon reduction savingAnnual savings onreactive A$108k/yearmaintenanceSimple return on 6 yearsinvestmentNet cash surplus A$26.3 M20 yrsSchneider Electric - Healthcare Solutions February 2013 34
Sweden: Region Skåne HospitalsChallenges• Budget cuts •Resource shortages •Ageing equipment •Deferred maintenance• Aggressive carbon targets Kristianstad Lund Helsingborg 120,479 m2 191,296 m2 131,970 m2• Increased energy costsSchneider Electric - Healthcare Solutions February 2013 35
Sweden: Region Skåne Hospitals Facility upgrades A$8.0 M Annual energy A$1.24 M savings Heating: 28% Energy savings % Electricity: 8% Carbon reduction 32% Water savings 56,000 m3/year Kristianstad Lund Helsingborg Simple return on 120,479 m2 191,296 m2 131,970 m2 9.5 years investment Net cash A$20.8 M surplus 20 yrsSchneider Electric - Healthcare Solutions February 2013 36
Australia Hospital EPC Experience Many hospitals and medical facilities • Royal Brisbane • Ipswich • Nambour • Caboolture • Royal Children’s • Eventide • Gladstone • Mater • Scientific ServicesSchneider Electric - Healthcare Solutions February 2013 37
Comprehensive approach to energymanagement How am I What is my performing? strategy? Energy management How do I life cycle How do I optimize? buy? How do I control?Schneider Electric - Healthcare Solutions February 2013 38
Energy EfficiencyHow Energy Efficiency Ensures Financial Health for HospitalsMichael SullivanHealthcare Solutions Vice PresidentSchneider Electric
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