Equipped with Plan B: Preparing Your Energy Sources for 2014 How did you spend the end of your year? Besides hearty meals and plenty of family time, you probably spent your time strategically planning for the upcoming year. Like many other healthcare systems, you may be searching for what can set your system apart from others. Your competitive advantage may lie in the details of your energy contingency plans. Going Beyond Plan A There are plenty of healthcare systems that have planned out their year like they always do, but how many healthcare systems do you think are planning their energy sources for 2014? How many healthcare providers are happy and comfortable with the sustainability – not green sustainability, but supply sustainability – of their energy source? The cover story of Buildings magazine’s current issue, “Gear Up for Grid Failure” [link to magazine article] echoes this concern---a concern Haskell has asked recently [link to Hospital Energy Issues blog]. Although the likelihood of a Hurricane Sandy or Joplin tornado occurring in your near future is low, inevitably, something similarly unlucky is bound to touch your hospital. Take a look at how likely this could occur to you in these statistics from the Buildings magazine article below: Based on DOE data, there have been 144 weather disasters costing $1 billion or more since 1980. Of those, 11 occurred in 2012, which is the second highest cluster behind 2011 for any year on record. These trends indicate that intense storms are not merely freak occurrences but are possibly becoming the norm. The proof? Seven of the ten costliest weather disasters in American history occurred in the last decade alone (2004-2012). The main issue the article addresses is whether your healthcare system is prepared as best as possible when Plan B is necessary. In the event of a major weather event, ask yourself, will your energy source sustain your critical systems and equipment, electronic health records and HVAC? Benefits of a Varied Energy Supply Portfolio More and more hospitals are investigating the benefits of a varied energy supply portfolio, which may rely on grid-supplied electricity, but can also be supplemented by natural gas fuel and a combination of on-site power sourcing like cogeneration (combined heat and power), solar / wind, or biofuel (waste-to-energy). Instead of depending 100% on electricity, savvy risk managers are diversifying their power supply for their hospitals. For example, using 60% electricity, 30% cogeneration and 10% other, a hospital can more heavily rely on on-site options. Combined Heat and Power: Possible Solution? According to A Guide for Using Combined Heat and Power for Enhancing Reliability and Resiliency in Buildings, a report from the EPA, HUD, and DOE, “CHP systems allow facilities to remain functional in the event of a disaster and for non-critical loads to resume functionality as quickly as possible. For example, CHP systems with back start capability and other technical requirements can ensure seamless operation during a grid outage.” By simultaneously producing electricity and heat from a single fuel source, CHP is approximately 30% more efficient than using grid-purchased electricity and an on-site boiler. They can also use a variety of fuel options, such as natural gas, biomass, biogas, coal, waste heat, or oil. If you want to minimize Mother Nature’s effect on your hospital’s efficiency, let’s discuss how our team can help you determine how to manage your healthcare system energy supply. It is about time you have a peace-of-mind heading into next season.