NHS trusts in England could collectively cut their energy bills by £100m – enough to fund 12,260 heart bypass operations – by implementing just a few basic utility-saving measures, a new report claims.
Carbon reduction specialist, Sustain, has analysed the energy spend of NHS hospitals across the country, and claims that even the simplest solutions, such as installing energy-saving LED lightbulbs and insulating boilers, could save tens of million of pounds. By exploring more long-term measures, the report claims it is possible for the health service to save up to £150m a year from its current energy spend, which is estimated to be in excess of £500m a year.
Matt Fulford, Sustain’s head of low-carbon buildings, said: “The kinds of measures hospitals could easily adopt are tried and tested ones that have been proven to work. They include changing lamps in existing light fittings, making sure existing heating systems are running well, and that temperature settings are in place to reduce running time, and insulating buildings and boiler rooms.
These ideas may seem like simplistic solutions and far from the often more attractive renewable energy schemes, but, cumulatively, and combined with other well-thought-out measures, they could save the public sector a fortune
“These ideas may seem like simplistic solutions and far from the often more attractive renewable energy schemes, but, cumulatively, and combined with other well-thought-out measures, they could save the public sector a fortune.”
He added: “Energy saving has never been more important. As the UK staves off recession, identifying areas for savings is paramount in every industry. While investment in energy management tends to slip down the agenda in these times, it could hold the key to tackling some of the economic challenges we’re facing and play a major part in helping us to emerge from these times of austerity with a sustainable economy.
“The immediate financial incentive is only the start of the benefits our hospitals will see over the years. With resources becoming increasingly expensive and scarce, organisations need to think ahead to ensure they have the necessary strategies in place to minimise their reliance on increasingly expensive resources.”
The report, entitled Can We Afford Not To: Energy Management in the UK Public Sector , analysed the energy consumption of 387 hospitals, looking at electricity, gas, coal and oil costs. It found that the average electricity use for a hospital in England is 8,676,765kWh at a cost of around £653,200 a year. Average gas use is 20,488,138kWh at a cost of £617,000. The highest amount used at one trust was equivalent to an annual energy bill of more than £9.7m.
While investment in energy management tends to slip down the agenda in these times, it could hold the key to tackling some of the economic challenges we’re facing and play a major part in helping us to emerge from these times of austerity with a sustainable economy
On average, Sustain predicts that, with a few basic energy-saving measures, every NHS trust could reduce its annual spend by around £254,000 a year.
The report states: “It won’t necessarily be an easy journey, but these are savings that are there to be taken and can be kicked off with some quick-wins. Most importantly, the enormous financial incentives for action are only part of the story: these benefits will be felt long after the age of austerity into the future and beyond. By addressing wasteful energy and water practices the results can also be more comfortable, easier to use built environments for healing, living and working in.”
Considering why the NHS, which is the biggest single producer of CO2 emissions in the country, has not been more successful in embracing the environmental agenda, the document says management buy-in is key and urges technology suppliers to do their bit too.
It won’t necessarily be an easy journey, but these are savings that are there to be taken and can be kicked off with some quick-wins
It states: “NHS managers are operating in a particularly difficult and changeable environment. Often responsibility and investment in energy management fails between the stalls in some hospitals. By far the biggest barrier to achieving these savings is the lack of knowledge and time to focus on uncovering, designing, financing, procuring and implementing resource-saving measures. What’s more the market is full of complexities and, even with time, it can be difficult to know who to trust and how to find the right path forward.
“As well as practical measures, busy estates staff with a lack of time to dedicate to obtaining the savings they often know exist, can also be a barrier to effective energy management, as can an entrenched aversion to anything which isn’t ‘the way it has always been done’.
“The public sector needs support from independent experts and, more importantly, it needs to work together. Hospitals can work in partnership with trusted sources of independent expertise to manage their energy and water reduction and share best practice and they will ultimately have more success.”
NHS managers are operating in a particularly difficult and changeable environment. Often responsibility and investment in energy management fails between the stalls in some hospitals
Hospitals are also quite often housed in older buildings that have been altered and extended over time and are difficult to refurbish. The report states: “Hospitals tend to face problems with large and ageing heating systems and poorly insulated buildings. Large, high temperature heating systems which produce steam rather than heat hot water are often found fuelled by old boilers. The efficiencies of these can be greatly improved by better insulation, by preventing steam leaks and other simple and well-known efficiency savings.”
The NHS has also overlooked quick-win solutions used extensively in other industries, the report adds. These include measures like voltage optimisation, which provides a key opportunity for saving cash by using the low voltage spurs of the main ring. The technology has surprisingly few installations in the NHS, despite catalogued success in other sectors.
And there is the 24/7 nature of acute healthcare, which means many hospital facilities have to run round the clock. But the report says there is still potential for a reduction in energy use. It advises: “It is important to understand what this does and doesn’t mean for energy saving. For starters, while it’s true there will be parts, and often extremely critical parts, of hospitals that have to operate 24/7 many parts do not and frequently the control systems and operating strategies fail to address this.
“Equally, where facilities are used 24/7 this can mean savings measures that are typically thought to be too expensive or have too long paybacks can be some of the most effective solutions. LED lighting is a good example of this. In an office setting it can take over eight years to see payback, but in a 24/7 environment it can pay back in around two years.”
By far the biggest barrier to achieving these savings is the lack of knowledge and time to focus on uncovering, designing, financing, procuring and implementing resource-saving measures
These measures will become increasingly important in the years to come, when the new Carbon Reduction Commitment is introduced, which means trusts using energy above a certain threshold will have to pay fines. On the Sustain analysis of energy use, this would mean the NHS paying around £35.5m a year; cash that could be spent on frontline services.
The drive to improve the reaction of NHS trusts to the carbon management agenda is being embraced by the British Institute of Facilities Management (BIFM), which has welcomed the report. Its energy policy advisor, Bill Wright, said: “Energy and water costs are straight off the ‘bottom line’ and even simple changes to building operation or the installation of energy and water efficient equipment can deliver major savings.”
Click here to read the full report
Click here to read more comments from Matt Fulford
