intelligent healthcare energy ... - microgrid knowledge · faster growth of electricity demand...

Intelligent Healthcare Energy PartnershipsMicrogrid Energy SystemsEmerging Technologies & Business Modelsfor the US Healthcare Industry

Scott Higgins, North American Microgrid Competency Center [email protected]

Confidential Property of Schneider Electric |

In Today’s Session

What opportunities do hospitals and other critical healthcare and life science facilities have to optimize energy spend and increase capabilities of their energy systems?

• Who is Schneider Electric?

• Energy and Healthcare Megatrends?

• Energy Challenges

• New Energy Technologies

• New Business Models and Incentives

• Assessing potential

Confidential Property of Schneider Electric

Installed Base in Healthcare

Over 3000 hospitals use our solutions worldwide including elements

• Power Monitoring and Control• Medium and Low Voltage • EPSS Monitoring and Control• Reporting and Compliance• Energy Efficiency• Energy Consultancy and Services

Utilities &Infrastructure

Industrial & Machines

Data Centers & Networks

Non-residential & Residential Buildings

27% 26% 14% 33%

Some of our world class brands

Who is Schneider Electric to the Healthcare Industry?

Significant presence in Energy Systems


Take advantage of FREE e-learning courses that offer guidance for achieving your energy efficiency goals...

Energy University’s ASHE Learning Paths identify courses specific for health care facility managers, energy managers, and technicians:

•ASHE: Energy Manager Energy Management•ASHE: Healthcare Facility Manager Comprehensive Energy Management•ASHE: Technician Comprehensive Energy Management

•Access through ASHE Website


MoreELECTRIC

2X faster growth ofelectricity demand compared to energy demand by 2040

Source : IEA WEO 2014 Source : Cisco, Internet World Statistics

MoreDIGITIZED

20X more incremental connected devices than connected people by 2020

MoreDECARBONIZED

82% of the economic potential of energy efficiency in buildings and more than half in industry, remains untapped

Source : World Energy Outlook 2012, Internal Analysis

MoreDECENTRALIZED

70% of new capacity additions will be in Renewables by 2040

Source : BNEF

Megatrends in Energy

Confidential Property of Schneider ElectricConfidential Property of Schneider Electric 6

Key Trends in the Healthcare

With the population aged 60+ expected to double by 2020,

the patient population will also surge

Hospital energy use intensity is 3x or

greater that of office buildings

More than 50% of healthcare executives

say patient satisfaction is a “top 3” concern

Reliable and Resilient Energy Supply• Reliable and Redundant Supply from Utilities• Emergency Power Supply Systems (EPSS)• Microgrid Energy Systems• Thermal and Electrical Energy• Modernization

Management of Energy Costs• Future Cost of Electric Power and Natural Gas• Becoming more efficient• Reduce and/or lock in Future Energy Costs• Take advantage of todays market incentives

Energy Systems Management• Aging Infrastructure• Funding Capital Projects, Having a Roadmap• Operations and Troubleshooting.• “Knowing what is not working properly or

about to fail on us”• Periodic Testing and Maintenance• Compliance Reporting

Key Energy Challenges in Healthcare

Ultimately to provide the infrastructure required for patient care excellence


Microgrid BenefitsReliable Energy

System Resiliency• Ability to work in off grid mode in case of service interruption

from the Utility or in normal islanded configuration.

Power Quality• Maintain a stable energy system and protect equipment and

other investments.

Power Availability• Have enough power to meet demand by balancing central

grid supply, local generation, and load management.


Microgrid Benefits Optimum Efficiency

*CHP : Combined heat & power

Reuse Heat• Many Microgrids use CHP*, where heat created during power

production is reused to create steam and hot water for buildings,industrial processes, or even for cooling

Optimize Resources• Microgrids can optimize when and how they use grid and among

local distributed energy resources in order to minimize energycost

Provide flexible energy or capacity• To optimize which assets are providing energy

Increasing efficiency reduces long term costs• Use distributed energy resources (DERs) that act like small

power plants near the buildings they supply, and thereforeexperience less energy losses


Microgrid Benefits Stable Green EnergyIncorporate Renewable Resources• Smart algorithms forecast solar photovoltaic & energy storage

utilization

Renewable Energy Sources are Intermittent• A stable energy system is achieved by strategically mixing non-

renewable sources such as fuel cells, gas turbines, generators, andcombined heat and power with green energy sources.

Energy Storage• Such as batteries also help make renewable more efficient by saving

excess energy to use when grid prices are high

CO2 and NOx• Reduction using modern natural gas generator technology as

compared to the Central Generation and Grid model

What are Microgrid Energy Systems?

Isn’t my EPSS system at the hospital considered a microgrid?

What is a Microgrid?

In Normal Operations

Utility Meter

Switch

On-site renewables and power generation facilities utilized in parallel with grid

May be possible to sell excess power back to the grid through

a net metering contract

Microgrid will generate energy from local sources in the case of a grid outage

In an outage or event,the microgrid controller controls connection to and disconnection from the grid, as needed

Grid

DER (Distributed Energy Resources)

In Island Mode

An integrated energy system consisting of interconnected loads and distributed energy resources controlled as a single entity and operate in parallel with the grid or in an intentional islanded mode for some period of time.

Grid


Buildings

Data Centers

Client Campus

Microgrid assets backup Utility supply AND the Electric and Thermal generation assets work for you full-time, not only during a Utility outage

Net metering

UPS/EPSS

Utility Meter

Switch

Combined Heat & Power generation units can be used to generate a range of energy products during both normal and emergency conditions.

Grid


Combined Heat and Power (CHP) Microgrids provides superior reliability and efficiency, meeting a site’s thermal needs in addition to its electrical needs, around-the-clock, even in the event of a grid outage.

Buildings

Data Centers

Residential

Client Sites

SteamHot water

Chilled water

• Steam, hot water and chilled water is produced at District Energy Centers

• Environmentally Sound, more efficient than grid distributed power

• Retrofits chillers and boilers buildings do not need their own plants

• Easier to operate and maintain

• Provides Energy Architectural Flexibility and Security

CHP-driven Microgrid & District Energy

Full or Partial Base Load Microgrid

Microgrid: Additive to what your healthcare facility has today

• A CHP-driven Microgrid Energy System may be added to an existing Healthcare facility improve efficiency, economy and reliability.

• Solar and Energy Storage Complement and extend the capabilities of existing EPSS systems, but not interfering with EPSS.

• Solar and/or Energy Storage complement CHP, or stand on their own to provide

• In Emergency, Microgrid islands from Utility and continues to power more loads than EPSS alone can today, and more economically

EPSS

Adding Microgrid Energy to a HospitalThermal systems replace existing boilers and leverage

existing thermal distribution systemIsolation switchfor Islanding fromthe Utility Grid

Microgrid Energy PlantBaseload Power Source

Microgrid: Additive to what your facility has today• A Microgrid Energy Plant may

be composed of CHP, Storage, Solar or other Distributed Energy Resource

• Complements and extends the capabilities of existing EPSS systems, but not interfering with EPSS.

• A baseload Microgrid would provide most if not all baseload generation and all thermal needs. Remainder of Electric would come from utility connection.

• In Emergency, Microgrid islands from Utility and continues to power more loads than EPSS alone

EPSS Backup Plant

Utility Distribution

Cold

Hot

What technologies are typical in a Healthcare Campus or Facility Microgrid?


Microgrid Energy System ComponentsOptimization Software

Microgrid Energy Management

System

Cloud

Your Facility

Demand Response Requests

Energy markets pricing

Weather Forecast

Hospital Constraints

Energy Storage Solar PV CHPElectric and

Thermal Generation

Electric Vehicles

HVAC Loads Utility Connection

Your BMSYour PCS

Page

Combined Heat & Power (CHP)aka Cogen or Cogeneration• Unlike wind and solar generating technologies, CHP can

operate 24 hours a day in any climate or location in the United States

• The heat and power is produced at or near the site of consumption and therefore does not face Utility constraints, risks and inefficiencies of power transmission and distribution

• CHP is typically located at sites already zoned for Commercial or Industrial that use hot and cold water or steam.

• CHP can be used in a wide variety of applications: large and small industrial facilities, hospitals, commercial buildings, multi-family and single-family housing, institutional facilities & campuses, and district energy systems

Electric Power Co-Gen Steam & Hot Water

Source:

CHP, Cogeneration and Distributed Energy – Many Sources

• Electricity is essential for the vital services performed by hospitals and public health facilities

• CHP and distributed energy can help healthcare providers respond to natural disasters and prolonged energy emergencies

• CHP Systems are more efficient and therefore can reduce energy costs

• Baseload systems, like CHP can greatly enhance existing EPSS both in amount of power supplied and the duration of supply.

• CHP can retrofit into existing thermal plants and distribution networks

Source:

Combined Heat & Power (CHP) Potential in the U.S.

~200 today

Why is local CHP is more efficient?A significant amount of energy is lost as waste heat in the atmosphere and the Utility T&D system.

It takes ~3 electrons at the gen site to produce 1 coming from your outlet

1. CHP – Thermal Only: Generates 100% of the heat required to provide thermal (hot, cold, and steam) to your enterprise

2. CHP “Partial Generation”: Electricity is generated as baseload energy, which could be 50% of the facility needs, and anywhere from 25 to 100% of the thermal need

3. CHP “Full Generation”: Your CHP system may be sized where more power than required is generated, and may be sold to the grid or utility provider

How much CHP? Sizing Engines for Thermal LoadingThermal only, Partial generation, or Full generation

ThermalOnly

PartialGeneration

FullGeneration

Thermal Generation Utility

Electric R

esiliency

Sys

tem

Effi

cien

cy

Highest

Highest


MicroturbinesHeat Recovery Mechanisms (HRM) may be built in from manufacturer or add-on components

HRM or HRMSG (steam generator)Captures the heat and heats waterConnects to Steam Generators Connects to Absorption Chillers


Natural Gas Generation TypesMany sizes, configurations and applications. Sizing and Typing for the specific site condition and requirements makes a big difference. Optimizing this is routine for CHP plant suppliers

One large device or an array of smaller devices to add further redundancy and resiliency

solar cost has decreased by 80% in the past 7 years

Solar and Storage costs are diving as we speak – both dropping by a factor of 5 in the past 4-5 years.

How Solar PV + Storage reduces your Utility Consumption


Solar PV OptionsRooftop, Ground-mount, Parking StructuresComplements CHP Baseload Generation well

Schneider’s EcoBlade Energy Storage


Residential Small Commercial Large Commercial

Utility or Large Scale Centralized Systems

Energy Storage – Now more than a UPS backup

• Store Energy, Manage Power Quality like a UPS

• Efficient electricity discharge, more power for longer than traditional UPS

• Allows for reserve capacity and demand shifting and peak shaving

• Provides additional emergency back-up power

• Rapid deployment and scalability

• AC and DC Power Systems

• Provides both current and voltage source, may be microgrid anchor

Microgrid Optimization Software: Demand Side Operation-DSO

For one Building Or a fleet


● Microgrid energy data● Weather forecasts information ● Market based energy and fuel pricing● Demand response information● Hospital constraints

●Advanced predictive algorithms create 72-hr forecast for each DER in the system

● Monitoring● Tariff Management● Demand control● Self consumption● Demand-response programs

DSO collects…

Predicts…And optimizes the DER operation

1

3 2

Optimization Software


Demand response requests

Response to Utility

Energy market pricing

Day AheadDynamic

Coincident PeakNet Metering

Weather forecast

PVLoad

Forecast

Hospital constraints

TempSOC on Battery

HMI


A smart connection to the smart grid – StruxureWare DSO• Peace of mind managing your Distributed Energy Resources• Consume, Produce & Store energy based upon Economic Optimization

What is “Microgrid as-a-Service”? How can I assess the potential for my Facility?

Value of Microgrid-as-a-Service Model

Page 32Confidential Property of Schneider Electric |


Business and Delivery Models: EPC to “Energy-as-a-Service”Schneider Electric’s size and business flexibility ensures the energy solution works for you.

CAPEX (or EPC) Business Model

OPEX (As a Service or PPA/Lease) Business Model

We build and deliver the turnkey energy solution. You own, operate and maintain it – or, we can provide ongoing services.

Schneider Electric and our Partner build, own, operate, and maintain the turnkey energy solution. You buy electricity from the Investment Partner at an indexed PPA/Lease price.

Schneider Electric develop and build Customer own, operate, & maintain

Schneider Electric & Partner develop, build, & own SE & Partner O&MPPA/Lease with Customer

Plant Construction Power Plant Operation Customer

Plant Construction Power Plant Operation Customer

Microgrid-as-a-Service or Energy-as-a-Service

Microgridas a Service

(MGaaS)Monitor &Optimize

SystemMaintenance

LowUpfrontCapital

Infra-structureUpgrade

EnergySecurity &

Price Hedge

HigherReliability

& Resiliency

BetterSustainabilit

y

Today’s ModelYou pay Electric and GasYou pay demand charge

You pay to O&M

As-A-Service ModelYou pay for energy

Demand charges eliminatedNet Savings


How can I perform an Energy Assessment?

Whether CHP can be economically beneficial at any particular site depends on a host of site-specific characteristics such as the energy consumption profiles of the facility, the relative prices of fuel and retail electricity, and the costs of installing and maintaining the CHP equipment.


How can I make a financial feasibility assessment?Easy to Obtain Inputs:

• Electric and Gas Rates, demand charge rates

• System Electrical load information (1 year ideal)

• System Thermal Load information (1 year ideal)

• Forward price curves on Natural Gas or other Fuel

• Special Site Considerations and Existing Plant

Then, we can:

• Size the Prime Mover and other components

• Size peripheral Steam Generation or Absorption Chillers

• Examine cost of capital

• Apply available incentives for your facility

• Share results and see if further investigation is warranted

A “Level 1 Feasibility Analysis” is often the first step in determining the economic viability of CHP at a site. The purpose of a Level 1 Analysis is to provide enough information on project economics to allow an end-user to make decisions regarding further investment, while minimizing the amount of upfront time and money spent.

Assessment is straightforward & easy.


Compare “As Is” to “Capex” to “Energy-As-A-Service”


Incentives Matter … and Frequently Evolve

Requires a holistic view approachSelf Generation, Renewable Energy, Energy Storage, CHP and Cogeneration,

Many also address existing plant peripherals, boilers, steam generators and other balance-of-plant and integration with existing systems.

Schneider Electric and its energy solution partners are experts at

applying incentives to your forward energy program —

reducing or eliminating Capex, and making your facility “pencil”

based on it’s unique circumstances.


• Healthcare industry is growing

• Energy demands are increasing

• Costs must be reduced and optimized, Hospital’s need a long view roadmap

• Increasingly Efficient Technology costs are going down

• Incentives evolve every quarter

• EPC/Capex and As-A-Service/Opex Models are here and can stand side-by-side for comparison

• Get an Assessment for your site, and have a plan to reexamine that as costs change and incentives appear. Should be ready to take advantage when opportunity appears.

Healthcare Campus or Facility MicrogridEnergy System

Wrap Up


Start your facility’s Energy-as-a-Service Assessment

Complete our short form at http://tinyurl.com/mgQual


Questions? Or, need more information? Contact Scott Higgins, Microgrid Competency [email protected]

Thank you! Q&A

Presenter Background: Scott HigginsScott has over 20 years of experience in Energy and Utility Industry focused on electric transmission and distribution networks, modeling, applications and integrated IT/OT solutions with an extensive background in electrical operational systems, geographic information, outage management, distribution management, SCADA and intelligent electronic and controls devices.

Scott has also led Schneider’s Grid Automation team with a focus on power systems controls, developing end-to-end grid automation solutions that span software, intelligent devices, communication networks and electrical equipment to meet the needs in the Utility marketspace.

Today, at a member of Schneider’s Microgrid Competency Center, Scott directs Utility Distributed Energy and Microgrids and helps Utilities and end-users “make the most of their energy”.

Scott HigginsDirector, North America Utility Distributed Energy & MicrogridsMicrogrid Competency Center

[email protected]


Start your facility’s qualification at http://tinyurl.com/mgQual

mailto:[email protected]

intelligent healthcare energy ... - microgrid knowledge · faster growth of electricity demand...

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