Most recently, I attended the Energy conference in Riyadh (Saudi Arabia). There were more than 100 exhibitors and several experts in renewable energy. The question I raised to them regarding the use of renewable energy in healthcare drew attention and interest. This prompted me to share my thoughts on this matter with a wider audience.
Is renewable energy a viable contributor to the energy needs of healthcare systems?
The healthcare industry is the eight most energy-intensive, relying on constant, reliable and high volume of energy supplies to power everything from temperature control systems to life-saving equipment. In a 100-beded hospital the energy consumption can range from 6000 MWh to 10000 MWh per year; this is equivalent to powering 3300 stadium halogen lamps for 5 hours per day for the entire year.
However, the adoption of renewable energy in healthcare has not been as rapid as in other sectors, primarily due to various financial, logistical, and infrastructural challenges.
Growing focus on sustainability, sharply rising energy costs, and improved resilience has led healthcare institutions to explore renewable energy solutions. These technologies can significantly cut costs, reduce carbon footprints, and increase the resilience of hospitals and healthcare facilities.
In this article, I share my views on the potential benefits of renewable energy for healthcare systems, while also addressing the challenges to make this a priority for hospitals.
I. Energy Demand:
Hospitals utilize electricity to power medical equipment, lighting, heating, and cooling systems. The energy requirements for hospitals vary significantly depending on their size:
- A 10-bed hospital consumes approximately 450-700 MWh/year.
- A 100-bed hospital requires about 5,000-7,000 MWh/year.
- A 400-bed hospital may need 20,000-30,000 MWh/year.
The healthcare sector—largely fossil-fuel based—accounts for:
(a) 5–8 percent of global energy consumption
(b) 4–5 percent of total greenhouse gas emissions
(c) Energy expenses that are 3% to 8% of a hospital's operating budget
This makes energy efficiency and alternative energy sources vital for long-term financial sustainability. Furthermore, healthcare facilities are unique in their need for uninterrupted power, as even a brief outage can result in catastrophic consequences.
II. Energy supply – renewable energy contribution:
Cost savings: Opportunity to generate their own energy, reducing dependency on traditional power grids and lowering electricity bills. The savings generated from using solar energy can range from 20% to 50%, depending on the size of the installation and the hospital's energy requirements. For e.g. a 100-bed hospital can save USD 0.2-0.5 million per year by switching to solar energy.
Reduce peak demand on the grid: Integrating energy storage systems (such as batteries) allows hospitals to store excess energy generated during off-peak times, which can be used when demand spikes, further lowering costs and outages at the grid.
Energy Security and Resilience: Hospitals must operate 24/7, regardless of external conditions, making uninterrupted power a critical necessity. Power outages due to natural disasters, grid failures, or even routine maintenance can disrupt healthcare services and potentially endanger lives. Renewable energy, when paired with energy storage solutions, can provide a resilient backup power system. Solar power systems with battery storage ensure that even when the grid goes down, hospitals can continue to operate essential services like ICU machines, emergency rooms, and life-saving equipment. This is particularly important in regions prone to natural disasters or unstable electrical grid.
Environmental and Public Health benefits: Healthcare facilities are responsible for significant greenhouse gas emissions, contributing to air pollution, climate change, and associated health risks. The World Health Organization (WHO) estimates that air pollution is responsible for about 7 million premature deaths worldwide each year. Hospitals can play a key role in reducing these emissions by transitioning to renewable energy.
By switching to solar, wind, or geothermal energy, hospitals can drastically reduce their carbon footprint. For e.g. A 100-bed hospital using solar power can reduce its carbon emissions by approximately 2,500 to 3,500 metric tons of CO2 annually, contributing to cleaner air and a healthier environment for the communities they serve.
III. Overcoming the challenges in adoption: How to make it a Priority?
Despite the clear benefits, the adoption of renewable energy in healthcare has been slower than in other sectors. Overcoming the issues can help make this transition a priority.
High equipment outlay:
Problem(s): One of the primary barriers is the upfront investment required for renewable energy installations. Although long-term savings are substantial, the initial cost can deter decision-makers from making the shift, particularly in the public healthcare sector.
Solution(s): Alternative sources of financing (including reliance on subsidies), phased transition with small investment followed by benefit realization followed by next tranche of investments, etc.
High installation outlay and disruption in business-as-usual [Retrofitting]
Problem: Many hospitals were built decades ago and were not designed with renewable energy in mind. Retrofitting these facilities to accommodate solar panels, energy-efficient lighting, and other renewable technologies can be technically challenging (e.g. absence of sufficient space) and costly.
Solution: There are several technologies that can now be used in resource constrained, legacy infrastructure to support shift energy mix.
Competing Priorities:
Problem: Hospitals are focused on delivering high-quality patient care, managing staff, and ensuring operational efficiency. Energy sustainability often takes a back seat to these more immediate priorities, especially when hospital administrators are faced with pressing concerns like equipment upgrades, staffing shortages, and expanding patient care services.
Solution: Either management demonstrates own interest in implanting sustainability measures (pull approach) or there is push approach followed, partly this could be achieved via government push and rest via the shareholder push to the management, make this an agenda in the management committee meetings, have the management meet role models globally, etc.
Lack of Awareness and Expertise:
Problem: Lack of awareness among hospital administrators about the benefits and feasibility of renewable energy solutions. Over-reliance on external consultants.
Solution: Setup advisory committee for guidance on upcoming trends and technologies, make this an agenda in the management committee meetings, encourage hospital administrators to attend conferences outside of medical realm, etc.
In summary: make renewable energy a priority in healthcare, four categories of enablers are required:
(A) Financial Models:
a. Innovative PPAs: Hospitals can explore alternative financing models such as Power Purchase Agreements (PPAs), where a third party covers the cost of the solar installation, and the hospital pays for the energy consumed at a reduced rate.
b. Subsidies: Governments must provide stronger incentives, grants, and subsidies for hospitals to invest in renewable energy technologies. Policies that make renewable energy a viable option for hospitals are crucial in encouraging adoption.
(B) Public-Private Partnerships: Collaborating with renewable energy companies can help hospitals transition to clean energy without bearing the full cost of installation.
(C) Raising Awareness: Increasing awareness about the long-term benefits of renewable energy, including cost savings, improved patient care, and environmental health, can drive more hospitals to consider renewable options.
Case of Kasturba Hospital in Wardha, Maharashtra, India
Installed a 100 kW solar power system in 2014 to reduce dependency on grid electricity. This initiative allowed the hospital to continue functioning during power outages, especially crucial for maintaining operations in critical care units. The solar system helped reduce the hospital's electricity expenses while ensuring uninterrupted power supply during frequent outages, highlighting the role of renewable energy in enhancing healthcare resilience in India's energy-challenged regions.
References:
- World Health Organization (WHO) report on air pollution: [WHO Air Pollution Report] (https://www.who.int/health-topics/air-pollution#tab=tab_1).
- U.S. Department of Energy: [Hospitals Energy Usage] (https://www.energy.gov/eere/buildings/healthcare).
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