Prioritizing and bundling projects
Many energy efficient solutions are low/no cost while others require substantial capital investment or a financing mechanism. A hospital can immediately implement low/no cost energy conserving measures (ECMs) but it may be more financially practical to “bundle” low/no cost ECMs with longer payback ECMs into one or more large projects in order to create a financial package that meets the corporate criteria. For instance:
- Variable speed fans/pumps and economizers are seldom optimally operated. Simply changing operating sequences and repairing system problems might have less than a 6 month payback.
- On the other hand, adding new variable speed drives and new HVAC control equipment might have a 5 year or more payback.
- It is possible to mix the low/no cost operational sequence improvements and control hardware improvements into a bundled HVAC control project that is tailored to produce the corporate approved financial payback.
- Additional HVAC information from Premier
This website and its related resources are focused primarily on energy efficiency, but maintenance benefits can also make a big financial difference. For example, a lighting retrofit can virtually eliminate lighting maintenance costs for several years and avoid major ballast replacement costs if many of the existing ballasts are approaching the end of their 55,000 hour normal life.
“Money not spent on operation & maintenance is net profit.”
Reward improved practices
Many Low/no cost practices and lowest total cost of ownership purchasing practices might have been implemented years ago by facilities staff but they were not. Now that staff are being tasked with identifying and implementing enhanced operation, maintenance and purchasing practices, be sure to reward the improvements rather than punishing them for not changing their practices years ago.
Avoided utility costs = net profit
Money not spent is net profit. Many hospitals earn 3 percent net profits. A hospital that has been very aggressive about reducing the total costs of ownership has been shown to have increased their net profit up to 5 percent.
The LINKED documents are provided as samples of successful projects that are intended to produce the lowest Total Costs of Ownership. They have been chosen and edited by Conservation Catalysts to eliminate dated information and to remove unique requirements that are not considered healthcare generic. Use these only as examples. Keep in mind that energy consuming products are constantly being improved so verify that the most cost effective products and techniques are specified before going to bid.
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