Conservation Demand Management Plan London Health Sciences Centre Made for Ontario Regulation 397/11 Green Energy Act, 2009

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1 Conservation Demand Management Plan London Health Sciences Centre Made for Ontario Regulation 397/11 Green Energy Act, 2009

2 The Green Energy Act - Regulation 397 The Conservation Demand Management (CDM) plan outlined in the following report is the second component of a two part regulatory compliance measure of the Green Energy Act, The energy management plan is to accompany a summary of the public agency s annual energy consumption and greenhouse gas emissions. On July 1, 2014, the CDM plan will be posted with the Energy Consumption and Greenhouse Gas Template on the internal website, internet site, and made available to the public in printed format at head office. Summary of the Conservation Demand Management Plan London Health Sciences Centre has formatted their conservation demand management plan to fulfill the requirements of Regulation 397/11 and 452/09. The CDM contains total energy consumption for LHSC sites, namely Victoria Hospital, University Hospital, Byron Family Medical Centre, and Victoria Family Medical Centre. Also included in the report is some background information on energy procurement, monitoring and tracking, and employee engagement at the hospital. In addition, the plan outlines proposed future measures for energy reduction along with goals, objectives, and reduction targets for subsequent years. The CDM will be updated every five years starting in 2019 and made readily available according to the reporting requirements listed above. This report is based on the energy profile of the calendar year LHSC 2012 Victoria Hospital, University Hospital, Byron Family Medical Centre, Victoria Family Medical Centre

3 Type of operation: Total floor space: Hospital description: Energy Types: Energy Amounts: Facilities used for hospital purposes and administrative offices and related facilities 3,462,766 square feet (BGSF) (does not include Parking Garages) The majority of the space is occupied from 7:00am to 6:00pm from Monday to Friday. There is occasional weekend occupancy and the majority of the space is accessible on a twenty four hour, seven days per week schedule. Steam, Natural Gas, Electricity, and #2 Fuel Oil (Note: Steam and Electricity is generated at the Victoria Hospital Power Plant and either or both utilities are provided to Thames Valley Children s Centre, London Regional Cancer Program, Standard Parking, Parkwood Hospital and Regional Mental Health Care, St. Joseph s Health Care, London in addition to Victoria Hospital. The utilities for Parkwood Hospital, Regional Mental Health Care, and Standard Parking have been removed from the totals below because they are not included in LHSC s reporting portfolio. Fuel oil is used for backup power only.) Hydro 46,188,553 kwh Natural Gas 18,883,866 m3 Steam 32,362 metric tonne #2 Fuel Oil 123,147 litre Greenhouse Gas Emissions Total (CO2e kg) TOTAL 44,961,999 kg

4 LHSC Energy Procurement At Victoria Hospital, LHSC generates 5MW of electricity and over 20,000 Mlbs/month of steam with a gas turbine. In addition, LHSC has a steam driven turbine generating 2MW of electricity and second gas turbine with a 4MW capacity. The ability to generate its own electricity allows LHSC some maneuverability around utility price spikes while making backup power available in the event of a prolonged power outage. The decision of generating VS purchasing electricity and steam is guided by entering the current utility prices into a co-generation based, economic model. To date, generation has been favourable with decreasing gas prices and increasing electricity prices. LHSC has a gas procurement strategy that was developed and employed in partnership with Aegent Energy Advisors and follows a Risk Management approach to gas hedging. LHSC sets a budget parameter that can be met with 90% confidence according to professional market assessments provided by Aegent Energy Advisors every two weeks. This allows LHSC to manage the risk of spiking gas prices, while capitalizing on low, spot market prices. It has been proven that this approach is the most cost effective over the long term. LHSC has also developed gas purchasing contracts with two gas providers allowing the most competitive price to be selected at any given time. At the other hospital sites, electricity, gas and steam are purchased from London Hydro, Union Gas, and the University of Western Ontario. LHSC Utility Monitoring and Tracking The facilities energy cost and consumption is profiled for each site by energy source on a monthly basis with data acquired from the utility bills. This is an effective way to measure the energy performance of the facilities in comparison to previous years while being able to identify and explain any anomalies as a result of building changes, weather conditions, or rate changes. Sub-metering is used to capture the utilities for various hospital affiliates, such as Thames Valley Children s Centre, London Regional Cancer Program, Parkwood Hospital etc. and to monitor the electricity and steam generation of the cogeneration based power plant. The sub-metering data is extracted via the Enterprise Building Integrator (EBI) building automation system. Recently LHSC has also invested in a real-time monitoring and tracking system called Windows on the World (WOW). This system provides wireless, real time logging of various sub-meters throughout the organization. The data is communicated via a user friendly interface that is accessible at computers and dedicated televisions and kiosks throughout the hospital. LHSC has engaged in a number of energy performance contracts at the hospital sites and the project energy and cost savings are monitored through a retrofit isolation approach. This allows specific equipment and systems to be isolated from other variables affecting energy use so that the project success and savings can be verified.

5 LHSC Communication and Employee Engagement London Health Sciences Centre has been running an active employee engagement program since The program inspires active participation toward helping the hospitals save energy and is hosted by the energy mascot CHESTER to keep the program fun and friendly. The program incorporates behaviour change strategies and activities that help to educate staff on energy efficient practices while increasing their awareness around energy and environmental issues. Employee engagement department energy challenges Probably the most effective activity of the employee engagement program is the department energy challenge. Using a portable power analyzer, the electricity used by departments is measured before and after employees are challenged to save. The challenges are run for a minimum of five weeks and are a great team building and engagement activity with respect to energy saving. Below is a list of department challenge successes at London Health Sciences Centre and St. Joseph s Health Care London. Note: The percent savings are measured results and are consistent with results achieved at other participating hospitals. Return visits to random departments have been made to identify whether this behaviour is continued after the challenges. In those cases, a 10% reduction is the minimum savings observed and so this is where the attribution of 10% electricity savings for behaviour change was derived. Family Medical Centre 9% savings Veteran s Care 3Kent...19% savings Physical Medicine Department...10% savings Monsignor Roney Building. 15% savings Diabetes Education Department..14% savings Centre for Diabetes, Endocrinology, and Metabolism...12% savings PMDU 15% savings Children s Non-Invasive Cardiology.27% savings Food Services.12% savings Compass Group..10% savings Cataract Suite...7% savings

6 The Chester Network mentoring others London Health Sciences Centre together with St. Joseph s Health Care London has taken on a mentoring role for employee engagement. The Chester Network, a not-for-profit network hosted by London s hospitals, now has several additional members that are following our lead to achieve energy savings by this means. Overall, the program is influencing more than 25,000 employees at work and at home.

7 London Health Sciences Centre Past and Current Measures Project Retrofit In 1998, Victoria Hospital s power plant became a cogeneration site with the installation of a five megawatt turbine. Driven by a low emissions jet engine, it generates enough electricity to power approximately 4,500 average sized homes. As well, the turbine produces 70,000lbs/hr. of steam that is used for heating/cooling, sterilization and food production and lowers the need for extra boilers. Using natural gas to produce this power takes demand off of the city power grid and lowers environmental emissions. The turbine produces over 16,000,000 kwh a year which is 20% of our annual electricity use. Project Retrofit Phase I was a mechanical/electrical retrofit project in 2000 at Victoria Hospital that included upgrades to the lighting and building envelope, installation of zone dampers, variable speed drives, condensate heat recovery, heat exchangers and a building automation system upgrade. Due to the ecological and economic success of Phase I, in 2002 Phase II was started; Phase II replicated the complete project of Phase I at our University Hospital campus. The total investment of Phase I and II was $5,292,108 and the phases together reduce CO 2 emissions by 4896 tonnes annually. Project Retrofit In 2006, after eight years of successful cogeneration at Victoria Hospital, Phase III was introduced. LHSC commissioned a backpressure turbine in the power plant that produces two megawatts of essentially free electricity. It operates in place of a pressure-reducing valve converting steam for distribution to our facility. This extra electricity takes even more demand off the city grid. LHSC invested $2,488,590 into the backpressure turbine and lowers CO 2 emissions by 560 tonnes a year. Project Retrofit Phase IV, completed in 2009, was the installation of the new Chiller Plant at University Hospital. The old Chiller Plant was the original plant when University Hospital opened in The older plant was running on CFCs (chlorofluorocarbons) which are not environmentally friendly; removal of these is imperative due to their ozone depletion factor. The new plant s investment cost was $5,495,473 and along with the removal of CFCs, the plant lowers GHG emissions by 132 tonnes each year.

8 Project Retrofit The Victoria Hospital power plant was upgraded in the biggest retrofit project to date; an additional building was constructed to house a new four-megawatt gas turbine. As the gas turbine was previously in use in California it came complete with a selective catalytic reduction unit that reduces the exhaust emissions to well below Ontario standards. Our two turbines will produce electricity to an amount equivalent to the energy use of a large town. The Phase V retrofit will also apply to both the University and the Victoria sites and will upgrade some of our earlier Phases; upgrades that are necessary due to technological improvements since the first phases were completed. The project includes a T8/12 lighting and ballast retrofits, installation of LED lighting, modifications to the cooling plant operations to improve efficiency, upgraded controls for heat recovery wheels, window air conditioner removal, new window installation and upgrades to the building automations system, ventilation systems and plumbing fixtures. At Victoria Hospital, a kitchen and waste heat recovery project will lower the need for energy when heating water. The new system will allow some of the heat from the kitchen to be transferred to heat water, instead of relying on electricity. The phase V project will reduce CO 2 emissions by 1410 tonnes per year. Project London Health Sciences Centre Figure 1: Utility/Cost Savings from Each Phase Annually Electricity (kwh) Steam (mlbs.) Water (m3) Phase I - Victoria ( ) 2,450,704 46,751 2,653 $752,748 Phase II - University ( ) 6,301,729 22,730 51,795 $869,703 Phase III - Power Plant ( ) 4,998,246 $282,822 Phase IV Chiller Plant (2009) 1,172,642 $49,242 Phase V Both Sites (2011) 1,561,672 20, ,010 $1,072,919 Total Savings Per Year - All Sites 16,484,993 89, ,458 $3,027,434 Total ($)

9 Figure 2: Total Phase Projects Annual Greenhouse Gas Emission Reduction London Health Sciences Centre - Annual Emission Reduction Emission Type Electricity Steam* Total Total Annual CO 2 Reduction (kg) 1,846,320 6,229,889 8,076,209 Total Annual SO 2 Reduction (kg) 48,501 48,501 Total Annual NO 2 Reduction (kg) 18,953 18,953 Total Annual CH 4 Reduction (kg) Total Annual N 2 0 Reduction (kg) Total Annual GHG Equivalent (kg) 8,114,752 *steam is produced from the burning of natural gas; any GHG emissions while producing steam are from natural gas. Assuming a boiler efficiency of 80%, steam/gas GHG numbers are calculated. Note: the cost savings that result from the cogeneration based power plant are not included in the project tables (Figure 1, Figure 2). They are shown in combination with the project savings below (Figure 5a, 5b) Cogeneration LHSC has been expanding its co-generation capacity since Given the difference in trend of the electricity rates VS natural gas rates (Figure 3) this system has become increasingly cost effective (Figure 4). The more electricity and steam produced by the hospital, the greater the savings in comparison to the conventional method of purchasing each utility individually. Should the proposal of the new steam driven chillers be accepted, the second 4MW gas turbine recently purchased will be able to run during all seasons because there will be a summer demand for the steam bi-product. This will increase LHSC s annual utility cost reduction even further than what is shown in Figure 4. It should also be noted that in addition to substantial cost savings, the cogeneration power plant at LHSC provides a good level of emergency preparedness. In the event of a pro-longed blackout period, LHSC could electrically support Victoria Hospital and Parkwood Hospital s critical services. This is a very important consideration for a major hospital in Southwestern Ontario.

10 Figure 3: Electricity rates VS natural gas rates $12.00 Utility Rates $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Gas Rate Electricity Rate Linear (Gas Rate) Linear (Electricity Rate) $600,000 Figure 4: LHSC s savings from self-generation Savings $500,000 $400,000 $300,000 $200,000 $100,000 $0 Savings Linear (Savings)

11 When we consider both the energy project work and the cogeneration capability of the hospital, we can see that the total cost avoidance is quite substantial. Over the last three years, since 2011, we have avoided over $20,000,000 in utility cost (Figures 5a, 5b), which is about one third of what our cost would have been had we done nothing. $70,000,000 Figure 5(a): Utility cost avoidance Cost Comparison Since Jan > 30% savings $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Without Energy Projects Actual Without Projects or Cogeneration Figure 5(b): Utility cost avoidance Total Savings Project $2,759,213 $3,027,623 $3,028,187 $8,815,023 Savings Cogeneration $3,144,337 $4,008,096 $3,614,590 $10,767,023 Total $5, $7,035,719 $6,642,777 $19,582,046

12 Proposed Demand Management Measures Major Project Work LHSC has two 375 ton absorption chillers that would require replacing. One is completely out of service and the other is nearing the end of its useful life. LHSC is proposing to add two new 1000 ton steam driven centrifugal chillers to compliment the 15,000 lb/hr steam byproduct of the 4MW KB5 turbine mentioned above. These new chillers will take up the load lost by the 375 ton absorption chillers and reduce the electricity being consumed by the existing mechanical chillers. One chiller will be placed in the North Tower and the other in the west-side mechanical room. With these new steam driven chillers in place, LHSC will be able to run the 4MW KB5 turbine in the summer and further increase the amount of electricity generated VS purchased at the organization. This will result in additional cost savings and emergency preparedness. LHSC will be able to generate an estimated additional 13,000,000 kwh of electricity and 90,000,000 lbs of steam, using natural gas. This project will require an investment of approximately $4,200,000. An incentive of $493,000 will be awarded from the Ontario Power Authority. The savings from the project will be seen on three fronts. First, the ability to run the turbine during the summer will allow electricity to be generated on site using natural gas. Second, some of the byproduct steam will be used to offset the work of the conventional boilers. Third, using the rest of the byproduct steam to run steam driven chillers in the summer will display the electricity that would have been required from the existing mechanical chillers. Combined these annual savings are estimated over one half million dollars per year (Figure 6) based on current gas and electricity rates. The estimated electricity savings are to be 2,464,000 kwh per year, which will equate to a CO2 reduction of 133,056 kg per year. LHSC has an opportunity for further energy savings through the upgrade of lighting fixtures in the Hospital s parking garages. In this project proposal the Victoria Hospital parking garage, University Hospital main parking garage and Perth Drive parking garage would see the current HPS lighting fixtures upgraded to an induction lighting system. The project would require an investment of $422,569. An incentive of $33,600 will be awarded from the Ontario Power Authority, combined with an annual savings of $45,281 to give the project an 8.5 year simple payback. The estimated electricity savings are to be 350,000 kwh per year, which will equate to a CO2 reduction of 18,900 kg per year.

13 Figure 6: Proposal for Steam Driven Chillers

14 In House Management Regular steam trap audits will be conducted to isolate and repair any leaks or faulty traps. Leaking and broken traps can cost several thousand dollars a year in steam loss. Incentive money for the steam trap auditing will be collected from the Union Gas incentive program. Monthly auditing of utility bills is conducted to verify that the consumption and the charges are correct. Natural gas bills are verified by our gas procurement consultant, Aegent Energy Advisors and the Hydro bills are viewed and logged by Engineering Services. Any issues or abnormalities can be addressed immediately. Annual calibration of equipment sensors will be conducted for air temperature, relative humidity, pressure, chilled water temperature, air and liquid flow etc. to ensure that the proper parameters and set points are in place to maximize energy efficiency while adhering to code. Checks will ensure that the sensors are in proper working order. For those readings that are picked up on the building automation system, checks will be done to ensure that the readings of the equipment match those on the system. In cases where large energy losses are at stake, two sensors may be synchronized in one location and alert engineering to any discrepancies in their readings. Annual review of building occupancy in relation to building equipment schedules will be conducted to ensure that space is being conditioned when it is needed only. This applies to automated lighting, air handling units, chillers, boilers, re-heats etc. Areas can also be reviewed to incorporate natural light harvesting into the lighting schedule. A highly organized preventative maintenance program is in place using Archibus, LHSC s facilities management system. The program ensures that pumps, motors, condensers, valves, electrical and steam systems etc. are operating efficiently and effectively and that any components nearing the end of their useful life are targeted for replacement before failure. With the introduction of the Windows on the World (WOW) system, many sub-meters were modified or added to provide LHSC a real time look at energy consumption in more detail. As opportunity presents itself, additional sub-metering will be added to the system to give LHSC a more fine tuned approach to monitoring and managing energy consumption throughout the hospital.

15 Adopting these practices into regular routine at the hospital will keep the building operating at its optimal performance. It is important that once major projects are completed and energy saving equipment and systems are put in place, operation and maintenance of these equipment and systems is consistent. This will allow the full potential of each energy saving measure to be realized every year. Goals and Objectives In light of the proposed demand management measures, LHSC has set a goal of reducing its electrical consumption by 4.5% of our 2013 amount by (Note: this is a 4.5% reduction from its projected electricity consumption in 2019, which will include normal growth factors) In light of the proposed demand management measures, LHSC has set a goal of reducing its greenhouse gas emissions by 3% of our 2013 amount by the It should be noted that a great deal of energy conservation has already taken place at London Health Sciences Centre and that this past success limits the degree to which future goals and objectives can now be set. The above targets were set in accordance with the proposed future conservation measures and may be exceeded as additional projects are put forward. The CDM plan will be updated at such a time. The Conservation Demand Management Plan has been approved by: Phil Renaud, Director, Facilities Engineering Signatures omitted for public posting Dipesh Patel, Vice President, Facilities Management Signatures omitted for public posting

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