Demand side management focuses on reducing energy cost and consumption at the point of use, rather than at the point of distribution like in supply side management. This can involve retrofitting equipment for higher efficiency, scheduling energy use around occupancy and peak cost periods, and engaging end users in conserving power when possible. Over the past fifteen years, LHSC has invested in several energy efficiency projects. Mechanical systems have been scheduled through a building automation system and employees have been engaged through the implementation of the Chester program.
To provide insight into LHSC's energy demand, a complete analytics report was created detailing the different energy streams. The report documents cost and consumption for each utility at University and Victoria hospitals along with some explanation for the trends being seen. Download the report: Analytics of LHSC Utilities.
Energy Efficiency at LHSC
To date, LHSC has completed five major projects for energy efficiency at the hospitals. These projects were completed in partnership with an Energy Services Company (ESCO) by method of Energy Performance Contracting (EPC). ESCO designed the projects and paid their costs upfront. The projects were paid back through the guaranteed savings on the utility bills over time. The payback periods were determined by the value of the energy savings and once a project was paid in full, the savings belong to the hospital.
Project: Phase I
Phase I was a retrofit project at Victoria Hospital. It 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
| Project | Phase I |
| Year Implemented | 2000 |
| Project Cost | $2.7 million |
| Guaranteed Savings | $449,000 |
| Guaranteed Payback | 6 years |
| Avg. Actual Annual Savings | $752,748 |
Project: Phase II
Phase II was a replication project of Phase I at University Hospital. Due to the success of Phase I and the commitment of implementing Phase II, LHSC was awarded a grant from Natural Resources Canada in the amount of $288,000 to help offset the cost.
| Project | Phase II |
| Year Implemented | 2002 |
| Project Cost | $3.1 million |
| Guaranteed Savings | $625,627 |
| Guaranteed Payback | 5 years |
| Avg. Actual Annual Savings | $869,703 |
Project: Phase III
In 2006, LHSC commissioned a backpressure turbine in the Victoria Hospital Power Plant that produces two megawatts of electricity at very low cost. It operates in place of a pressure-reducing valve, converting 650psi steam to 35psi for distribution to our facility. This project also included the installation of two small boilers that allow the Power Plant to better "load follow" our steam demand and produce savings through better boiler efficiency.
Project: Phase IV
Phase IV involved the installation of a new Chiller Plant at University Hospital. The old Chiller Plant was installed when University Hospital opened in 1971 and was running on CFCs (chlorofluorocarbons) which are not environmentally friendly, and was also phased out of service starting in 2012.
Project: Phase V
The Victoria Hospital Power Plant was expanded to include a new building that housed an additional 4MW gas fired turbine. In addition, University and Victoria Hospitals were re-combed with upgraded controls, BAS, lighting, and plumbing fixtures to capitalize on technological improvements that have been made since the first projects were completed.
| Project | Phase V |
| Year Implemented | 2011 |
| Project Cost | $16 million |
| Guaranteed Annual Savings | $1.2 million |
| Guaranteed Payback | 14 years |
Energy Savings and Greenhouse Gas Reduction
The energy savings from these projects have been significant and with them the reduction in associated greenhouse gas and air polluting emissions. The financial benefit to the hospital for completing this work is over three million dollars per year. The carbon dioxide emissions have been reduced by over eight thousand tons, which will result in additional savings once cap and trade legislation is introduced.
| Project | Electricity (kWh) | Steam (mlbs.) | Water (m3) | Savings ($) |
| Phase I - Victoria (2001-2002) | 2,450,704 | 46,751 | 2,653 | $752,748 |
| Phase II - University (2002-2003) | 6,301,729 | 22,730 | 51,795 | $869,703 |
| Phase III - Power Plant (2005-2006) | 4,998,246 | $282,822 | ||
| Phase IV – UH Chiller Plant (2009) | 1,172,642 | $49,242 | ||
| Phase V – Both Sites (2011) | 1,561,672 | 20,006 | 124,010 | $1,072,919 |
| Total Savings Per Year | 16,484,993 | 89,487 | 178,458 | $3,027,434 |
Awards and Recognitions
The work that LHSC has done toward energy efficiency has resulted in many awards over the years. In addition, LHSC has been featured in many magazines and news articles as a means of encouraging others in the health sector to become energy efficient.
- 2003 Voluntary Challenge & Registry Incorporated Gold Award
- 2003 Overall Leadership Award, Ontario Hospital Association
- 2004 National Energy Efficiency Award, Canadian College of Health Service Executives
- 2004 Project Retrofit Award Honourable Mention (2nd/42), Natural Resources Canada
- 2005 Environmental Business Achievement Award, London Chamber of Commerce
- 2007 Award of Excellence, Canadian Healthcare Engineering Society Award
- 2008 Energy and Environmental Stewardship Award, Canadian College of Health Service Executives
- 2011 Energy Efficiency Award, Ontario Hospital Association
Chester and employee engagement
LHSC has been running an employee engagement program for energy efficiency since 2003. The program inspires active participation toward helping the hospital 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 get staff involved while increasing awareness around energy issues.
One of the most successful activities implemented as part of the CHESTER 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 reduce. The challenges are run for five weeks at a time and daily savings are a presented on a "game board" inside the department area. It's a great team building activity and provides staff with immediate feedback on how their actions help save electricity. Typically, the activity results in a 10 to 15 percent reduction in electricity use.
- Download the complete Demand Side Management report
- Return to the main Energy Management Plan page
