In an article based on a paper presented at the Institute of Hospital Engineering Australia’s (IHEA) 2008 National Conference, Glen Hadfield, manager, assets & sustainability systems, Sydney West Area Health Service, discusses the benefits of cogeneration, highlighting the experiences and conclusions gained via a number of recent projects at hospitals in New South Wales.
Sydney West Area Health Service (SWAHS) delivers healthcare services to residents of western Sydney from Auburn to Lithgow, and includes major teaching hospitals at Westmead, Blacktown and Nepean at Penrith. To date SWAHS has implemented four cogeneration projects, three of which have been running for approximately three years, and one of which is currently being commissioned. In addition a small cogeneration project at Blue Mountains Hospital, Katoomba is at the tender stage.
Key drivers
Utility prices One of the main drivers for cogeneration in SWAHS is mitigating the exposure to escalating utility prices. Electricity prices under the new contract will rise by approximately 30% from mid-2009, costing SWAHS an additional A$2 million per annum (compared with the Service’s existing contract). Gas prices increased by 34% across SWAHS from April 2008, costing the Service an additional A$700,000 p.a. The future carbon price The future carbon price is projected to be between A$20 and $40/tonne, adding a further 2 c-4 c /kWh to the cost of electricity. There are still a number of uncertainties around the future carbon price, but the following factors will impact the value/price of carbon and its volatility:
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