Energy Strategies for Medical Facilities


Hospitals and medical centers are the second most energy-intensive facility type in the US, and nearly 25% of a typical medical facility’s operating cost is energy- related. With operating margins frequently below 3%, energy cost management is tantamount to profitability.

As energy costs for medical facilities can range from $3.10 to $3.75 per square foot, strategic energy procurement decisions represent a key financial lever. An effective cost and risk management plan will align an organization’s facility managers and financial executives around a comprehensive sourcing and energy management strategy for achievable results.

For more than 20 years, EnerNOC energy advisors have helped medical facilities develop and implement energy strategies that reduce costs, provide budget certainty, manage market and contingency risks, and achieve sustainability objectives.

Strategic Market Participation

A strategic procurement and energy management strategy starts with a review of your organization’s goals, existing processes, risk tolerances and planning horizons. After helping to codify an energy sourcing and risk management strategy, EnerNOC advisors get to work executing that plan.

With more than 300 retail energy suppliers in our supplier network, EnerNOC creates unparalleled supplier competition for your business; by digitizing and streamlining the RFP process, EnerNOC helps hospitals and medical centers analyze bids for different products and term lengths to find the mix that best fits their needs.

Seamless Negotiation and Contract Management

Your EnerNOC advisor and a dedicated procurement manager support your team throughout contract negotiation and execution. We also consolidate electronic copies of your existing and historical energy supply contracts in our award-winning Energy Exchange, which makes it easy to sort, review, and assess their value against current market conditions.

Ongoing Analysis, Automatic Alerts and Hedge Triggers

Your EnerNOC advisor and analysts provide routine market updates to affirm that your energy sourcing and risk management strategies align with current market conditions. Our advisors also create automatic alerts and executable triggers through the EnerNOC Energy Exchange, which enable your team to capitalize on market movement in a moment’s notice.

Position Reports and Budget Variance Analysis 

Our experts help your team understand its market exposure and hedge performance with custom position reports. As hedges are layered in, our experts provide analysis that compares how your positions fare against budget targets and the market.

Energy Bill Auditing

EnerNOC analysts can audit all transportation, utility and/or supplier invoices for accuracy in volume and price components. Your EnerNOC team works with the utility or supplier to remedy any inaccuracies that may be uncovered.

Demand-Side Management

Annual capacity-related costs can be as much as 40% of your electricity supply costs in certain markets. What’s more, monthly demand charges can reach $20 per kW-month, in some locations or up to an additional 30% of a hospital’s total energy spend. EnerNOC’s System Peak Predictor and demand management services help hospitals and medical centers save hundreds of thousands of dollars on average each year.

Renewable Energy and Distributed Energy Resources

More and more healthcare facilities are embracing renewable energy and distributed energy resources to achieve sustainability and reliability goals. If your organization is pursuing renewable energy, battery storage, cogeneration, or other distributed energy resources, our experts can help determine the resource mix and financing strategies that align with your broader business goals. Additionally, our experts can recommend ways to manage the renewable energy costs that may already be embedded in your current supply rates.