D7 – Funding Resilient Energy Systems

Music Row 6

Months and even years after the winds subside and the floodwaters recede, hospitals and health systems in regions battered by an extreme weather event like Superstorm Sandy or a hurricane “will still be grappling with the financial, physical and reputational wreckage such storms cause.” (“Incoming hurricanes could mean a flood of problems for health systems” PWC (September 14, 2018).

“Hospitals face closure, chaotic revenue cycle operations, disrupted supply chains, possible credit downgrades, destroyed and damaged physical assets, and displaced workforces and patients. Partner institutions, such as long-term care facilities and retail pharmacies, may temporarily or permanently operate at diminished capacities.” (Id.)

Resilience is “the ability to prepare for and …. withstand and recover rapidly from disruptions.” Resilience includes the ability to withstand and recover from “high-consequence, low-probability events.” (Critical Infrastructure Security and Resilience, Presidential Policy Directive 21 (PPD-21). Put another way, resilience is the ability to withstand and recover quickly from hurricanes, Nor’easters, Super Storm Sandy, ice storms and all of the other extreme weather events that have caused widespread power outages in Puerto Rico, Florida, Houston, New York City and across the country with increasing frequency in the past several years. Energy infrastructures is uniquely important due to the enabling functions they provide across all other critical infrastructures (Id.) such as hospitals.

This panel of energy resiliency, energy finance and healthcare management experts will discuss an actual and ongoing healthcare campus microgrid project in Massachusetts to explore the planning for and the funding of improved resilience infrastructure. The case study will be sent to participants in advance of the conference.

At the panel, the CFO for the healthcare facility will present his/her analysis of the threats to their facility and the need for improved resilience, as well as the budget challenges and funding solutions the CFO has utilized to overcome these challenges.

Charlie Lord from RENEW Energy Partners, LLC (third party funding) will lead the discussion on capital solutions such as traditional debt and equipment leases to emerging models such as energy-as-a-service and C-PACE (Commercial Property Assessed Clean Energy). Emerging funding models are facilitating investments in resilience as they relocate the capital, complexity and risk of executing a project from the health care facility to the third-party while the facility improves its resiliency and it most cases reduces operating expenses in the process.

Al DiGiulio from Edison Energy(Design/Build) will continue the conversation from the point of view of a project developer and provide insight into his experience integrating energy resilience options including Solar PV, Cogeneration and battery storage into health care facilities across North America and the resilience benefits each will bring to the facility. In addition to discussing onsite power and storage applications, Al will touch on the project development and installation process and how different stakeholders across the health care’s facility team are involved.