Shared savings lets hospital install 2. 5-MW cogeneration system

Journal Article · Mon Aug 13 04:00:00 EDT 1984 · Energy User News; (United States)

OSTI ID:6338244

Barber, J

A York, Pennsylvania hospital will install a $1.6 million, 2.5 MW cogeneration system to save $100,000 in annual energy costs on a shared-savings contract. Although providing only 7% of the hospital's electricity, the 2.5 MW size is more economical because of the utility's off-peak buyback rates that could be as low as 2.5 cents per kWh. The shared-savings arrangement allows the hospital to use capital for medical purchases, introduces tax advantages, and eliminates the investment risk for the hospital. The contract calls for the hospital to cede over the next 15 years about half of its savings, which should fall between 40 and 60%. After 15 years, the hospital can purchase the equipment, renew its contract with Time Energy, or have the equipment removed. The two diesel engines burn a fuel mixture of 94% natural gas and 6% diesel fuel, but can operate on 100% diesel fuel if necessary.

• OSTI ID: 6338244
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 9:33; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290800 -- Energy Planning & Policy-- Heat Utilization-- (1980-)
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320103* -- Energy Conservation
Consumption
& Utilization-- School
Municipal
& Other Public Buildings-- (-1987)
BUILDINGS
COGENERATION
DEUS
DUAL-FUEL ENGINES
ENERGY SYSTEMS
ENGINES
FINANCIAL INCENTIVES
FINANCING
HOSPITALS
INVESTMENT
MEDICAL CENTERS
POWER GENERATION
STEAM GENERATION