Energy Efficiency Efforts Led to Cost Savings for Ministry of Health, RM23.6 Million Saved in Initial 24 Months
Full Release: Kuala Lumpur, 17 October 2019 – Through the implementation of an energy management programme by UEM Edgenta Berhad (“UEM Edgenta” or “Company”) under the national hospital support services concession for 32 hospitals located in the northern region of Peninsular Malaysia, the Ministry of Health Malaysia (“MoH”) has saved approximately RM23.6 million in its initial 24 months (January 2017 to December 2018) of the programme and successfully reduced the environmental emissions of these hospitals.
This was shared at the Company’s exhibition as part of the 10th International Greentech and Eco Products Exhibition and Conference Malaysia (“IGEM”) 2019 held at the Kuala Lumpur Convention Centre from 9 to 11 October. Themed, “Innovating Sustainability”, the event is touted as the gateway to Southeast Asia’s thriving green technology market and is expected to generate RM2.8 billion of business leads, displaying of more than 350 exhibitors and 35,000 global visitors from over 35 countries.
Healthcare facilities such as hospitals are considered major energy consumers due to their need for reliable energy supplies 24/7 for ventilation, lighting, air conditioning and the use of medical and non-medical equipment and it is also crucial for these facilities to be more environmentally sustainable. UEM Edgenta, the leading Asset Management and Infrastructure Solutions company in the region, has put in place several initiatives under this programme which has paved the way for the 32 MoH hospitals it provides support services to be accorded the Energy Management Gold Standard (“EMGS”) 1-Star ASEAN Energy Management Scheme (“AEMAS”) and/or EMGS 2-Star AEMAS ratings.
Success stories are emerging out of the energy management programme – from January to December 2018, State Hospitals such as Hospital Tuanku Fauziah (“HTF”) in Perlis recorded energy savings of 18%, which is equivalent to 2,865,362-kilowatt hour (“kWh”) representing RM1.05 million in savings on average as compared to previous years. Within the same period, smaller hospitals such as Hospital Sungai Siput in Perak also recorded savings of up to 30% which is equivalent to 701,891-kWh, representing RM360,000.
According to Dato’ Azmir Merican, Managing Director/Chief Executive Officer of UEM Edgenta, sensor technology is being used to monitor energy usage from lighting and chillers at the hospitals. Further savings are expected to be derived in the future due to a significant push towards undertaking predictive and preventive maintenance across all facets of the hospitals’ operations under the Company’s care.
“More hospital administrators and management teams we have engaged now understand that significant gains can be achieved with energy efficiency initiatives and the fact that initial investments made will pay for itself in the long-run. This is made possible via Energy Performance Contracting (“EPC”), an innovative, turnkey concept of shared savings which helps companies overcome upfront capital commitment with fast results, and also positively impact companies’ bottom-line,” said Dato’ Azmir.
UEM Edgenta has in 2018 commenced implementation of EPC for MoH’s healthcare facilities such as Hospital Teluk Intan and Hospital Raja Permaisuri Bainun Hospital in Perak, as well as most recently, Hospital Kepala Batas in Penang in 2019, and the results have been encouraging with the hospitals achieving cost savings and reduction in energy usage. In particular, between January to December 2018, Hospital Teluk Intan recorded RM1.07 million in savings on average as compared to previous years and this represents 30% in energy savings, equivalent to 2,927,136-kWh.
These savings were made possible due to various retrofits and upgrades which have been undertaken, such as demand control ventilation, energy-efficient chillers, lighting retrofit and other automated building systems, to reduce energy consumption.
Another success story is Hospital Langkawi – the first in Malaysia to be recognised as a Green Hospital under the ‘Existing Building, Operation and Maintenance’ (“EBOM”) category, as per the Leadership in Energy and Environmental Design (“LEED”), the most widely used green building rating system in the world. In addition to reducing Hospital Langkawi’s carbon footprint by increasing its green space and planting carbon-breathing plants grown at the hospital compound that require less water, UEM Edgenta undertook a redesign that led to a reduction in the hospital’s carbon emission which was achieved by installing a Solar Photovoltaic System for electricity usage, Rain Water Harvesting for watering the plants and Food Waste Composter to convert waste to bio-organic fertiliser.
Dato’ Azmir revealed that the Company has also implemented real time monitoring for all the hospitals it manages. “This allows us to take immediate action and make adjustments based on our continuous monitoring of energy usage from our Command & Contact Centre, a centralised monitoring facility located at our headquarters in Kuala Lumpur, that tracks information in real-time and functions as a hub for analytics and machine learning. Turning empirical data and other information gathered in real-time into real business intelligence can help optimise asset management and maintenance programmes, as well as prioritise sustainability projects.”
Hospitals are not the only infrastructure which UEM Edgenta works on – the Company is a leader in Environmental and Energy Design having implemented smart building technology in key landmarks including Perdana Putra, a Green Building Index Platinum-rated building that had earned them the ASEAN Energy Awards 2018 and National Energy Awards 2018. UEM Edgenta also undertook a Design and Build contract of a 4-storey Memorial Tun Hussein Onn to replace the existing structure, which was designed in accordance to fit Green Building Index requirements. In addition, UEM Edgenta is also managing and implementing energy efficiency initiatives at PROTON’s Centre of Excellence located at the Sime UEP Industrial Park and at its Tanjung Malim manufacturing plant.