Co-generation power system reduces hospital costs

4/5/94

Cost savings in energy production at Princess Margaret Hospital have helped save children's lives.

Energy Minister Colin Barnett today revisited the hospital's innovative co-generation power system which saved an anticipated $80,000 in its first year of operation.

Mr Barnett said Princess Margaret Hospital was the first public building in Western Australia to be powered by co-generation - a form of utilising waste heat and gases to produce and rechannel electricity back into the grid system.  The hospital has been harnessing gas to generate electricity.

"Co-generation is a cost-effective alternative which has better utilised energy production and has enabled savings for the hospital to be redirected into medical research equipment and staffing," Mr Barnett said.

The hospital early last year purchased a gas engine and generator capable of producing electricity for 12 hours per day over five days to lower the maximum demand level of electricity usage.

Mr Barnett said the engine was used to produce heat for water and air conditioning.

Co-generation saved about nine per cent of the hospital's total fuel and power costs and is on track to pay for itself within about four years.  The hospital's power and fuel costs in 1993-94 was about $817,000.

"$80,000 per year in energy savings have allowed the hospital to purchase life-saving medicines and equipment, including items such as four overhead warmers for premature or sick newborn babies or any one of the many vital breakthrough pathology machines," Mr Barnett said.

The money saved could also be rechannelled to maintain 2.5 nurses' salaries or would buy 20 pumps for intravenous drug therapy or 61 infusion pumps to enable children to maintain naso-gastric feeding at hospital and at home.

Mr Barnett said it was encouraging to see hospitals taking the lead in such utilisation of energy and cost efficiency.

"An interstate hospital has taken a similar lead by using solar power for sterilisation, as is used on a smaller scale in third-world countries," he said.

Mr Barnett said the Government would review the terms and conditions of co-generation to encourage the wider use of this form of environmentally friendly power system.

Media contact:  Carolyn Vicars - 222 9699