The Path to Sustainable Energy Management at Far Eastern Memorial Hospital (FEMH)

Hospitals are major electricity consumers, ranking second in electricity usage among non-industrial sectors in Taiwan¹. Power fluctuations impact hospital safety, and electricity pricing fluctuations are closely related to hospital expenses. Medical institutions, serving as guardians of public health, are also critical bases for sustainable development. Using electricity intelligently and sustainably while enhancing electricity safety is crucial for medical institutions.

Far Eastern Memorial Hospital has long been committed to sustainability and has put this commitment into action. In recent years, it has won multiple prestigious awards, including the Taiwan Corporate Sustainability Award, the Platinum Award for Corporate Sustainability Reports and the Taiwan Sustainable Action Award. In terms of energy management, FEMH has actively adopted various sustainable measures, one of which is joining the Enel X Virtual Power Plant (VPP) – an aggregation of energy resources that provides flexibility to the power grid.

FEMH affirmed the establishment of the VPP when discovering that Enel X’s VPP operation model could help accelerate the energy transition and avoid the costly construction of new power plants. “Apart from achieving better energy efficiency, we hope to contribute to society in the energy transition, reducing our carbon footprint and helping to maintain the stability of Taiwan’s power grid,” emphasized Chang.

Lin Chuan-Min, Chief of the Maintenance and Engineering Department at FEMH, is the driving force behind the hospital’s energy management. He believes that participating in the Demand Response Ancillary Service in the Energy Trading Platform through Enel X’s VPP creates a win-win: “The country can build fewer power plants, and maintain stability for the power grid, while the hospital could cultivate outstanding talent and activate the existing backup power mechanisms.”

Followed by on-site surveys, equipment inventory and careful discussions conducted by Enel X’s professional team, it was decided that the hospital participates in the Ancillary Services market of the Energy Trading Platform through Enel X with a flexible energy use of about 1,000 kW.

When the power grid is in need, Enel X’s Network Operations Center receives a dispatch notification from Taiwan Power Company and immediately notifies FEMH through phone calls, text messages, Line messages, and emails. Upon receiving the power dispatch directives, FEMH reduces the energy load on the power grid by switching its air conditioning circuit to the generators with the automatic transfer switch. The air conditioning’s energy use is then supported by the generators. This is completed in 30 minutes and maintained for 2 hours. After 2 hours, the power supply can be restored to its original mode, during which all hospital operations continue as normal.

When joining a VPP and responding to power dispatch events, it also provides occasional opportunities to test whether the backup power equipment is functioning properly. Typically, the periodical maintenance routine and testing of generators operate without any load, and it’s only during the annual maintenance that they are tested under load. No-load check-ups assure generator operation and examine voltage and frequency. However, this method of testing can lead to carbon buildup if combustion is incomplete, making it difficult to assure that the generator is able to connect and stably supply power to devices with an electrical load.

Cologne Chen, Head of Business Development at Enel X Taiwan, with nearly 20 years of experience in energy management across various industrial clients, stressed unfortunate experiences shared by his clients. “When tested under no-load conditions, their generators showed no abnormalities, but when faced with grid anomalies, they failed to operate smoothly due to severe carbon buildup, resulting in significant losses. This is unfortunate and one of the reasons why we recommend commercial and industrial businesses with backup power equipment to join a Virtual Power Plant.”

Since joining Enel X’s VPP in August 2022, FEMH has participated with a maximum capacity of around 1,000 kW. To put it into perspective, 1,000 kW is equivalent to the electricity used by one thousand home air conditioners, with each unit having an average power of about 1,000 watts. From the time FEMH joined the Ancillary Service market of the Energy Trading Platform until November 2023, it has cumulatively been on standby for nearly seven thousand hours to protect the power grid. The capacity reduction achieved in response to the dispatches is nearly equivalent to a household’s three-year consumption.

Lin Chuan-Min pointed out “We have encountered five dispatches in over a year since we joined the program. This is also a form of maintenance and repair for us, and it helps to keep the power system safer. Working with Enel X has been very smooth, and I highly recommend others in the industry to join this meaningful endeavor.”

By joining Enel X’s VPP, hospitals can activate existing assets to participate in the Energy Trading Platform’s Ancillary Service market. This provides a safer medical environment and also supports grid stability, accelerates the energy transition, and implements a circular economy all at the same time.

“Our goal is to help customers utilize their own assets to achieve sustainability in a sustainable and profitable manner. Hospitals and C&I businesses could earn revenue for every hour they are on standby in the Ancillary Service market,” states Cologne Chen. Enel X’s comprehensive services enable clients to easily participate in the energy market and focus on their core business. From the initial site survey assessment, customized energy planning, to every stage of application until going live, Enel X’s experts accompany the client along the way. Enel X, which places high importance on HSEQ (Health, Safety, Environment, and Quality), also provides thorough educational training for customers, ensuring that all personnel fully understand every aspect of the program.

FEMH’s Vice President Chang Shu-Wen states that Enel X is one of the largest VPPs operating globally and a qualified trader on Taiwan Power Company’s Energy Trading Platform, which is why FEMH chooses to work with Enel X, a “reliable partner”. It is a hospital’s primary mission to serve the public and community, other than constantly enhancing medical care and smart healthcare, it must also adopt actions that are most beneficial to the public and society. Chang, in her white coat with a strong sense of mission, said, “Joining the Virtual Power Plant allows us to unceasingly achieve our commitment and mission to social sustainability.”

Hospitals that have joined Enel X’s Virtual Power Plant can be found throughout Taiwan, which includes many medical centers. They are participating in the energy market and steadily earning profits. In the future, Enel X will promote our services to regional hospitals and expand our service capacity. Apart from medical institutions, major energy users in all industries could also activate one’s flexible energy assets by joining the Virtual Power Plant and support the energy transition.

Enel X is a qualified trader on Taiwan Power Company’s Energy Trading Platform, aggregating the most demand response resources in terms of number and volume, we invite major medical institutions to join us, unlock new revenue streams, practice sustainability and support the energy transition together.

^{1. Taiwan Green Productivity Foundation (2023). Energy Audit Annual Report for Non-Productive Industries 2023. Energy Administration, Ministry of Economic Affairs. Retrieved from https://www.ecct.org.tw}

^{2. IEA (2023), Electricity Grids and Secure Energy Transitions, IEA, Paris https://www.iea.org/reports/electricity-grids-and-secure-energy-transitions, Licence: CC BY 4.0}