Procuring electricity and gas efficiently: Focus on hospitals

Energy purchasing in hospitals is a key aspect of hospital management. Due to the high energy demand, which must be guaranteed around the clock, efficient procurement strategies, favourable purchasing times and intelligent energy data management play an important role. Hospital operators in Germany often have many hospitals or locations (energy consumption points) in Germany, which is another special feature of this sector. It is essential to manage energy costs well and to organise energy purchasing processes efficiently and optimally.

In today's article, we therefore focus specifically on this sector and the challenges it faces, highlighting the points that purchasers should be aware of and can implement thanks to digital processes. As over 12 per cent of all German hospitals have been loyal long-term users of the enPORTAL connect energy platform since its launch in 2008, we have a broad knowledge of this customer group from the healthcare sector.

Energy demand and utilisation

Hospitals are among the most energy-intensive facilities in the healthcare sector. Energy consumption mainly results from

1. Lighting and air conditioningPermanent lighting and air conditioning of operating theatres, patient rooms and laboratories
2. Medical devicesUse of energy-intensive devices
3. IT infrastructureOperation of servers, computers and communication systems
4. Heat supplyHeating the buildings and providing hot water

Requirements and framework conditions in the hospital

When it comes to energy purchasing, hospitals have several special features that distinguish them from other facilities. These special features result from the specific requirements and framework conditions that apply to hospital operations:

1. Constant operational readinessHospitals are in operation 24 hours a day, 365 days a year. This requires a continuous and reliable power supply without interruptions, as a power failure can have life-threatening consequences.
2. High safety requirementsHospitals must comply with special safety standards in order to guarantee the supply of critical areas such as intensive care units, operating theatres and emergency rooms. This also includes the need for redundant energy sources and emergency power generators.
3. Compliance with regulatory requirementsHospitals are subject to numerous legal and regulatory requirements in terms of energy efficiency and environmental compatibility.
4. High energy consumptionEnergy consumption in hospitals is very high due to the operation of energy-intensive equipment and the maintenance of a constant climate in many areas. This makes energy purchasing particularly important in terms of cost management and increasing efficiency.
5. Long-term planning and budgetingHospitals need to plan and budget for their energy requirements over the long term. Price fluctuations on the energy market can have a major impact on operating costs, which requires careful planning and possibly the conclusion of long-term supply contracts.
6. Sustainability and environmental friendlinessDue to the increased awareness of environmental and climate protection, many hospitals are endeavouring to achieve the most sustainable energy supply possible, over and above the measures required by law. This includes the use of renewable energies, the implementation of energy-efficient technologies and measures to reduce CO₂ emissions. Similarly, investments in solar systems, for example, can ensure lower energy costs in the long term and reduce dependence on external suppliers
7. Technological developmentsHospitals must always remain at the cutting edge of technology, including in terms of energy supply. The integration of smart grid technologies, energy management systems and innovative storage solutions can help to optimise energy efficiency

Points to consider before purchasing energy:

In order to optimise energy purchasing, it is important to develop a suitable purchasing strategy. A number of basic points can be listed which hospitals should before energy procurement are generally carried out:

1. Energy auditRegular energy audits to identify potential savings and optimisation opportunities
2. Load managementUse of load management systems to control and reduce consumption peaks in order to save on grid charges
3. Renewable energiesIntegration of solar, wind or geothermal energy systems for in-house power generation to reduce dependence on external suppliers
4. Energy efficiency measuresInvestments in modern, energy-efficient technologies, such as LED lighting, energy-saving HVAC systems (heating, ventilation, air conditioning) and efficient medical technology

Intelligent energy data management

Once these points have been taken into account, the next step is intelligent energy data management, in which all consumption points (locations) and consumption are incorporated and bundled. What used to be done with Excel (and still is in some hospitals) is now efficiently implemented with energy platforms such as enPORTAL connect. All consumption points, consumption, costs and contracts are stored on the platform and are automatically updated - plus: linked to the public, regularly changing grid fees, taxes, levies and charges for electricity and gas.

Digital tendering with maximum competition

With energy platforms, the tender information and load profiles are transmitted to the energy suppliers at the click of a mouse. The price offers appear after the end of the tendering process in a bidder overview, sorted according to the best energy price. This eliminates the tedious task of comparing prices. The contract is concluded online and after confirmation, the agreed contract is returned to the "Contracts" tab on the platform, which serves as a digital filing cabinet.

Parallel tenders - little effort

Hospitals often do not put their energy requirements out to tender for all consumption points at the same time, but split up the locations or consumption points - which makes perfect sense, as the load profiles and therefore the prices charged by the suppliers differ depending on the consumption point or hospital. In the days of Excel, all locations were often tendered together because it was simply too much work to send the individual values to several suppliers. In the business customer sector, energy suppliers use the load profile and take into account many other points such as creditworthiness, image or regionality. Digital processes and tenders via energy marketplaces are completed in just a few hours, meaning that hospitals can now easily launch and process several tenders in parallel - and reach up to 700 energy suppliers each time. This means that they often have to issue several tenders per year and keep track of all agreed supply contracts, which may contain different delivery times and conditions. This is where the clear advantage of energy platforms becomes apparent, as they bundle all energy data precisely, completely and always up-to-date and manage it correctly in the digital filing cabinet on the platform.

Long-term budget planning is important for hospitals

Electricity and gas are traded daily on the stock exchange. Even the smallest changes in the cent range can lead to noticeable cost changes given the high consumption of hospitals. It is therefore important to constantly monitor the exchanges and then act when the values meet the individual requirements and energy costs can ideally be reduced compared to the previous year. Intelligent energy price forecasts, such as those from enPORTAL connect, help to find the right times to purchase and to make economic predictions at any time (you can find our article on the benefits of energy price forecasts here: https://www.enportal.de/connect/presse/was-sind-die-vorteile-digitaler-energiepreisprognosen/).

Target prices support purchasing decisions

As all energy consumption data is linked to the exchange prices and the suppliers' actual mark-ups, energy buyers can see on a daily basis what costs a current tender would incur. This information helps them to decide whether to enter the market and purchase energy or wait and see. Automatic notifications to the buyer by e-mail when set target prices are exceeded or undercut minimise the effort involved in monitoring the market (details on target prices can be found in this article: https://www.enportal.de/connect/presse/enportal-praesentiert-optimiertes-digitales-energiepreis-monitoring/)

Conclusion: industry is well positioned

"We have been working intensively with many hospital operators for over 16 years and now have a market share of 12 per cent in this area, so we believe that the sector is well positioned and far ahead of others in terms of digitalisation," says Clemens Graf von Wedel, Managing Director and owner of enPORTAL: The industry is well positioned and far ahead of others when it comes to digitalisation in the energy sector," says Clemens Graf von Wedel, Managing Director and owner of enPORTAL.

The explanations have shown that energy platforms offer the best conditions for organising energy purchasing efficiently, safely and optimally, especially for the concerns of hospitals.

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