September 13, 2018 Read More →

Kaiser Permanente signs 180MW renewable energy deal

Healthcare Finance:

Nonprofit giant Kaiser Permanente has rounded a significant corner in the healthcare system’s quest to be carbon neutral by 2020. The system has signed a definitive power purchase agreement for 180 megawatts of clean energy, which is enough to power 27 of its 39 hospitals. The purchase will enable the construction of “utility-scale” solar and wind farms, as well as a large battery-energy storage system.

The agreement will make Kaiser Permanente the biggest buyer of renewable energy in the U.S. healthcare sector, the system said. The solar farm and battery storage will be located in Riverside County. The wind farm will be located in Arizona; however, the power transmission will go directly to the California grid. The projects are expected to come online in 2020 and 2021.

Kaiser Permanente declined to specify the price of the energy purchase but said its long-term renewable energy purchases are designed to be cost-neutral or cost-saving over the life of the purchase agreements. Locking in set prices with long-term agreements ensures a hedge against fluctuating prices in the wholesale energy markets. and the agreements required “no investment” by the system.

“At Kaiser Permanente, we understand that one of the most effective ways to protect the health of the more than 68 million people in the communities we serve is by ensuring healthy environmental conditions. By investing in renewable energy and becoming carbon neutral, Kaiser Permanente is helping to prevent climate-related illness for people worldwide,” said Chairman and CEO Bernard J. Tyson.

Kaiser Permanente announced its unique goal in 2016 to become carbon neutral in 2020. So far, they have reduced their net greenhouse gas emissions by 29 percent since 2008 and cut water usage by 12 percent per square foot of building space since 2013, according to Kaiser Permanente.

More: Kaiser Permanente eyes carbon neutrality, better community health with renewable energy deal

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