Addressing Military Treatment Facility Sustainment and Resilience Needs through Energy Savings Performance Contracts

Article | The Big Room 

Thomas “T.W” Williams, Business Development Manager of Southland Energy, explains how the sustainment, restoration, and modernization (SRM) of Medical Treatment Facilities (MTFs) is paramount for the transition to one system managed by the Defense Health Agency (DHA). Repairs, replacements, retrofits, and/or capital improvements should be addressed by the Military Health System (MHS), which is comprised of 52 hospitals, 401 medical clinics, and 246 dental clinics across the country and worldwide. Overall, the average energy use is 12 million MMBtu per year, resulting in $300 million annual energy spend. Healthcare systems that successfully address the infrastructure and resilience requirements will see a positive impact on performance and energy savings.

The critical funding challenges the DHA is facing could be solved by introducing third party financing through Energy Savings Performance Contracts (ESPCs) or Utility Energy Services Contracts (UESCs). The Department of Veterans Affairs reported in December 2020 that they have leveraged $912 million in third party financed ESPCs/UESCs at 83 medical centers, resulting in $53 million in annual energy and operational savings.

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