Marino Says Infrastructure Investors Need Clearer Federal Framework

Andrew Marino, Co-Head of Carlyle Global Infrastructure at The Carlyle Group, defines infrastructure as the foundation that includes all the basic systems and facilities our country, state, and towns need to support our economy, which has been lacking due to the current regulatory regime. Mr. Marino discuss on Bloomberg how Public-Private Partnerships can be the key framework to improving infrastructure. Watch here: 

Microgrids – Resilience for Healthcare

Steve Pullins, Vice President of Development (Dynamic Energy Networks)

Maybe it’s me getting old, or maybe it’s going through the discussions with my Mom about Assisted Living, or maybe it’s the loss of life in a Florida healthcare facility during a hurricane, that my attention has turned to resilience in healthcare.

Whatever the reason, my exploration of resilience in healthcare has led to a few discoveries.

·     The senior population is doubling in the US

·     New medical technologies are bringing transformation (70% of hospitals are adding wings, buildings, and satellite facilities in the next 3 years)

·     Hospital energy use is 2.5 times a commercial building of the same square feet area.

·     Energy costs are a top concern of healthcare CEO’s (expected to double over the next 20 years)

·     Some hospitals in Ontario Canada have cut medical staff to enable paying the rising utility bills.

·     Hospitals must be at “full strength” during major storms, not limited to the portion of the hospital served by emergency generation.

Healthcare CEO’s have a dilemma. Do I spend our precious capital dollars on new technology and the life-saving measures it brings, or do I spend it on improving our energy situation?

For my personal reasons above, I hope the CEO decides to continually improve healthcare’s core mission.

Energy is not a core mission of healthcare. But, it brings to healthcare an energy dilemma. The growth of hospitals in footprint (often incremental in nature), digital technologies (requiring better power quality), and mission in the community (especially during storms) means more aggressive energy planning. The necessary energy planning must recognize the “new normal” in healthcare – growing senior population, rapidly emerging digital technologies, rising energy costs, increasing number and severity of major storms. Flexibility and resilience must become core to the energy objectives.

Healthcare (hospitals + the associated network of facilities) performance must be at its highest when the utility grid is most challenged – major storms. Major storms stress the community in public safety – the result is more accidents and injuries. Plus, the major storms make all other healthcare functions more difficult. Hence the need for healthcare to be in full performance mode.

However, most hospitals are set up to have only a portion of the hospital powered by emergency generation when the utility grid is lost. Most hospitals have critical circuits (operating rooms, intensive care units, etc.) powered by emergency generators on limited fuel supply. While there is not good data that tells us how much, most of the feedback suggests that a vast majority of hospitals are powered at a 50% level or less.

The healthcare “new normal” requires a more flexible approach to energy supply and improvements in the resilience of that supply. Flexibility recognizing that healthcare is in a digital transformation, and resilience recognizing that the community leans more heavily on healthcare during major storms and utility grid outages.

After exploring the intersection of healthcare and energy over the last 3 years, it is clear that Microgrids (in its many forms) offers the flexibility and resilience needed in healthcare to drive more self-determination and mission support from energy.

Microgrids, being an on-site energy resource, can add greatly to the flexibility of energy services as healthcare facilities expand with new digital technology-filled wings (70% of hospitals over the next three years).

Microgrids, being an on-site energy resource, can become the hospital-wide energy supply when a major storm hits and/or the utility grid is lost. This does not reduce the emergency generation, but adds to it. In fact, with seamless transitioning to an island mode when the utility grid is lost, the emergency generation may not be required to start, keeping it as that life safety backup needed – a defense in depth approach. Plus, instead of the hospital functioning at partial mission, the Microgrid enables a fully functioning hospital throughout the storm and aftermath.

While hospitals are at the center of the discussion, the rest of the healthcare system – urgent care clinics, assisted living centers, nursing homes, and doctor’s offices – can benefit from the same flexibility and resilience thinking. After all, if the rest of the healthcare system collapses when the utility grid is lost, the hospital will be expected to pick up all the slack.

There is a very good report on “Healthcare Microgrids,” Microgrid Knowledge, 2017 that delves into several important aspects of how Microgrids are perfectly aligned to provide the flexibility and resilience the healthcare industry needs for the new normal.

There are a few very good examples of where the Microgrid has transformed the hospital into a fully-functioning, islanded operation, when major storms hit:

·     Dell Children’s Medical Center (Austin, TX)

·     Utica College / Faxton-St. Luke’s Healthcare (Utica, NY)

·     Shands Cancer Hospital at the University of Florida (Gainesville, FL)

This needs to be the norm rather than the exception.

Originally Published on LinkedIn

Dynamic Energy Networks forms strategic alliance with Schneider Electric and The Carlyle Group to deliver Energy-as-a-Service

November 6, 2017

Media contact:
Sarah Golden

DEN bolsters leadership team with
former Hitachi and RET Capital executives

 SAN FRANCISCO — As the energy sector increasingly shifts from one-way, static power grids to two-way, dynamic power infrastructure, Dynamic Energy Networks (DEN) today announced strategic alliances with established energy and industrial sector powerhouses Schneider Electric and The Carlyle Group. DEN also announced that it has rounded out its leadership ranks by acquiring an executive team from Hitachi and RET Capital with decades of experience in development, technology and innovative financial structures.

“We established a platform to own and operate microgrids and distributed energy resources (DER) to serve organizations and institutions – from campuses to hospitals and the military – that demand predictable pricing and efficient, reliable energy,” said DEN CEO Karen Morgan. “Working together with Schneider Electric and The Carlyle Group, we aim to transform the market to deliver holistic Energy-as-a-Service with innovative financial and technology solutions.”

Energy-as-a-Service – such as discrete energy infrastructure systems that can operate either in connection with or independent of the utility grid for a customer – could grow to a $221 billion global business by 2020, a Navigant Research report estimated.

With the rise of the Energy-as-a-Service market, DEN is well-positioned to become a trusted and reliable provider of energy to commercial and industrial operations, municipalities, healthcare facilities, institutions, campuses and the military.

DEN’s business model represents the next phase in the grid’s evolution: highly connected, smart microgrid and DER infrastructure with bespoke and flexible financial and alternative ownership structures. Customers benefit from long-term power contracts that provide cost-effective, resilient and secure supply of clean energy; investors gain access to a diversified set of dynamic energy infrastructure across different market sectors and geographies.

“We’ve long been leaders in helping companies meet ambitious energy goals,” said Mark Feasel, vice president of Schneider Electric’s electric utility segment and smart grid business in the U.S. “Through our partnership with DEN and Carlyle, we can deploy solutions that leverage both world-class technology and new business models to transform the edge of the grid and optimize the energy value chain.”

“The energy industry has experienced a tremendous growth in awareness and usage of microgrids in just the last year alone,” said Andrew Marino, a Carlyle Managing Director and Co-Head of Carlyle Global Infrastructure, the firm’s infrastructure investing team. “We’re thrilled to leverage the expertise of Dynamic Energy Networks and to partner with Schneider Electric to deliver microgrid solutions that enable Energy-as-a-Service.” Equity for future investments by this strategic alliance will come from sources including Carlyle Global Infrastructure Opportunity Fund, a Carlyle fund that makes infrastructure investments.

Schneider Electric is a world leader in microgrid technology and solutions that designed, built and maintains more than 300 advanced microgrids. The Carlyle Group is a global alternative asset manager. Together, the firms will deliver the flexible financing and technology that restructures the market by providing Energy-as-a-Service.

DEN’s entry into the microgrid and DER field is a natural evolution for the company’s leadership team, which has decades of experience investing in the clean energy sector. Morgan’s 25 years of experience in energy and industrial finance includes leading RET Capital, a $750 million enterprise that backed utility-scale solar and wind generation assets across North America.

Also, DEN has rounded out its leadership ranks by acquiring a top-notch executive team from Hitachi and RET Capital with decades of experience in development, technology, and innovative financial structures. The new team members include:

  • Steve Pullins, Vice President of Development, has 40 years of utility industry experience in operations, maintenance, engineering, microgrids and renewables, including serving as vice president for energy solutions at Hitachi America and leading the U.S. Modern Grid Strategy for the Department of Energy’s National Energy Technology Laboratory.
  • John Westerman, Vice President of Technical Solutions, brings 30 years of experience in emerging energy technologies to the table, most recently as a vice president for Hitachi America working on microgrids and other advanced technologies.
  • Scott Rosebrook, Vice President of Corporate Development & Finance, has more than 25 years of corporate finance experience at renewable energy companies and leading financial institutions. Most recently, he was Vice President, Renewable Energy Specialist at KeyBank and, prior to that, Vice President of Corporate Finance & Treasurer for RET Capital.

“This team has the experience needed to develop innovative solutions in a rapidly evolving energy market,” Steve Pullins said. “Our team’s track record proves the strength of our value to customers and investors alike. We look forward to forging partnerships as reliable as our microgrid and DER infrastructure.”

About Dynamic Energy Networks

Dynamic Energy Networks (DEN) owns and operates of microgrid and distributed energy resources, connecting customers with cost-effective, resilient and secure clean energy and investors with access to the burgeoning Energy-as-a-Service market. Its infrastructure is ideally suited to serve commercial and industrial (C&I) sector, as well as the municipality, healthcare, institutional campus and military sectors.

About Schneider Electric

Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $174 billion of assets under management across 306 investment vehicles as of September 30, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.