CR4HC Case Study: Kaiser Permanente

Solar Power for Decarbonization and Resilience

Kaiser Permanente is an integrated health system that provides healthcare to more than 12 million people across eight states and the District of Columbia. Aligned with its mission to care for its members’ health, the organization strives to minimize its contribution to global greenhouse gas emissions and maximize community resilience. The health care system aims to reduce its greenhouse gas emissions by 50% by 2030 and become net zero by 2050 (Tackling Climate Change to Drive Health and Health Equity, n.d.). In alignment with these goals, Kaiser Permanente operates more than 75 Leadership in Energy and Environmental Design (LEED)-certified facilities, including several that have attained LEED Platinum certification (Leading in Sustainable Building Design, n.d.). In addition, Kaiser Permanente has installed on-site solar generation at more than 100 facilities, which provides about 5% of the company’s annual electricity requirement. Kaiser Permanente also seeks to increase its sustainability and ensure continuous operations should an emergency occur. To accomplish this goal, it works with government agencies, local power providers, and energy companies to design and implement green energy alternatives and backup energy solutions. For example, Kaiser Permanente is identifying opportunities to increase solar production and reduce its reliance on diesel-powered back-up generators by incorporating solar and energy storage at both existing and new facilities.

Energy Resilience in Ontario, California

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Hospitals require reliable power 24-7 to maintain operations and provide a suitable environment for their patients, providers, and equipment. Reliance on local electrical grids can be costly and prone to disruption. Between 2000 and 2023, nearly 61% of California’s 238 major power outages could be attributed to extreme weather such as high winds, wildfires, or heatwaves (Freedman, 2024). Hospitals are required to maintain a backup energy source to minimize the impact of power fluctuations and remain functional should an emergency occur, as described in the National Fire Protection Association (NFPA) Health Care Facilities Code 99. Diesel-fueled backup generators are commonly used. However, they cause local air pollution, can be expensive to operate, and can experience fuel delivery disruptions. The 2021 edition of NFPA Code 99 permits the supply of emergency power by alternative energy sources, including microgrid systems (small-scale electrical grids where the sources of electricity can be provided by clean energy technologies). In 2023, the Centers for Medicare & Medicaid Services released a categorical waiver aligning with the guidance of the 2021 NFPA Code 99, allowing renewable energy microgrids to be used as backup power systems for health care facilities. The Kaiser Permanente hospital in Ontario, California, is incorporating reliable solar power through a collaboration with Faraday Microgrids.  

Kaiser Permanente will have a 2-megawatt solar array on parking lot canopies and the top deck of its Ontario hospital parking garage. The advantages of the canopy arrays are twofold: The flat surface enables maximum sun exposure for the solar panels while the canopy provides patients and staff with much needed shade. The arrays are connected to a series of batteries that can store 9 megawatt-hours of energy; this portion of the project was funded by the California Energy Commission. This energy storage enables Kaiser Permanente to reduce its operating costs and greenhouse gas emissions by minimizing grid power requirements during peak periods experienced by the California electrical grid (e.g., when A/C use is greatest). Lowering power draw during peak periods decreases the overall reliance on peaking power plants—those activated during high-energy requirement periods that commonly generate significant carbon dioxide emissions (California Peaker Power Plants: Energy Storage Replacement Opportunities, 2020). This solar project, in addition to energy management systems that include fuel cells, is estimated to save the Ontario hospital more than $150,000 per year while reducing greenhouse gas emissions. The renewable energy microgrid at the Kaiser Permanente Ontario Medical Center will provide cleaner, more reliable electrical power for day-to-day use and will serve as the emergency power backup system during commercial power outages. Although diesel backup generators stay on site, they serve only as a backup to the microgrid system. 

Maintaining Operations in Oahu, Hawai’i

Kaiser Permanente recognizes that most day-to-day health care procedures are performed in outpatient facilities. These facilities do not currently have the same strict emergency power supply regulations as hospitals. However, power disruptions are costly for outpatient facilities, impair patient access to essential services, and can result in increased patient surges to acute care facilities. At its outpatient facility in Oahu, Hawai’i, Kaiser Permanente seeks to increase resilience while decreasing emissions and reducing overhead costs in a manner similar to that of the Kaiser Permanente hospitals.  

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Through a power purchase agreement, the West Oahu facility now features a series of parking lot canopies that support a 388-kilowatt solar-panel microgrid. Batteries have also been installed, enabling the use of stored solar energy during evenings and storage of excess energy when the panels produce more electricity than the facility can use. With the added benefit of battery storage, the campus obtains 72% of its energy from the solar microgrid. Over a 12-month period, the facility saved approximately $100,000 on energy costs alone. The batteries also serve as a source of backup power during utility disruptions, enabling the facility to continue providing care in emergency situations. This solution has helped the Oahu outpatient facility to further reduce its carbon footprint, save costs on energy that can then be redirected to patient care, increase resilience, and align with Kaiser Permanente’s mission to protect the health of the communities it serves. Visitors can follow a walking path that circles the facility’s grounds, called “Kealahoolaupa`i”—a path to better health. Along the way are waypoints that share mo`olelo, or stories, about the Kapolei area.