As electricity prices continue to climb and greater demands are placed on the power grid, healthcare organizations are recognizing that the renewable energy strategy once considered a “nice-to-have” to meet sustainability goals is now a must-have to secure reliable, affordable energy and meet responsibilities for patient care.
While building on-site infrastructure is an option for some, incorporating renewables into electricity contracts allows healthcare organizations to scale participation while improving cost control and overall resiliency.
Why renewables are no longer optional
The electrical grid’s aging infrastructure, extreme weather events and climate impacts are just some of the reasons why healthcare organizations need to integrate renewable energy into their electricity contracts now, explains Nikko Giovino, Assistant Vice President, Strategic Sourcing, Commercial Products at HealthTrust. Other reasons include the rising demand for electricity that comes from data centers, electric vehicles, heat pumps and even artificial intelligence.
“We’re seeing increases of 200% across the board right now for delivery costs associated with supply,” Giovino shares. “If hospitals can get off the grid, it creates resiliency and is a strong price avoidance tactic.”
It’s not just about saving money. “Having renewables in your energy portfolio also means protecting patients,” Giovino says. “Think of it as a resiliency play, as lives could be lost if a hospital’s power grid goes down.”
“High-level discussions can lead to tailored solutions that strengthen energy reliability while delivering long-term cost management.”
Bill Miller
Debunking the reliability myth
Despite the promise of renewables, there is still some reluctance to rely on them, says Bill Miller, HealthTrust’s Director, Strategic Account Integration, Energy. “The reluctance centers around if the sun doesn’t shine, they’re not getting any electricity from solar. If the wind doesn’t blow, there’s no generation from the wind projects,” Miller explains. “And while that’s true, there are firming products that can be added to the energy portfolio that ensure electricity accessibility even if the sun isn’t shining in their location.”
In practice, this may involve participating in large utility-scale projects, such as a facility generating hundreds of megawatts of electricity, and contracting for only a portion of that output. And that can be done over a number of projects in a variety of locations. Think of it as being like a diversified 401(k) portfolio, Miller says: If one system is out, there are others to rely on.
“If hospitals can get off the grid, it creates resiliency & is a strong price avoidance tactic.”
Nikko Giovino
Optimizing renewable options
The power purchase agreement (PPA) is one of the most powerful tools for integrating renewables into an energy strategy, Giovino and Miller suggest.
PPAs allow healthcare organizations to purchase renewable energy from off-site projects or support the development of on-site infrastructure at a fixed rate, typically over 10- to 20-year terms and often with no upfront capital investment.
“With a PPA, you’re going to get resiliency, you’re going to have more budget certainty, and you’ll be able to hit sustainability goals quicker than with most projects,” Giovino says.
The value proposition, Miller adds, is hard to ignore: “If you can lock your price in for 15 to 20 years with no escalation, why wouldn’t you do it?”
Long-term commitments can feel daunting, but organizations don’t need to transition fully to renewables to see meaningful benefits. Even covering 30% of energy needs through fixed-price renewable contracts can generate substantial savings as market rates for the remaining supply continue to rise.
Taking the first step
Miller and Giovino encourage leaders not to be intimidated by long-term contracts or lingering concerns about reliability.
“We’ve got to be more serious about this now,” Giovino says, noting that competition for renewable projects is intensifying. “A lot of big firms like Amazon, Facebook, Google—if there’s a power project out there, they’re going to snap it up before you blink.”
A strong starting point is connecting with HealthTrust’s Energy team. Whether an organization is evaluating a single project or exploring a broader renewable strategy, the team can assess opportunities, weigh risks and identify the most effective path forward.
Healthcare organizations shouldn’t assume renewables are out of reach. “Let us do an analysis,” Miller says. High-level discussions can lead to tailored solutions that strengthen energy reliability while delivering long-term cost management.
Share Email Commercial, Energy Savings, ESG, Facilities Management, Q1 2026
