Client: A large network of hospital and clinics
Sector: Healthcare / Private Equity
Location: Indonesia
Client Since: 2025
Ambition: To systematically identify and quantify energy inefficiencies across a large hospital portfolio, establish a data-driven performance benchmark, and develop a prioritized roadmap for energy cost reduction at scale.
Services: Hospital Energy Efficiency Benchmarking | Onsite Energy Efficiency Assessment | Energy Efficiency Management Strategy & Roadmap | Energy Efficiency Guidelines for New Builds
About the Client
A leading private equity firm with a significant investment in one of Indonesia’s largest hospital networks engaged RESET Carbon to design and deliver a comprehensive energy efficiency management program. The hospital network operates more than 40 hospitals and 70 clinics across the country, spanning multiple facility archetypes with varying operational profiles, levels of service complexity, and energy demands. The program aimed to reduce energy costs across the portfolio while establishing a foundation for long-term decarbonization and improved energy management practices.
The Challenge
As part of a value creation initiative led by its private equity sponsor, the hospital network was tasked with improving its understanding and management of energy performance across its portfolio. With energy costs rising in Indonesia and expenditure spread across more than 40 geographically dispersed facilities, the challenge was to understand where improvement opportunities were both material and practical to implement. Without a standardized benchmarking methodology tailored to the portfolio’s diverse operating models and facility types, it was difficult to prioritize interventions and build a robust roadmap for energy cost reduction and long-term decarbonization.
Our Approach
RESET Carbon deployed a two-phase program, with Phase 1 focused on establishing a rigorous benchmark and conducting onsite assessments at five representative sites, while Phase 2 focused on scaling assessment findings into a portfolio-wide efficiency roadmap and developing guidance for new buildings.
Hospital Energy Efficiency Benchmarking: RESET developed a bespoke multiple linear regression model using data collected across all 41 hospitals, incorporating key variables including operational area, occupancy rates, hospital types, and HVAC system type, selected through careful statistical methods to achieve the best possible fit. This model generated a Predicted Energy Utilization Index (EUI) and an Energy Efficiency Ratio (EER) for each hospital. The EUI provided a basis for external comparison against regional and international benchmarks, while the EER revealed the degree of operational inefficiency within each site relative to its own predicted performance. Hospitals with an EER greater than 1 were consuming more energy than their characteristics would predict, flagging them as priority targets for intervention.
Onsite Energy Efficiency Assessments: Five representative hospitals were selected for in-depth onsite assessments, spanning all four hospital archetypes and a range of HVAC configurations, to identify the root causes of the inefficiencies surfaced by the benchmarking model. Each assessment involved a two-engineer, two-day site visit covering HVAC systems, lighting infrastructure, UPS battery management, and operational practices, resulting in specific improvement recommendations with estimated energy savings, capital requirements, and payback periods.
Energy Efficiency Management Strategy and Roadmap (Phase 2): Building on Phase 1 findings, RESET is developing a portfolio-wide implementation roadmap that extrapolates onsite insights to all 36 non-assessed hospitals, organizes measures into short-, medium-, and long-term implementation tiers, and integrates capital expenditure and payback analysis to guide investment prioritization.
Energy Efficiency Guidelines for New Builds: Findings from the benchmarking exercise and onsite assessments are being translated into design and performance guidelines for future hospital developments, locking in energy efficiency from the point of construction.
Key Findings
The assessment provided a clear view of energy performance across the hospital portfolio and identified significant opportunities to improve efficiency and reduce operating costs. The analysis revealed substantial variation in energy performance between facilities, highlighting a number of priority sites with the greatest improvement potential.
Overall, the identified opportunities represent meaningful energy and cost savings across the portfolio, with the potential to reduce total energy consumption by approximately 7.5 to 10%. Key improvement areas include building systems optimization, operational efficiency measures, and targeted capital investments, many of which offer attractive payback periods and can support both cost reduction and long-term decarbonization objectives.
Across the five onsite-assessed hospitals, RESET identified approximately 8.5 GWh per year of energy saving potential, translating to close to USD $550,000 in annual cost avoidance, with an average payback period of less than 5 years.
The findings also uncovered several portfolio-wide opportunities to strengthen asset management and operational practices, creating additional value beyond direct energy savings. Together, these insights provide a foundation for a structured energy management strategy and a roadmap for future implementation.
Results
The program established a standardized and statistically robust energy performance framework tailored to the hospital portfolio, providing both the private equity sponsor and portfolio company leadership with a clear, quantified understanding of energy performance across all facilities. The assessment identified the business case for targeted improvement measures.
The total annual energy cost avoidance potential across the portfolio is estimated at between approximately USD $390,000 and over USD $2,600,000, depending on the level of performance improvement achieved. These recurring savings opportunities provide a compelling financial rationale for continued investment in energy efficiency and operational optimization initiatives.
The identified opportunities were translated into a site-by-site implementation roadmap, supporting the systematic deployment of energy-saving measures across the portfolio and advancing longer-term decarbonization objectives.
To learn more about how RESET Carbon supports private equity firms and healthcare operators on energy efficiency and decarbonization, please contact us.