Decarbonising the NHS estate: Why Energy Management Systems are no longer a nice-to-have

Published: 31-Jul-2025

Kevin Gilhooly, Interim Healthcare Solutions Lead at MRI Software, explains why smart energy management is no longer a back-office function but a critical driver of sustainable, compliant, and high-performing NHS estates

With the next wave of NHS Green Plans due in July 2025, healthcare leaders are under growing pressure to deliver measurable carbon reductions.

Turning climate targets into actionable strategy

The NHS is targeting net zero emissions by 2040, with updated Green Plans due from all Trusts and Integrated Care Boards by July 2025.

For estates and procurement leaders, the challenge now is execution and being able to translate policy into visible, trackable action.

With the next wave of NHS Green Plans due in July 2025, healthcare leaders are under growing pressure to deliver measurable carbon reductions

To meet these ambitious targets, organisations must move quickly. Access to Public Sector Decarbonisation Scheme (PSDS) funding provides a unique opportunity, but only for those equipped to deploy smart infrastructure and report on impact.

At the heart of this lies energy data: knowing exactly where energy is being used, wasted, and saved.

Decarbonisation begins with data

In a sector with aging infrastructure and increasing operational demands, traditional energy reporting methods are no longer fit for purpose.

The NHS is targeting net zero emissions by 2040, with updated Green Plans due from all Trusts and Integrated Care Boards by July 2025

Many Trusts still rely on spreadsheets or fragmented systems, leading to gaps in data and missed opportunities. Energy consumption in hospitals is complex varying significantly across sites, departments, and time of day. Without granular insight, it’s difficult to prioritise investment or prove returns.

That’s where smart energy platforms come in: enabling estates teams to track usage in real time, spot inefficiencies early, and model future savings.

How one NHS Trust turned energy data into strategic value

One NHS Trust recently overhauled its approach to energy management. Facing increasing board scrutiny and looming Green Plan deadlines, the organisation struggled with manual reporting, poor data quality, and limited forecasting capabilities.

By implementing a centralised energy management platform, the Trust consolidated data from meters, bills, and historic records into one system.

Automated alerts highlighted anomalies, such as unexpected consumption spikes, allowing rapid response to faults or
inefficiencies.

Accurate reporting ensures adherence to regulatory targets

Forecasting tools enabled scenario modelling against NHS net zero milestones, helping the team build phased investment plans.

In addition, estimated savings in excess of £100k were identified, which the Trust is expected to receive over the coming years.

Crucially, dashboards and tailored KPIs empowered leadership to track progress, support procurement decisions, and justify further decarbonisation spend.

Looking beyond efficiency and compliance

The Trust’s experience reflects a broader trend: energy platforms are no longer just for efficiency; they are essential to compliance, business case development, and infrastructure planning.

Accurate reporting ensures adherence to regulatory targets, while visibility across the estate helps identify priority assets for retrofit or upgrade.

Forecasting tools enabled scenario modelling against NHS net zero milestones

The system also supported forward-looking planning. With emissions forecasts and cost-saving scenarios, the Trust could assess the ROI of potential projects, which is critical when bidding for PSDS funding or negotiating contracts with suppliers.

Linking energy insight to clinical performance

While energy management often sits within estates, its impact on clinical care should not be underestimated. Inconsistent environmental conditions, such as temperature or air quality, can directly affect patient safety and recovery, especially in critical areas.

Smart platforms integrated with IoT sensors allow for real-time monitoring of key zones, ensuring compliance with clinical standards.

This level of intelligence transforms NHS estates from passive buildings into responsive systems that optimise themselves in real time

Alerts for out-of-range fridges, overheating wards, or failing HVAC systems help prevent disruptions and avoidable costs.

These systems also contribute to regulatory readiness, aligning with Care Quality Commission (CQC) expectations for safe and effective environments.

Building the business case for smarter, intelligent infrastructure

As capital investment flows into healthcare estates, energy platforms offer decision-makers the data backbone needed for intelligent infrastructure.

Rather than reactive maintenance, Trusts can implement predictive strategies linked to asset performance. CAFM integration ties energy usage to equipment lifespan, enabling more strategic procurement and maintenance planning.

This broader visibility opens the door to smarter procurement

IoT-enabled platforms also capture environmental metrics—like humidity, lighting, or occupancy—which can trigger automated adjustments to reduce unnecessary consumption without impacting comfort or care.

This level of intelligence transforms NHS estates from passive buildings into responsive systems that optimise themselves in real time.

Enabling system-wide visibility

With the move toward Integrated Care Systems (ICSs), joined-up data across estates is becoming essential. A system-wide view of energy performance – whether it’s by individual site, Trust, or region – can provide valuable insight for strategic planning and investment.

With Green Plans due imminently, NHS leaders must act decisively

This broader visibility opens the door to smarter procurement, such as shared contracts or funding applications, as well as regional benchmarking.

ICSs can identify high-performing sites, replicate successful strategies, and present unified business cases for decarbonisation grants.

Leadership through insight

With Green Plans due imminently, NHS leaders must act decisively. Those receiving PSDS support must show measurable progress; others should use this window to build a compelling case for future funding.

Success will depend on timely, reliable, and actionable energy data. Trusts that embed smart energy systems now will be best placed to reduce emissions, secure investment, save money and future-proof their infrastructure.

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