Auckland City Hospital has come up with its own solution to New Zealand's persistently high electricity prices.
The hospital has built its own mini-power station, which is now helping it save money and the environment.
Mike Suggate of Energy for Industry says the hospital can produce electricity cheaper than can be supplied from the grid.
The installation cost $7 million, but the savings are immediate.
The gas-fired generators become economic when spot electricity prices hit $50 a megawatt per hour. That is what happened in February, when prices soared to a peak of $80 before levelling out above $70.
While businesses have been slow to adopt the technology, attitudes are changing.
"When their energy costs rise, their budgets are stretched, and that is a good incentive for them to think outside the square," says David Reid of Energy for Industry.
Less than 10% of the nation's power is generated this way.
Meridian Energy CEO Keith Turner says major users like hospitals, dairy factories, and timber mills should follow Auckland City Hospital's lead.
"I don't think problems with transmission constraints are going to go away quickly," saysTurner.
Co-generation plants take pressure off the national grid are more efficient than most energy sources and have added benefits like being able to recycle heated water.
"These facilities are very efficient, they use less fuel, and therefore save on carbon tax and apart from that they are very clean running," says Suggate.
Even the roof of the power plant is being put to good use - it is now providing carparking spaces worth around $200,000.
