Energy Efficiency Opportunities In Supermarkets


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How Supermarkets and Big box retailers can improve their energy efficiency by systematic approach and benchmarking.

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Energy Efficiency Opportunities In Supermarkets

  1. 1. Supermarkets(SM) Energy and Environment 1
  2. 2. Questions to ask “Yourself” Historical Are we performing better today than we were yesterday/ last week/ last month/ last year? External How is our performance related to that of others in similar situations? How do we compare with the average? How do we compare with the best? Can we do better? How much?How do we do it?
  3. 3. Background-Supermarkets Supermarkets are among most energy-intensive commercial buildings 5,000 MWh-eq/year for electricity in large supermarket (>10,760 sq feet or 1,000 m2 ) Over 5,000 large supermarkets in Canada Refrigeration and HVAC accounts for 70% of energy costs; lighting, 20% $150,000/year for refrigeration & HVAC in large supermarket Energy costs are ~1% of sales But this is approximately same as store profit margin Conventionally have very high refrigerant charges Average store has 1,300 kg of refrigerant Long piping runs result in leakage of 10 to 30% of charge per year Synthetic refrigerants are potent greenhouse gases (GHG) Can have over 3,000 times the effect of CO2 Supermarkets consume large amounts of energy, and utility costs have a significant impact on the supermarket’s overall profitability. The U.S Environmental Protection Agency (EPA) estimates that $1 in energy savings is equivalent to increasing sales by $59.
  4. 4. End-Use Profile for Supermarkets Supermarkets use an average of: Electricity: 50kwh/sq. ft/year and Natural Gas: 50 cubic feet/sq. ft/year At an average cost of more than $4.50/sq. ft (Assumed Electricity 0.09 c$/kWh and NG 0.01/cubic feet) Most of the electricity consumed by supermarkets is used for refrigeration &HVAC and space heating represents the largest use of natural gas The median supermarket uses approx. 190,000 Btu/sq. ft or 57 ekWh/sq. ft Conversion Notes :1 kWh = 3,412 Btu;1 Cubic Feet = 1,028 Btu;1 therm = 100,000 Btu; 1 Cubic Metre = 35.31 Cubic Feet, I therm = 100 cubic feet, I cubic metre = 0.36 therm Because refrigeration & HVAC alone accounts for over 70% of the energy consumed in a typical supermarket, it has the vast energy saving potential
  5. 5. Right Approach = Right Results Technological Change Behavioral Change Lighting, motor, heating, The habits of your store ventilating and air employees can affect whether conditioning (HVAC), energy gets used wisely. There domestic-water, energy- are opportunities to save energy control and building dollars by influencing system technologies are behaviours, improving constantly improving and knowledge and skills. becoming more efficient. Organizational Change Policies and procedures can help drive down utility costs, and support from senior management is crucial. Set up energy-reduction goals,present cost- reduction progress reports in staff meetings and regularly track utility costs through a bill-monitoring program in your accounting department.
  6. 6. Energy Efficiency-New Profit Center Increased profitability: Total annual energy costs to operate a supermarket are usually equivalent to net profit: Both are between 1 and 2 percent of sales. Therefore, a 10 percent reduction in energy costs can increase net profit by as much as 16 percent. Reduced vulnerability to energy price fluctuations: Energy prices may be sensitive to numerous external factors, including major weather events and changes in national and state regulations.Reducing a facility’s total energy consumption can soften the impact of energy price fluctuations. Increased sales: Improving the energy efficiency of a building usually involves upgrades to the lighting and HVAC systems. By creating a more pleasing shopping and working environment, these upgrades can also attract and retain more customers, leading to an increase in sales. Reduced shrinkage: Upgrades to refrigeration systems can reduce shrinkage of perishable goods while also saving on energy bills. Enhanced public image: With growing concerns over global warming and other environmental issues, many supermarket owners want to demonstrate to customers that they are responsible environmental stewards. Supermarket owners can upgrade their buildings to be more energy efficient as a way to achieve this goal. Energy Efficiency can improve your bottom line, increase profits and put your facility in a more price-competitive position – allowing you to concentrate on sales.
  7. 7. Phased Approach to Optimize - Existing Stores Phase 1 - Data Collection and Benchmarking Gather & Track Data:Collect energy bills for at least the past two years to track the store’s energy consumption. Determine Baseline:Establish an energy expenditure baseline,which is an average of several years’ use that provides the starting point from which to measure progress. Select units of measurement that accurately express energy performance for your store.Announce these performance baselines to key employees and managers. Benchmark Stores:Benchmarking offers grocers the ability to compare a store’s energy use against that of similar stores across the country.Amounts of refrigeration, store traffic,square footage, weather, climate, store’s physical attributes,operating characteristics, location and monthly energy use are taken into consideration. Benchmarking also provides a means for corporate managers to identify poorly performing stores for purposes of offering energy audits identifying energy efficiency opportunities. Phase 2 - Identification of Opportunities Energy Audit for Pilot Stores and Identify energy conservation measures(ECMs): In this Phase,stores with high EUI are audited to quantify possible energy efficiency savings.Typically an energy audit is conducted to seek opportunities to reduce the amount of energy input into the system without negatively affecting the output(s). Beyond simply identifying the sources of energy use, an energy audit seeks to prioritize the energy uses according to the greatest to least cost effective opportunities for energy savings.
  8. 8. Phased Approach to Optimize - Existing Stores Phase 3 - Pilot Test Based on the audits and benchmark data, recommended ECM’s are tested in identified pilot locations for validation before corporate roll out. Pilot test involves: Defining scope of work: Details of activities to be performed in the store for each recommended energy conservation measure Preparation of RFP: Development of detailed document to invite quotes/proposals from different vendors on a standard scope of work to get competitive pricing Financial analysis: Based on capital costs and incentives available, ROI is calculated to evaluate suggested measure’s financial feasibility in accordance with company’s objectives/ policy Implementation of recommended measures in accordance with specifications and scope of work Measure/verify savings and prepare a business case for large scale roll out plan Phase 4 - Roll out Based on verified savings realized for pilot stores, a detailed corporate roll out plan is developed and implemented.This phase involves: Developing detailed scope of work,equipment specs and schedule Selection of vendors to implement ECM’s Report on energy saving realization as roll out plan is executed Establish improved energy baseline for each store Phase 4 - Monitoring and Targeting The store’s optimized baseline becomes the new standard. Maintain this standard by setting performance goals and integrating energy efficient guidelines into corporate culture and operations.
  9. 9. Summary of the Energy Advantage Work with Supermarkets Supermarket A Supermarket B Supermarket C South Carolina Minneapolis MA • Over 250 Locations • Over 25 Locations • Over 55 Locations • Total 172 were considered for • Total 5 were considered for this • Total 3 were considered for this this project. pilot project. review. • EUI range from 47-77 ekWh/sq • EUI range from 85-140 • EUI range from 50-65 ekWh/sq ft ekWh/sq ft ft • Store age is from new to 30 • Store age is from new to 67 • Store age is from new to 74 years old years old years old • Refrigeration system is from • Refrigeration system is from • Refrigeration system is from distributed system to parallel distributed system to parallel distributed system to latest compressor racks compressor racks screw compressors. • Controls ranging from no • Large and full service formats • Controls ranging from no controls to controls on all (average size is 70,000 sq ft) controls to complete control and refrigeration , HVAC and • Large ventilation and air remote monitoring capabilities. lighting systems through conditioning systems. • Return air bypass system for Danfoss AKS55. • Controller are from CPC, maintaining low humidity. • Controller are from CPC, Danfoss and EIL • Maintenance is well managed Danfoss and EIL • Maintenance is totally with 10 in house personnel • Maintenance is well managed outsourced with no in house with 20 in house personnel expertise • Over $2M savings with payback • Over $75,000 savings in 5 in the range of 2 years stores with payback of approx 2 years
  10. 10. Why EA? Independent Expertise Experience Proven track record Complete solution up to Monitoring and Targeting
  11. 11. Next Steps Data collection and analysis High level review of potential opportunities Walkthrough audits to identify measures and business case for pilot project
  12. 12. Appendices
  13. 13. Data Collection & Benchmarking Benchmarking will allow store managers to compare their store energy efficiency performance in two ways: against the performance of similar buildings,and as a baseline to demonstrate changes in building performance over time The benchmarking tool alone will not reduce energy use: its purpose is to inform store managers about energy performance and to motivate them to make their buildings more energy efficient To calculate a “first level” benchmark requires only utility bill information that should be readily available without requiring energy audits of the store It can also help establish investment priorities to take advantage of energy efficiency opportunities
  14. 14. Store Energy Audit What is an energy audit? Analysis of energy used in the store Audit Review Areas Identifies where energy is used HVAC Systems Identifies opportunities to reduce to energy usage Building System Operation Prioritizes potential opportunities: Identifies most effective option Operational Procedures Determines efficiency upgrade Return on Investment(ROI) Building automation and Control Lighting and lighting Control Components of Audits Benchmark Review Pump and Motors Onsite assessment Energy Efficiency Measure Analysis Domestic Hot water systems Performance Report and Recommendations Process Equipment