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[New E360 Webinar] Why Retrofit Your Aging Supermarket Refrigeration Architecture?

AndrePatenaude_Blog_Image Andre Patenaude | Director, Food Retail Marketing & Growth Strategy, Cold Chain

Emerson Commercial & Residential Solutions

Many supermarket operators face a common dilemma regarding their refrigeration systems: they know they need to make changes or upgrade their legacy systems, but they’re not sure what their retrofit options are — or even where to begin. In our next E360 Webinar, I’ll offer guidance on how supermarket owners/operators can embark on this critical journey.

Join me on Tuesday, Aug. 13 at 2 p.m. EDT/11 a.m. PDT for this informative webinar.

[New E360 Webinar] Why Retrofit Your Aging Supermarket Refrigeration Architecture?

There’s no question that reliable refrigeration is the backbone of any supermarket operation; it accounts for more than 50 percent of the electrical consumption for an average supermarket. That’s why keeping your refrigeration system running at optimal efficiency is essential to maximizing profits and ensuring operational success.

But if you’re like many owners/operators, you’ve been relying on the same centralized refrigeration architecture for decades. During that time, these systems have typically experienced declining performance levels and energy efficiencies — all due to progressive deviations from their original commissioned states. And while these systems are perfect candidates for an upgrade or a retrofit, even newer systems can offer opportunities for improvements, especially within the context of today’s rapidly evolving industry and market dynamics.

Compared to just 10 years ago, the drivers behind refrigeration decisions have changed dramatically, and the days of a one-system-fits-all mentality are quickly becoming a thing of the past. Environmental concerns, energy costs, shifting regulations, shrinking store formats, consumer demands and omnichannel delivery have all irrevocably reshaped the supermarket landscape.

As a result, more supermarket owners/operators are reevaluating their existing (and often aging) systems while looking for any retrofit opportunities that are available to them. Our next E360 Webinar is designed with them in mind. To help you better understand the many factors to consider when evaluating a supermarket refrigeration retrofit, I’ll be discussing the following topics:

  • Industry and market trends driving the need for refrigeration system retrofits
  • How to identify deficiencies and baseline performances in centralized architectures
  • A look at the potential architectures of the future
  • Recommended technologies for retrofits and recommissioning
  • Energy-efficiency strategies for refrigeration, HVAC and the complete building envelope

As always, we will take time after the presentation to answer any of your questions. So, be sure to register now and add this event to your August calendar.

Supermarket Upgrades That Impact Energy Efficiency and Cost Savings

DarrenCooper Darren Cooper | President

Renteknik Group

At the E360 Forum in Houston last fall, Nik Rasskazovskiy, director of business development for ClearFlow Energy Finance, and I discussed the role of energy services companies (ESCOs) in helping grocery operators achieve and sustain long-term energy savings with end-to-end solutions. We shared our insights and experiences, as well as best practices and real-world case studies. Read more below, then view the full E360 Forum presentation.

According to Progressive Grocer Magazine, food retail is an almost $700 billion industry. Operating on razor-thin margins (generally a little more than 1 percent and only seeming to get slimmer every year), the industry is always on the lookout for new ways to cut costs and boost profitability.

Already making a considerable positive impact on the bottom line in other industries, ESCOs can offer grocery operators a new opportunity to reduce their energy spend — and increase profits.

Reducing energy spend is already a key objective for supermarket operators. ESCOs offer a systematic way to implement sustainable, long-term efficiency plans across their fleet with minimal risk or initial out-of-pocket expense.

How does it work?

ESCOs are in the business of developing, designing, funding and ultimately building turnkey solutions that save energy, reduce energy costs, and decrease operations and maintenance costs at their customers’ facilities.

ESCOs actually guarantee their clients a specific level of energy cost savings from the proposed project. They are subsequently compensated via the actual performance of the project, earning a percentage of the overall energy savings dollars for an agreed upon length of time. At the end of the term, the client keeps the savings for perpetuity.

In the presentation, I said, “The opportunities are real and the savings are real. We’re not doing anything that is really groundbreaking. This is not new technology. This is proven technology that you can actually utilize and implement in your systems. The ESCO part means that there’s no upfront cash necessary. We’re now in a position to provide this as a turnkey solution. We can work with your preferred equipment supplier and your preferred contractor, without needing any money, so you’re cash flow positive from day one.” And I meant every word of it.

The first step in your journey to energy efficiency: establishing a baseline

To identify savings opportunities, you must first fully understand your current energy consumption. Fortunately, today’s device-level power monitoring technologies offer real-time insights into your control systems and can help create “power profiles” by tracking usage across a wide range of temperatures and conditions.

Beginning from that baseline, the ESCO team works with food retailers to conduct comprehensive building and systems audits to identify opportunities for sustainable, long-term energy efficiency upgrades. This can take the form of refrigeration upgrades, variable frequency drives (VFDs), new cases or case controls, HVAC and demand control ventilation, and even renewable technologies if they make sense.

A proven process that’s yielded positive results, the ESCO methodology is sound and straightforward:

  • Building system audit completed — opportunities identified, target savings established
  • Client and ESCO enter into guaranteed, performance-based energy savings performance contract
  • ESCO secures financing
  • Project is built and commissioned
  • Ongoing monitoring and verification ensure that target efficiency savings are being met
  • Lender is repaid from savings
  • At the end of the term, the client keeps all savings

“It’s really a win-win situation,” noted Rasskazovskiy, who’s successfully navigated the financial end of projects across multiple industries. “Once the ESCO organizes everything, implements the project and the savings start trickling in, there’s a management process that verifies that the actual savings have been achieved. Those savings are shared between the end customer and the ESCO to pay out all the services costs, including financing. After the term of the contract is done, the customer is left with the same equipment and gets to enjoy 100 percent of the savings going forward.”

To learn more about ESCOs and the retail food industry, including real-world savings examples, watch the video here.

 

Beyond Saving: What’s Next in Supermarket Power Management?

JamesJackson_Blog_Image James Jackson | Business Development Manager
Emerson Commercial & Residential Solutions

Last fall, a gathering of food retailers, industry professionals and energy experts converged in Houston for our latest E360 Forum. This daylong event was packed with the latest news, views and best practices on hot-button industry issues: regulations, emerging technologies and more.

Matt Smith, project manager for San Diego Gas & Electric’s Emerging Technologies Group, and I explored fresh ideas on what the future holds for supermarket power management. What follows are just a few of our observations.

Future of lighting rebates dim

Utility incentive programs for food retailers, in all markets, are changing. Lighting upgrades and retrofits fueled by rebate incentives were once low-hanging fruit for commercial and industrial consumers alike. However, laborious rebate application processes have contributed to waning interest and participation — especially among food retailers. Policy and regulations have also had an impact. As CFL and LED technologies become standard, rebates are no longer seen as necessary to incentivize adoption and won’t help utilities reach their energy-savings targets. Now energy providers are looking for other more innovative and targeted ways to incentivize efficiency.

Collaboration key to more customer-centric incentives

Admittedly, supermarkets are an underserved market for utility companies. There are simply not a lot of programs designed with the distinct needs of grocery retailers in mind. However, Matt thinks this is changing.

“We’re moving toward a more vertical approach on how we run programs in the sense that we’re serving a customer segment rather than a [category] like refrigeration … That will lead to programs that are better suited for specific customer segments like supermarkets or convenience stores.”

Matt went on to say that utilities want to hear from food retailers. They welcome the opportunities to connect and collaborate — either directly or virtually. Many offer cooperative bodies, online forums and other ways to engage. In California, utilities and other energy professionals have created the Emerging Technologies Coordinating Council (www.etcc-ca.com) as way to collaborate, develop and facilitate new and emerging technologies. Other regions offer similar resources and channels.

Pay-for-performance programs offer opportunities for efficiency and innovation

Pay-for-performance programs are another relatively recent energy-efficiency trend — one that doesn’t rely on rebates or other incentive-based equipment purchases. It allows participants to identify various energy-saving measures. Payments are made over time and are based on actual energy savings measured at the meter.

The beauty of pay-for-performance programs is that they can offer an integrated, more holistic approach to energy efficiency. Savings can come from building retrofits and equipment upgrades as well as from behavioral or operational and maintenance activities. These programs also shift the responsibility for energy savings from the utilities to energy-efficiency project implementers — and can be real incubators for innovation, efficiency and new technologies. Less prescriptive and more proactive, they offer greater opportunity for collaboration and invention.

Power markets and effective demand management

Many utilities are incentivizing commercial and industrial customers to participate in demand management/demand response programs. These are developed to cut electric consumption during peak times of the day when electricity is in high demand. Effective demand management rewards customers who can conserve when the grid is taxed the most. While a proven practice in other industries and abroad, these programs are not commonly employed among food retailers in the U.S., even though the opportunities and technologies are available.

The high usage of electricity by supermarkets makes it very attractive to participate in these programs. However, reliability and flexibility in a supermarket’s HVACR and energy requirements are absolutely essential for success. Technologies like today’s smart refrigeration systems and thermal storage are ways to optimize thermal potential by shifting electricity usage at expensive times to lower-rate periods.

More grocery retailers of today are looking hard at current HVACR systems and exploring strategies and technologies to shift energy consumption without compromising food safety. We’re excited about the possibilities.

As I shared, “Demand management is becoming a really big deal using supermarkets. I use the term ‘virtual power plant’ pretty easily in this conversation. If you’ve got a flexible store and can provide thermal storage, you could actually use that store as a virtual asset for the utility. [It creates] a kind of push and pull with the power demand … All this stuff is extremely exciting, especially in this segment or business.”

Demand management programs and today’s power markets represent a real opportunity to generate revenue by using thermal capacity, transforming your energy-eating equipment into an energy asset.

To learn more about any of these programs and the emerging technologies that are driving them, watch the full E360 Forum presentation.

Commercial Refrigeration Industry Prepares for Next Generation of Refrigerants

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The commercial refrigeration industry is at a crossroads. In one direction, the Environmental Protection Agency (EPA) is proposing to ban many commonly used refrigerants in favor of low-GWP alternatives. In the other direction, the Department of Energy (DOE) is mandating significant reductions in energy consumption for reach-ins, walk-ins and ice makers by 2017. If that wasn’t challenging enough, the two regulations at times conflict — with the DOE’s new standards based on the EPA’s delisted refrigerants.

Read more

MAKING SENSE of Embedded Electronics in HVACR Equipment

While the prevalence of electronics continues to expand into nearly every aspect of our lives, the refrigeration and air conditioning industries have been slow to embed electronics in HVACR equipment. Unfortunately, the primary reasons for this reluctance can be attributed to a lack of awareness and education about the promise of electronically enabled systems.

For many OEMs, there is a fair amount of confusion surrounding the operation, maintenance and repair-ability of systems with embedded electronics. And among the consumer base, there’s a general misunderstanding about the value that electronics bring versus their perceived risks and costs.

Our next MAKING SENSE webinar will address these apprehensions and make a compelling case for electronic connectivity and system communications in HVACR equipment. Join us via webinar or in the booth at the 2015 AHR Expo on January 26 in Chicago, as we explore the potential of electronics and facilitate a panel discussion from Emerson’s lecture area in their booth, #5010, from 2–3 p.m. CST.

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In this complimentary webinar, we’ll explore the many advantages of embedded electronics, including:

  • Accurately diagnoses system problems the first time
  • Limits misdiagnosis and call-backs
  • Establishes improved maintenance contracts through better communications
  • Increases productivity through prognostics that identify potential failure points
  • Improves OEM installation verification and subsequent warranty issues

In an industry faced with disruptive equipment failures, a declining number of qualified technicians and increased service costs, we think it’s time to re-evaluate the many benefits of embedded electronics. With their tremendous untapped potential, electronics hold the promise of ushering in a new era of reliability in HVACR equipment.

The webinar will be led by Mike Murphy of The NEWS and include a list of distinguished panelists from a cross-section of our industry, including: John Wallace of Emerson Climate Technologies, Randall Amerine from AT&T, Paul Stalknecht of ACCA and George Hernandez from the U.S. Department of Energy.

We hope you’ll join us via webinar or in the booth on January 26 from 2–3 p.m. CST from the AHR Expo show as we are making sense of embedded electronics.

Learn more and register by visiting our website at: EmersonClimate.com/MakingSenseWebinars

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