Energy Saving Opportunities and Tactics for Retail

1 Energy Saving Opportunities and Tactics for Retail INTRODUCTION. Energy efficiency upgrades present a distinct n Energy Management Systems (EMS) (page 17). opportunity for retailers of all sizes and offer an n Plug Load Management (page 20). effective cost Saving With 657,000 Retail buildings or of US commercial building Each opportunity is organized into a standard space retailers currently spend over $21 billion template: per year on Energy Over $3 billion n Opportunity summary of these expenditures could be avoided through n Progression of typical management maturity efficiency measures, according to a recent Schneider Electric These costs, which account roadmap, from RILA's Retail Energy Management for up to 8% of total operating expenses, present Maturity Matrix ( ).

2 Numerous challenges to businesses, but are entirely n Description and background manageable with the implementation of a cost- n Benefits, including cost savings , productivity effective Energy management enhancements, etc. n Resources, including technical resources, case RILA's Retail Energy Management Program ( org/ Energy ) works with the Retail industry to identify studies, and related programs, from RILA's Retail and act on those Energy savings Opportunities Energy Management Resource Library ( by helping companies to (1) mainstream leading org/ Energy ). practices and (2) develop next practices . Figure 1: Retail Energy Use by Building System Key Opportunities for Energy savings exist across 10% 7%.

3 Major building performance areas (see Figure 1). including: Refrigeration n Lighting (page 2) Lighting 35% Heating, Ventilation n Heating, Ventilation and Air Conditioning (HVAC) and Cooling (page 6) 48% Other n Refrigeration (especially for grocery store formats) (page 9). n Energy Storage, Generation and Demand Source: Pacific Northwest National Laboratory, 2011. Response (page 12). 1 The Retail Industry Leaders Association recently issued a Retail Energy Management Maturity Matrix as a roadmap for Retail Energy managers to help optimize their Energy programs. For more information visit: 2 Energy Star. Energy Star Building Upgrade Manual: Retail Stores.

4 Chapter 13. (January 2008). 3 Jamieson, Meriah. A $3 Billion Opportunity: Energy Management in Retail Operations. Schneider Electric. (2014). 4 EPA. Sector Collaborative on Energy efficiency Accomplishments and Next Steps: National Action Plan for Energy efficiency . (July 2008). Retrieved from EPA: documents/ 1. LIGHTING. Energy efficient lighting represents one of the largest and most cost-effective areas to achieve immediate Energy and cost savings , primarily through LED lighting upgrades, effective use of daylighting, and installation of occupancy sensors. Lighting accounts for 35% of Energy use5 and $ billion in potential savings across the Retail industry6.

5 Lighting - Retail Energy Management Maturity Level of Activities at that maturity stage . Maturity Starting n Periodically reviewing lighting options Standard n Using T8 fluorescents for interior lighting n New construction uses LED for all exterior and sign lighting n Occupancy sensors where appropriate in new construction n Testing in-store high performance lighting and developing rollout plans n Implementing centralized control and monitoring Excelling n Implementing portfolio-wide high performance lighting rollout where appropriate n Merchandising and Energy team coordination in lighting design n Retrofitting site and sign lighting with LEDs n Retrofitting with occupancy sensors Leading n High

6 Performance lighting implemented throughout stores, corporate offices, data centers, DCs, and parking lots where appropriate n Daylight harvesting strategy in place where practicable n Building and space designs are optimized to reduce lighting use and follow Illuminating Engineering Society (IES) recommended practices Next Practice n Piloting next gen systems that integrate the lighting with other Energy consuming systems n Working with vendors of other in-store Energy -consuming devices ( vending machines) to reduce lighting load of their systems 5 Pacific Northwest National Laboratory & PECI. Advanced Energy Retrofit Guide for Retail Buildings.

7 Department of Energy , Energy efficiency & Renewable Energy . (September 2011). Retrieved from 6 Jamieson, Meriah. A $3 Billion Opportunity: Energy Management in Retail Operations. Schneider Electric. 2014. 2. LED Lighting Background LED lighting is a form of light that is significantly more Energy efficient than traditional incandescent, metal halide, or fluorescent light bulbs. LEDs are most commonly used to replace less efficient overhead indoor lights. They also are very effective for product accent lighting because the light is more focused than other lights, making it easier to direct Walmart Lighting Upgrade with GE LEDs onto costs resulting from increased tube lifespan, Benefits reduced greenhouse gas emissions, and non-toxic n Cost savings : Installing LEDs can save up to 50 bulb LED lighting upgrades are percent of lighting costs if they replace traditional being pursued by large- and small-format retailers lighting alike.

8 Walmart, for instance, is on track to achieve n Maintenance savings : Additional savings come its commitment to reduce the kilowatt hour (kWh). from reduced maintenance due to the longer bulb per square foot of Energy required to power its lifespan (nearly double the lifespan of traditional buildings 20% by 2020 by installing LED lighting fluorescent lighting).9 across hundreds of Walgreens plans to incorporate LED lighting into all new stores, n Productivity Enhancement: LED lighting is closer following a successful pilot at their Goodyear, Arizona to natural light than fluorescent lighting and can increase productivity an average of n Comfort: LED lighting can be easily focused, Daylighting allowing for brighter displays and accent lights Background to customers.

9 Most customers cannot tell the Daylighting is the use of windows to bring in natural difference in lighting quality between LED bulbs sunlight rather than relying on artificial lighting in and traditional light a building. The most common use is in the front of buildings where vertical glass windows can bring in Converting existing light bulbs to more Energy - light. Additionally, windows can be installed on the efficient lighting technologies is a strategic method roof of a structure to allow in light from overhead. to reduce lighting loads and Energy consumption Sensors are used to determine how much natural in Retail and grocery stores.

10 LED lighting upgrades lighting the building is receiving. During periods of can be cost effective with a payback as low as two high lighting, artificial lighting is automatically set years and offer commercial building managers with to dim or turn off and during periods of low lighting, a number of important benefits over traditional artificial lighting will turn back on and remain on. store lighting including: lighting system Energy and Daylighting technologies have been utilized by a cost savings , reduced operations and maintenance 7 US Department of Energy , LED Lighting. Retrieved from: 8 Progress Energy , Indoor Lighting Upgrades.