Importance of Energy Efficiency in Retail
Energy efficiency is paramount in the retail sector, especially in Europe where the industry is a major energy consumer. Retail operations account for approximately 25% of global emissions, with a significant portion stemming from the retail value chain. In the UK alone, the retail industry spends over £3.3 billion annually on energy and is responsible for around 215 MtCO2e of emissions, highlighting its substantial environmental impact.
Retail stores are energy-intensive, with substantial consumption driven by lighting, heating, ventilation, and air conditioning (HVAC) systems. Effective energy management enables you, as a retailer, to pinpoint areas of energy waste and inefficiency, implementing solutions that reduce your consumption and costs.
This not only results in financial savings but also enhances your brand image by showcasing a commitment to sustainability. Retailers that prioritize energy efficiency are better positioned for long-term success, benefiting from improved customer comfort and employee productivity.
Strategies for Energy Efficiency
Utilize Energy-Efficient Equipment
Energy efficiency in retail, especially in food stores and supermarkets, is critical for reducing both energy consumption and waste. A key strategy to achieve this is by utilizing energy-efficient equipment. This involves adopting appliances and technologies that consume less energy while maintaining or even improving their performance.
One of the primary benefits of energy-efficient equipment is the significant reduction in energy consumption, which leads to lower utility bills and a decrease in greenhouse gas emissions. For instance, modern refrigeration systems with advanced insulation and efficient compressors can reduce energy consumption by up to 2.69%. Additionally, energy-efficient lighting options like LEDs use significantly less energy than traditional lighting, contributing to substantial energy savings.
Beyond energy savings, the use of energy-efficient equipment also results in cost savings. Then when you’ve saved that energy, you can reinvest the money saved on utility bills into other areas of your business.
This all makes sense but, how do you know if your equipment is efficient or not as it is?
That’s a good question. If you’re consuming 55MWh/year, is this a lot? That depends of course on the characteristics of your shop. You may be doing well, but there could be an opportunity to reduce that consumption by 20%… And the only way to know about that energy savings potential is with reliable data, to then take informed decisions.
In that situation, an Energy Management Software (EMS) is your best ally. An EMS operates through several key components: data collection, data analysis, visualization and reporting. With minimal installation and in a short period of time, you can start analysing your consumption, identifying where you can be more efficient and making the necessary changes to start saving. When we say minimal installation, some additional hardware may be needed, but data can be collected from your fiscal meter and existing meters.
Let’s see in more detail the steps to get started.
Commissioning and Continuous Monitoring
Commissioning is a critical phase in the deployment of energy-efficient systems within retail environments. This process ensures that all building systems, including HVAC, lighting, and electrical components, are installed and functioning according to design specifications. By verifying and validating these systems from the outset, commissioning helps to optimize energy performance, reducing both consumption and waste.
Continuous monitoring, on the other hand, is essential for maintaining energy efficiency over time. Utilizing advanced technologies such as sensors and IoT devices, continuous monitoring provides real-time data on energy usage. This ongoing analysis allows you to swiftly identify inefficiencies and implement corrective measures, thereby minimizing energy waste and optimizing consumption.
The benefits of continuous monitoring are manifold. It leads to significant energy savings by addressing inefficiencies promptly, improves maintenance by enabling proactive interventions, and enhances sustainability by reducing overall energy waste. Additionally, the data-driven insights gained from continuous monitoring support informed decision-making, further refining energy management strategies.
Flexible Store Design
Flexible store design is an essential strategy in the European retail market, where consumer preferences and technological advancements are in constant flux. This approach involves creating adaptable retail spaces that can quickly respond to changing customer needs, trends, and innovations.
One of the primary benefits of flexible store design is its adaptability. You can swiftly modify your store layouts to accommodate new products, seasonal promotions, or emerging trends.
Cost savings are another significant advantage. Flexible designs reduce the need for frequent major renovations, leading to long-term financial benefits. Modular fixtures and movable displays enable you to optimize their space efficiently, minimizing construction and maintenance costs.
And what’s the relation of this with energy management? Well, besides the use of an energy management system to monitor your energy consumption, the design of your store can also help you be more efficient. The layout, the available space, height of the roof, window displays, ventilation system, sunlight, etc… all of these factors can help you be more efficient. But if not thought carefully, they will actually contribute to a higher energy cost.
In retail, particularly in supermarkets and food stores, the benefits of EMS are substantial. They help in pinpointing areas of energy waste, optimizing energy usage, and ensuring compliance with energy efficiency regulations. The implementation of EMS leads to significant cost savings, reduced environmental impact, and improved operational efficiency, making them a critical component of sustainable retail operations.
Energy Savings in Retail: A Case Study
bonÀrea Agrupa, a well-established brand in Spain’s food industry, was created in 1959, and since then the group has maintained complete control over its operations, handling everything from breeding and processing to logistics, ensuring products are directly available to consumers in their stores.
With nearly 600 stores, the complexity of managing energy consumption and the varied needs of each location has grown. Managing the energy requirements of these stores, particularly for refrigeration and lighting, posed a significant challenge for the organization. To address this, bonÀrea initiated a pilot program, implementing Spacewell Energy in 15 of their stores.
The primary goal of the project was to demonstrate how the Spacewell Energy platform could detect savings in both energy and costs, and to assess its potential across multiple locations. Download the case study to learn about their pilot, their successes and how they are now using the software throughout their shops.
