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Save Mart Energy Efficiency Leadership and Beyond

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Presentation on theme: "Save Mart Energy Efficiency Leadership and Beyond"— Presentation transcript:

1 Save Mart Energy Efficiency Leadership and Beyond
Ray Agah, Vice President of Engineering & Construction

2 Agenda Who We Are The BIG Picture
The Save Mart Energy Management Program Successes To Date Current Projects & Pilots Future Opportunities The Bottom Line The BIG Picture: This is ‘why we’re paying attention to energy management – why energy management matters to the company’ The Save Mart Energy Management Program This is a description of Save Mart’s energy management plan – the Save Mart approach to energy management’ Successes To Date What we’ve done since we started the program in 1999 Current Projects & Pilots The great stuff we’re doing today Future Opportunities Some projects and investments that we’re piloting or are potentially interested in going forward The Bottom Line Conclusion – how has this benefited the company, how is it currently benefiting the company and what can we expect going forward. Likewise, what do all the numbers mean.

3 Who We Are SAVE MART SUPERMARKETS is a Modesto-based privately held company, which operates 220+ stores in the Central Valley, East Bay, Northern California and Northern Nevada under the Save Mart, FoodMaxx , S-Mart, and Maxx Value names. The company owns and operates SMART Refrigerated Transport, Yosemite Warehouse in Merced, Yosemite Advertising in Modesto and distribution centers in Vacaville and Roseville. The company is a partner in Super Store Industries, which operates a distribution center in Lathrop, Mid Valley Dairy in Fairfield and Sunnyside Farms ice cream plant in Turlock.

4 The BIG Picture Managing Energy Grocery Energy Use Reduces Costs
Increases Profitability Reduces Risk Grocery Energy Use Refrigeration HVAC Lighting Managing Energy: Reduces Costs – Energy use is the 2nd largest expense behind human resources in the grocery industry. While the total energy bill is small compared to total expenses, it is much easier to reduce costs in energy than it is to reduce costs in staffing. Increases Profitability – A small amount of energy use reduction translates to a large impact on bottom-line financial performance due to the small profit margin in the grocery business. It is usually much easier to reduce energy costs by $1 than it is to increase sales volume by $67 for the same period. Reduces Risk – Energy costs vary depending on operating conditions such as weather as well as by market forces on the price of electricity and fuels. Reducing energy consumption will reduce the company’s exposure to these variables Grocery Energy Use – Refrigeration is the largest consumer of energy in the average grocery store followed by HVAC and lighting respectively

5 Save Mart’s Energy Mgmt. Plan
Since 1999 Quick and sure savings All possible Rebates Store Efficiency Audits General Energy Management Plan Reinvesting Savings = Exponential Improvements Speakers Notes: Since 1999 Financial Performance Driven Harnessing Rebates - The Plan was put in place in 1999 to reduce expenditure, improve store performance and take advantage of utility rebates to offset capital costs Store Efficiency Audits General Energy Management Plan Reinvesting Savings = Exponential Improvements - Worked with PECI to audit stores & make a 3 phase investment plan… Started with small investments & re-invested savings to increase energy savings over time

6 Collaborated with EnergySmart Jobs
High-efficiency LED retrofit with motion sensors Estimated annual energy savings of 83,701 kWh Rebates from EnergySmart Jobs totaled $8,149.60, approximately 34 percent of the project cost, with utility rebates covering another 50 percent The program created more than 200 new surveyor jobs in California, and provide energy efficiency skills training for approximately 400 people.

7 Collaborated with MID, Modesto Irrigation District
Awarded a $46,000 rebate for green store prototype In the first 12 moths the Riverbank, CA store lowered it electric cost by and estimated $51,500 That’s a savings of more than 672,000 kilowatt-hours annually, enough to power 66 average homes

8 Successes to Date… Keeping Cold Air In TOTAL SAVINGS: $7.7MM+
A chain wide program was implemented in 2007 and completed in 2009 to retrofit all walk-in coolers and freezers with strip curtain door covers & new gaskets to reduce refrigeration losses while doors were open for stocking. Additionally, door gaskets and door auto closing devices were replaced on all reach-in cooler and freezer doors on the sales floor. TOTAL SAVINGS: $7.7MM+ TOTAL REBATES ACQUIRED: $900K+

9 Successes to Date… Updating Energy Management TOTAL SAVINGS: $14.5MM+
In 2009 a chain wide effort was begun to update control systems on refrigeration, lighting and HVAC equipment and implement cost savings energy reduction strategies. Savings were gained through better lighting control, the installation of variable speed drives on HVAC equipment & advanced set point control on refrigeration equipment. TOTAL SAVINGS: $14.5MM+ TOTAL REBATES ACQUIRED: $2.25MM+

10 Successes to Date… Efficient Motors & LED Case Lighting
Through utilizing zero percent financing with the utilities, Save Mart has begun a program to replace all old and inefficient refrigeration fan motors with new efficient motors. In conjunction, we are beginning the roll-out of a program to replace freezer case lighting with advanced LED’s with motion sensors. Currently, 25 stores have been retrofitted and another 35 are on the books for early We have yet to realize the actual savings which will be in excess of 2 million dollars. TOTAL SAVINGS (to date): $860K+ TOTAL REBATES ACQUIRED (to date): $325K+

11 Current Projects Bright Idea!
LED Freezer Case Lighting with Motion Detectors Leveraging On-Bill ‘Zero Interest’ Bill Neutral Financing

12 Current Pilots LED Lighting in Medium Temp Cases
Retrofitting Open Dairy Cases with Doors

13 Current Projects Motors 2.0: Electronic Fan Motor Retrofits
Leveraging On-Bill ‘Zero Interest’ Bill Neutral Financing These are the ongoing EC motor retrofits. Ten stores were completed last year and 45 are in the process this year.

14 EC Motors are more efficient
ECMs are required by code in new construction and are expected to be baseline in future – consequently, most new case products are ECM as standard SP Motors (Existing) Efficiency = 26% 34.6 watts consumed 9 watts drive power 25.6 watts wasted heat to case EC Motors (Retrofit) Efficiency = 66% 13.6 watts consumed 9 watts drive power 4.6 watts wasted heat to case Required for all new construction since 2009 by CA Title 20 “Fan-powered evaporators used in coolers and freezers shall conform to the following: Single phase fan motors less than 1 hp and less than 460 volts shall be electronically commutated motors.”

15 ECM Verification Case Study
Strong support from Save Mart engineering allowed proof of method and technology at Save Mart #208 Data collected for 2 weeks before and after installation Five Case circuits monitored Verified 285 kWh direct savings per motor $6,344 in energy savings each year Three Walk-In circuits monitored Verified 1,507 kWh direct savings per motor $6,254 in energy savings each year Cost Incentive Final Cost Savings, kWh Savings, kW Annual Cost Savings Simple Payback $25,621 $13,310 $12,311 124,451 14.2 $12,598 0.98

16 Looking Ahead… Future Potential Door Retrofits
LED Directional Lighting Additional Controls Demand Response

17 The Bottom Line $1 of energy savings = the profit of $67 sales
An average store uses 2 million kWh/year of electricity at an average cost of $200,000 per year. A 15% energy savings would reduce energy expenses by $30,000 per year, the equivalent to increasing annual store sales by $2million.

18 167 million kWh Since 1999, Save Mart has committed to reduce energy use and environmental impact with continued investments in energy efficiency projects. That’s Good Value, Good Service, and a Good for the Community. That’s equal to 96,194 tons of CO2 or the emissions from

19 The carbon removed by 828 acres of forest preserved from deforestation-
an area about the same size as Modesto

20 The carbon removed annually by 33,018,480 square feet of pine tree forests…
…equivalent to the area of about 721 Save Mart, Lucky, and Food Maxx stores

21 8,580,793 gallons of gasoline consumed

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25 What We Encourage At The Store

26 Report Maintenance Issues Use Ovens and Fryers To Their Optimum
Be An Energy Steward Close Doors Turn Off Lights Report Maintenance Issues Use Ovens and Fryers To Their Optimum Recovery time on an oven is less than 1 hour Recovery time on a fryer is less than 1 hour

27 Questions?


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