Cutting Energy Use

The scale-back in new construction offers chain retailers an ideal opportunity to focus on their existing facilities with regard to energy consumption. And the timing couldn’t be better. Industry experts say that many retailers may be missing out on energy-saving initiatives that could help their profitability, which is expected to remain challenged in 2009.

“If retailers can learn to conserve or minimize their energy costs, it will ultimately improve their bottom line, either of an individual store or most stores in the chain,” said Pankaj Lal, segment manager, commercial buildings, Schneider Electric. “According to the U.S. Environmental Protection Agency, a 10% reduction in energy costs can increase the profit margin for an individual store 6%.”

The average age of retail buildings in the United States is about 12 years, Lal said, and a large percentage of those stores have not tapped the potential energy savings.

According to Lal, there are four key components involved in maximizing energy use in existing facilities, be it an individual store or an entire portfolio. They are:

• Measure. It is critical, Lal said, that a chain know how and where energy is being used throughout its facilities.

“Start by looking at utility bills, which allows the chain to see if one store is spending more than another on energy,” he suggested. “If so, that should trigger an alarm to investigate.”

Another suggestion: Conduct an energy audit to examine and review usage patterns and peaks, maintenance issues, equipment-efficiency levels, utility contracts and more. Attempting improvements without this sort of data may not accrue the most energy and cost savings.

On a more sophisticated level, measurement is accomplished with power monitoring and metering.

“Placing power meters on a store’s largest electrical loads can determine their current performance and suggest optimization strategies,” Lal explained.

Online tools are available to help companies evaluate their energy usage. For example, Schneider’s Electric’s Energy Savings Advisor provides retailers with an instant assessment of how their locations stack up against similar facilities with regard to energy use. It also offers recommendations for energy-efficiency improvements.

• Fix the basics. This involves addressing such tactics as deploying low-energy consumption devices and power quality or reliability measures.

“An example would be replacing the lighting with more energy-efficient lamps,” Lal said. “If you want a short payback, and don’t have a lot of money to invest in 2009, fix the basics.”

• Automate. Automating energy usage includes investing in such technologies as lighting-control systems, variable-speed drives and building-management systems.

“Retailers that are more proactive and look at energy consumption from a life-cycle perspective should look at automating certain applications,” Lal said.

While most people associate technology with automation, it also has a manual side.

“Just having associates turn the lights on every day in a staggered fashion that accounts for the amount of daylight in the space is a big savings,” Lal noted.

• Monitor and improve. Sustaining and minimizing energy usage for the long-term should be done through power monitoring and regular periodic maintenance and re-commissioning of electrical systems. Such services can be provided by specialty energy-service companies or electrical-distribution suppliers.

“Re-commissioning of HVAC and electrical equipment is a nice way of extending life and reducing energy usage,” Lal said.

Retailers should also consider participating in demand response programs as a way to reduce energy usage. In such programs, energy consumption in a building is automatically reduced after receiving a signal from the utility to shed loads.

Looking ahead, it seems likely that the United States will see increased regulation when it comes to energy usage. In fact, it is already beginning. California has passed legislation that will require owners of commercial buildings to provide an energy-usage profile in 2010.

“California is a great indicator of the future in terms of how energy will be managed at the state level,” Lal said.