UNLOCKING ENERGY SAVINGS THROUGH TECHNOLOGY

Six ways to move up the maturity curve and unlock further energy savings.

Maximise value in existing data and systems

There are plenty of quick wins available using existing data and some basic analytics, which wouldn’t require significant investment.

Adjust lighting to fit with shift patterns, finding stores or areas of shopping centres still on covid protocols for air handling, and spotting where fridge cooling and store heating are in conflict.
Establish a backlog of opportunities from existing data by interviewing staff on the front line of energy and store 9management. Prioritise based on value and set up an agile squad to analyse opportunities and work with store and maintenance teams to take action and prove the value.
Pool data from multiple sources, but take a use-case led approach (rather than embarking on a long project) to construct a data lake to enable targeted analysis for high priority client issues at pace.
Run trials in store to prove feasibility and value, unlocking savings early on which can be reinvested in the next wave of use cases.

2. Don’t integrate systems, overlay for connectivity

Some companies we spoke to talked of the utopia of integrated systems, with a single data lake where machine learning algorithms could be deployed to optimise energy settings - but system integration is complex and costly.

Instead, use a connectivity layer to plug into existing systems, providing a faster, lower cost solution. Low costs sensors can be added directly to targeted HVAC, lights, fridges, ovens or other assets, and connected to a central monitoring and optimisation layer which can integrate with existing building management, SCADA and asset maintenance systems. There are multiple providers such as GridEdge, Sky Sparks or H-M-S networks.

Additionally, make connectivity a requirement for assets upgrades such as fridges, improving the level of connectivity and remote control naturally over time.

3. Rethink investment models

The typical two to three years payback requirement is limiting investment in replacing gas boilers with more efficient electric heat pumps or on-site solar PV.

Introduce an internal carbon price and include non-financial metrics (such as energy intensity of stores, reputational impact of delaying low carbon technologies) when developing investment cases to reduce the payback period compared with extending the life of gas boilers and grid power.
Consider using a third-party energy services company to take on longer-term financial risk and provide capital, while releasing savings in energy bills. This would require retailers to cede ownership of energy assets, enabling further savings while protecting cash.
For solutions which optimise fridges, HVAC and lighting, bolster your business by including potential maintenance benefits of predictive asset monitoring and remote repair, or avoiding fridges failing and reducing stock loss.

4. Breakdown siloes with end-to-end processes

Retailers are struggling to join up data, systems and actions across different teams, including energy, property/facilities management, sustainability, and asset and system vendors. This results in duplication of data analysis and reporting, slowing responses to energy and maintenance issues.

Take a process-centric approach rather than separate teams defining their own protocols. Map out processes and scenarios for optimising energy end-to-end (e.g., how might we respond to a spike in energy use in a store), defining the flow of data and required actions from each team to support the process.
Give multiple teams access to a single dashboard and data source, rather than setting up multiple instances of data and reporting.
Create virtual teams to respond to specific scenarios (e.g., an increase in energy prices causes energy teams to maximise on-site generation, leading to storage and store teams deploying low energy protocols).

5. Nudge employee behaviours

You can have machine learning and AI systems optimising energy management in stores, but if employees are leaving the back door open, you won’t see results.

Introduce ‘nudges’ to drive the right day-to-day behaviour of employees. Make them aware of energy wastage, from leaving doors open or delaying responses to overheating fridges. Consider using league table posters comparing energy efficiency of different stores, creating competition and prizes for the winning stores.
Ensure that colleagues are trained in how devices can be remotely monitored and controlled, and that in-store staff understand their role in optimising the system. Build asset management into their ways of working, such as sending alerts about cooling systems overworking sent to their handheld devices, rather than separate interfaces or systems.

These techniques can engage in-store employees to take action, rather than just relying on central teams to monitor insights and remotely adjust systems.

6. Create a clear vision and robust roadmap

We found retailers often have multiple initiatives running in disconnected separate projects. For example, one looking at fridge doors or aerofoils, another looking at heat pumps and solar, and a separate project looking at data, analytics and connectivity. Many lack clear vision and a view of how solutions could work together to maximise energy savings.

A vision should be co-created involving teams across the business, including store managers, property, energy, technology and maintenance. To deliver this vision, retailers need a roadmap defining the critical path to maximise early value delivery.

None of the retailers interviewed saw value in aiming for the most advanced solution in the near term (level five). A fully automated, integrated, AI-driven system was seen as not being worth the investment and superfluous given their starting point.

AI systems sound exciting, but being value-led will focus companies on more basic solutions. Getting the foundations of connectivity, data and responsiveness will likely deliver more savings in the near term.

THINK LONG TERM

In summary, retailers can make significant savings through energy efficiency but there is no silver bullet. Getting to next level retailers requires a multi-faceted approach – rethinking investment cases, setting up the basics of connectivity and data, shifting behaviours, and breaking down organisational siloes.

This requires a change programme which cuts across organisational boundaries with an agile approach.