saving energy in vending machines: opportunities for the regional technical forum shawn shaw the...
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Saving Energy in Vending Machines: Opportunities for the Regional
Technical Forum
Shawn Shaw
The Cadmus Group, Inc.
September 2006
Vending Machine Background
• The average vending machine uses around 3,500 kWh per year, enough to power 7 residential refrigerators
• In a single year, the average vending machine’s energy use will generate more than 10 times the weight of the machine in CO2 emissions
• Nationwide stock of over 3 Million vending machines uses more energy than the state of Delaware
Energy Saving Options
Tier 2
Tier 2
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1,717
2,481 2,394
1,237
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ENERGY START2
OccupancySensor/Onboard
Software
Delamped ENERGY START2 with
OccupancySensor/Onboard
Software
An
nu
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Use
(kW
h)
ENERGY STAR Tier 2 Features
• Efficient T-8 lighting
• ECM evaporator fan motor
• Improved insulation
• Variable speed compressor
• Time of day low power mode software
ENERGY STAR Tier 2-The Best Option for Energy Savings
• 1,728 kWh/year savings that are – Stable– Persistent– Track-able– Achievable in either new machines or as a refurbishment to
existing units• Additional 20+% energy savings from setting onboard
software in applicable locations• Has no impact on customer experience
– Maintains visibility/sales presence– No impact on cashless vending
• 0.1kW/machine peak demand reduction• ENERGY STAR machines are compatible with
VendingMi$er
Time-Based Control Software
• Energy control software is available on all ENERGY STAR and many other later-model vendors
• Software performs 2 functions, based on day/time– Turns lights off and on– Sets storage temperature
• Programming takes <10 minutes by hand, faster with modern wireless controllers
Potential Software Savings
Lighting Control Software Savings
674
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Aggressive Moderate Light
Setback Scenario
An
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h)
Savings of 20-30% are readily achievableAt ZERO added cost
With NO IMPACT on customer satisfaction
Market Actors: The Chain of Demand
Host Site
Manufacturer
Bottler
Vendor Operator
Supply
Demand
The Host Site is the “Demander in Chief” of the Vending industry-all downstream demand is driven based upon the desires of the Host Site.
$$$
The Vending Market Today
Sales
• 100,000 New Machines/Year
• 50-60k Refurbishments
• 75% of new machines
meet ES Tier 1
• Glass Front Machines: 60%– 360-405 Cans
• Stack Vendors: 40%– Mostly 500-600 Cans
Stack Vendor40%
Glass Front60%
>60020%
<50010%
500-60070%
But We Still Have Work To Do…
• Tier 2 machines are available to bottlers but are not being purchased– $50-$200 Incremental cost (new machine)
• Slow replacement of existing machines inhibits market penetration– 3+ Million vending machines installed
• Few new locations being added– 100,000 New machines purchased annually– Typical machine life: 12-15 years– Average age of machines in use today: 5-6 years
Vending Machine Replacement
• ~10 Years to replace current stock of inefficient machines
• Over 500 TWh savings possible if 10% of sales are Tier 2
“Breaking Open” the Vending Machine Market to Tier 2 Machines is Key to Huge Energy Savings
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enet
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Wh
)
Machines
Energy Savings
Designing a Program for Tier 2
• Lower/reduce incremental cost barrier
• Educate bottlers/operators and host sites
• Encourage early retirement of older models
Maximum Daily Energy Consumption (kWh)
Can Capacity
Tier 1: Effective Apr 1, 2004
Tier 2: Effective July 1, 2007
400 6.74 5.52
600 7.73 6.33
800 8.72 7.14
Reducing Incremental Costs of ENERGY STAR Machines
• New machine purchase– Baseline: ES Tier 1– Tier 2 Savings: 710 kWh/year– Incremental Cost
• Glass front machines: $200• Stack Vendors: $50
• Retrofit Machines– Compare to standard machine– Savings: 1,728kWh/year– Incremental Cost: $150-$200
Education and Outreach
• Drive demand at host sites– Use ENERGY STAR outreach materials
• Webcasts• Fact sheets• Calculators
– Focus on high impact sites• Colleges• Retail chains• School districts
– Showcase bottlers offering ENERGY STAR• Online directory for vending RFPs• Mass mailing to large utility customers
Early Retirement of Old Machines
Combine retirement with new machine purchase
• An additional 1200 kWh/year savings over new machine purchase alone
• Guarantees replacement of inefficient models by new, efficient units
• Pre-2000 models could use 13+ kWh/day
Retiring old machines will generate far more savings than displacing new machine sales alone
A Program to Promote Tier 2
Purchase New ENERGY STAR Machine
710 kWh/year
$50
Up to $200
Install ENERGY STAR Refurbishment Kit on old machine
1,728 kWh/year
$121
Up to $200
Replace Existing Machine with ENERGY STAR Machine
1,728 kWh/year
$121
Up to $200, less scrap value of old machine ($30)
Incentives based on 1 year energy savings at $0.07/kWh
Measure Annual Savings/Rebate Incremental Cost
The Program Continued
Who Gets the Rebate?• Machine owners
– Host sites and manufacturers already benefit– Control purchase and placement of machines
How are benefits verified?• New/Refurbished machines ($50)
– Bill of sale or contract with host site
• Retire/replace old machines– Split incentive ($121)
• New machine incentive($50)+ Retirement incentive($71)• Verified through bill of lading to scrap yard and bill of sale
from manufacturer
Cost Effectiveness
• 1,000 Machines– 50% Refurbished– 40% retired/replaced– 10% new purchase
• 3 Year Savings: 4,878,600 kWh
• Incentive Costs: $113,834
• Administrative Costs: $25,000
• Total Cost: $138,834 ($0.028/kWh)
The Role of ENERGY STAR: Supply and Demand
• Drive demand for qualified vending machines– Targeted outreach to host sites
• Large retail
• Higher education
• K-12
• State and local government
• Increase supply of qualified vending machines– Promote business case to operators and bottlers
ENERGY STAR Offerings
• Marketing materials
• Sample procurement language
• Product lists
• Energy savings estimates/calculators
• Field studies/verification
Success Stories
• Wal-Mart
• SUNY Buffalo
• University of Michigan
• 5 Colleges
• City of Cambridge DPW
• Davis School District
• State of Massachusetts
• Dartmouth College
• UPS
• GM
Thank You
Shawn Shaw
The Cadmus Group, Inc.
Supporting Kate Lewis
US EPA ENERGY STAR