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Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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Page 1: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

Saving Energy in Vending Machines: Opportunities for the Regional

Technical Forum

Shawn Shaw

The Cadmus Group, Inc.

September 2006

Page 2: 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

Page 3: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

Energy Saving Options

Tier 2

Tier 2

3,446

1,717

2,481 2,394

1,237

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

StandardMachine

ENERGY START2

OccupancySensor/Onboard

Software

Delamped ENERGY START2 with

OccupancySensor/Onboard

Software

An

nu

al E

ner

gy

Use

(kW

h)

Page 4: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 5: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 6: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 7: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

Potential Software Savings

Lighting Control Software Savings

674

225

399

0

100

200

300

400

500

600

700

800

Aggressive Moderate Light

Setback Scenario

An

nu

al

En

erg

y S

av

ing

s

(kW

h)

Savings of 20-30% are readily achievableAt ZERO added cost

With NO IMPACT on customer satisfaction

Page 8: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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.

$$$

Page 9: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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%

Page 10: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 11: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2018201620142012201020082006

Rep

lace

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end

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es (

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100,000

200,000

300,000

400,000

500,000

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Sal

es P

enet

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Sav

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Wh

)

Machines

Energy Savings

Page 12: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 13: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 14: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 15: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 16: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 17: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 18: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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)

Page 19: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 20: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

ENERGY STAR Offerings

• Marketing materials

• Sample procurement language

• Product lists

• Energy savings estimates/calculators

• Field studies/verification

Page 21: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

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

Page 22: Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006

Thank You

Shawn Shaw

The Cadmus Group, Inc.

Supporting Kate Lewis

US EPA ENERGY STAR

[email protected]

[email protected]