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Grocery cold storage facility earns cash with demand response
Highlights
Industry
Cold storage
Location
Nashville, Tennessee
Savings and revenue
$25,000 annually
Program
Tennessee Valley Authority (TVA)
Overview
Associated Wholesale Grocers (AWG) serves as a Nashville hub for grocery storage and distribution to more than 300 co-op members, including Apple Markets, Piggly Wiggly, HG Hill, and more. The AWG facility is enormous, including more than 500,000 square feet of dry storage and 250,000 square feet of refrigerated storage. Many items can withstand only a minor temperature variation, so AWG monitors its storage facilities carefully.
AWG enrolled in the Tennessee Valley Authority (TVA) – Enel Demand Response (DR) program to reduce energy costs, support lower energy costs for its operation and the surrounding community, and help maintain a stable grid.
During DR dispatches, AWG curtails more than 850 kW by reducing lighting and raising temperature set points in its cold storage areas, creating $25,000 in annual DR payments.
Their Story
The challenge
Located in Philadelphia, Pennsylvania, Temple University is served by the grid operator PJM, which manages the largest electric grid in North America serving consumers across multiple states in the Mid-Atlantic and Midwestern US. Large commercial and industrial energy users in the PJM footprint have access to multiple demand response (DR) programs, which provide incentive payments for reducing energy consumption temporarily when called upon. Administered by utilities and grid operators worldwide, DR programs help to keep the lights on and energy prices low in the community by reducing demand for power at times when the grid needs it most.
However, while access to these programs represents an opportunity for Temple University to increase its DR earnings, capitalizing on this opportunity can be complex.
Participating in multiple DR programs requires in-depth visibility into both grid-level demand activity and facility- level energy performance and needs, as well as the ability to reduce demand at the right times for each program without disrupting operations in the school’s facilities. Additionally, participating in multiple programs requires working with a single provider for each program— otherwise, participants would lose access to a significant amount of the payments available.
Working with Enel was a real pleasure. They did a great job during the whole implementation process. They worked with our people. They didn’t rush. And they kept our comfort level extremely high.
Cooling down energy costs
At first, Associated Wholesale Grocers assumed that it would be impossible for the organization to participate in demand response. “We heard about DR and liked the idea a lot,” recalls Benny Phillips, facilities manager at AWG’s Nashville division.
“But it just seemed too risky, since we were storing very temperature-sensitive items, such as bananas.”
But the more Phillips and others looked into their use of energy, the more flexibility they found. They analyzed temperature readings and found that refrigerated storage areas could hold their temperatures for hours longer than initially seemed possible. They also began charging the batteries for their forklifts during off-peak times.
Easy participation with big results
During dispatches, AWG moves temperature set points by approximately 3 degrees in its extensive cold storage area without affecting operations or the quality of the diverse goods it warehouses for co-op members.
“For us, DR has turned out to be really easy,” says Phillips. “We simply make some adjustments, monitor carefully during the dispatch, and reset our refrigeration settings when it’s over. We’ve found that we’re able to make changes without any effect on the items we store – and we can put everything back to normal in minutes.”
AWG sees DR as a way of earning money without making major changes or putting its produce and other stored commodities at risk. “Demand response makes a big difference to our bottom line. As a co-op, the more we save, the more we can pass along these savings to our members,” says Phillips. The money earned from DR goes directly into the general facilities fund, and helps pay for other cost-saving changes.
Simple implementation and clear communication
“Working with Enel was a real pleasure,” says Phillips. “They did a great job during the whole implementation process. They worked with our people. They didn’t rush. And they kept our comfort level extremely high.”
AWG receives clear, prompt communication from Enel, including timely notification of dispatches. “They give us plenty of advance warning so we can do everything we need to do to ensure quality and lower risk,” says Philips. “We’re in touch via phone and email, and Enel’s commitment to communication really makes a difference.”
A community commitment
AWG is located in the middle of a largely residential area, and is the largest user of electricity in its community. “We feel strongly about not sucking up so much juice,” says Phillips. “With DR, we’re able to protect our company, but also help the community keep rates down.”