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World’s largest cold storage network cools rising energy costs with demand response
Highlights
Industry
Cold storage
Location
Multiple facilities in Canada and the U.S.
DR Earnings
Approx. $160,000 annually
Overview
VersaCold is a world leader in temperature-sensitive food handling, with a network of 120 temperature-controlled warehouses and distribution centers in five countries, including the U.S. and Canada. VersaCold serves as a comprehensive partner to thousands of customers—from processing to freezing and storing raw ingredients to total inventory management.
We’re always looking for ways to reduce consumption and costs, to reduce
our carbon footprint, and to ensure sustainability. We saw demand response
as another strategy to help us manage and reduce our energy use—and to
get paid for our efforts.
Their Story
Minor adjustments lead to major payments
VersaCold decided to participate in demand response (DR) as a way to reduce energy consumption and costs while simultaneously earning a new source of revenue. VersaCold evaluated DR providers and quickly settled on Enel for its proven ability to maximize payments for cold storage sites across Canada and the U.S.
During DR dispatches, VersaCold facilities reduce energy use temporarily by making minor operational changes like adjusting refrigeration, compressors, and battery chargers. These changes have virtually no effect on the food stored in the facilities, but enable energy reductions of more than 3.2 megawatts, generating $160,000 in annual payments from Enel.
An ideal industry
VersaCold’s heavily insulated facilities can maintain their low temperatures during temporarily reduced refrigeration without affecting stored food—ideal for participation in demand response.
Retain in-house control
During DR dispatches, VersaCold personnel retain full control over their equipment and facilities. They can select the equipment for adjustment or shutdown and can restart refrigeration if necessary.
Simple participation
During its 2-4 annual DR dispatches, VersaCold facilities receive notification and real-time coaching via email and phone. “Enel does a fabulous job making sure our sites are well-notified,” said Ted Royals, director of engineering for eastern North America at VersaCold.
Multiple sites
Enel is able to enroll multiple VersaCold facilities in Canada and the U.S., a major benefit to an organization of VersaCold’s size and scope.
Significant payments
VersaCold earns estimated annual DR payments of $160,000. VersaCold also benefits financially by using less energy during dispatches and beyond.
Support the community
By reducing its use of energy and other resources during times of grid stress, VersaCold helps protect local communities from brownouts and blackouts.