Retail Stores

Feb 16, 2022

The implementation of Racanaa Energy’s Energy Intelligence and Energy Automation services at ten stores of a major fashion retailer in India gave rise to these benefits:

• Improved electrical safety

• Proactive maintenance of assets

• Standardization of store environments

• Audit of standard operating practices and energy savings

Since early 2021, Racanaa Energy has deployed its Energy Intelligence and Energy Automation services across a few retail stores of a major Indian brand. Interestingly, this was also a significantly turbulent time in the market because of the COVID pandemic. From low footfall at
stores to store closures for long periods of time; badly affected the retailer’s profitability. The fixed rent and energy costs only added to their financial woes. Despite these challenges, the retailer was intent on reducing their energy and carbon footprint.

Racanaa Energy worked with the retailer to develop a clear implementation plan to help them achieve their objectives.

Client Profile

One of India’s leading fashion retailers with over 2000 stores across India. Some of the key challenges we addressed were:
1. High energy costs vs revenue.
2. Lack of concrete data on energy consumption
3. Escalating costs on maintenance and repairs
4. Energy wastage and leakages
5. Compliance to standard operating practices
6. Resource utilization for energy management
7. Adherence to the ESG goals set by the organization
This case study is based on the operations at 10 stores in one metro city along with the scope of the challenges overcome and what it takes to implement a realistic roadmap to achieve desired sustainable outcomes.

Approach

Racanaa Energy worked with the retailer to propose a structured approach that could take the retailers’ stores from their current condition to becoming carbon-free Net-Zero stores over a period of 3 years simultaneously overcoming their challenges.

This case study addresses the first two aspects of the approach – Energy Awareness and Energy Optimization.

Before implementing any major transformation or change in the electrical setup we start by understanding the where, how and why of electricity consumption. Energy Awareness is the most essential foundational step to delivering Net Zero facilities.

Energy Awareness lays out the granular data related to the operation of each asset along with data on the environment in which the asset is operating. We analyze this to detect energy leakages and find the correlation between operating processes and energy consumption. Energy Optimization is the process through which we eliminate leakages and automate processes to ensure consistently efficient operations.

What We Achieved

Our solution focused on resource optimization, asset health monitoring, safety assurance, and sustainability compliance. Our findings are illustrated below:
• We identified a significant difference between the electricity consumption being billed and the actual electricity consumption. The electricity consumption of a handful of stores, located in malls, was measured using a submeter installed by its respective mall owners.

• Several assets were consuming higher than acceptable energy, while power factors of UPS and AHU (Air Handling Units) were below satisfactory levels. The data we uncovered was specified to the client for coordination with the AMC (Asset Management Company) provider. Through the use of predictive and preventive maintenance techniques we were able to avoid potential breakdowns and save energy. Predictive maintenance also aided
in reducing both repair and maintenance costs.

• Despite having standard operating practices (especially, in terms of lighting and air conditioning) issued by the company, they did not have a way to verify compliance besides taking a supplier’s word for it. Our solution provided the company with the ability to identify any non-compliance in their existing processes through alerts. When automation was provided, the ability to eliminate human error and automate the process resulted in consistent operations and reduced energy consumption.

• It also assisted the retailer in enhancing operational efficiency with a centralized overview of energy usage.

• Information from sensors pointed out inconsistencies with respect to lighting and lumen levels across the store and between stores, followed up by queries into why they are occurring. Standardizing design and operations ensure seamless customer and service experience so we can work in partnership with the client to arrive at a tangible and favorable solution.

• The secondary benefits of our services were significant improvement on the revenue/unit of energy consumed, sustainability & ESG (Environmental Social & Governance) compliance on a corporate level, and practices that are on par with industry peers and competitors.

Racanaa Energy’s solution helped the retailer go beyond their current landscape of “Energy Savings Commitment” by enabling optimization of their resources & SOPs (Standard Operating Processes). The by-product of these efforts was reduced energy consumption and a lower carbon footprint.

Discussions are currently underway to set them on a path towards achieving Net-Zero facility operations by preparing a digital twin of their entire retail network and advising them on how to implement renewable energy and storage at suitable stores.

Why Racanaa Energy?

The market has several players who promise energy savings by charging a fee that amounts to a share of it. Although this model sounds promising, it is fraught with challenges:

1. It strains the relationship between the service provider and the store when it comes to how much energy was saved and what were the real reasons for reduced energy.

2. It complicates the process of balancing monthly bills which leads to conflict.

3. The service provider often monopolizes authority on their energy savings approach which excludes the store from truly participating and understanding how it works.

Racanaa Energy believes that any process employed should focus on optimizing operations which will lead to energy conservation, consistency of customer experience, enhanced electrical safety, better resource utilization, improved return on investment in assets and of course reduced energy and a lower carbon footprint. It is imperative that the relationship with each store is a partnership of discovery with a focus on eliminating leakages and energy efficiency.

Pindera our proprietary technology platform provides the tools for collaboration along with the ability to analyse data, drive hardware improvements and provide a real-time dashboard and alerts. Pindera was developed by experts in energy management who have had working experience in leading research labs and industries worldwide, with execution expertise in deploying and managing thousands of sites across a wide geographical range.

If you are interested in partnering with Racanaa Energy and wish to work towards a Net- Zero facility with a scientifically validated technical approach led by energy management experts, please reach out to us.

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