Supermarkets use vast amounts of energy, so it is no surprise that they are struggling with soaring energy costs. As a result, many are looking at alternative solutions, for instance, installing heat pumps and moving off-grid.
While the move to net zero has already encouraged the retail sector to go greener, soaring energy prices have added to the urgency.
Power-hungry open supermarket refrigerators and freezers alone consume around 1% of the UK's total energy demand, enough to power 800,000 homes. Once you add in the rest of the UK food retail sector, this rises to 3% or 2.4 million homes.
Department stores are also feeling the pain. For example, John Lewis reports that energy bills will increase by 38% this year, though it anticipates they will double over the next two years. Ocado is also facing colossal energy price inflation with a £25 million increase in its current bill, and Iceland, with a £20 million increase, is warning of potential store closures.
Stores turn down the power and switch to more sustainable systems
Across the whole sector, supermarkets and department stores are saving energy and moving to more sustainable heating solutions such as heat pumps. For instance:
- Waitrose has embarked on replacing gas boilers in 332 stores with air-source heat pumps; however, it is a relatively slow rollout project. To date, just five are up and running, with a further ten planned for 1023. It is expected that all the stores will be heated using heat pumps before 2035. As an additional measure, Waitrose is installing air curtains, which are air streams that retain warm air within the store, more efficient refrigerators and LED lighting.
- Sainsbury's Cannock is the only UK supermarket to run entirely off-grid; it has done so since 2014. Instead, it derives its energy from biogas produced by a local anaerobic digester which it feeds with food waste. Not only does it generate cheap electricity, but it also saves money by avoiding sending waste to landfill.
- Two-thirds of Morrisons stores will be equipped with solar panels, to be completed by 2025. They anticipate generating 100 megawatts, sufficient to supply the stores with 20% of their power needs.
- As a trial, the Co-op has dimmed the lighting in 500 stores to see how customers will react to the darker ambience. The potential annual saving is £4,000 per store – a total saving of £2 million.
- Curry's is also following suit. It has reduced ceiling lighting by 50% and turned down the brightness of display TVs
- Aldi is now installing fridge doors in its new and refurbished stores. This simple measure will cut the energy consumption of participating stores by around 20%.
Government help
Were it not for the government's promised help; the situation could be significantly worse. Wholesale energy costs for business will be capped at £211 per megawatt hour for electricity and £75 per MWh for gas. This is a considerable reduction compared with anticipated uncapped wholesale costs of £600 per MWh for electricity and £180 per MWh for gas. However, the future remains uncertain. Prices could rise significantly in the future.
Learning from Scandanavia
While the above efforts to reduce energy consumption are to be applauded, there remains much UK retail could learn from other nations. In Finland, for example, the world's most efficient supermarket consumes just 40% of the energy of a typical grocery store. Osuuskauppa Arina has reduced its energy consumption to around 240 KWh per square metre, roughly equivalent to a typical residential property.
In Denmark, Danfoss has launched what it claims is the most efficient supermarket in the world. The heat produced by the refrigeration units is used to heat the store while also providing heating for the local community. The units also use carbon dioxide as a refrigerant, which is far more eco-friendly than the usual refrigerant gasses.
Posted: June 2017
