Case Studies from the Business Energy Smart Tips Project

Transcription

1 Case Studies from the Business Energy Smart Tips Project How to save energy and money for businesses Australian Government Department of Industry and Science

2 Ethnic Communities Council of Victoria Inc. (ECCV) is the voice of multicultural Victoria. As the peak body for ethnic and multicultural organisations in Victoria, we are proud to have been the key advocate for culturally diverse communities in Victoria since For over 40 years we have been the link between multicultural communities, government and the wider community. Ethnic Communities Council of Victoria Inc. Statewide Resources Centre 150 Palmerston Street, Carlton VIC 3053 T: F: E: This Activity received funding from the Department of Industry and Science. The views expressed herein are not necessarily the views of the Commonwealth of Australia, and the Commonwealth does not accept responsibility for any information or advice contained herein.

3 Table of Contents Message from the Chairperson...1 Introduction...2 Project Snapshot...3 Case Study Red Hot Wok Restaurant...5 Case Study Bestway Supermarket...7 Case Study Bombay Fashion Retail Shop...9 Useful Websites and Information...11

4 Message from the Chairperson This Ethnic Communities Council of Victoria (ECCV) booklet about our Business Energy Smart Tips (BEST) project and its outcomes is not only informative, but also very timely. The price of energy bills - which seem to be continually rising - are a major cost for businesses of all sizes. This booklet has a number of case studies of businesses run by people from culturally diverse communities that have been able to save on energy costs through adopting a range of practical measures that are not difficult to implement. The Ethnic Communities Council of New South Wales is to be commended for securing funding which makes this project a reality and the collaboration to support successful project delivery in metropolitan Melbourne. Last but not least, the ECCV would like to thank the Department of Industry and Science for providing the resources needed in support of the BEST project. The ECCV would also like to applaud the many Bi-lingual Energy Educators for their invaluable assistance in bringing this important project to ethno-specific small and medium-sized businesses within metropolitan Melbourne. I recommend this booklet to any business within Victoria - and in particular to the many small and medium business owners that come from diverse cultural backgrounds that wants to make substantial long-term reductions in its energy operating costs. Eddie Micallef Chairperson 1

5 Introduction For many small to medium-sized businesses, the high cost of electricity bills can affect a business s ability to operate. The BEST project sets out to bridge the gap between the energy efficiency information and support that is available, and the poor uptake of this by culturally diverse small and medium businesses in the food, retail and hospitality sector. The project has provided sector-specific and culturally appropriate energy efficiency information and energy assessments in community languages for business owners from non-english speaking backgrounds. There are three case studies presented in this booklet, showcasing the many innovative and unique steps that small and medium businesses in the multicultural sector can take to reduce energy bills while lowering environmental impacts. 2

6 Project Snapshot Businesses that benefited from full energy assessment* Businesses that had access to quick energy assessment^ Chinese (36%) Dari/Hazaragi (26%) Vietnamese (19%) Hindi/Punjabi (15%) Arabic (2%) Other (2%) Businesses distribution by communities Restaurant (35%) Convenience store (26%) Retail (27%) Take away (5%) Bakery (4%) Butcher (3%) Businesses distribution by types *Full energy assessments, where a detailed and tailored report is delivered to business, along with in-language, business-specific energy saving information. ^Quick energy assessment, where 3 key energy-saving measures are recommended to businesses on-the-spot and along with in-language, business-specific energy saving brochure. 3

7 Project Snapshot Average cost of electricity among businesses was 29 cents per kwh (based on 84 businesses that provided bills) 65% of businesses assessed use one of the four energy retailers - Energy (20%), AGL (18%), Power Direct (16%) and Origin (13%) Average energy usage by appliances and equipment was - refrigeration (35%), lighting (27%), kitchen equipment (19%), office equipment (10%), heating/cooling (5%), security lighting (1%), hot water (1%), other (2%) Raise awareness among staff about energy efficiency Ensure light covers are clean as dust and dirt reduce light output and the life expectancy of lighting Top three no cost recommendations provided to businesses Check fridge and freezer seals as seals in poor condition allow cool air to escape, resulting in high energy use 4

8 Case Study: Red Hot Wok Restaurant 313 Toorak Road, South Yarra All the utilities charges are increasing and I am doing everything I can to save energy on my daily business routine. About Red Hot Wok and Mr Kha Red Hot Wok restaurant, on Toorak Road in South Yarra has been owned by Mr Tony Kha for more than a decade. The restaurant is well-known in the area for its Malaysian and Chinese cuisine, and being an early adopter of energy efficiency. Mr Kha has been closely monitoring the business s energy cost since taking over the management of Red Hot Wok. All the utilities charges are increasing and I am doing everything I can to save energy on my daily business routine, he said. Mr Kha has recognised the broader environmental benefits of reducing energy consumption and going green a concept that he has become aware of due to media coverage and campaign awareness over the past several years. After discussing energy saving options with a friend who is an electrician, Mr Kha started implementing a range of energy saving measures at Red Hot Wok. Saving Energy at Red Hot Wok? The key measure that Mr Kha has implemented to reduce energy consumption in Red Hot Wok was the installation of LED lights which are more efficient than incandescent or halogen bulbs. Prior to installing the LED bulbs, the restaurant had more than 30 halogen downlights, which not only consumed more electricity, but also generated heat and increased the temperature of the dining area. Mr Kha ensures that electrical equipment is switched off when not in use. If we have high electricity cost, it would be difficult for the business to survive on a long-term basis, Mr Kha said. In the kitchen and washroom, Mr Kha makes sure that all lights are turned off when the rooms are not in use. He has also placed a sign near the washroom lights to encourage customers and staff to turn them off. Mr Kha also indicated that the kitchen exhaust canopies consume a large amount of electricity, and as a result, he always ensures that they are switched off when cooking is finished. Refrigerators and cool rooms also represent a significant proportion of electricity consumption at Red Hot Wok. Mr Kha undertakes a thorough check of all refrigeration equipment twice a year with the assistance of a refrigeration mechanic and defrosts the chest freezers himself, when required. Finally, the air-conditioner or heating system is only switched on when there is extreme hot or cold weather. Mr Kha generally leaves the back and front doors open to allow natural air flow when the weather is warm. Outcomes of energy saving measure The energy saving measures carried out by Mr Kha are saving him money. Mr Kha stated, Before, the electricity bill was very expensive more than $1,000 per month!. Now, the monthly bill is generally between $650 and $750 per month, which represents a reduction of 25%-35% or a saving of up to $350 per month. Mr Kha also admitted that the LEDs have had a positive impact on the aesthetic appeal of the restaurant. For me, LEDs are brighter than the halogen downlights. They have significantly improved the visibility within the restaurant, Mr Kha said. The installation of LEDs in Red Hot Wok has triggered the implementation of further energy saving measures in the Kha family. My son knows about LED bulbs as well. He is using LED lights in his own house. I bought the LEDs and helped him install them, Mr Kha said. What s next at Red Hot Wok? While Mr Kha has considerably achieved energy savings at Red Hot Wok, the energy assessment conducted under the BEST project revealed that he could further reduce energy consumption by a 5% or around $350-$500 per year, by replacing the remaining fluorescent lights in Red Hot Wok, turning off the cash register overnight and adding more insulation in the cool room. Mr Kha is interested in implementing further measures to reduce energy consumption at Red Hot Wok, when time and budget permit. He encourages other businesses and individuals to embrace energy efficiency. He finally conveyed the following advice, Going green is important but a single person s contribution is not enough to change the whole environment. It takes all of us to make a significant impact in the end. 5

9 Save energy and money in your restaurant Heating, ventilation and air conditioning (HVAC) Low cost ($0 $500) actions Only use the air conditioning system when necessary. Did you know? Reducing fan speed in air-conditioning systems by 20% can immediately reduce energy consumption by nearly 50%. Keep temperature settings at 20 C for heating in winter and 24 C for cooling in summer. Moving the temperature 1 C lower in summer and 1 C higher in winter will increase your energy use by 10%. Check that the staff know how to change the air conditioner controls to suit the conditions. Use the outdoor air economy cycles in centralised air conditioning systems. Close the windows and doors when the air conditioning is on. Remove any objects blocking the ventilation and air flow around the rooms. Lighting Low cost ($0 $500) actions Paint dark walls with lighter colours to improve natural light levels. Using labels and training, ensure that your staff knows where the light switches are located and how lights are controlled so that they can turn off the lights when they are not being used. Turn off the lights in display cases and fridges after hours. Clean windows, light fixtures and skylights regularly. Install timers or occupancy/motion sensors on the lights (i.e. lights turn on when someone walks into an area) in rooms that are not often used. Remove some of the lights in areas which are too brightly lit. 6

10 Case Study: Bestway Supermarket Lonsdale Street, Dandenong About the Bestway Supermarket and Mr Khademi Bestway Supermarket, on Lonsdale Street in Dandenong, is owned by Mr Mohammad Reza Khademi. He opened the store in March 2013 and since then, it has become known for its size and the range of products it stocks, including fruit and vegetables, meat, bakery items and household wares. Mr Khademi has implemented a range of energy efficiency measures as a result of the advice of his son and an electrician. The measures have saved him considerable amount of money on his electricity bills and demonstrated the business case for saving energy. Saving energy at Bestway Supermarket After buying the Bestway Supermarket premises in March 2013, Mr Khademi started to renovate the building in preparation for the launch of the business. During the renovation process, Mr Khademi heard about energy saving options, including the installation of LED bulbs from his friend. Hamed, Mr Khademi s son stated, We had not used LED lights in our previous business, but my father s friend who is an electrician, had suggested that we should use new energy saving technologies while renovating the building. This led to the installation of more than 600 LED bulbs in Bestway Supermarket, which are 4-5 times more efficient than incandescent or halogen bulbs. Hamed also said that they would replace the remaining fluorescent lights in the back area of the store to achieve further energy saving. Another key measure that significantly reduced electricity consumption at Bestway Supermarket was the customisation of the cool room. For example, we built thicker wall in the cool room to add more insulation, preventing loss of cool air and reducing the electricity consumption, Hamed said. Bestway Staff have also been informed about energy saving measures and signs are in place to remind staff to turn off lights when they are not in use. A zoning system was also installed to allow specific areas of the shop to be cooled particularly areas where perishable goods are stored. If you are aware of energy saving opportunities in certain areas, then you will take actions, Hamed said. Outcomes of energy saving measures Considering that lighting, refrigeration and cooling represent around 85% of electricity consumption at Bestway Supermarket, Mr Khademi has concentrated his efforts on those areas and the subsequent measures implemented have significantly reduced the business s electricity cost and the results are already evident. In our previous business with an area of 200 square meters, our bill was around $3000. However, the current area occupied by Bestway Supermarket is 1600 square meters and our average electricity bill is approximately $5000. This means that for a shop space that is eight times larger, the total electricity bill is less than double. The energy assessment completed under the Business Energy Smart Tips (BEST) We knew that making our business more energy efficiency would be beneficial for us in the long term and a kind of investment for the future. project revealed that the LED light bulbs alone are reducing the business s electricity consumption by 56%. This equates to a saving of approximately $15,000 per year. It was important for us to think about the energy saving aspect when we bought the business, and as a result, we decided to implement a range of energy saving measures. We knew that making our business more energy efficient would be beneficial for us in the long term and a kind of investment for the future. What s next at Bestway Supermarket? Mr Khademi and Hamed plan to replace remaining conventional light bulbs with LEDs. Obviously the energy saving measures bring us some huge savings and we can invest these saving in our business, Hamed said. He also believes that other small businesses could benefit from Bestway s experience by applying energy saving measures. Seeing the benefits to our business, we recommend that other businesses do the same and we are keen to share our story with them, he added. 37

11 Save energy and money in your convenience and grocery shop Refrigeration Low cost ($0 $500) actions Place notices up to remind staff and customers to close the freezer and refrigerator doors. Make sure fridges and freezers are at least 10-15cm from the wall. Did you know? Refrigeration & lighting account for up to 80% of a typical supermarket s electricity use. Check the temperature settings. Freezers are recommended to work at -18 degrees and fridges 0 4 degrees. Try to locate fridges and freezers in the coolest place and away from heat sources such as food heating/cooking equipment and direct sunlight. Do not stack items close to fridges, freezers or cold rooms as they might obstruct air flow. Move stock from half empty fridges, freezers and cool rooms and then turn off unused units. Fridges that require defrosting should be done 2 to 3 times per year. Drink fridges that have no perishable products can be turned off with a timer before going home. Cover glass topped freezers and fridges with lids or insulated soft covers overnight or when not in use. Use Velcro strips to secure soft covers on upright display freezers and cases. Install a beeper to alert staff when doors are left open. Freezer fans can have a system fitted that closes the fan down when the doors are opened. Consult a refrigeration specialist on energy efficiency ratings for larger commercial refrigeration systems. Visually inspect the seals often for cracks and signs of wear, particularly at the bottom of the fridge or freezer door. 84

12 Case Study: Bombay Fashion Retail Shop Foster Street, Dandenong About Bombay Fashion and Mr Rehman Bombay Fashion is a nicely designed boutique located on Forster Street in Dandenong. It has been owned by Mr Sajjad Ur Rehman for the past 20 years. Bombay Fashion is one of the first shops to open in little India Market. It is well known in the area for its Indian and Pakistani bridal, and ready to wear clothing. The shop sells a range of products such as jewellery, bangles and ready-made clothing for ladies, gentlemen and children. Mr Rehman has been concerned about his shop s energy cost over the past few years. Rising prices of electricity and marketing services are my main concern, he said. However, Mr Rehman indicated that he had taken some precautions to save energy in his daily routine. After discussing energy saving options with his wife and son, he has started adopting a range of energy efficiency measures at Bombay Fashion. Saving energy at Bombay Fashion The key measure that Mr Rehman has implemented to reduce energy consumption in Bombay Fashion was the installation of fluorescent tube lights with electronic ballasts and compact fluorescent light bulbs. In the storeroom, Mr Rehman makes sure he switches the lights off when not in use. He has also develop the habit of turning all the lights off when he closes the shop. In addition, he stopped using the huge spot lights and halogen downlights in his shop. Another important measure that he has adopted was to use the air conditioner and heater only when necessary. In general, he closes the door to keep the premises warm in winter or opens it to allow natural air flow in summer. Mr Rehman said that, The shop needs a lot of renovations and this site is going to be demolished by the government in a few years. So I cannot really spend a lot on this shop. Mr Rehman plans to install LED lights once he moves his business into a new space. Outcomes of energy saving measures The energy saving measures undertaken by Mr Rehman are saving him a lot of money. The bills were really expensive before, Mr Rehman said. Now he pays around $650 bi-monthly. Mr Rehman also noticed that LEDs have had a positive impact on the overall look of the shop. LED lights are much brighter than normal tube lights. The visibility is much better with less cost. The savings in the energy bills have inspired the implementation of further energy saving measures in the Mr Rehman s household. I changed all my lights to LEDs in my household and also helped my daughter to do the same in her household. Mr Rehman believes that reducing energy cost is important for a business to be Reducing energy cost is important for a business to be profitable, sustainable and environmentally friendly. profitable, sustainable and environmentally friendly. What s next at Bombay Fashion? Mr Rehman plans to install LED lights in his new shop once he moves to new premises. He appreciates the importance of energy efficiency and enjoys lower energy usage. As Mr Rehman said, LED lighting is definitely a good option as it saves me money. He also affirmed that the savings will allow him to invest more on his business in order to focus on his customers needs, enhance customer loyalty and ensure that they continue to come back. Mr Rehman is interested in implementing further measures to reduce energy consumption at Bombay fashion s new outlet. He encourages other traders and businesses in the area to undertake energy efficiency measures to save money. Mr Rehman has developed a solid awareness of the benefits of energy efficiency and encourages other family members to become more energy conscious. Additionally, he said he would pursue continual improvement and spread awareness of energy efficiency among other business owners in little India. 93

13 Save energy and money in your retail shop Office and shop equipment Low cost ($0 $500) actions Turn off equipment including the cash register, surveillance monitor screen, computer, TV, stereo and sound systems before going home every day. Did you know? An improvement of up to 50% of usable light can be achieved by cleaning dusty light fittings and lamps. Turn off equipment at the power point to avoid standby power consumption and save up to 10% energy use. Switch computers to the most efficient power saving mode. Savings of up to 40% can be made. In Windows 7 or Vista go to Start, then Control Panel and click Hardware and Sound and in Power Options, select Power Saver plan. Invest in a power board that has multiple switches or one that can switch off multiple pieces of equipment by one switch. Turn off the lights. Remove any objects blocking the ventilation and air flow around the rooms. Block unwanted gaps around windows and doors to avoid draughts. Cover windows to reduce heat loss in winter and excess heat in summer. Maintain the air conditioning system according to the manufacturer s instructions, and make sure that: the system is free of dust. coils and filters are clean and replaced where required. ducts and pipes are checked for damage or leaks. Find out if multiple switches can be used to separately control lights instead of a single switch. Change old or high energy using fluorescent tubes and halogen downlights to low energy using lights such as T5 fluorescent tubes and Light Emitting Diodes (LEDs). 10 4

14 Useful Websites and Information Switch On switchon.vic.gov.au This is a government website which can assist you to reduce your household energy consumption and save money by learning how to make your home more energy efficient. It also has a helpful tool called My Power Planner. This tool is an independent Victorian Government electricity price comparator that can enable you to compare all electricity retailer offers and make an informed decision about the most suitable deals for you. Victorian Energy Efficiency Target (VEET) Scheme The VEET scheme is a Victorian Government initiative promoted as the Energy Saver Incentive. Under this scheme, you have access to the accredited businesses can offer discounts and special offers on selected energy saving products and appliances installed at homes, businesses or other non-residential premises. Energy and Water Ombudsman Freecall on (Interpreter service is available on ) This is a free service for helping you to resolve electricity, gas and water company complaints, which can assist you with complaints you have against the services providers. Energy Info Hub by the Consumer Utilities Advocacy Centre Ltd This is a hub for energy information to help Victorian community organisations support their clients and communities. 11 3

15 A sustainable business is resource efficient, respects the environment and is a good neighbour. Phil Harding, Environmental Activist (2000) Going low-carbon is the only option for a profitable, future-proof business. Environment Agency UK (2006) The cheapest kwh of energy is the one you don t use. Delvin Lane, Head of Energy 360 British Gas (2010) 4 12

16 For further information visit: