COMMERCIAL PACKAGED REFRIGERATION: AN UNTAPPED LODE FOR ENERGY EFFICIENCY

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Commercial Packaged Refrigeration: An Untapped Lode for Energy Efficiency

Toru Kubo and Steven Nadel

May 2002

Executive Summary

Refrigeration systems account for approximately 7% of commercial sector energy use. Over the past two decades, efforts to reduce energy use by commercial refrigeration systems have concentrated on "built-up systems," which are commonly used in supermarkets. However, several studies indicate that "packaged systems" account for more energy use than built-up systems, suggesting greater attention should be given to improving the efficiency of these systems.Refrigeration systems account for approximately 7% of commercial sector energy use. Over the past two decades, efforts to reduce energy use by commercial refrigeration systems have concentrated on "built-up systems," which are commonly used in supermarkets. However, several studies indicate that "packaged systems" account for more energy use than built-up systems, suggesting greater attention should be given to improving the efficiency of these systems.

For most packaged refrigeration systems, energy use can be reduced by 20-50%, with simple payback periods of only a few years. The total potential savings using cost-effective technology totals approximately 230 trillion British thermal units (Btus) per year, a reduction of 43% from current energy use. Savings from more efficient packaged refrigeration systems could reduce carbon emissions from fossil fuel combustion by an estimated 4.7 million metric tons annually-equivalent to removing nearly 4 million cars off the road.

A number of barriers inhibit the use of more efficient designs, however, such as third-party decision-makers, purchaser and manufacturer emphasis on first cost, and limited availability of information on the comparative energy use of products. This report focuses on the following types of packaged systems that may be ripe for near-term action: beverage vending machines; ice-makers; reach-ins (refrigerators and freezers); and beverage merchandisers. In each section we look closely at the technical savings opportunities, market structure, market barriers, current efforts, and recommended next steps towards capturing available energy-saving opportunities for each of these equipment types. In addition, we briefly look at several other types of packaged refrigeration equipment.

To address market barriers, there are several key recommendations that we offer across equipment types to achieve the energy savings and greenhouse gas emission reductions potential described above.

1. Develop standard test procedures for measuring energy use of packaged equipment, where these methods are not already available. Such procedures are particularly needed for walk-ins.

2. Compile testing data established under standard test procedures, and develop a database of comparative energy use information. Such databases are particularly needed for vending machines and beverage merchandisers.

3. Finalize and promote voluntary initiatives, notably ENERGY STAR labeling, to increase both demand and supply for more efficient products. The ENERGY STAR label and information used in developing the program criteria can be used to both educate end-users about the benefits of more efficient products and recognize manufacturers that produce products meeting the criteria. The ENERGY STAR program for reach-in refrigerators should be widely promoted and new ENERGY STAR programs developed for vending machines, beverage merchandisers and ice-makers.

4. Consider offering incentives for high-efficiency equipment, with modest incentives for ENERGY STAR units and higher incentives for units that substantially exceed the ENERGY STAR thresholds. Such programs should be offered and marketed by utilities, states and regional organizations as part of their DSM efforts.

5. Where voluntary efforts are not making progress, develop, enact, and regularly update mandatory minimum-efficiency standards to eliminate energy-wasting models. Standards are now being considered for vending machines, reach-ins, and ice-makers.

We find that for each equipment type, there are significant cost-effective savings opportunities that we should take advantage of by starting to act immediately. Packaged refrigeration systems are untapped lodes for energy efficiency. It is up to the various players-manufacturers, bottlers, end-users, electric utilities, governments, trade asociations, and public organizations-to cooperate in removing market barriers and beginning to mine this valuable resource.

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33 pp., 2002, $12.00, A015