Supermarket Refrigeration Market Assessment

The overall goal of this project was to assist Northern States Power Company in updating and expanding their C&I refrigeration rebate program by identifying technologies which have good potential to reduce demand and/or energy use, but are not currently widely implemented.

Specific objectives were:

  1. to identify and characterize NSP customers using substantial energy for refrigeration;
  2. to identify equipment options and design strategies which have potential to reduce demand and/or energy use in commercial and industrial refrigeration systems;
  3. to assess key market characteristics for these measures and strategies, including current market penetration and customer perceptions, as well as customers' economic and other criteria in equipment selection and system design;
  4. to make a preliminary assessment of desirable incentive program characteristics for this market.

The project deliverables include three reports. This report addresses supermarket refrigeration. A second report deals with industrial refrigeration. A third report presents the results of a survey of 40 utilities offering demand-side management (DSM) programs covering refrigeration. Relevant findings from that report are brought into the first two reports as appropriate.

The supermarket phase of the project identified a number of key market issues. The decision-making processes and key decision-makers in the e local industry were identified, as well as the important manufacturers. National and local perceptions of various technologies were thoroughly investigated, providing valuable insights on market barriers and the types of information that decision-makers will view as persuasive for various technologies. Customers' payback criteria and reactions to alternative program designs were obtained. In addition, customers own ideas about rebate opportunities were collected.

The project identified six technologies that should be added to the present rebate program. It identified three technologies that should be removed from the program or substantially scaled back. Eight technologies were identified which need to be investigated further through modeling, field evaluation, engineering analysis and/or further market research. 1 Six technologies were identified for which currently ongoing R&D and/or commercialization efforts should be tracked. Finally, numerous technologies were shown not to be good program candidates, including seven that are already so widely practiced in the industry that no rebate is needed, nine that do not offer cost-effective savings, and several others with specific problems. 

Full Report (PDF)
Supermarket Refrigeration Market Assessment