60% energy saving solution for Tesco

IEEF delivered light to Tesco under a fully funded services contract resulting in immediate operational savings and equipment upgrade for Tesco. Under the services contract, Tesco purchases lux levels / lighting from SDCL. Lux levels are measured and verified on a quarterly basis by the project delivery partner, DCS Electrical, a local lighting contractor based in Kerry, with payments from Tesco conditional on the agreed lux levels being achieved. The services contract was delivered off-balance sheet for Tesco.

Solution implemented

Upgrade of 5,000 LED panels across 7 Tesco sites delivering average annual energy savings in excess of €540,000. The project delivery partner guaranteed the energy savings and will manage both the operation & maintenance and the measurement & verification of the LED lights for the duration of the contract. IEEF used appropriate equipment warrantee and insurance coverage to mitigate any credit risk.

Project Benefits

  • Improved lighting quality and experience for Tesco customers
  • Substantial savings in energy and maintenance delivered with minimal impact to customers
  • Performance and technical risk transferred to SDCL and the delivery partner for the contract term
  • Removed the requirement for Tesco to use their internal capital budget to fund the project
  • Off-balance sheet structure
  • Hedge against future energy price rises

Food Retail Sector

IEEF provides guaranteed energy savings based on a long term energy performance contract with no upfront capital expenditure and substantial risk transfer for the retailer. We have a detailed understanding of the key energy saving initiatives for the food retail sector and the importance of minimising disruption to operations during the installation phase. We are fully aware of the constant pressure that food retailers are under to improve profitability in a very price competitive market. Our solution positively impacts both the top and bottom line for the food retailer: i) quality lighting and refrigeration improves the look of the produce and has widely been associated with increased customer spending and a more enjoyable customer experience; ii) we deliver immediate operational savings through reduced energy consumption and maintenance savings. SDCL’s investment model can also be delivered off-balance sheet for the retailer and therefore works within existing financial covenants.