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http://www.greentechmedia.com/articles/harvesting-megawatts-from-mcdonald=
s-5930.html
=20

=20



Today's Date: Tuesday, March 24, 2009=20

Harvesting Megawatts From McDonald's?=20

Comverge, Advanced Telemetry and others are trying to bring demand =
response and energy efficiency to fast food restaurants, retail outlets, =
and the thousands of other small businesses out there.=20

by: Michael Kanellos
 March 24, 2009=20

The power plant of the future might prepare value meals too.

Advanced Telemetry - which makes software and services for energy =
management and control - says it has been able to cut the utility bills =
at the fast food franchises by an average of 12 percent to 15 percent a =
month, according to CEO Gus Ezcurra, mostly by fine-tuning the air =
conditioner controls. The average bill for a 3,000 square foot outlet is =
about $2,500. Some monthly bills have been cut by 30 percent, he added.  =


The company also recently conducted a demand response trial with a =
Southern California utility that managed to take several kilowatts of =
demand off the grid. Tens of kilowatts harvested from fifty or so small =
outlets won't prevent a blackout, but if you extrapolate the figure =
across the number of wheel balancing centers, restaurants, video rental =
stores and 7-Elevens in this great land of ours it begins to add up.

"Eventually you get volume," he said.

Small and medium-sized businesses are potentially poised to become the =
next frontier for smart grid companies. Approximately 18 percent of the =
energy consumed in America goes to operating commercial buildings, =
according to the Department of Energy, and heating and air conditioning =
can account for 30 to up to 60 percent of that total. Worse, it's not =
really deployed efficiency: think for a moment how cold Jack in the Box =
feels when you walk in on a particularly hot day.

Utilities and energy service companies have already begun to install =
energy efficiency networks and sell demand response services to large =
businesses. The large business sees a drop in operating expenses and =
gets a fee for providing so-called negawatts at peak times. The utility =
avoids a brownout and the service provider gets a fee.

Meanwhile, consumers in parts of Europe and the U.S. have begun to =
participate in these sorts of networks because utilities have been =
willing to foot the bill.

Small business, however, has been stuck in the middle.

"Utilities have a tough time getting to below 250 kilowatts," said =
Comverge CEO Robert Chiste. Small and medium-sized businesses are "a =
good sweet spot, but it is difficult to get to."

Comverge, though, says it has already begun to penetrate the market. The =
retailer Limited Brands is a customer. Comverge provides both energy =
efficiency services (i.e., installing technology that cuts consumption) =
as well as demand response (i.e., getting customers to refrain from =
using power at peak times for money) to this market.

One of the bigger stumbling blocks has been customer acquisition. Simply =
put, it's prohibitively expensive to have a direct sales force that can =
reach these customers, says Chiste. He wouldn't say exactly how Comverge =
is getting to these customers, but the company relies in part on =
tried-and-true mass marketing techniques.

Energy efficiency is a somewhat straightforward proposition. Customers =
can cut "at least 10 to 15 percent" from their power demands with =
improved efficiency, Chiste said.

Demand response is tougher, he said. Customers tend to worry about the =
experience of customers inside their stores. No one wants sweaty =
patrons. To get around that Comverge will place somewhat strict =
parameters around the contract. In a typical contract, the company will =
agree to only take over the controls of the air conditioning system for =
80 or so hours a year. And when it takes control of the air conditioner, =
it cycles it on and off to maintain temperatures.

"We run on very short bursts," he said.

Economic savings actually don't play as big a role in demand response as =
you might think. The savings from energy efficiency controls are far =
higher. As a result, Comverge sends customers bounties for demand =
response services every quarter.

Another big challenge is that power demands at small outlets vary =
considerably, according to Ezcurra. At times, the places can be nearly =
empty. The next thing you know, a busload of old ladies on their way to =
the Konocti Boat Harbor might come streaming in.

"By controlling temperature you can have a tremendous impact on =
operations," Ezcurra said. Most of these places also don't have CIOs on =
site. "The employees are there to make hamburgers and tacos," he added.

Nonetheless, the energy efficiency message is trickling down. Advanced =
has installed energy management systems in 100 quick service restaurants =
and has orders to install in 300 more. It also provides consoles to =
houses and has licensed software to General Electric for its =
SmartCommand product.

Under the stimulus, customers can get 30 percent off on the first $1,500 =
of equipment, Ezcurra added.=20

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<DIV><FONT face=3DArial size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial"><A=20
href=3D"http://www.greentechmedia.com/articles/harvesting-megawatts-from-=
mcdonalds-5930.html">http://www.greentechmedia.com/articles/harvesting-me=
gawatts-from-mcdonalds-5930.html</A><o:p></o:p></SPAN></FONT></DIV>
<DIV class=3DSection1>
<P class=3DMsoNormal><FONT face=3DArial size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"><o:p>&nbsp;</o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;<A=20
href=3D"http://www.greentechmedia.com/"><IMG alt=3D"Greentech Media"=20
src=3D"http://www.greentechmedia.com/img/refreshing/greentechmedia.gif"><=
/A></o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"><o:p></o:p></SPAN></FONT>&nbsp;</P>
<P class=3DMsoNormal style=3D"VERTICAL-ALIGN: middle; LINE-HEIGHT: =
22.5pt"><FONT=20
face=3D"Times New Roman" size=3D1><SPAN style=3D"FONT-SIZE: =
8.5pt">Today's Date:=20
Tuesday, March 24, 2009 <o:p></o:p></SPAN></FONT></P><FONT=20
face=3D"Times New Roman" size=3D3><SPAN style=3D"FONT-SIZE: 12pt"><!-- =
main body -->
<DIV class=3Dcategory_headline_large><STRONG><FONT size=3D5>Harvesting =
Megawatts=20
From McDonald's?</FONT></STRONG> </DIV>
<DIV class=3Dfeatures_short style=3D"MARGIN-TOP: 0px">
<DIV class=3Dcategory_datetime4 style=3D"FONT-WEIGHT: =
normal">&nbsp;</DIV>
<DIV class=3Dcategory_datetime4 style=3D"FONT-WEIGHT: normal">Comverge, =
Advanced=20
Telemetry and others are trying to bring demand response and energy =
efficiency=20
to fast food restaurants, retail outlets, and the thousands of other =
small=20
businesses out there. </DIV>
<DIV class=3Dcategory_datetime3>&nbsp;</DIV>
<DIV class=3Dcategory_datetime3>by: <A=20
href=3D"mailto:kanellos@greentechmedia.com">Michael Kanellos</A></DIV>
<DIV class=3Dcategory_datetime2><IMG alt=3D"Bullet Arrow"=20
src=3D"http://www.greentechmedia.com/img/bullet_arrow_bg.gif"> March 24, =
2009=20
</DIV>
<DIV class=3Dcategory_excerpt style=3D"MARGIN-TOP: 1.3em"><!-- =
story_img1 -->
<P class=3Dpara>
<P class=3Dpara>The power plant of the future might prepare value meals =
too.</P>
<P class=3Dpara><A href=3D"http://www.advancedtelemetry.com/" =
target=3D_blank>Advanced=20
Telemetry</A> =96 which makes software and services for energy =
management and=20
control =96 says it has been able to cut the utility bills at the fast =
food=20
franchises by an average of 12 percent to 15 percent a month, according =
to CEO=20
Gus Ezcurra, mostly by fine-tuning the air conditioner controls. The =
average=20
bill for a 3,000 square foot outlet is about $2,500. Some monthly bills =
have=20
been cut by 30 percent, he added. &nbsp;</P>
<P class=3Dpara>The company also recently conducted a demand response =
trial with a=20
Southern California utility that managed to take several kilowatts of =
demand off=20
the grid. Tens of kilowatts harvested from fifty or so small outlets =
won't=20
prevent a blackout, but if you extrapolate the figure across the number =
of wheel=20
balancing centers, restaurants, video rental stores and 7-Elevens in =
this great=20
land of ours it begins to add up.</P>
<P class=3Dpara>"Eventually you get volume," he said.</P>
<P class=3Dpara>Small and medium-sized businesses are potentially poised =
to become=20
the next frontier for smart grid companies. Approximately 18 percent of =
the=20
energy consumed in America goes to operating commercial buildings, =
according to=20
the Department of Energy, and heating and air conditioning can account =
for 30 to=20
up to 60 percent of that total. Worse, it's not really deployed =
efficiency:=20
think for a moment how cold Jack in the Box feels when you walk in on a=20
particularly hot day.</P>
<P class=3Dpara>Utilities and energy service companies have already =
begun to=20
install energy efficiency networks and sell demand response services to =
large=20
businesses. The large business sees a drop in operating expenses and =
gets a fee=20
for providing so-called negawatts at peak times. The utility avoids a =
brownout=20
and the service provider gets a fee.</P>
<P class=3Dpara>Meanwhile, consumers in parts of Europe and the U.S. =
have begun to=20
participate in these sorts of networks because utilities have been =
willing to=20
foot the bill.</P>
<P class=3Dpara>Small business, however, has been stuck in the =
middle.</P>
<P class=3Dpara>"Utilities have a tough time getting to below 250 =
kilowatts," said=20
Comverge CEO Robert Chiste. Small and medium-sized businesses are "a =
good sweet=20
spot, but it is difficult to get to."</P>
<P class=3Dpara><A href=3D"http://www.comverge.com/" =
target=3D_blank>Comverge</A>,=20
though, says it has already begun to penetrate the market. The retailer =
Limited=20
Brands is a customer. Comverge provides both energy efficiency services =
(i.e.,=20
installing technology that cuts consumption) as well as demand response =
(i.e.,=20
getting customers to refrain from using power at peak times for money) =
to this=20
market.</P>
<P class=3Dpara>One of the bigger stumbling blocks has been customer =
acquisition.=20
Simply put, it's prohibitively expensive to have a direct sales force =
that can=20
reach these customers, says Chiste. He wouldn't say exactly how Comverge =
is=20
getting to these customers, but the company relies in part on =
tried-and-true=20
mass marketing techniques.</P>
<P class=3Dpara>Energy efficiency is a somewhat straightforward =
proposition.=20
Customers can cut "at least 10 to 15 percent" from their power demands =
with=20
improved efficiency, Chiste said.</P>
<P class=3Dpara>Demand response is tougher, he said. Customers tend to =
worry about=20
the experience of customers inside their stores. No one wants sweaty =
patrons. To=20
get around that Comverge will place somewhat strict parameters around =
the=20
contract. In a typical contract, the company will agree to only take =
over the=20
controls of the air conditioning system for 80 or so hours a year. And =
when it=20
takes control of the air conditioner, it cycles it on and off to =
maintain=20
temperatures.</P>
<P class=3Dpara>"We run on very short bursts," he said.</P>
<P class=3Dpara>Economic savings actually don't play as big a role in =
demand=20
response as you might think. The savings from energy efficiency controls =
are far=20
higher. As a result, Comverge sends customers bounties for demand =
response=20
services every quarter.</P>
<P class=3Dpara>Another big challenge is that power demands at small =
outlets vary=20
considerably, according to Ezcurra. At times, the places can be nearly =
empty.=20
The next thing you know, a busload of old ladies on their way to the =
Konocti=20
Boat Harbor might come streaming in.</P>
<P class=3Dpara>"By controlling temperature you can have a tremendous =
impact on=20
operations," Ezcurra said. Most of these places also don't have CIOs on =
site.=20
"The employees are there to make hamburgers and tacos," he added.</P>
<P class=3Dpara>Nonetheless, the energy efficiency message is trickling =
down.=20
Advanced has installed energy management systems in 100 quick service=20
restaurants and has orders to install in 300 more. It also provides =
consoles to=20
houses and has licensed software to General Electric for its =
SmartCommand=20
product.</P>
<P class=3Dpara>Under the stimulus, customers can get 30 percent off on =
the first=20
$1,500 of equipment, Ezcurra=20
added.&nbsp;</P></DIV></DIV></SPAN></FONT></DIV></BODY></HTML>

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