The agreement has an estimated total revenue value of $8.7m for project work that is scheduled for immediate commencement and completion over the next 12-24 months.
The scope of work for Servidyne under the agreement involves lighting efficiency upgradation and installation of new controls that will automate the scheduling and operation of the retailer’s heating and cooling equipment.
The new controls system and related software will provide the customer with an information dashboard that will enumerate energy consumption and operating conditions on a near real-time basis.
Servidyne will also help each of the customer’s 600 facilities avail any financial incentives that may be offered by their respective electric utility providers, and utilize the new controls systems to enable the retailer to benefit from other potential value streams, including utility-sponsored demand response programs. Servidyne will also record the resulting reductions in greenhouse gas emissions and calculate other environmental benefits as part of this contract.
Both companies expect that their new strategic partnership will continue beyond the term of this initial agreement for an additional two to three years, in order to expand this energy efficiency program to all of the customer’s existing stores, as well as its new locations and its franchisees.
Todd Jarvis, president and CEO of building performance efficiency segment at Servidyne, said: “Servidyne developed this program in conjunction with our customer over the past 18 months, through a series of pilot demonstration projects and initial installations.
“We estimate that this initial investment by our customer will yield its shareholders a return on invested capital in excess of 40%.”
