Morrisons – Rare Energy Project

Gordons has advised Morrisons on an innovative arrangement with NG Bailey known as “Rare Energy”.  Rare Energy involves the installation of specialist technology which enables Morrisons to monitor in detail not just its energy consumption, but how energy is used across a large part of its estate.

Morrisons now has access to data on how certain working practices and equipment are affecting its energy consumption.  This allows Morrisons to drive energy efficiencies and reduce C02 emissions by monitoring which equipment needs to be altered or upgraded.  It also informs Morrisons on the changes necessary to reduce its energy usage.  This project will assist Morrisons in realising its commitment “to reduce operational carbon emissions within our business by 30% in absolute terms by 2020, from a 2005 baseline”.

Partner and Head of Construction, Richard Piper negotiated the installation and performance monitoring contract.  A key legal and commercial consideration was ensuring that there was a mechanism in place to accurately quantify energy usage;  in essence, the greater the energy consumption savings, the greater the financial return from the project.  The agreement was dependent on achieving clarity as to energy consumption baselines, criteria for re setting those baselines, and understanding the exceptional circumstances which should be excluded from energy consumption monitoring.  Putting such a contractual system in place was important to ensure that real practical benefit is achieved from this innovative technology.

Stuart Kirk, Head of Energy at Morrisons says: “Applying the Rare Energy framework gives us the opportunity to dig deeper into the energy efficiency of our stores. The system will allow our maintenance team to apply a step-by-step process to understanding the sources of energy demand, and to apply simple fixes without impacting our customer experience.”

For further information on Morrisons’ Rare Energy project click here.