Gapper SERV <edit> ATLANTA--(BUSINESS WIRE)--SERVIDYNE, INC. (Nasdaq: SERV - News), an energy efficiency and demand response company, today reported that it has entered into a contract with a major U.S. retailer to dramatically improve the energy efficiency of approximately 600 of its stores and distribution centers. The agreement has an estimated total revenue value of $8.7 million for project work that should begin almost immediately and be completed over the next 12-24 months.
Both companies expect their new strategic partnership will continue beyond the term of this initial agreement for an additional two to three years, in a comprehensive effort by the customer to expand this energy efficiency program to all of its existing stores, as well as its new locations and its franchisees. Terms of any such future work have not been negotiated.
“Servidyne developed this program in conjunction with our customer over the past 18 months, through a series of pilot demonstration projects and initial installations,” noted Todd Jarvis, President and CEO of Servidyne’s Building Performance Efficiency (BPE) Segment. “We estimate that this initial investment by our customer will yield its shareholders a return on invested capital in excess of 40 percent.”
Servidyne’s work to be completed under the agreement consists of lighting efficiency upgrades 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 a robust information dashboard that will detail energy consumption and operating conditions on a near real-time basis. Servidyne will also help each of the customer’s 600 facilities take advantage of any special financial incentives that may be offered by their respective electric utility providers, and utilize the new controls systems being installed to enable the retailer to benefit from other potential value streams, including utility-sponsored demand response programs. Servidyne will also track the resulting reductions in greenhouse gas emissions and calculate other environmental benefits as part of this contract.
“Servidyne currently is involved in similar pilot demonstration projects for other major customers, including manufacturers and retailers,” added Alan R. Abrams, Servidyne’s Chairman, President and Chief Executive Officer. “We hope to be able to expand those efforts into other large scale implementation programs in the future as well.”
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