Tesco uses new AI technology to slash energy costs by 10%

Tesco has cut its energy expenses by 10% in eight distribution centres with the help of new AI technology, under a trial which involves raising the temperature of its fridges by one degree.

The grocery giant unveiled the results of a trial using industrial refridgeration engineering comany, Star Refridgeration’s, Ethos AI system.

The business said it has helped Tesco save 4GWh on energy costs and more than 835 tonnes of CO2e throughout its refrigerated distribution network over 21 months.

Ethos first installed its technology across three of the grocer’s sites before it was launched to five more locations throughout the country.

The data was used to allow StarCare, the supermarket’s maintenance team, to discover the optimal balance between operational efficiency and energy consumption, which included making changes and repairs to capital expenditure initiatives and purging air from condensers.

Under the trial, chill temperatures across Tesco’s estate were increased by 1°C, which it said “challenged conventional practises in the sector” and resulted in major savings.


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The results saw the retailer save 4GW of energy and cut CO2 emissions by 835-tonnes across locations including Livingston, Doncaster and Hinckley from January 2022 to September 2023.

Tesco group energy manager (renewables & LZC) Rob Redfern said: “We’re very proud to say that we have reduced energy consumption by an average of 10% across those distribution sites in the short period between January 2022 and September 2023, achieving a return on investment in under three months.”

The news comes after Tesco saw profits more than double in its full year results this week, as price pressures on supermarkets continued to ease.

Chief executive Ken Murphy said inflationary pressures had “lessened substantially” but noted that “things are still difficult for many customers”.

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