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Shin-Sapporo ARC City

Shin-Sapporo ARC City is a commercial complex located in Shin-Sapporo, a sub-center of Sapporo on the island of Hokkaido, Japan. As the equipment in the complex’s shopping center began to age, as an ESCO project was planned, involving large-scale renovations, equipment upgrades for some 30 items, and also improvements in operation management. One of the largest ESCO initiatives in Japan, this project successfully achieved 16.2% reduction in energy costs, as compared to the expected rate of 11.5%, thus fulfilling one of its most important objectives.

An ESCO project to improve energy efficiency on equipment replacement after for over 35 years operation

Shin-Sapporo was developed around JR Shin-Sapporo Station in the eastern part of Sapporo City in the early 1970s. In 1974, Sapporo Subcenter Development Public Corporation (hereinafter, SSDPC) was established with investment by the city of Sapporo as a third-sector company (a public-private partnership). Since then, this public corporation has been spearheading the development of the area as well as the administration and management of development projects. In the central district of the area is a commercial complex called Shin-Sapporo ARC City where Sunpiazza shopping center, dUo station building, an aquarium, a performing arts theater, and many other business establishments are located. Some 14 million people visit Shin-Sapporo ARC City annually.

Among the establishments in Shin-Sapporo ARC City, Sunpiazza boasts the largest number of visitors. Since its opening in 1977, the shopping center’s infrastructure equipment had been operating for more than 35 years. Therefore, in the summer of 2009, SSDPC began examining the replacement of aged equipment and measures for reducing energy consumption.

“During those years, revenues were declining due to the effects of lingering deflation, and thus cost reduction was the highest priority. With the aim of achieving a large reduction in utility costs, which accounted for a large portion of expenses, we decided to initiate large-scale and drastic upgrades of equipment not only in Sunpiazza but also in the dUo station building,” explains Mr. Toshimichi Terashima, Executive Vice President of SSDPC.

“In the planning stage,” adds Mr. Hitoshi Shinohara, General Manager of the corporation’s Facilities Department, “we decided to conduct a series of operations from equipment design to upgrading, system reconstruction, and operation and management as an ESCO project.”*1

This case study was published in the 2014 Vol.3 issue of the azbil Group's corporate magazine, azbil.