By Richard von Moltke – general manager at Static Power, a division of Actom
Expanding electricity generation capacity to meet demand might seem like the only solution, but it’s not the first step or only solution. This is the first instalment of a two-part series.
Freepik
Energy prices are rising worldwide, putting real pressure on businesses, especially those in energy-intensive sectors like mining, manufacturing and large-scale industrial operations. For these companies, energy is more than a consumable; it is a critical part of daily operations. As such, finding ways to reduce consumption without compromising productivity is essential.
Expanding electricity generation capacity or not
A smarter, more sustainable approach is to focus on how, when, and where energy is used. By shifting to intelligent energy management strategies, businesses can optimise consumption, reduce costs, support sustainability goals, and shield operations from ongoing energy market volatility. As part of any energy security or energy savings initiative, understanding and optimising the existing consumption or load profile, should be the first step.
If an energy generation expansion option like adding solar PV is considered, it is imperative to first optimise the existing energy load profile and then base the expansion requirement on the smaller load profile. This approach can save a significant amount in capital expenditure for any proposed expansion project and in some cases even negate the need for immediate expansion. There are various optimising options to consider, depending on the characteristics and size of the load. Once the existing load profile is optimised, then the next step towards the expansion of energy sources can be considered.
The ultimate fit-for-purpose combination
At the core of smarter energy consumption strategies is a combination of battery energy storage systems, solar PV, diesel or gas generators, utility supply and then a high-quality energy management system, controlling the various energy sources optimally. By adding battery energy storage to form a micro-grid, it immediately provides the opportunity for other cost of energy saving mechanisms, such as peak-shaving, energy arbitrage and energy security.
During energy arbitrage, battery energy storage systems act as an energy bank, storing electricity when rates are low, often overnight or during off-peak (low tariff) hours, or from excess solar PV energy and then supplying that energy during peak demand (high tariff) times when electricity is more expensive. This means companies can reduce their total demand from the grid during high tariff times, which directly cuts down on higher-cost energy charges. These energy demands are measured and billed in both the standard kWh usage as well as the kVA demand costs, which should both be always considered. Understanding the kVA peak demand of your load profile and using the battery energy storage system to reduce and limit this peak demand from the utility, can produce significant demand savings as this forms a significant part of any industrial energy user’s energy bill.
Source: Supplied by Actom
