Distributed energy strategies and how manufacturers can operate as their own mini utilities

Manufacturing sectors with frequent periods of peak energy consumption, even if they are intermittent, can benefit from adding on-site energy storage to significantly reduce their peak energy demand from utilities. They can take control of their own power.

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Are there challenges in launching a DER strategy for manufacturers large and small? Of course. Upfront costs deter some projects. Many people face regulatory uncertainty – how does this relate to my local regulatory requirements?

And while the emerging market offers significant opportunities for producers to participate, it also requires technical expertise, typically in the form of a dedicated energy management team that understands the logistics of installing and maintaining energy resources on-site, rather than just the traditional approach of simply connecting to a local networks.

However, this trend is gaining momentum. Deployment is accelerating due to cost reductions in renewable energy technologies and DER assets (solar and electric vehicles). Environmental awareness is growing among manufacturers and the customers they serve, and people are demanding smarter and more energy-efficient approaches. As the costs of both local energy generation and storage decline, it becomes more beneficial for producers to invest in these opportunities.

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Decision-makers in the manufacturing industry considering adopting a DER approach can gain guidance from utilities that have been early and enthusiastic adopters of distributed energy approaches.

Both sectors face similar challenges in balancing energy supply and demand while ensuring reliability and profitability. Manufacturers and utilities can share experiences on grid management, demand response and renewable integration.

In many ways, running a manufacturing plant with on-site power generation is like managing your own mini-utility company.

Many of the same processes and technologies are involved. It is critical that both sides – industry and energy – share information, precautions and best practices to ensure the safe and reliable operation of both distributed assets and the power grid; this can open up many more avenues of cooperation (voltage/reactive power support, preemptive islands, frequency response, etc.).

With DER’s smart, strategic approach and guidance from the utility industry, producers can literally take control of their power.