Manufacturers no longer view electrical energy as simply a means to an end, a necessary but relatively minor component of their total costs. Instead, forward-looking manufacturers view energy management as a strategic asset, a means to achieve competitive edge.
Negotiating power quantity and quality
Quality and reliability of energy supply affect facility uptime and profits. A recent study estimated losses of $12 billion to $26 billion annually in the U.S. due to power fluctuations and unplanned outages.
Some manufacturers have gone on the offensive with energy providers who seek to lock in their "base load" business. Owners are negotiating contracts that stipulate power quantity and quality. Failing to meet minimum requirements of the contract will result in costly penalties for the energy provider.
Sandwell's Energy Expertise Produces Bottom-Line Savings
Sandwell's Power Group provides an effective complement to our clients' in-house skills. Our expertise ranges from identifying operational and performance improvements to full EPC installations.
We have assisted both process industries and manufacturers to analyze energy demands, examine energy supply options, and implement energy management strategies that result in significant competitive advantage for our clients.
We have years of experience in the distributed generation field, working with industrial and manufacturing clients, and with energy service companies, in the development of on-site energy facilities.
Yet today’s energy providers are willingly writing checks to customers for lapses in power quality resulting in lost production. It’s regarded as an acceptable business risk in the new deregulated business environment.
Adopting power management strategies
Optimum plant operation requires more sophisticated power management strategies, including:
- knowing when and how to shift operations to off-peak times
- calculating and planning for tolerable energy interruptions
- knowing how lower power quality will affect equipment and when this option can be utilized as a cost-saving mechanism
- knowing where and how energy is used in manufacturing and processing facilities, and being able to predict consumption
- sub-metering separate cost centers within the plant
- implementing strategies to prepare for emissions trading programs.
Generating power on-site
The growth of distributed generation offers a range of options to industrial power users. Installing their own systems may not only meet their own power needs but offer a means to augment the business with strategic exports of electrical power into deregulated markets. Alternatively, industrial users may choose to contract with a third-party developer for on-site energy facilities.
Energy is no longer a minor component of production costs. Owners who recognize the importance to the bottom line of their energy supply and on-site energy systems will have competitive advantage in the new century.
